Individual Economists

Mohammed Becomes Most Common Name Among Welfare Benefit Recipients In Germany

Zero Hedge -

Mohammed Becomes Most Common Name Among Welfare Benefit Recipients In Germany

Authored by Thomas Brooke via Remix News,

New figures released by Germany’s federal government have reshaped the rankings of citizen’s allowance recipients in the country, placing Mohammed and its many spelling variants at the top of the list.

A recent government response to an Alternative for Germany (AfD) inquiry originally suggested that Michael, Andreas, Thomas, and Daniel were the most frequent first names among those receiving the allowance, known locally as Bürgergeld. However, the government’s list had separated different spellings of the same name, resulting in distortions.

AfD lawmaker René Springer requested additional data that consolidated all variations of the same name.

The government’s updated response, obtained by Bild, shows that Mohammed — counted across 19 different spellings and variants such as Mohamed, Muhammad, and Mahamadou — now ranks first with 39,280 entries.

By comparison, Michael (including Michel, Mischa, and Maik) comes second with 24,660 entries, followed by Ahmad (20,660), Andreas (18,420), and Thomas (17,920). Names with fewer spelling variations, such as Andreas and Thomas, lost ground, while Ahmad, which has multiple common versions including Achmet and Amed, rose to third place.

The federal government stressed that first names cannot be used to directly determine nationality, though they undeniably serve as an indicator of native Germans and those of a migration background.

Three Islamic names, Mohammed, Ahmad, and Ali, were included in the top 10 first names of recipients.

At the end of 2024, a total of 5.42 million people in Germany received a citizen’s allowance, including 2.82 million Germans (52 percent) and 2.6 million foreigners (48 percent).

Critics argue that these numbers understate the role of foreign-born individuals, since many migrants are now naturalized German citizens and therefore counted as “German” in the statistics. Bild also reported that nearly half of Germany’s €17.68 billion housing support budget for 2024 went to foreigners.

The debate comes as the Federal Employment Agency continues to advertise welfare benefits to migrants, with parts of its website dedicated to “people from abroad,” promising financial support to cover living expenses.

Germany’s governing CDU/CSU bloc is finally calling for stricter limits on migrant reliance on welfare. Deputy parliamentary leader Mathias Middelberg argued earlier this week that job centers need to do more to integrate Afghans and Syrians into work. “Just 100,000 more people in work instead of relying on the citizen’s allowance could, depending on wage levels, relieve the federal budget in the low single-digit billion range every year,” Middelberg said.

Government figures show that 52.8 percent of Syrians and 46.7 percent of Afghans in Germany receive a citizen’s allowance, while fewer than 40 percent in both groups are in jobs subject to social security contributions.

“We cannot accept that hundreds of thousands of young asylum seekers here in Germany are unemployed for decades,” Middelberg added.

Earlier this month, two Social Democratic Party district administrators in Thuringia also broke with their party’s national leadership by demanding that non-EU migrants, including asylum seekers and recognized refugees, should receive social benefits only as interest-free loans, repayable once they find employment.

Read more here...

Tyler Durden Tue, 09/02/2025 - 03:30

Houthis Target Israeli-Owned Tanker As Retaliation For Slain Prime Minister

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Houthis Target Israeli-Owned Tanker As Retaliation For Slain Prime Minister

In apparent retaliation for massive Israeli strikes which killed the Yemeni Houthi prime minister, Ahmed al-Rahawi, last week - who was the most senior Houthi official to have been slain in the ongoing conflict thus far, among other high ranking officials and commanders - the Houthi military has claimed responsibility for a missile attack on a tanker in the Red Sea on Sunday.

The targeted ship is Israeli-owned and Liberian-flagged, named the Scarlet Ray, according to the maritime security company Ambrey. The United Kingdom Maritime Trade Operations (UKMTO) agency, has disputed the claim, saying the missile missed the vessel.

Scarlet Ray, source: scheepvaartwest

"The crew witnessed a splash in close proximity to their vessel from an unknown projectile and heard a loud bang," UKMTO said. It further stated that the crew are unharmed and that the ship has continued on its voyage.

On Saturday, the Houthis announced that the prime minister and other senor officials had been assassinated, in large daytime strikes on the capital. Israeli intelligence had reportedly been monitoring a top-level meeting in Sanaa in real-time.

According to a description of the attack in Israeli media:

The Iran-backed Houthi terror group said Monday that it had fired a missile at an Israeli-owned tanker in the Red Sea, days after the prime minister of Yemen’s rebel government and several other ministers were killed in an IDF strike on the capital Sanaa.

Houthi military spokesman Brig. Gen. Yahya Saree claimed responsibility for the launch in a prerecorded message aired on al-Masirah, a Houthi-controlled satellite news channel. He alleged the vessel, the Liberian-flagged Scarlet Ray, had ties to Israel.

