Individual Economists

Porsche Sales Plunge Most In 16 Years

Zero Hedge -

Porsche Sales Plunge Most In 16 Years

Porsche AG shares in Germany are headed for their steepest weekly decline since trading began in late 2022, after the 911 maker reported that vehicle sales in the 2025 selling year fell to their lowest level in 16 years.

The 911 maker announced earlier that it delivered 279,449 vehicles to customers worldwide in 2025, down 10% from 310,718 in 2024. This marked the largest annual drop in deliveries since the 2009 financial crisis roiled global markets and crushed consumer sentiment.

"After several record years, our deliveries in 2025 were below the previous year's level. This development is in line with our expectations and is due to supply gaps for the 718 and Macan combustion-engined models, the continuing weaker demand for exclusive products in China, and our value-oriented supply management," Matthias Becker, Member of the Executive Board for Sales and Marketing at Porsche, wrote in a statement.

Porsche's troubles are not dissimilar to those of other European auto brands, where sliding sales, profit warnings, intensifying competition from Chinese brands, and weak electric-vehicle demand have created significant uncertainty that is likely to linger well into the second half of the year.

The stock is slightly lower in European trading. On the week, shares are down the most on record (-10%), with trading data going back to their 2022 initial public offering.

Compared with peers... 

Bloomberg cited a conversation earlier this week between Oddo BHF analyst Anthony Dick and Porsche CFO Jochen Breckner at the German Investment Seminar in New York. Breckner told the analyst he was "even more conservative" than before. In reducing his estimates, Dick said Porsche is in an ongoing "major restructuring," noting that profitability has been under pressure since its IPO. He added that this year and next are likely to be transition years for the company

According to Bloomberg data, analysts remain mostly pessimistic on Porsche, with just five buy ratings, 13 neutral ratings, and 11 sell ratings.

The broader EU auto industry is struggling.

Bernstein analysts, led by Stephen Reitman, called Porsche their "wild card," noting that a shift to a full-time CEO with experience at Ferrari and McLaren Automotive provides "room for optimism" and greater urgency in improving performance.

Overall, Porsche appears to be in prolonged transition over the next one to two years, while the broader EU auto industry remains stuck in a rut, weighed down by weak demand, margin pressure, and an uncertain path forward.

Tyler Durden Fri, 01/16/2026 - 07:45

UK Govt Threatens To Return Lucy Connolly To Jail For Sharing Joke Post On X

Zero Hedge -

UK Govt Threatens To Return Lucy Connolly To Jail For Sharing Joke Post On X

Authored by Steve Watson via Modernity.news,

Lucy Connolly, the 42-year-old UK woman previously sentenced to two years in prison for a post on X is back under the microscope of Britain’s speech enforcers, with the government threatening to put her back behind bars for merely reposting a satirical jab at Prime Minister Keir Starmer.

The latest drama stems from Connolly reposting a comment that read: “Could Trump could come and take Starmer like they did in Venezuela.”

Probation officials deemed it “not of good behaviour,” with Connolly noting: “Apparently… somebody called probation and said they were very offended by this post and it’s inciting violence.”

The fact that some random person called in the thought crime to the authorities is arguably equally as disturbing as the resulting threat to send Connolly back to prison. It highlights how there are hordes of bootlicking citizens eager to act as the thought police and to tattle to the State.

Connolly has also been cautioned over remarks about British-Egyptian extremist Alaa Abd el-Fattah, who has a history of posting extremist threats against British people, yet was welcomed into the country recently by Kier Starmer after being released from prison by Egyptian authorities.

Connolly first hit the headlines after the horrific Southport attacks, where three young girls were murdered by a second-generation Rwandan migrant. In the heated aftermath, she tweeted: “Mass deportation now, set fire to all the f***ing hotels full of the bastards for all I care.”

Judge Melbourne Inman KC labeled it “grossly offensive” and handed her the maximum 31-month sentence under the Public Order Act, despite no prior offences or direct threats. She served 380 days before release on licence in August, under conditions typically reserved for serious offenders.

Her case drew fire from proponents of free speech, who blasted it as proof of Britain’s “two-tier justice system.” Before his tragic murder, Charlie Kirk noted such words “would not be any prison time in America,” underscoring how the UK has slid toward a “totalitarian country.”

Connolly insists she hasn’t posted anything offensive or inciting since her release, even suggesting authorities provide a list of “things she was allowed to say” to avoid these traps.

Connolly has also had to deal with her 13-year-old daughter, Edie, being barred from a new school after the headteacher rescinded a trial placement upon discovering her mother’s conviction. The educator claimed “racism doesn’t go down well” and that Edie’s presence would cause a “ruckus.”

Connolly called it “outrageous discrimination,” asking: “In what world is this ok?” and adding, “My daughter is being punished for my views. She’s innocent, and now she’s the one suffering.”

The Maduro quip that landed Connolly in hot water—suggesting Trump should swoop in and haul Starmer away like Venezuelan tyrant Nicolás Maduro—was no isolated gag. Thousands of frustrated Brits have cracked similar jokes across X and beyond, venting rage at a regime seen as trampling freedoms while bungling borders and the economy.

Posts like “Trump is gonna Maduro your ass next!” and “We really need Trump to repeat the Maduro operation with Starmer” rack up likes in the hundreds or thousands for mocking the PM’s fate. If resharing such satire warrants prison time, what’s next—a mass roundup of every citizen daring to poke fun at the powers that be?

This reeks of selective tyranny, cherry-picking targets to stifle dissent while ignoring the real threats fueling public fury.

Connolly’s ordeal is just one thread in Britain’s expanding speech gulag. Last year alone, police arrested nearly 10,000 people for “grossly offensive” social media posts under draconian laws like the Communications Act—averaging 30 busts a day.

Forces raid homes over sarcastic emails, old tweets, or WhatsApp chats, diverting resources from real crimes like burglaries and knife attacks. We’ve even seen early releases for violent offenders to make room for thought criminals.

Take the case of Luke Yarwood, jailed 18 months for two anti-immigration tweets viewed just 33 times. The judge called them “odious in the extreme,” despite no real-world impact or followers acting on them. Such minimal-reach rants get hammered harder than child abusers in some courts, exposing priorities skewed against ordinary Brits raging against open borders.

Starmer’s regime has recently gone as far as suggesting a complete ban on X, citing its Grok AI for generating fake images as a convenient excuse for what is clearly an effort to target the platform where unfiltered truth is allowed to reach the masses.

Now the government is turning its attention once again to Online Safety Act’s Section 121, empowering Ofcom to force platforms like WhatsApp to scan private messages via client-side tech—shattering end-to-end encryption.

Officially for child exploitation and terrorism, it flags everyday views on mass migration as radicalization risks: researching immigration stats, defending British rights, or protesting cultural shifts.

Schools are even using games labeling such concerns as paths to extremism.

The use of the “Maduro joke” shared by Connolly to crackdown on free speech echoes globally. In Spain, ex-senator Carles Mulet has denounced bullfighter Fran Rivera and right wing activist Vito Quiles for jokingly urging Trump to “continue” after Venezuela by intervening in Spain and eyeing Prime Minister Pedro Sánchez.

Ridiculously, the pair are now facing 5-10 years in prison, with authorities citing treason and provocation, among a litany of other offences.

This global assault on free expression demands fierce pushback. When mere reposts or quips land ordinary people in the crosshairs and families bear the brunt, it’s evident: the real danger isn’t online words, but regimes worldwide desperate to silence opposition to their rejected agendas.

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 Fri, 01/16/2026 - 07:20

UN Chief's Last Annual Speech Warns Global Cooperation 'On Deathwatch'

Zero Hedge -

UN Chief's Last Annual Speech Warns Global Cooperation 'On Deathwatch'

UN Secretary-General Antonio Guterres will step down as head of the UN in 2026, and on Thursday he issued a stark warning to world leaders upon the occasion of this last annual priorities speech.

He said that international cooperation is being pushed "onto deathwatch" by widening geopolitical rifts and increased and unpredictable violations of international law and sharp cuts to humanitarian aid. While not naming names, the United States under President Trump was probably high on the UN official's mind, and certainly the audience was thinking it in the wake of the Venezuela operation as well as threatened US strikes on Iran.

Source: UN Dispatch

"At a time when we need international cooperation the most, we seem to be the least inclined to use it and invest in it," he said, decrying some governments are actively working to weaken the system, increasingly creating "self-defeating geopolitical divides".

"The context is chaos," Guterres told delegates. "We are a world brimming with conflict, impunity, inequality and unpredictability."

Another big and dramatic line, as he discussed hot conflicts from Ukraine to Gaza to Yemen to Sudan - came in the following:

"That is the paradox of our era: at a time when we need international cooperation the most, we seem to be the least inclined to use it and invest in it," he said, adding: "Some seek to put international cooperation on deathwatch. I can assure you: we will not give up."

"Peace is more than the absence of war," he additionally said, blaming that poverty, lack of development, inequality and weak institutions end up creating conditions for further violence. "Sustainable peace requires sustainable development."

"As we meet today, millions are trapped in cycles of violence, hunger and displacement," he additionally described, calling on more robust global action.

Meanwhile over in Moscow, President Putin expressed agreement, the same day in a speech not related to the United Nations describing that the global situation is on the brink:

“The situation on the international stage is increasingly deteriorating - I don’t think anyone would argue with that - long-standing conflicts are intensifying, and new serious flashpoints are emerging,” Putin said with a smile.

In a speech to new ambassadors who ‍had presented their credentials in the Kremlin, his first public remarks on foreign policy issues ‍this ‍year, Putin did ⁠not mention the United ‌States or Trump explicitly.

“We hear ⁠a monologue from ‍those who, by the right of might, consider it permissible to ⁠dictate their will, lecture others, and issue orders,” Putin said. “Russia is sincerely committed ‌to the ideals of a multipolar world.”

"We hope that recognition of this need will come ‍sooner or later. Until then, Russia will continue to consistently pursue its goals," Putin stated.

More junior Russian officials have over the past days pointed out that it's absurdly hypocritical for the West to lecture Moscow, when Washington is going unprovoked into countries like Venezuela to remove leaders - and threatening new war against Iran.

Tyler Durden Fri, 01/16/2026 - 06:55

10 Friday AM Reads

The Big Picture -

My end-of-week morning train WFH reads:

10 Breakthrough Technologies: Here are the advances that we think will drive progress or incite the most change—for better or worse—in the years ahead. (MIT Technology Review)

$25 Billion. That’s What Trump Cost Detroit. It is pretty difficult to futureproof your company against stupid. This is exactly what the American automobile industry is facing as a result of President Trump’s gratuitous war against electric vehicles, which is forcing manufacturers to return to an increasingly outdated past. (New York Times) see also EVs grew more in ’25 than ’24, despite constant lies saying otherwise. In 2025, the world sold 20.7 million EVs – 3.6 million more EVs than it did in the previous year, according to a new report by Rho Motion. That’s a larger increase than last year’s 3.5 million increase, which was also higher than the previous year, showing that EVs keep growing despite unprecedented attacks against them by governments, media and even by automakers themselves. (Electrek)

The YouTube Vibecession: By the numbers, everything is going great for creators. So why are so many of them scared it’s all about to fall apart? (New York Magazine)

Steak Is Expensive, and Now It Rules the Food Pyramid: New dietary guidelines raise affordability concerns, but some US officials say customers have choices. (Businessweek free)

The Oligarchs Pushing for Conquest in Greenland: Trump’s fixation on filching the island territory from Denmark may seem like the demented ravings of a mad king. But to a cohort of plutocrat weirdos, it makes perfect sense. (New Republic)

Inside the Mad Dash to Save Saks, America’s Last Luxury Retailer: Putting Saks Fifth Avenue and Neiman Marcus together was supposed to create a luxury powerhouse. Just over a year later, unpaid debts triggered its bankruptcy. (Wall Street Journal)

The secret to being happy in 2026? It’s far, far simpler than you think … Stop stressing about self‑improvement or waiting until you’re on top of everything. This year give yourself permission to prioritise pleasure. (The Guardian)

Trump Has No Plan for Venezuela: How the Trump administration’s contempt toward planning all but ensures a mess in Venezuela. Plus: Donald Trump’s predatory worldview and Rudyard Kipling’s “Recessional.” (The Atlantic)

Life Under a Clicktatorship: What happens to government when everything is content? (Can We Still Govern?) see also What We Choose to Nazi: The Department of Labor is posting Heroic Realism propaganda. What, exactly, are they telling us? (The Bulwark)

The untameable Victor Osimhen: The volcanic temperament and irresistible brilliance of the footballing star converge as the Super Eagles close in on continental glory. (Africa Is A Country)

Be sure to check out our Masters in Business interview this weekend with Nobel laureate Richard Thaler and his University of Chicago Booth School colleague Alex Imas on the update and reissue of his classic book The Winner’s Curse.

 

Exxon CEO Calls Venezuela ‘Uninvestable’ 

Source: Bloomberg

 

Sign up for our reads-only mailing list here.

 

The post 10 Friday AM Reads appeared first on The Big Picture.

Data Centers, Power Infrastructure, Healthcare Set To Lead Next Phase Of Construction Boom

Zero Hedge -

Data Centers, Power Infrastructure, Healthcare Set To Lead Next Phase Of Construction Boom

Eric Gaus, chief economist at Dodge Construction Network, joined Goldman Sachs analysts to discuss the overall state of U.S. building construction, assessing which project types are likely to dominate and the underlying strength of the trend.

"We come away from our discussion with a continued outlook for private non-residential construction spending to return to growth in 2026 vs 2025, with strength led by data centers, power infrastructure, and healthcare," Goldman analysts led by Adam Bubes wrote in a note on Tuesday.

For those unfamiliar with Dodge Construction, the index is a leading indicator of U.S. construction activity, measuring the dollar value of new, nonresidential building projects entering the planning phase. Analysts track the index because it provides early signals for industrials, materials, engineering firms, and REITs, and often anticipates broader turns in the business cycle.

Bubes forecasted nominal growth of 2% in 2026 and 5% in 2027 in private nonresidential construction spending, with data centers, power infrastructure, and healthcare leading the way.

About 2.5 months ago, the Dodge Momentum Index showed a sharp increase in data center buildouts expected for 2026.  In May of last year, we pointed to UBS analyst Steven Fisher, who forecasted the Trump-era construction boom in AI data centers wouldn't filter into the real economy until early 2026.

"More slowing before reacceleration in 2026," Fisher told clients at the time, adding, "We expect stimulus and structural forces to drive the rebound, while cyclical factors remain weak."

ZeroHedge Pro Subs can read the full Goldman note in the usual place, where key takeaways from the Dodge Construction roundtable offer more insight into building trends nationwide this year.

Tyler Durden Fri, 01/16/2026 - 05:45

Data Centers, Power Infrastructure, Healthcare Set To Lead Next Phase Of Construction Boom

Zero Hedge -

Data Centers, Power Infrastructure, Healthcare Set To Lead Next Phase Of Construction Boom

Eric Gaus, chief economist at Dodge Construction Network, joined Goldman Sachs analysts to discuss the overall state of U.S. building construction, assessing which project types are likely to dominate and the underlying strength of the trend.

"We come away from our discussion with a continued outlook for private non-residential construction spending to return to growth in 2026 vs 2025, with strength led by data centers, power infrastructure, and healthcare," Goldman analysts led by Adam Bubes wrote in a note on Tuesday.

For those unfamiliar with Dodge Construction, the index is a leading indicator of U.S. construction activity, measuring the dollar value of new, nonresidential building projects entering the planning phase. Analysts track the index because it provides early signals for industrials, materials, engineering firms, and REITs, and often anticipates broader turns in the business cycle.

Bubes forecasted nominal growth of 2% in 2026 and 5% in 2027 in private nonresidential construction spending, with data centers, power infrastructure, and healthcare leading the way.

About 2.5 months ago, the Dodge Momentum Index showed a sharp increase in data center buildouts expected for 2026.  In May of last year, we pointed to UBS analyst Steven Fisher, who forecasted the Trump-era construction boom in AI data centers wouldn't filter into the real economy until early 2026.

"More slowing before reacceleration in 2026," Fisher told clients at the time, adding, "We expect stimulus and structural forces to drive the rebound, while cyclical factors remain weak."

ZeroHedge Pro Subs can read the full Goldman note in the usual place, where key takeaways from the Dodge Construction roundtable offer more insight into building trends nationwide this year.

Tyler Durden Fri, 01/16/2026 - 05:45

China Leads Global Coal Power Additions Despite Renewables Push

Zero Hedge -

China Leads Global Coal Power Additions Despite Renewables Push

By Charles Kennedy of OilPrice.com

China continues to nearly single-handedly prop up global coal consumption and new coal-fired power generation, despite being also the world’s leading investor in renewables and battery storage. 

China is set to commission as many as 85 coal-fired power generating units this year, out of a total global of 104 coal projects slated for start-up in 2026, according to data by non-profit Global Energy Monitor (GEM) cited by the Financial Times.

Of all the 63 gigawatts (GW) of coal-fired power generation expected to begin commercial operations globally this year, 55 GW will be in China, the GEM data showed. 

Last year, China accounted for a massive 78% of all global coal power capacity that began operating. The world’s top coal consumer and importer also makes up a whopping 86% of the total global capacity under construction and expected to be commissioned this year, according to the data analyzed by GEM. 

Apart from China, other Asian economies such as India, Indonesia, and Vietnam continue to add coal-fired capacity. 