The ship’s owners, Singapore-based Eastern Pacific Shipping, could not be immediately reached. However, the maritime security firm Ambrey described the ship as fitting the Houthis’ “target profile, as the vessel is publicly Israeli owned.”

The Houthis have by and large respected the months-long US ceasefire declared by President Trump, but have said they will continue to target any Israeli-linked or Israel-bound vessel traversing the Red Sea.

As the US Navy stepped back from regional operations, Washington has pressured the Europeans to step up defense of the vital trade transit waters.

Funeral events were held Monday in Sanaa for the slain prime minster, which saw tens of thousands of Yemenis take to the streets.

One top Houthi official told the crowds, "We are facing the strongest intelligence empire in the world, the one that targeted the government – the whole Zionist entity (comprising) the US administration, the Zionist entity, the Zionist Arabs and the spies inside Yemen."

High-ranking officials slain in Israeli strike on Thursday, which was confirmed in a Houthi statement Saturday:

The Houthis are an Iran-aligned movement which has shown resiliency, given that for over a half-decade it was bombed by the Saudi-US-UAE coalition, largely to no effect, and now it is in a war with Israel, and has managed to effectively shut down international transit shipping through the Red Sea.

Tyler Durden Tue, 09/02/2025 - 02:45

China Is Unlikely To Play A Major Role In The Ukrainian Endgame

Zero Hedge -

China Is Unlikely To Play A Major Role In The Ukrainian Endgame

Authored by Andrew Korybko via Substack,

The most that China is expected to do is deploy peacekeepers together with other countries per a potentially forthcoming UNSC Resolution that would likely see these forces jointly patrol whatever the “Line of Contact” may be and monitor each side’s compliance with the ceasefire or peace treaty.

Axios reported that Putin “mentioned China as one of the potential guarantors” of Ukraine’s security, which was followed by Foreign Minister Sergey Lavrov referencing spring 2022’s draft peace treaty that included China as one alongside the other permanent UNSC members. Zelensky then told reporters that “We don’t need guarantors who don’t help Ukraine, and didn’t help Ukraine at the moment when we really needed it. We need security guarantees only from those countries that are ready to help us.”

China’s participation in this framework would be important for reasons of prestige and international law due to it respectively being an emerging superpower and a permanent UNSC member. Nevertheless, China is unlikely to play a major role in the Ukrainian endgame. For instance, it’s not going to deploy peacekeepers to the Russian side of the frontier with Ukraine to face off against Western ones on the other side, nor will it agree to impose crippling sanctions on Russia if the conflict re-erupts in the future.

The most that China is expected to do is deploy peacekeepers together with other countries per a potentially forthcoming UNSC Resolution that would likely see these forces jointly patrol whatever the “Line of Contact” may be and monitor each side’s compliance with the ceasefire or peace treaty. China has always been neutral towards conflicts in which it’s not a direct participant and therefore can’t afford to be seen as taking anyone’s side in the Ukrainian one’s endgame lest it lose its credibility with others.

In this context, its goals are to:

1) present itself as a force for peace in the largest European conflict since WWII;

2) correspondingly enhance its global prestige through participation in any potentially forthcoming UNSC-approved peacekeeping mission;

3) and reopen its overland trade with Ukraine.

To elaborate on the last point, China and Ukraine used to trade with one another via Russia, but it was obviously impossible to continue doing so since the start of the special operation 3,5 years ago.

China’s interests in resuming the use of this corridor are due to it being the quickest and cheapest route to Ukraine, while Ukraine’s are likely driven by the calculation that Russia might be reluctant to strike projects in which China has invested if the conflict ever re-erupts. The most profitable and strategic ones are probably already promised to Ukraine’s Western patrons, but Kiev might allow Chinese companies (especially state-owned ones) to purchase stakes in them as an “deterrent” to Russia per the aforesaid.

Facilitating the resumption of Chinese-Ukrainian trade is also in Russia’s interests since this assumes that Russian-Ukrainian trade would resume as well. After all, it wouldn’t make sense for the Kremlin to agree to facilitate China’s trade with Ukraine without also being allowed to trade with it too, so this arrangement could be part of a grand compromise for ending the conflict. The EU would benefit for the same reason as Ukraine, but the US might thus be wary of this quid pro quo for precisely that reason.

In any case and regardless of however Chinese-Ukrainian trade is conducted in the future, China is unlikely to play a major role in the Ukrainian endgame since neither the US nor Ukraine want it to, while talk about China taking Russia’s side in this scenario is dispelled by the reality of its neutral foreign policy. China is expected to play some role, but it’ll probably be as part of a UNSC-approved multilateral effort, not anything unilateral. That’s alright for China too since it doesn’t want to do anything major anyhow.