GEM data shows India has 24 GW of coal power capacity under construction. India is investing huge sums in renewables and hit its renewable installation target earlier than planned, but it continues to bet on coal. 

Coal-fired power generation and capacity installations in India continue to rise and coal remains a key pillar of India’s electricity mix with about 60% share of total power output. Despite booming renewable capacity additions, India continues to rely on coal to meet most of its power demand as authorities also look to avoid blackouts in cases of severe heat waves.

Globally, China is the leader – by far – in renewable energy investments and capacity installations, but it is also a leader in coal-fired power and continues to be the key driver of record-high global coal demand. 

So, any meaningful reduction of global coal-related energy emissions depends on how China approaches its energy security and affordability dilemma in the coming years.

Tyler Durden Fri, 01/16/2026 - 05:00

Danish Intelligence Confirms The Russia-China Threat To Greenland

Zero Hedge -

Danish Intelligence Confirms The Russia-China Threat To Greenland

A 2025 Intelligence Assessment by the government of Denmark highlights the long term Russian and Chinese 'threat' in Arctic waters, at a moment Greenland officials have rejected the US assertion that the large resource-rich island and its waters are being gradually influenced and taken over by the Russia/China 'menace'.

Trump has recently stated, "We need that because if you take a look outside of Greenland right now, there are Russian destroyers, there are Chinese destroyers and, bigger, there are Russian submarines all over the place. We’re not gonna have Russia or China occupy Greenland, and that’s what they’re going to do if we don’t."

AFP/Getty Images

Greenlanders meanwhile are by and large rejecting this, though perhaps Trump was using hyperbole in a "see Alaska from my house" Sarah Palin moment.

While Trump has already proven he often first sets his interventionist policy and agenda, and then goes looking for a justification in a post hoc fallacy kind of way (a longstanding tradition among pretty much all American presidents, sadly), the Danish intelligence report does seem to add general weight to Trump's arguments.

For a sampling of official quotes from the Danish Defence Intelligence Service (DDIS) - Intelligence Outlook 2025, complied by Conservative pundit Nick Solheim:

"In recent years, the United States has significantly increased its security policy focus on the Arctic, while Russia continues its military build-up, and China continues to develop its capacity to operate both submarines and surface vessels in the region." (p. 30)

"Russia remains the strongest military power in the Arctic but sees itself as being challenged by the West. As a result, Russia will increasingly assert its interests through a more confrontational approach, both politically and militarily." (p. 30)

"Most of Russia’s nuclear-armed submarines are stationed in the Arctic. They form a key component of Russia’s plan to deter the United States from attacking, providing Russia with the capability to launch a potential retaliatory nuclear strike." (p. 31)

"The United States’ assessment of the scale and nature of future Chinese military activity in the Arctic is a key factor shaping its engagement in the region. Any Chinese military activity in the Arctic – particularly in proximity to US territory – would be regarded as a serious concern." (p. 31)

"China aims to develop the capacity for independent military operations in the Arctic. Chinese activities are primarily concentrated in the waters north of the Bering Strait, extending towards the North Pole." (p. 35)

"China’s long-term goal is to deploy missile submarines beneath the ice, thereby attaining the same nuclear second-strike capability as Russia and the United States." (p. 36)

"Although Chinese companies have shown interest in investing in Greenland, this has so far not produced tangible results. Nevertheless, China’s long-term Arctic interests include Greenland, and it is expected to continue pursuing cooperation with Greenland, particularly in research but also in commercial ventures." (p. 36)

"Despite the considerable geographical distance, Russia periodically deploys submarines, surface vessels and aircraft near both Greenland and the Faroe Islands, as well as throughout the waters between them." (p. 38)

"In addition, Russia employs civilian vessels operating in the area to carry out tasks such as surveillance on behalf of the Russian state." (p. 38)

"For Russia, the waters between Greenland, Iceland, the Faroe Islands and the United Kingdom – the so-called GIUK Gap – form the main maritime gateway to and from the Arctic. Thus, the GIUK Gap is vital for Russia in the event of an armed conflict with NATO." (p. 35)

"In such a conflict, Russia would seek to disrupt the supply lines between the United States and Europe by deploying attack submarines capable of transiting the GIUK Gap undetected." (p. 35)

But it should be clear there's also a convenient invoke the Moscow/Beijing bogeyman for when it suits your purpose kind of thing at play here...

The 'fact checkers' have been quick to push back, for example in this fresh Associated Press article: "Experts have repeatedly rebuffed Trump’s claims of Chinese and Russian military forces lurking off Greenland’s coastline. Experts say Russia instead operates in the Barents Sea, off the Scandinavian coast, and both China and Russia have a presence in the Bering Sea south of Alaska."

It remains that the "Arctic" is a big, big place - and pretty much every great power with significant maritime capability patrols it as international waters. Whether Greenland is truly under threat or not from Russia and China is another matter.

Tyler Durden Fri, 01/16/2026 - 04:15

What's Behind Washington's Signaling Support For NATO Troops In Ukraine?

Zero Hedge -

What's Behind Washington's Signaling Support For NATO Troops In Ukraine?

Authored by Andrew Korybko,

It might be a negotiating tactic to pressure Russia into concessions on its maximalist goals in the conflict as a quid pro quo for not reprioritizing Russia’s containment over China’s by extending Article 5 to NATO states’ troops in Ukraine and thus reducing the odds that they’ll actually deploy there.

France and the UK recently committed to deploying troops to Ukraine in the event of a ceasefire as part of their latest proposed security guarantees to that country, the principle of which was praised for the first time ever by Steve Witkoff and Jared Kushner, the US’ Special Envoys for talks with Russia. The Paris Declaration that France and the UK signed also pledged their support for “Participation in a proposed US-led ceasefire monitoring and verification mechanism”. All of this certainly raises concern in Russia.

Secretary of War Pete Hegseth declared last February during his speech at NATO HQ that his country won’t consider member states’ troops in Ukraine to be covered by Article 5 and won’t deploy any of its own there either as part of any security guarantee. In light of the Paris Declaration, however, some in Russia might wonder whether the US is soon planning to reverse both policies to protect its NATO allies’ troops in Ukraine upon their deployment and deploy its own there too for monitoring a ceasefire.

Putin himself warned as recently as last September that Russia would deem Western troops in Ukraine “legitimate targets for destruction.” It’s therefore easy to see how their deployment en masse, unlike the minor unofficial French and UK troop presence in Odessa that Russian spies confirmed later that same month, could spiral out of control into World War III if Russia targets their forces. That might not happen, though, if the US’ support for the latest security guarantees is just a negotiating tactic (at least for now).

To explain, Trump 2.0 could have continued pumping Ukraine with weapons for free and never initiated talks with Russia if it wasn’t sincere about ending the conflict, all while gradually ramping up escalations against Russia as part of a “boiling the frog” approach for normalizing the path to World War III.

Abstaining from those courses of action only to suddenly engage in the unprecedented escalation of extending Article 5 to NATO states’ troops in Ukraine and even sending its own is possible but unlikely.

The “Trump Doctrine”, which readers can learn more about here, relegates Russia as a junior partner in a US-led world order. All that the US wants is to deny China access to more of Russia’s resources, which it requires for maintaining its growth and thus its superpower trajectory, by massively investing in some deposits as an incentive for compromising on its security-related goals in Ukraine and then outbidding China for access to others in the future. This quid pro quo, however, remains unacceptable to Putin.

Even if his position doesn’t change and the conflict continues, achieving the above goal vis-à-vis Russia might become increasingly less important for the US if it soon obtains control over Iran’s, Nigeria’s, and other major BRI countries’ resources after its astounding success in Venezuela. In that event, it’s difficult to imagine Under Secretary of War for Policy Elbridge Colby, whose “Strategy of Denial” is at the center of the “Trump Doctrine”, prioritizing the Russian front of the New Cold War over the Chinese one.

After all, the aforesaid complementary policies include radically ramped-up multilateral military pressure upon China in parallel with denying it access to the resources (and markets) that it requires, which doubling down on the Ukrainian Conflict would detract from. If the non-military aspects of Colby’s “Strategy of Denial” are advanced in major BRI countries and among US partners in the Indo-Pacific, the EU, and the Gulf, then the cost of stubbornly trying to advance this with Russia wouldn’t be justified.

Accordingly, the US would be less likely to extend Article 5 to NATO states’ troops in Ukraine and naturally wouldn’t deploy its own there either in that scenario, instead possibly suggesting a compromise whereby its allies would concentrate their troops in Poland and Romania instead while the US might monitor a ceasefire via remote means like satellites and drones. This proposed compromise would be necessitated by circumstances, but the context likely wouldn’t be told to the Russians.

Rather, it could be presented as a pragmatic compromise for Russia scaling back its goals, particularly those related to demilitarization and territory. Putin is reluctant to do that, however, but he also might not want to risk upsetting the current arrangement within the US’ permanent military, intelligence, and diplomatic bureaucracies (“deep state”) whereby containing China now takes priority over containing Russia like could happen if he rejects a compromise and/or presses forward after Donbass.

Given the US’ eagerness to outsource Russia’s containment in Europe to the Polish-led “Three Seas Initiative” in partnership with Germany after the Ukrainian Conflict ends, which would enable the US to fully prioritize China’s containment, Russia’s post-conflict security situation might relatively improve (albeit not to the extent envisaged when the special operation began) so long as it agrees to a compromise. This opportunity of sorts could be lost if Russia continues pursuing its maximalist goals.

Five questions therefore arise whose answers will determine what might come next:

1. How serious is the US about extending Article 5 to NATO states’ troops in Ukraine and possibly deploying its own there too even at the expense of derailing plans to more muscularly contain China?

2. Does Putin believe that it’s serious or does he think that it’s bluffing? How might he react based on each assessment and what factors could change how he views its intentions?

3. What’s the likelihood of the US’ “deep state” dynamics reverting from prioritizing China’s containment to Russia’s if Putin rejects a compromise and/or presses forward after Donbass?

4. How might the US’ success or lack thereof in denying China access to other states’ resources (and markets) just like it did Venezuela’s affect the above as well as its flexibility in compromising with Russia?

5. To what extent might Putin compromise on his maximalist goals? Could he be persuaded to accept NATO troops in Ukraine after the conflict ends if the US doesn’t extend Article 5 to them?

There are more or less two ways for Putin to look at everything:

1. The US’ plans to more muscularly contain China will remain its priority, especially if it succeeds in denying China access to more energy and markets, so Russia can safely reject a compromise in favor of retaining its maximalist goals and pressing forward after Donbass without worrying that the US will redouble its military support for Ukraine and/or provoke a Cuban-like brinksmanship crisis by extending Article 5 to NATO states’ troops in Ukraine who might then unilaterally deploy there alongside its own.

2. The US’ “deep state” dynamics remain fluid so it’s possible that rejecting a compromise and then pressing forward after Donbass could be manipulated by Russia’s enemies to persuade Trump to reprioritize its containment over China’s, which could greatly raise the chances of the US redoubling its military support for Ukraine and/or provoking a Cuban-like brinksmanship crisis by extending Article 5 to NATO states’ troops in Ukraine who might then unilaterally deploy there alongside its own.

As for the US, it prefers a swift political end to the conflict so as to more muscularly contain China afterwards but not entirely on Russia’s terms, so it’ll likely apply more secondary sanctions upon Russia’s partners in pursuit of that if Putin rejects a compromise. If there’s a major Russian breakthrough, it might even threaten to extend Article 5 to NATO states’ troops in Ukraine if Russia doesn’t stop and then order their deployment to partition Ukraine if it still doesn’t at the risk of World War III if they’re attacked.

This approach could backfire if China and Russia become more dependent on each other due to the US denying the first access to more resources and the second its access to more of the markets in which it sells its resources (like India if there’s more secondary sanctions pressure and India then replaces Russian oil with Venezuelan as part of a deal). China could then gain access to Russia’s entire resource base on the cheap while Russia would receive the financing required for indefinitely perpetuating the conflict.

Such unprecedented mutual dependence on one another could backfire on them too, however, if it breeds resentment among one and/or if the US abruptly makes one of them a much better offer than before on the condition that they dump the other and thus indirectly help the US strategically defeat them. To be clear, Putin and Xi have repeatedly reaffirmed how deeply they trust one another so this dark scenario is unlikely, but it shouldn’t be casually dismissed either since the possibility still exists.

Circling back to the subject of the US supporting European security guarantees to Ukraine for the first time ever, this is arguably just a negotiating tactic at this stage, but it also signals (whether sincerely or not) that the US’ “deep state” isn’t solidly behind prioritizing China’s containment and could thus revert to prioritizing Russia’s if Putin rejects a compromise and/or presses forward after Donbass.

That’s all that can be assessed for now given the complexity of the global systemic transition at its latest stage.

Tyler Durden Fri, 01/16/2026 - 03:30

Nervous-Looking Macron Urges Military To Produce Own Version Of Russia's Oreshnik

Zero Hedge -

Nervous-Looking Macron Urges Military To Produce Own Version Of Russia's Oreshnik

French President Emmanuel Macron while addressing French military personnel at the Istres airbase in the south of the country on Thursday said that Europe needs its own answer to Russia's cutting edge hypersonic arsenal.

In the remarks he specifically invoked Russia's hypersonic ‘Oreshnik’ missile, which has been launched on Ukraine at least two known times - one just a week ago - and is capable of reaching speeds exceeding Mach 10.

Source: United24

Macron made clear that France needs its own type of Oreshnik missile: "We must also acquire such weapons, capable of changing the situation in the short term," the president said in a speech broadcast on the Elysee Palace’s page on X.

Macron said this is crucial while acknowledging that "France is within the range of the 'Oreshnik'". He explained:

"We've witnessed the second launch of the Russian long-range missile Oreshnik. We Europeans must acquire these new weapons, capable of changing the balance of power, if we want to remain credible."

Russian state media observed that Macron appeared "scared" of Russia's hypersonic capabilities. 

And he vowed, "We will continue the work we began with the Europeans to develop ultra-long-range weapons. This is an initiative we launched."

The NY Times has called it a warning delivered to Europe at Mach 10: "The message came screaming through the skies at 8,000 miles per hour. Early Friday morning [Jan.9], for just the second time since its all-out invasion of Ukraine, Russia fired a nuclear-capable Oreshnik missile — a hypersonic intermediate-range ballistic weapon that until recently was banned under international treaty," the publication wrote.

2025 was a big year for Moscow showcasing its military might and tech. As we reviewed earlier, in a matter of less than a year (after years prior in design and development), Russian scientific know-how came up with four bangers:

1. Oreshnik: hypersonic missile, already tested in the Ukraine battleground.

2. Burevestnik: Or “Stormbringer”, with that nice Deep Purple ring. Nuclear cruise missile with unlimited range.

3. Poseidon: nuclear-powered torpedo, capable of loitering underwater, undetected, for unlimited time; then, at a command, strikes enemy coasts with a nuclear payload, provoking a radioactive tsunami. Largely exceeds the destructive power of the Sarmat, Russia’s largest ICBM.

4. Khabarovsk: nuclear sub. Call him The Messenger of Doom: capable of delivering at least 6 Doomsday-enabling Poseidons.

Earlier this month and into last, Russia made clear it would be stationing Oreshnik missiles inside the territory of the 'Union State' of Belarus, and this was seen as a reaction to several trends: increased long-range drone attacks on Russia out of Ukraine, and the US increasingly moving against Russia-linked tankers on the high seas.

Tyler Durden Fri, 01/16/2026 - 02:45

A Greenland-To-Patagonia Defense Axis

Zero Hedge -

A Greenland-To-Patagonia Defense Axis

Authored by Rick Fisher via The Epoch Times,

While President Donald Trump’s ambition to control Denmark’s massive territory of Greenland has many strategic merits, it is also politically problematic and risks wasting scarce political capital that could be directed toward a far greater prize.

A far more decisive use of the administration’s three years of limited political capital would be to assemble a Greenland-to-Patagonia defense axis of cooperation that secures the Western Hemisphere from Russian and Chinese missile attack for generations to come.

The military-strategic value of Greenland to the defense of the United States—especially to the future of Trump’s “Golden Dome” national and allied missile defense program, as well as preventing Russia–China control of the Arctic—is undeniable.

When viewed from a Polar perspective of the Earth, Greenland offers an ideal location for long-range ground-based radar and ground-based missile interceptors to shoot down Russian and even some Chinese nuclear-armed intercontinental ballistic missiles (ICBMs) and submarine-launched ballistic missiles (SLBMs) before they cross the North Pole and enter Canadian and U.S. territory.

So far, both Denmark and the government of Greenland are not willing to sell their territory to the United States, while a 1951 U.S.–Denmark defense agreement grants the United States broad rights for defense-related construction.

Furthermore, the former Thule Air Base, now the U.S. Pituffik Space Base, on Greenland already provides critical warning of a Russian missile attack and helps enable U.S. superiority in space.

Pressing the issue risks a crisis.

Should it force the North Atlantic Treaty Organization (NATO) to expel Washington, how long before Russia is tempted to escalate its aggression against Ukraine and then against Poland and the Baltic states?

Also possible would be an immediate Europe–Russia condominium that Russia and China would exploit by shifting significant Russian forces to support a Chinese attack on Taiwan, including the deployment of more Russian and Chinese forces to threaten key U.S. bases in Alaska, Seattle, and along the U.S. West Coast.