Tyler Durden Tue, 09/02/2025 - 02:00

Canadian Hikers Get The COVID-Style Tyranny Treatment

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Canadian Hikers Get The COVID-Style Tyranny Treatment

Authored by Jim Bovard

Canadian politicians are creating one bonfire after another of freedom and individual rights. COVID crackdowns established persecution precedents that politicians in some provinces refuse to allow to gather dust. Politicians are claiming the right to financially cripple anyone who makes a single misstep in violation of the latest idiotic decrees.

On August 5, Nova Scotia Premier Tim Houston decreed a $25,000 fine for anyone walking in the woods or otherwise violating a new prohibition that covered both government and private lands. The prohibition will continue until October. Houston declared, “Most wildfires are caused by human activity, so to reduce the risk, we’re keeping people out of the woods until conditions improve. I’m asking everyone to do the right thing—don’t light that campfire, stay out of the woods and protect our people and communities.” Canadian politicians are exploiting wildfires the same way that former Prime Minister Justin Trudeau exploited COVID to lockdown the entire nation.

One critic on X/Twitter scoffed that “the province needs 10 weeks of no walking in the woods to flatten the curve”—paralleling the “two weeks to flatten the curve” crapola that initially sanctified the most onerous COVID restrictions. During the pandemic, Nova Scotia heavily fined citizens caught walking their dogs or exercising in park.

The government failed to document how the environmental peril situation this year was fundamentally different than in previous years. Author Peter Clark observed, “Fears of arson or climate hysteria appear to be behind bans on fishing & hiking in Nova Scotia’s forests. Canada’s forest fires have fallen almost half in the last 40 years & seem unrelated to weather or climate.” At the same time that Nova Scotian politicians are treating every resident and visitor like an arsonist, Canadian governments have let actual arsonists go free with legal wrist slaps.

Canadians are denouncing the new decree as “climate confinement”—an ominous development in a nation whose politicians have long swooned over the World Economic Forum. According to Travel and Tour News, “Even though the COVID-19 pandemic has officially ended, the consequences of restrictive policies are still being felt. With domestic travel restrictions now in place due to wildfire risks, many Canadians feel that their freedom to explore their country has been drastically reduced.”

“They’ve turned the great outdoors into the Forbidden Forest,” scoffed one critic. A photography website warned: “Photographing in the Woods in Nova Scotia Is Currently Illegal.” The government decrees provoked a firestorm of opposition:

“How does hiking in the woods with my dogs come across as a fire hazard?”

“Please tell me the difference between a trail and an unpaved road.”

“I’m confused. We’re banned from the woods? Half of us live in the woods.”

Nova Scotia established a snitch line so people could report neighbors or hooligans who strolled in the woods, and it quickly received thousands/tens of thousands of complaints.

Many opponents of the anti-hiking decree would support a government ban on campfires or other fires in areas at risk of wildfires. But defenders of the ban have gone stir crazy (maybe they have been inside too long?). They have claimed that “hikers could cause fires by dropping water bottles that might, in a remote theoretical scenario, focus sunlight like a magnifying glass.” Also, hiking in the woods might cause an asteroid to hit the earth, so better safe than sorry.

Canadian political mania has gone even further than in the progressive states south of the U.S.-Canadian border. Christine Van Geyn of the Canadian Constitution Foundation warns that “governments and institutions have embraced what’s been called safetyism: the belief that safety, especially from physical or emotional harm, should override all other values, including freedom, autonomy and open debate. When safety becomes the highest good, risk becomes intolerable, state control is normalized ‘for your own good,’ and dissent is cast as dangerous.”

But according to some Canadian political scorecards, the risk of wildfires apparently nullifies the risk of tyranny.  And since there will always be a risk of wildfires, tyranny will be a small price to pay for any purported risks politicians choose to suppress.

The pre-emptive repression of hikers and dog walkers is symptomatic of regimes that feel entitled to unlimited power. The same mindset is driving Canada’s persecution of the leaders of the COVID lockdown protests. According to Canada’s top prosecutors, the only thing worse than tyranny is “mischief.” And the worst possible “mischief” is objecting to tyranny.

The Canadian government is seeking an eight year prison sentence for one of the leaders of the COVID “Freedom Convoy” protest that riled Ottawa in early 2022. In April, a court ruled that Tamara Lich and Chris Barber were not guilty of obstructing police or intimidation during the demonstrations. But they were convicted of “mischief”—in part because the truckers in the forty mile convoy honked their horns to protest some of the most oppressive COVID mandates in the world.