A far more productive use of U.S. political capital would be to enlist key NATO members, starting with Denmark and the UK, to expand the scope of the Golden Dome national missile defense by making Greenland part of a hemispheric defense network and engaging the major democracies of Patagonia—Argentina and Chile—to build early-warning and missile-interceptor bases on their territories to defend against Chinese missiles with South Polar trajectories.

In May 2025, the Defense Intelligence Agency (DIA) released a rare future estimate of Chinese and Russian nuclear missile threats against the United States, underscoring the need for Trump’s Golden Dome initiative.

DIA predicted that by 2035, China would have 60 Fractional Orbital Bombardment Systems (FOBS) or nuclear missiles that achieve orbital altitude to exploit flight trajectories over the South Pole, in the expectation that southern approaches to U.S. targets will be less defended.

But there is a more profound future Chinese missile threat that would justify investment in a hemispheric missile defense capability, especially one that would justify the radar and missile reach attainable from Patagonian bases.

This is the quickly looming threat of weaponized Chinese reusable space launch vehicles (SLVs), now under development by about 15 Chinese state-owned and “commercial” SLV companies.

What these companies build and what they do is ultimately controlled by the Central Military Commission of the Chinese Communist Party (CCP). The commission controls the People’s Liberation Army’s Aerospace Force, which, in turn, controls all Chinese space activities.

A Long March-2F carrier rocket, carrying the Shenzhou-20 spacecraft and a crew of three astronauts, lifts off from the Jiuquan Satellite Launch Centre in the Gobi desert, in northwest China, on April 24, 2025. Pedro Pardo/AFP via Getty Images

In December 2025, two Chinese SLV companies—LandSpace (commercial) and the China Aerospace Science and Technology Corporation (state-owned)—tested their first reusable first-stage SLVs; both failed to recover for reuse, but further tests are expected this year.

In 2026, Chinese sources indicate that up to eight additional “commercial” Chinese SLV companies may begin testing reusable SLVs.

In addition, the PLA could order these Chinese SLV companies to develop SLV second stages capable of carrying multiple independently targetable reentry vehicle (MIRV) nuclear warheads over Antarctica and into Latin America to attack the United States.

At least two Chinese SLV companies intend to develop first-stage reusable SLVs nearly as large as the U.S. SpaceX Corporation’s Starship—that could put payloads as large as 100 tons into Low Earth Orbit, or potentially very large space combat satellites armed with lasers or equipped to drop warheads.

Another threat is that the PLA will have access to enough reusable SLVs to conduct massive intercontinental strikes with non-nuclear missile warheads and Hypersonic Glide Vehicles (HGVs) against the United States, NATO member countries, and other U.S. allies—a destabilizing prospect because China would be more tempted to use these weapons with a lower risk of nuclear retaliation.

It is in the interest of the defense of the United States and Europe that China not be able to exploit South Pole trajectory nuclear attack routes, just as it is in the interest of all Latin American states that Chinese nuclear or non-nuclear attack payloads not fly over or near their territories.

This highlights the need to engage Chile and Argentina to consider cooperation in building powerful long-range early warning radar and, if possible, missile defense bases on their territories that provide maximum coverage of potential Chinese missile routes over the east and west sides of Latin America.

It would also be advantageous to engage the UK on the construction of early warning systems and, if possible, missile defense sites in the Falkland Islands, which would provide coverage over a larger area of the South Atlantic and even Southern Africa.

On Jan. 9, China, Russia, and Iran began a third joint naval exercise with South Africa, an activity likely funded by China. Iran, in the midst of a serious economic and political crisis, was still able to send its largest warship.

The CCP has ambitions to expand its space cooperation in Africa, potentially building bases for Chinese reusable SLV companies that would have to obey military orders from the CCP and the PLA.

Initially, it is possible to conceive of the United States building large missile defense ships that could, with agreement, be stationed in Chilean, Argentine, and Falkland Islands ports, avoiding the requirement to build bases on their territories.

But even a minimal presence approach should also consider how to include participation from the military forces of at least Chile, Argentina, and the UK to jointly staff prospective missile defense facilities.

This, in turn, could open new opportunities for defense and space cooperation—all three are already signatories to the Artemis Accords, which promote transparent and peaceful behavior on the moon.

The prospect of greater “Patagonian” defense cooperation also offers the UK and Argentina opportunities to build greater confidence, which can facilitate economic cooperation across the greater Falklands area.

There is also greater hemispheric and U.S. interest in promoting a Falklands resolution process, inasmuch as China spent most of the last 15 years trying to sell leftist Peronist regimes in Argentina the weapons they would need to start a second Falklands War.

Promoting a hemispheric defense against current and future Chinese missile threats—and denying China trouble-making opportunities such as promoting a second Falklands War—can go far in dissuading Latin American states from granting the CCP and PLA any further access detrimental to hemispheric security.

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 Fri, 01/16/2026 - 02:00

A Greenland-To-Patagonia Defense Axis

Zero Hedge -

A Greenland-To-Patagonia Defense Axis

Authored by Rick Fisher via The Epoch Times,

While President Donald Trump’s ambition to control Denmark’s massive territory of Greenland has many strategic merits, it is also politically problematic and risks wasting scarce political capital that could be directed toward a far greater prize.

A far more decisive use of the administration’s three years of limited political capital would be to assemble a Greenland-to-Patagonia defense axis of cooperation that secures the Western Hemisphere from Russian and Chinese missile attack for generations to come.

The military-strategic value of Greenland to the defense of the United States—especially to the future of Trump’s “Golden Dome” national and allied missile defense program, as well as preventing Russia–China control of the Arctic—is undeniable.

When viewed from a Polar perspective of the Earth, Greenland offers an ideal location for long-range ground-based radar and ground-based missile interceptors to shoot down Russian and even some Chinese nuclear-armed intercontinental ballistic missiles (ICBMs) and submarine-launched ballistic missiles (SLBMs) before they cross the North Pole and enter Canadian and U.S. territory.

So far, both Denmark and the government of Greenland are not willing to sell their territory to the United States, while a 1951 U.S.–Denmark defense agreement grants the United States broad rights for defense-related construction.

Furthermore, the former Thule Air Base, now the U.S. Pituffik Space Base, on Greenland already provides critical warning of a Russian missile attack and helps enable U.S. superiority in space.

Pressing the issue risks a crisis.

Should it force the North Atlantic Treaty Organization (NATO) to expel Washington, how long before Russia is tempted to escalate its aggression against Ukraine and then against Poland and the Baltic states?

Also possible would be an immediate Europe–Russia condominium that Russia and China would exploit by shifting significant Russian forces to support a Chinese attack on Taiwan, including the deployment of more Russian and Chinese forces to threaten key U.S. bases in Alaska, Seattle, and along the U.S. West Coast.

A far more productive use of U.S. political capital would be to enlist key NATO members, starting with Denmark and the UK, to expand the scope of the Golden Dome national missile defense by making Greenland part of a hemispheric defense network and engaging the major democracies of Patagonia—Argentina and Chile—to build early-warning and missile-interceptor bases on their territories to defend against Chinese missiles with South Polar trajectories.

In May 2025, the Defense Intelligence Agency (DIA) released a rare future estimate of Chinese and Russian nuclear missile threats against the United States, underscoring the need for Trump’s Golden Dome initiative.

DIA predicted that by 2035, China would have 60 Fractional Orbital Bombardment Systems (FOBS) or nuclear missiles that achieve orbital altitude to exploit flight trajectories over the South Pole, in the expectation that southern approaches to U.S. targets will be less defended.

But there is a more profound future Chinese missile threat that would justify investment in a hemispheric missile defense capability, especially one that would justify the radar and missile reach attainable from Patagonian bases.

This is the quickly looming threat of weaponized Chinese reusable space launch vehicles (SLVs), now under development by about 15 Chinese state-owned and “commercial” SLV companies.

What these companies build and what they do is ultimately controlled by the Central Military Commission of the Chinese Communist Party (CCP). The commission controls the People’s Liberation Army’s Aerospace Force, which, in turn, controls all Chinese space activities.

A Long March-2F carrier rocket, carrying the Shenzhou-20 spacecraft and a crew of three astronauts, lifts off from the Jiuquan Satellite Launch Centre in the Gobi desert, in northwest China, on April 24, 2025. Pedro Pardo/AFP via Getty Images

In December 2025, two Chinese SLV companies—LandSpace (commercial) and the China Aerospace Science and Technology Corporation (state-owned)—tested their first reusable first-stage SLVs; both failed to recover for reuse, but further tests are expected this year.

In 2026, Chinese sources indicate that up to eight additional “commercial” Chinese SLV companies may begin testing reusable SLVs.

In addition, the PLA could order these Chinese SLV companies to develop SLV second stages capable of carrying multiple independently targetable reentry vehicle (MIRV) nuclear warheads over Antarctica and into Latin America to attack the United States.