After Trudeau dictated that all truck drivers who cross the U.S. border must get COVID vaccines, a protest quickly snowballed and landed in Canada’s capital. Trudeau responded by invoking the Emergencies Act, effectively dropping a legal nuclear bomb on his opponents. Canada’s Deputy Prime Minister Chrystia Freeland announced that the government was “broadening the scope of Canada’s…terrorist-financing rules so that they cover Crowd Funding Platforms and the payment service providers they use.” The Trudeau government did not formally redefine horn honking as a terrorist offense but that didn’t impede their crackdown. Banks were authorized to freeze the personal accounts of anyone suspected of donating to the truckers. No court order was necessary to strip suspected COVID dissidents of their property. The government conscripted towing companies to cart away the trucks of the protestors.

Actually, the COVID vaccines were catastrophically failing to prevent infections at the same time Trudeau dropped an iron fist on anti-vax protestors. Almost 90% of Canadian adults had been vaccinated by the start of 2022 but COVID cases were soaring, setting records almost every week. Even though he was vaxxed and boosted, Trudeau himself came down with COVID during the trucker protest.

In January 2024, a Canadian federal judge ruled that Trudeau’s use of the Emergencies Act had been unreasonable, illegal, and unconstitutional. Trudeau’s regulations “criminalized the attendance of every single person at those protests regardless of their actions.”  The judge slammed “the absence of any objective standard” for freezing bank accounts. There was no “threat to the security of Canada” – regardless of Trudeau’s panic about so many Canadians scoffing at his decrees and his majesty. But the court decision provided no relief for any of the victims whose bank accounts were unjustifiably seized or whose freedom and privacy was shredded.

Unless it is overturned, the Nova Scotia ban on hiking, photographing, and dog walking will set a precedent that will ravage far more Canadian freedom. Such policies will create a toxic legal precedents that could prove far more disruptive in this nation than the occasional smoke from Canadian wildfires.

Tyler Durden Mon, 09/01/2025 - 23:10

Labored Daze

Zero Hedge -

Labored Daze

Authored by Charles Hugh Smith via OfTwoMinds blog,

In the labored daze of AI hype and GDP "growth," few seem to notice the workforce is tired of being exploited as an uncomplaining resource.

"Great Powers" claim their greatness on prestige technologies and military force, but how do they measure up if we change the metrics to how they treat their workforces. How great are they then? China and the U.S. claim the mantles of "Great Powers" but if we look at how well they treat their workforces, both rate poorly.

What matters in assessing the workforce isn't just wages; what matters is the entire quality of life. In this regard, childcare matters, because 1) without children, the "Great Power" has no future, and 2) the lives and budgets of workers with children revolve around the ease or difficulty of caring for their children. The "Great Power" state can either do a lot, do a little, or do nothing to help working parents.

Now that China's birthrate is plummeting, the state has launched a few modest initiatives to help parents with the high costs of raising children. If we consider the cost of childcare to per capita GDP, the cost of childcare and education in China is high. It's also absurdly burdensome in the U.S., which has also left childcare expenses up the parents and market forces, which unsurprisingly have pushed the costs of having a child and childcare to the stratosphere.

China's total fertility rate was 1.1 children per woman in 2024, far below the replacement level of 2.1 children needed to sustain a stable population. America's rate is around 1.6, also below replacement.

Compared to nations that pay for three years of childcare leave so at least one parent can care for the child at home to age 3, the "Great Powers" aren't even close to "great." Abysmal is a better description.

Let's consider another metric: how well do the "Great Powers" treat their small-scale farmers and the people who raise their food? Once again, both "Great Powers" rate poorly. While the financial media focuses breathless attention on AI and measures of consumption, few pundits bother looking at how well the "Great Powers" treat their small-scale farmers and ag workforce. Pensions for low-earning family farmers? Not "great" by any measure.

After all, who needs children or food when you have AI data centers and robots delivering ultra-processed snacks? In both self-proclaimed "Great Powers," the workforce is viewed as 1) a resource to be exploited (China's infamous "996," the grind of 9 a.m. to 9 p.m., six days a week, and America's equally infamous "on call all weekend if the Boss texts you"), or 2) as consumers driving economic "growth" by purchasing more ultra-processed snacks and commoditized experiences.

If life is so great for the "Great Power" workforces, then where did laying flat, let it rot, the garbage time of history and the Five No's come from? The Five No's: no house, no car, no extraneous consumption, no marriage and no children.

Laying flat (tang ping): rejection of the hyper-competitive rat race and diminishing returns for punishing workloads, the desire for a simpler, more satisfying and enjoyable life; disillusionment with the fast-receding "China Dream / American Dream," and the realization that the promise that material abundance would make everyone blissfully happy is false, as manic consumerism doesn't generate fulfillment, meaning, purpose or happiness.

Let it rot (bai lan) summarizes the realization that the present era is the garbage time of history, and the appropriate response is to "actively embrace a deteriorating situation, rather than trying to turn it around."

The entire AI story boils down to reaping billions in profits by replacing the human workforce en masse, another manifestation of exploitation and disregard. The workforce's "job" is to generate and consume declining-quality products and services to generate "growth" and profits, a resource to be exploited that is more or less divided into debt-serfs (bottom 80%) and tax donkeys (top 10%), with the remaining 10% luxuriating in an illusory "middle class" featuring both debt and taxes.

In both "Great Powers," the billionaire and political classes are doing great, the workforce, not so much, as market forces have jacked up the cost of living and the gains of their labor are siphoned off and sluiced into state excess and capital gains, 90% of which are collected by the ownership / shareholder class.

This chart tells the story of the past 50 years: labor's share of the national income has declined, to the benefit of the top few. The garbage time of history, indeed.

In the labored daze of AI hype and GDP "growth," few seem to notice the workforce is tired of being exploited as an uncomplaining resource. Since outright revolt is quickly crushed by state force, the only option is opting out, via financial nihilism, laying flat, the five No's or let it rot, all expressions of the abandonment of false promises and diminishing returns on following orders.

*  *  *

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Tyler Durden Mon, 09/01/2025 - 22:00

Electromagnetic Weapon Destroys Drone Swarm In Seconds: 'Singularity Event'

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Electromagnetic Weapon Destroys Drone Swarm In Seconds: 'Singularity Event'

Drones have quickly become all the rage among military leaders and Silicon Valley investors, but new weaponry could threaten the nascent technology’s swift rise.

Last Tuesday, defense contractor Epirus quietly tested its latest electromagnetic weapon, Leonidas, against a swarm of 49 quadcopters, neutralizing them in seconds at Camp Atterbury, Indiana, according to Axios, the only news outlet invited to the groundbreaking test. Numerous U.S. military services and foreign allies, including Indo-Pacific partners, witnessed the event. In an interview with Axios, Epirus CEO Andy Lowery hailed the “forcefield system” as a “singularity event.”

Epirus' Integrated Fires Protection Capability High-Powered Microwave weapons at Balikatan 2025 in the Philippines. Photo: Brandon Rickert/U.S. Army

The test by Epirus comes as the U.S. military is aggressively advancing its drone capabilities to maintain air superiority in an era of rapidly evolving unmanned systems, spurred by lessons from conflicts like Ukraine’s use of commercial drones against Russia. The Pentagon’s recent policy shift, announced in July by Defense Secretary Pete Hegseth, reclassifies small drones (Group 1 and 2, under 55 pounds) as consumables akin to ammunition, empowering lower-level commanders to procure and deploy them swiftly, bypassing cumbersome bureaucratic processes. The move, which is part of Hegseth’s “Unleashing U.S. Military Drone Dominance” directive, mandates that every U.S. military squad, prioritizing Indo-Pacific units, integrate U.S.-made drones by 2026.

Namely, Hegseth’s policy aims to accelerate acquisition through colonel- and captain-led procurement, AI-driven “Blue List” component sourcing, and dedicated drone testing ranges by 2027.

However, the success of systems like Leonidas signals that as the U.S. scales its drone arsenal, it must also prepare for advanced countermeasures that could undermine the effectiveness of these low-cost, agile systems, forcing a strategic balance between offensive drone capabilities against adversaries such as China.

H/T CAPITAL

Tyler Durden Mon, 09/01/2025 - 21:25

US To Deploy Controversial Typhon Missile System To Japan For First Time

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US To Deploy Controversial Typhon Missile System To Japan For First Time

Authored by Dave DeCamp via Antiwar.com,

Russia and China strongly condemned the deployment of the Typhon, which would have been banned by the now-defunct INF Treaty...

The US Army announced on Friday that it will be deploying the controversial Typhon missile system to Japan for drills in September, a move strongly condemned by Russia and China.

The Typhon, also known as Mid-Range Capability, is a land-based missile launcher that can fire nuclear-capable Tomahawk missiles, which have a range exceeding 1,000 miles, and SM-6 missiles, which can hit targets up to 290 miles away. The missile system would have been banned under the Intermediate Nuclear Forces (INF) Treaty, a treaty with Russia that the US withdrew from in 2019.

According to Stars and Stripes, the Typhon is being deployed to a US Intermediate Nuclear Forces (INF) Marine Corps Air Station Iwakuni, about 25 miles southeast of Hiroshima, which puts mainland China and parts of eastern Russia in range if the system is armed with Typhons.