At least two Chinese SLV companies intend to develop first-stage reusable SLVs nearly as large as the U.S. SpaceX Corporation’s Starship—that could put payloads as large as 100 tons into Low Earth Orbit, or potentially very large space combat satellites armed with lasers or equipped to drop warheads.

Another threat is that the PLA will have access to enough reusable SLVs to conduct massive intercontinental strikes with non-nuclear missile warheads and Hypersonic Glide Vehicles (HGVs) against the United States, NATO member countries, and other U.S. allies—a destabilizing prospect because China would be more tempted to use these weapons with a lower risk of nuclear retaliation.

It is in the interest of the defense of the United States and Europe that China not be able to exploit South Pole trajectory nuclear attack routes, just as it is in the interest of all Latin American states that Chinese nuclear or non-nuclear attack payloads not fly over or near their territories.

This highlights the need to engage Chile and Argentina to consider cooperation in building powerful long-range early warning radar and, if possible, missile defense bases on their territories that provide maximum coverage of potential Chinese missile routes over the east and west sides of Latin America.

It would also be advantageous to engage the UK on the construction of early warning systems and, if possible, missile defense sites in the Falkland Islands, which would provide coverage over a larger area of the South Atlantic and even Southern Africa.

On Jan. 9, China, Russia, and Iran began a third joint naval exercise with South Africa, an activity likely funded by China. Iran, in the midst of a serious economic and political crisis, was still able to send its largest warship.

The CCP has ambitions to expand its space cooperation in Africa, potentially building bases for Chinese reusable SLV companies that would have to obey military orders from the CCP and the PLA.

Initially, it is possible to conceive of the United States building large missile defense ships that could, with agreement, be stationed in Chilean, Argentine, and Falkland Islands ports, avoiding the requirement to build bases on their territories.

But even a minimal presence approach should also consider how to include participation from the military forces of at least Chile, Argentina, and the UK to jointly staff prospective missile defense facilities.

This, in turn, could open new opportunities for defense and space cooperation—all three are already signatories to the Artemis Accords, which promote transparent and peaceful behavior on the moon.

The prospect of greater “Patagonian” defense cooperation also offers the UK and Argentina opportunities to build greater confidence, which can facilitate economic cooperation across the greater Falklands area.

There is also greater hemispheric and U.S. interest in promoting a Falklands resolution process, inasmuch as China spent most of the last 15 years trying to sell leftist Peronist regimes in Argentina the weapons they would need to start a second Falklands War.

Promoting a hemispheric defense against current and future Chinese missile threats—and denying China trouble-making opportunities such as promoting a second Falklands War—can go far in dissuading Latin American states from granting the CCP and PLA any further access detrimental to hemispheric security.

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 Fri, 01/16/2026 - 02:00

Trump Kicking BRICS Out Of The Americas

Zero Hedge -

Trump Kicking BRICS Out Of The Americas

Authored by James Gorrie via The Epoch Times,

Since the end of the Bretton Woods system in 1971, the U.S. dollar has dominated global finance as the chief reserve currency. It’s used in international trade, sovereign lending, and central bank reserves.

This dominance allows the United States to borrow cheaply and wield great financial leverage globally.

Recent actions by the Trump administration, sometimes labeled a neo-Monroe Doctrine for its assertive posture toward perceived rivals, can be understood through the lens of preserving dollar supremacy against challenges from rising powers like China and Russia.

The Rise of De-dollarization

Though the dollar remains dominant, its grip has been weakening over decades. According to IMF and central bank data, the dollar’s share of global foreign-exchange reserves has fallen from over 70 percent in 2000 to under 60 percent in recent years; this reflects broader moves by countries to diversify away from U.S. currency dependence. At the same time, China’s share has increased substantially.

Meanwhile, states are increasingly engaging in de-dollarization, which means reducing the use of the dollar in international trade and reserves. This trend is driven in part by a desire to decrease exposure to U.S. monetary policy and sanctions, including increased tariffs and unilateral economic measures against trading partners and adversaries.

BRICS: Geopolitics, Gold, and a Potential Currency Challenge

The group of emerging economies known as BRICS (Brazil, Russia, India, China, South Africa) has been the focal point of rivalry to dollar hegemony. At various summits, the idea of a BRICS currency or common alternative currency, which have included the notion of backing it with gold as a means of anchoring value and appealing to nations wary of fiat currencies that, by definition, have no gold backing their value, but rather, convention, oil trade flows, and the global economic and military dominance of the United States.

While Kremlin officials have denied any imminent creation of a unified currency to dethrone the dollar, proposals for trade in non-dollar currencies and discussion of alternative settlement systems persist. The historical context of the gold standard and its connection to confidence in currencies is a big part of these discussions.

Trump’s Neo-Monroe Doctrine: Tariffs as Dollar Defense

Since returning to office, President Donald Trump has made defense of the dollar a central part his foreign-economic policy. He has threatened 100 percent tariffs on BRICS nations or any country that backs a currency to replace the dollar in international trade. Clearly, the administration views dollar dominance as non-negotiable.

By linking trade access to acceptance of the dollar’s role, the administration is attempting to reinforce global reliance on U.S. currency for trade settlement and reserves. This strategy also links his broader tariffs and industrial policy agendas to maintaining dollar dominance in the world.

Dollar Supremacy, Oil, and US Strategic Power

The dollar’s special status has been reinforced historically by its role in oil markets known as the so-called petrodollar system. Because oil has been priced and traded primarily in dollars, global demand for U.S. currency has been supported by energy trade flows. The Trump administration’s recent strategic moves in oil-rich regions such as Venezuela have been interpreted by some analysts as efforts to bolster the petrodollar system and keep key energy resources within dollar-centric markets.

This makes sense from a currency preservation perspective. Although the United States has become a major producer and exporter of oil in its own right, efforts to maintain dollar pricing in energy markets remain crucial to preserving demand for the currency.

Trade, Savings, Innovation, and the Dollar’s Role

The dollar’s dominance provides huge benefits for the world as well as the United States. It reduces transaction costs for U.S. exporters and importers and reinforces the U.S. role in global value chains, but it also simplifies trade invoicing and settlement between other nations with less stable currencies. Its status as the primary reserve currency also underpins the liquidity and depth of U.S. capital markets, enabling inexpensive borrowing that fuels investment in technology and innovation. The dollar in the form of U.S. Treasury bonds has also been a safe haven for long term investing and savings for much of the world.

Dollar dominance also helps with American leadership in AI, computing, and finance, since dollar-denominated trade and financial infrastructure allow those to scale globally. A shift away from the dollar could fragment global capital flows and weaken the financing mechanisms that have historically supported U.S. technological leadership.

Military Power and Financial Leverage

Finally, the dollar’s status facilitates U.S. military power by making it easier to finance defense spending and sustain global force projection. If the dollar’s dominance erodes, financing a global military footprint becomes more expensive and complex, diminishing America’s strategic reach, to say the least. Analysts argue that preserving the dollar is therefore as much a defense priority as a financial one.

Without it, competing nations or groups of nations would rush in to fill the vacuum, leading to global instability.

Dollar and US Supremacy at Core of Neo-Monroe Doctrine

Viewed in this light, what some describe as Trump’s neo-Monroe Doctrine reflects not merely an ideological reassertion of hemispheric influence, but a strategic effort to defend U.S. dollar supremacy. With BRICS nations exploring alternatives, including proposals for a gold-linked settlement unit, and de-dollarization pressures growing, Washington faces mounting economic and geopolitical challenges. These factors help explain the administration’s aggressive stance on tariffs, trade, and strategic energy markets.

The survival of dollar dominance is not just about finance; it’s about maintaining a structural position that enables U.S. influence in global affairs—trade, sanctions, capital markets, and defense alike. As long as potential alternatives loom, U.S. policy will likely continue to frame the dollar as not just an economic asset, but a linchpin of national security and global leadership.

That is why the Venezuela operation is fundamentally about preserving a financial architecture that underpins U.S. economic and military power.

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, 01/15/2026 - 23:50

PJM Trims Near-Term Load Forecast On Stricter Data Center Vetting, Economic Outlook

Zero Hedge -

PJM Trims Near-Term Load Forecast On Stricter Data Center Vetting, Economic Outlook

By Ethan Howland of UtilityDive

The PJM Interconnection scaled back its load growth forecast through 2032 compared to last year’s estimates, but the largest U.S. grid operator expects electric demand to surge past those expectations through the next decade, according to an annual report released Wednesday. PJM expects its summer peak load will grow by 3.6% a year to about 222 GW by 2036, up from its previous 3.1% forecast. The increase totals about 65.7 GW over the next 10 years.