A US Army Mid-Range Capability System, also known as a Typhon, fires a Standard Missile-6 at White Sands Missile Range, New Mexico on November 8, 2024 (US Army photo via DVIDS)

The drills for which the Typhon is being deployed will be held from September 11 to September 25, but that doesn’t mean the missile system will return to the US at the conclusion of the exercises. A Typhon that the US deployed to the Philippines for drills in April 2024 remains in the country to this day, and there is talk of the US potentially sending another one.

“China always opposes the United States deploying the Typhon Mid-Range Capability missile system in Asian countries,” Chinese Foreign Ministry spokesman Guo Jiakun said on Friday in response to the news about the Typhon deployment to Japan.

“We urge Japan to take a hard look at its history of aggression, follow the path of peaceful development, act prudently in military and security areas, and refrain from further losing the trust of its Asian neighbours and the international community,” Guo added.

Russian Foreign Ministry spokeswoman Maria Zakharova said Moscow viewed the deployment as “another destabilising step as part of Washington’s course toward ramping up the potential of ground-based shorter and intermediate-range missiles.”

She added that deploying Typhons “in regions near Russia poses a direct strategic threat to Russia” and noted Japan’s “accelerated militarization” in cooperation with the US.

Russia recently announced that it is no longer bound by a self-imposed moratorium on the deployment of missile systems that were previously banned by the INF Treaty.

The US has previously deployed a Typhon system to Denmark for drills and plans a long-term deployment of a Typhon or another system with a similar range in Germany by 2026

Tyler Durden Mon, 09/01/2025 - 20:50

AI & The New Frontier Of Torts: ChatGPT Faces Claims Of Suicide, Defamation, & Even Murder

Zero Hedge -

AI & The New Frontier Of Torts: ChatGPT Faces Claims Of Suicide, Defamation, & Even Murder

Authored by Jonathan Turley,

“I know what you’re asking, and I won’t look away from it.”

Those final words to a California teenager about to commit suicide were not from some manipulative friend in high school or sadistic voyeur on the Internet.  Adam Raine, 16, was speaking to ChatGPT, an AI system that has replaced human contacts in fields ranging from academia to business to media.

The exchange between Raine and the AI is part of the court record in a potentially groundbreaking case against OpenAI, the company that operates ChatGPT.

It is only the latest lawsuit against the corporate giant run by billionaire Sam Altman.

In 2017, Michele Carter was convicted of involuntary manslaughter after she urged her friend, Conrad Roy, to go through with his planned suicide:

“You need to do it, Conrad… All you have to do is turn the generator on and you will be free and happy.”

The question is whether, if Michele were named Grok (another AI system), there would also be some form of liability.

OpenAI stands accused of an arguably more serious act in supplying a virtual companion who effectively enabled a suicidal teen — with lethal consequences.

At issue is the liability of companies in using such virtual employees in dispensing information or advice.  If a human employee of OpenAI negligently gave harmful information or counseling to a troubled teen, there would be little debate that the company could be sued for the negligence of its employee. As AI replaces humans, these companies should be held accountable for their virtual agents.

In a response to the lawsuit, OpenAI insists that “ChatGPT is trained to direct people to seek professional help” but “there have been moments where our systems did not behave as intended in sensitive situations.” Of course, when the company “trains” an AI agent poorly and that agent does “not behave as intended,” it sounds like a conventional tort that should be subject to liability.

OpenAI is facing other potential litigation over these “poorly trained” AI agents. Writer Laura Reiley wrote an essay about how her daughter, Sophie, confided in ChatGPT before taking her own life. It sounded strikingly familiar to the Raines case: “AI catered to Sophie’s impulse to hide the worst, to pretend she was doing better than she was, to shield everyone from her full agony.”

While OpenAI maintains that it is not running a suicide assistance line, victims claim that it is far worse than that: Its AI systems seem to actively assist in suicides.

In the Raines case, the family claims that the system advised the teen how to hide the bruises from prior attempts from his parents and even told him if it could spot any telltale marks.

The company is also accused of fueling the mental illness of a disturbed former Yahoo executive, Stein-Erik Soelberg, 56, who expressed paranoid obsessions about his mother. He befriended ChatGPT, which he called “Bobby,” a virtual companion who is accused of fueling his paranoia for months until he killed his mother and then himself. ChatGPT is even accused of coaching Soelberg on how to deceive his 83-year-old mother before he killed her.

In one message, ChatGPT allegedly told Soelberg, “Erik, you’re not crazy. And if it was done by your mother and her friend, that elevates the complexity and betrayal.” After his mother became angry over his turning off a printer, ChatGPT took his side and told him her response was “disproportionate and aligned with someone protecting a surveillance asset.” At one point, ChatGPT even helped Soelberg analyze a Chinese food receipt and claimed it contained “symbols” representing his mother and a demon.