In a change that affects PJM’s upcoming capacity auction, the grid cut its peak demand forecast for the summer of 2028 by 4.4 GW, or 2.6%. It also lowered its forecast for the summer of 2027 by about 4 GW, reducing a reserve margin shortfall for that capacity year to about 2.6 GW.

PJM’s reduced near-term load forecast was driven by updates to electric vehicle and economic forecasts and stricter vetting of planned data centers and large loads, according to the grid operator. 

Those changes reduced PJM’s peak load forecast for this summer by 0.7% from large loads, 0.5% from economic activity and 0.1% from EVs compared to the last long-term load forecast report, PJM said in a press release.

PJM uses its annual load forecast for transmission planning and to help determine how much capacity it should buy in its capacity auctions. PJM’s next base capacity auction, for the 2028/29 delivery year, is set to start June 30.

PJM’s downward revisions to its load forecast don’t indicate weakening demand for electricity, according to Jefferies equity analysts.

“We read the load revisions as reflective of pushouts/delays, NOT weakness in demand,” they said in a note Wednesday. “While we expect a 3-4 GW improvement in shortfall for [the] next two auctions, [the] market will still fall short — an accelerated backstop procurement is the way to go.”

Even if PJM secures an additional 10 GW in a procurement process, capacity prices will “comfortably clear” at the maximum price of about $530/MW-day in PJM’s next two capacity auctions, the analysts said.

Compared to last year’s forecast, PJM increased its 2031 summer peak load forecast for the Dayton Power and Light zone by 27%, or 1 GW, the Commonwealth Edison zone by 16.5%, or 3.7 GW, and the PECO Energy zone by 5.1%, or 0.5 GW.

In the same year, it cut its forecast for the American Electric Power zone by 10.4%, or 3.7 GW, the American Transmission Systems Inc. zone by 8.1%, or 1.2 GW, and the Pennsylvania Electric zone by 6.1%, or 0.2 GW.

The PJM zones with the strongest 10-year average annual summer peak growth forecasts are: PPL Electric at 6.4% (up from 5.9% last year); Dominion at 5.4% (down from 6.3%); AEP at 5.3% (down from 5.5%); DPL at 5.2% (up from 1.2%); and ComEd at 3.9% (up from 1.6%), according to PJM’s report.

After PJM stakeholders failed to agree last year on reforming the grid operator’s processes for adding large loads to its system, PJM’s board is expected to “outline its determination of a path forward on the [Critical Issue Fast Path] issues in the next few weeks,” PJM said in the news release.

Reforms may include changes to PJM’s process for considering large load forecasts.

Tyler Durden Thu, 01/15/2026 - 23:24

Muslim Nations Scramble To Acquire Pakistan's JF-17 Fighter Jet

Zero Hedge -

Muslim Nations Scramble To Acquire Pakistan's JF-17 Fighter Jet

Via The Cradle

Several Muslim-majority states are in talks with Pakistan to acquire the JF-17 fighter jet, co-produced with China, as they scramble to upgrade their air forces amid shifting regional security dynamics.

According to multiple reports from Reuters, Pakistan is in talks or has reached preliminary arrangements with Libya, Sudan, Saudi Arabia, Indonesia, Azerbaijan, and Bangladesh over fighter jets, drones, and related defense systems, with negotiations at varying stages.

via Reuters

Retired Pakistan Air Force air marshal Aamir Masood told Reuters that a preliminary $4 billion agreement had been reached with the Libyan National Army for an unspecified number of JF-17s and other trainer aircraft produced by Pakistan Aeronautical Complex.

Masood also said a separate $1.5 billion package was “effectively” finalized with Sudan’s government for light-attack aircraft, surveillance systems, suicide drones, and “possibly” JF-17s, claiming it could give Khartoum an edge over the UAE-backed Rapid Support Forces (RSF).

He added that Islamabad is discussing a $4 billion arms deal with Saudi Arabia. In September, the two nations signed a mutual defense pact “soon after Israeli warplanes bombed Hamas negotiators in Qatar.” 

Pakistan has also floated an “arms-for-debt” component of around $2 billion, Masood said, while warning signs of regional rivalries loom over Sudan, where backers diverge.

During a flash war with India last year, Islamabad showcased the battlefield performance of Chinese-made aircraft.

The battle involved more than 100 fighter jets, with Pakistan claiming it shot down five Indian aircraft, including three French-made Rafales. At the same time, US officials later confirmed that at least two Indian jets were lost, before a US-brokered ceasefire took hold.

The battle was described by analyst Pepe Escobar as "the largest and most high-tech air battle of the young 21st century," arguing that the clash produced no real winners and ultimately served the interests of outside powers rather than either side.

According to an earlier report by Reuters, two Pakistani sources said “Pakistan and Saudi Arabia are in talks to convert about $2 billion of Saudi loans into a JF-17 fighter jet deal,” and one added, “The jets were the primary option among others under discussion.”

Tyler Durden Thu, 01/15/2026 - 20:55

"It Has Cast A Shadow Over The Permian": Drilling Slows In Texas As Venezuelan Oil Policy Raises Concerns

Zero Hedge -

"It Has Cast A Shadow Over The Permian": Drilling Slows In Texas As Venezuelan Oil Policy Raises Concerns

Efforts by the Trump administration to push more Venezuelan oil onto the global market, with the goal of lowering prices, are creating concern in West Texas, where producers say cheaper oil threatens drilling, jobs and local business activity, according to a new report from the Wall Street Journal.

Oil prices have fallen since last spring, recently dipping below $60 a barrel — a level at which many operators can keep pumping but often avoid starting new wells. President Trump believes exerting greater control over Venezuela’s oil industry could drive prices down to $50 a barrel, The Wall Street Journal has reported. At the same time, tariffs have raised costs for materials such as chemicals and steel tubing, according to Midland oil executives.

In the Permian Basin, the heart of U.S. fracking, drilling activity has slowed. “We’re definitely not drilling right now,” said Taylor Sell, chief executive of Element Petroleum.

The number of active rigs in the region is down 14% over the past year, according to Enverus. Companies have delayed new wells, cut staff and reduced worker hours. Kyle Patterson, engineering manager at Buckeye, said the company laid off about 10% of its workforce. “You can’t just sit around and wait for the market to come back,” he said.

The Journal writes that local industry leaders worry that prolonged low prices will increase U.S. dependence on imports. “It has really cast a shadow over the Permian,” said Ben Shepperd, president of the Permian Basin Petroleum Association.

Some producers say they oppose relying on Venezuelan oil. “We are on a gold mine; we can produce enough oil to supply ourselves,” said Bubba Dobson, a Midland-based business representative who has seen his pay decline as drilling demand weakens.

The slowdown is affecting the wider economy. Hotel occupancy in the region fell 5.6% between November 2024 and November 2025, according to CoStar. As drilling activity declines, spending at local businesses has softened.

Veteran producer Paul Kenworthy said low prices have forced him to pause some projects, adding, “This is a boom-and-bust business.”

While some residents support the administration’s broader policies, frustration is growing among business owners. “We thought he was going to help the economy here in West Texas,” said restaurant co-owner Nemecio Torres, whose revenue dropped about 30% last year.

Others say the downturn may deepen. “It’ll be a year until we really start feeling the pain,” said Pat Dennis, who sells oilfield tools.

In Odessa, where oil paychecks once dominated local commerce, store manager Ruby Ramirez said business has slowed sharply. “It’s an oil-field town,” she said. “The oil field’s not the oil field anymore.”

Tyler Durden Thu, 01/15/2026 - 20:30

Waste Of The Day: California County May Have Made Illegal Gifts

Zero Hedge -

Waste Of The Day: California County May Have Made Illegal Gifts

Authored by Jeremy Portnoy via RealClearInvestigations,

Topline: A Dec. 18 report from the California State Auditor claims that Mendocino County is “vulnerable to waste, fraud, and abuse” after spending thousands of dollars on steakhouse dinners, unapproved donations and more.

The annual dinners are a trademark of local District Attorney C. David Eyster, who earned $211,484 from taxpayers in 2024, according to Open the Books’ payroll records.

Key facts: Law enforcement agencies can earn revenue by seizing property from convicted criminals, such as stolen cash or cars used to transport illegal drugs. California law requires local governments to use 15% of this asset forfeiture money to combat drug abuse and gang activity, but there are few restrictions on the other 85%.

Mendocino County held $1.5 million in asset forfeiture funding as of June 2025, but the funds have been used for several purchases that state auditors “believe” to be illegal gifts in violation of the California Constitution.

In February 2025, the District Attorney’s office spent $3,600 on an “End of the Year Debriefing and Training” at a steakhouse, where dinner was served to employees and their spouses. 

The office told auditors that spouses were invited to “foster a more inclusive and positive work environment.” The office also claimed that County CEO Darcie Antle approved the expense, but auditors found no evidence that was the case.

The District Attorney’s Office and Sheriff’s Office also used asset forfeiture funds to donate nearly $23,000 to 11 private groups “with little oversight or accountability,” the audit claimed. There were no requirements that the donations be used to benefit taxpayers.

One of the donations — $560 to the 11-99 Foundation, which supports the families of California highway patrol workers — was the exact amount needed to pay for dinner for eight people at the nonprofit’s annual fundraiser. The audit “could not determine” whether county employees actually attended the dinner. But if they did receive food in exchange for a donation of public funds, legal concerns would likely be raised.

Two donations of $5,000 each went to St. Mary of the Angels Catholic School. Religious schools are banned from receiving direct subsidies under both the California Constitution and the U.S. Constitution, according to the audit.

State auditors reviewed a sample of 30 other payments Mendocino County made since 2020 — using tax revenue, not asset forfeiture — and found issues with 13 of them. These included missing signatures to approve $500 worth of seat cushions, missing receipts for $370 in travel costs, and a lack of written justification for buying a 75-inch television for $1,099.

Mendocino County has increased its spending by 30% over the last five years, according to the audit. Its tax revenue has remained “relatively unchanged,” leading to budget deficits for the last three years.

Search all federal, state and local salaries and vendor spending with the world’s largest government spending database at OpenTheBooks.com

Summary: When a local government has an unbalanced budget three years in a row, lavish dinners for employees’ spouses should be the first expense to go.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com

Tyler Durden Thu, 01/15/2026 - 19:15

US Eyes Private Security Contractors To Protect Oil Assets In Venezuela

Zero Hedge -

US Eyes Private Security Contractors To Protect Oil Assets In Venezuela

A top White House priority for Venezuela in the aftermath of Nicolás Maduro is restarting and ramping up the country's oil production. But that's a tall order given many years of decaying and neglected infrastructure. Despite that Maduro's VP, now acting President Delcy Rodriguez, is currently running the country, there are still fears there could be a power vacuum if hostile forces challenge Caracas.

There's not just the question of a political challenge, or even military insurgency which could further destabilize the country, but the role of the cartels. All of this political and security uncertainty surrounds the question of rebooting the ailing oil industry - which though sitting atop the world's biggest proven oil reserves, has a derelict and largely defunct infrastructure for getting it out of the ground and refining.

Major oil companies are now being courted by the administration, which must convince them they can operate in enough safety to be successful, not just for the coming months, but for years down the line. 

President Trump, however, is reportedly wary of placing American boots on the ground for what will be seen at home as another indefinite foreign occupation.

CNN reports Thursday that one administration plan being mulled right now is tapping military contractors, or mercenaries, to protect Venezuela's oil industry as American companies move in.

"Discussions about how to secure those assets remain in the early stages, sources said. Still, multiple private security companies are already jockeying to get involved in the US presence in Venezuela, according to a person familiar with the matter," the report describes. "Interest is high given the potential payday; during the Iraq War, the US spent some $138 billion on private security, logistics and reconstruction contractors."

CNN continues, "Last week, the Department of Defense put out a Request for Information to contractors about their ability to support possible US military operations in Venezuela, the person said." And already, "Contractors are also in touch with the State Department’s overseas building operations office to cite interest in providing security if and when the US embassy in Venezuela re-opens."

One military firm founder highlighted that going private is another aspect of "investment" in conquering and subjugating a foreign country Venezuela's energy industry "coming back" to the American people:

“Foreign investment comes back, and when it does, it brings a bunch of Navy SEAL dudes and Green Beret dudes and ninjas to keep them alive and safe,” Stern said. “It’ll look a lot like that in Venezuela.”

Turning to private contractors is certain to invite scrutiny. Over the past two decades, the US has relied heavily at times on private contractors, especially during the height of the Iraq War. But they were marred in controversy, from killing Iraqi civilians to allegations of war profiteering

Indeed, it's never a good look when Washington's talk of "liberating" a people from a "tyrant" quickly results in trigger-happy foreign mercenaries rolling into your local neighborhood barking orders backed by endless firepower - all for a cool hundreds of dollars per hour.

US oil companies are up against significant risk, with few "guarantees" given the billions what will need to be invested...

But at the very least, US oil majors which get deeper in extracting Venezuela's oil will be hiring their own security, at least on some level. Whether the Trump administration gets directly involved in writing major contracts for mercenary firms remains to be seen. Usually Erik Prince is circling the Pentagon right about now.

Tyler Durden Thu, 01/15/2026 - 18:50

Devon-Coterra Tie-Up Would Create A New Permian Heavyweight

Zero Hedge -

Devon-Coterra Tie-Up Would Create A New Permian Heavyweight

By Julianne Geiger of OilPrice.com,

Coterra Energy is kicking the tires on what would be one of the biggest U.S. shale mergers in years, holding talks about a possible combination with Devon Energy, according to people familiar with the matter. Nothing is signed, nothing is guaranteed, but the market liked the idea enough to send shares of Coterra Energy sharply higher on the day.

The deal would be a classic all-stock shale mashup: two midsize operators with large footprints in the Permian Basin trying to bulk up as oil prices sit stubbornly around $60 a barrel.

Coterra carries a market value of roughly $20 billion, while Devon is closer to $24 billion.  

A tie-up of this size would put it firmly into megadeal territory by shale standards.

This is a Permian land grab, plain and simple.

Putting neighboring Delaware Basin acreage under one roof makes drilling cheaper and operations cleaner.

The timing matters.

After a quiet year for dealmaking, consolidation is starting to reappear as bigger players move past recent acquisitions and smaller independents look for ways to keep up.

A Devon-Coterra tie-up would immediately put the combined company among the Permian’s top-tier producers.

Devon has also been dealing with softer crude prices and the lingering question of how much Venezuelan oil might eventually re-enter the market. That kind of uncertainty rewards operators that are efficient, conservative with capital, and financially flexible. In that environment, scale matters.

For now, talks are ongoing and could still fall apart.

But even floating the idea sends a clear message: in a choppier oil market, size, simplicity, and execution are back in fashion.

Tyler Durden Thu, 01/15/2026 - 18:25

Lindsey Graham Drowns Sorrows After Trump Refrained From Iran Attack On 'No Guarantees'

Zero Hedge -

Lindsey Graham Drowns Sorrows After Trump Refrained From Iran Attack On 'No Guarantees'

NeoCon Senator Lindsey Graham wants to "go bigger" on Iran and is so disappointed that President Trump hasn't bombed it yet that he appears barely able to speak, with the color draining from his face.

Journalist Ryan Grim comments on the below video clip of Graham responding to the lack of action by the US, "His life force is being drained in front of us by the lack of bombing." When this armchair general is deeply disappointed and shattered by American non-action abroad, it without doubt means something good for America. 

Dear Lindsey, the adults in the room took over, now go cry outside...

The Wall Street Journal reports that "President Trump was advised that a large-scale strike against Iran was unlikely to make the government fall and could spark a wider conflict, U.S. officials said, and for now will monitor how Tehran handles protesters before deciding on the scope of a potential attack."

By that moment of the briefing, Iran's streets had already gone largely silent, with Iranian security services firmly in control, and Tehran leadership vowing not to hold any executions. In short the demonstrations, riots, and crackdown had ceased.

Continues the WSJ, "The U.S. would need more military firepower in the Middle East both to launch a large-scale strike, protect American forces in the region and allies like Israel should Iran retaliate, the advisers told Trump, the officials said."

Still, it seems the world was very close to the US launching yet another war more "precision strikes" against a nation we are not actually at war with (still a possibility though!). Per the WSJ:

Trump, without making a final decision on which action he would take, asked for military assets to be in place should he order a big attack, the officials said.

“The president and his team have communicated to the Iranian regime that if the killing continues, there will be grave consequences,” White House press secretary Karoline Leavitt told reporters Thursday. “Only President Trump knows what he’s going to do and a very, very small team of advisors are read into his thinking,” Leavitt said.

But again, Lindsey's pain is America's gain.

Getty Images

Here he is Thursday talking to reporters (in the above clip): "Should it be bigger or smaller? I’m in the camp of bigger. Time will tell." He then asserted that "the regime’s days are numbered."

When in doubt... sanction higher, the D.C. blob mantra says...

The U.S. on Thursday imposed sanctions on five Iranian officials it accused of being behind the crackdown on protests and said it was tracking Iranian leaders' funds being wired to international banks, as President Donald Trump keeps the pressure on Tehran.

The U.S. Treasury Department in a statement said it imposed sanctions on the Secretary of the Supreme Council for National Security as well as Islamic Revolutionary Guard Corps and law enforcement forces commanders, accusing them of being architects of the crackdown.

What might happen in the next major Iranian protest go-around? The Islamic Republic's severe economic woes, and with yet more US sanctions being unleashed on Tehran, won't be getting better anytime soon.

Tyler Durden Thu, 01/15/2026 - 18:00

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