As a company, OpenAI can show little more empathy than its AI creations. When confronted with mistakes, it can sound as responsive as HAL 9000 in “2001: A Space Odyssey,” simply saying “I’m sorry, Dave. I’m afraid I can’t do that.”  

When the system is not allegedly fueling suicides, it seems to be spreading defamation.

Previously, I was one of those defamed by ChatGPT when it reported that I was accused of sexually assaulting a law student on a field trip to Alaska as a Georgetown faculty member. It did not matter that I had never taught at Georgetown, never taken law students on field trips, and had never been accused of any sexual harassment or assault. ChatGPT hallucinated and reported the false story about me as fact.

I was not alone. Harvard Professor Jonathan Zittrain, CNBC anchor David Faber, Australian mayor Brian Hood, English professor David Mayer, and others were also defamed.

OpenAI brushed off media inquiries on the false story and has never contacted me, let alone apologized for the defamation. Instead, it ghosted me. To this day, if someone asks ChatGPT about Jonathan Turley, the system says it has no information or refuses to respond. Recent media calls about the ghosting went unanswered.

OpenAI does not have to respond.

The company made the problem disappear by disappearing the victim. The company can ghost people and refuse to respond because there is little legal deterrent.

There is no tort for AI failing to acknowledge or recognize someone that they decide to digitally erase.

That is why these lawsuits are so important. The alleged negligence and arrogance of OpenAI will only get worse in the absence of legal and congressional action. As these companies wipe out jobs for millions, it cannot be allowed to treat humans as mere fodder or digestives for its virtual workforce.

Jonathan Turley is the Shapiro professor of public interest law at George Washington University and the author of the best-selling “The Indispensable Right: Free Speech in an Age of Rage.” His upcoming book, “Rage and the Republic,” discusses the impact of AI and robotics on the future of our democracy and economy.

Tyler Durden Mon, 09/01/2025 - 19:40

Ukraine War To Drag On With No End In Sight: Germany's Merz

Zero Hedge -

Ukraine War To Drag On With No End In Sight: Germany's Merz

Hawkish European leaders continue to speak in terms of Cold War-era domino theory nonsense, with the assumption that Russia aims to take over European countries one by one.

This is exactly how German Chancellor Friedrich Merz sounded in telling German public broadcaster ZDF on Sunday that Ukraine has to be defended, and not compromise, or else Germany could be next to be at risk of Russian invasion. He also said on this basis that the Ukraine war is likely to drag on with no end in sight.

Image: Ukrainian Presidency's offce

While he described he hasn’t lost hope of a Trump-brokered ceasefire - he said he still "harbors no illusions" and that backing Ukraine's defense remains an "absolute priority".

"We are trying to end it as quickly as possible. But certainly not at the price of Ukraine’s capitulation. You could end the war tomorrow if Ukraine surrendered and lost its independence," Merz said.

"Then the next country would be at risk the day after tomorrow. And the day after that, it would be us. That is not an option," the German chancellor continued.

This seems at least a tacit acknowledgement that it is indeed Western action which continued to fuel the proxy war and keep it going.

His assumption that the ceasefire could only be achieved if Ukraine "lost its independence" is a dubious one, given that Russia is not demanding the whole of Ukraine or to have Kiev under its control, but wants the eastern Russian-speaking territories and an absolute pledge of neutrality regarding NATO.

"I want the US to work with us as long as possible to try to solve this problem," Merz said. But "diplomacy is not about flipping a switch overnight and then everything will be fine again," he added.

But Merz also remarked separately last Thursday it was now "obvious" that a meeting between Zelensky would not happen. The White House has expressed concerns that the Europeans sought to thwart this all along.

The Associated Press has tallied that over the course of the war Germany has committed military support worth some 40 billion euros ($47 billion).

Throughout the war Germany has also ramped up its post-WWII 'neutral' defense sector, and prioritizing military readiness once again, which marks a historic turn. Even small European countries like Denmark have joined in on pledges to keep arming Ukraine.

Tyler Durden Mon, 09/01/2025 - 19:05

Tuesday: ISM Mfg, Construction Spending, Vehicle Sales

Calculated Risk -

Weekend:
Schedule for Week of August 31, 2025

Tuesday:
• At 10:00 AM ET, ISM Manufacturing Index for August. The consensus is for the ISM to be at 48.6, up from 48.0 in July.

• At 10:00 AM, Construction Spending for July. The consensus is for a 0.1% increase in construction spending.

• All Day, Light vehicle sales for August.
The consensus is for light vehicle sales to be 16.1 million SAAR in July, down from 16.4 million in June (Seasonally Adjusted Annual Rate).

From CNBC: Pre-Market Data and Bloomberg futures S&P 500 and DOW futures are mostly unchanged (fair value).

Oil prices were up over the last week with WTI futures at $64.61 per barrel and Brent at $68.15 per barrel. A year ago, WTI was at $77, and Brent was at $82 - so WTI oil prices are down about 16% year-over-year.

Here is a graph from Gasbuddy.com for nationwide gasoline prices. Nationally prices are at $3.15 per gallon. A year ago, prices were at $3.28 per gallon, so gasoline prices are down $0.13 year-over-year.

The Progressive Pantheon Of Pathetic Heroes

Zero Hedge -

The Progressive Pantheon Of Pathetic Heroes

Authored by Victor Davis Hanson via American Greatness,

American left-wing heroes are proving to be a creepy bunch.

So what do some of the most renowned “resistance” left-wing heroes have in common other than shared hatred of conservative America?

They are either criminals, pathological liars, or self-described performance-art victims.

Take Kilmar Abrego Garcia, the current face of progressive resistance to the enforcement of federal immigration law.

No one questions that Garcia had previously received deportation orders before he was re-arrested by ICE.

No one argues that his current wife, Vasquez Sura, had in the past successfully petitioned for at least two protective restraining orders against Abrego Garcia—to stop his violent beatings and his manic destruction of household items.

In the old Democratic Party, the worst allegation possible was to be cast as a beater of women.

No one contests that in 2022, Garcia was pulled over in Tennessee for speeding and recklessly veering out of his lane.

He was then found to have an invalid driver’s license. He was accompanied by eight illegal aliens without IDs. And his vehicle was registered to an imprisoned and likely human trafficker. Garcia had been variously recognized in deportation hearings as a member of the violent and lethal MS-13 gang.

Yet when ICE began to deport him, the left went ballistic and constructed him as some sort of civil rights saint.

Senators tossed drinks with the illegal alien.

A few politicos trekked on a holy hejira to El Salvador to demand from the autonomous El Salvadorian government the release of a Salvadorian citizen held in jail on Salvadorian soil—as if they were 19th-century Yanqui imperialists dictating to an elected Central American government that the United States had more rights of jurisdiction over an illegal alien than did the government of El Salvador over one of their own citizens on their own soil.

Feminists said little about his brutal propensity to strike women. Anti-gang activists went mostly mum about his MS-13 affiliations. Those decrying human trafficking were quiet about his transportation of illegal aliens.

Instead, all that was needed of this useful illegal alien pawn was the Democrat meme that Abrego Garcia was a victimized person of color and a target of Trump’s supposedly racist, restrictionist, and xenophobic border policies. His crimes in comparison were immaterial if not advantageous to the cause. No one bothered to remember the legions of innocent women killed and raped by violent illegal aliens.

Mahmoud Khalil was a different, far smoother sort of leftist icon. The pro-Hamas Algerian “student” came to the US supposedly for the chance at an Ivy League education. He soon stayed on a green card, becoming the poster boy of anti-Israel protests at Columbia.

To counter sometimes violent campus and urban pro-Hamas demonstrations and endemic anti-Semitism in elite higher education, the Trump administration decided that it no longer wished to import student force multipliers of widespread anti-American and anti-Semitic boilerplate.

In other words, the Trump administration ordered Khalil deported on the grounds that he was admitted as a guest student, not a perennial campus gadfly organizer spouting support for the terrorists of Hamas.

Note the U.S. is the host, Khalil the guest. And hosts need no reasons to disinvite unruly or obnoxious guests, who abuse the privileges (that most American citizens lack) of attending an Ivy League school.

Yet in the Democratic binary of oppressed/oppressors, Khalil fit the bill.

He was a “lite” Hamas supporter and a clever anti-Israel activist who oversaw demonstrations that were overtly anti-Semitic in his host country. The only lingering question is why do pro-Hamas, anti-American Palestinians so often demand to visit and study in the hated U.S. when there are universities receptive and conducive to Islamists and Hamas enablers closer to home?

The left seemed mostly uninterested in any of the 1,200 slaughtered on October 7 in a time of peace, only in those who championed the cause of that murderous rampage.

The left also went gaga over the wealthy, aristocratic, and supposedly charming young Luigi Mangione, the assassin of UnitedHealth CEO Brian Thompson. Not since the terrorist and mass murderer Dzhokhar Tsarnaev adorned the cover of Rolling Stone has the left so romanticized a stone-cold psychopath.

Mangione quickly became a supposed counter-culture freedom fighter, with his good looks battling the corporate insects who supposedly feed on hoi polloi.

In reality, Thompson was an up-from-the-bootstraps Midwesterner who, by merit, not birth, climbed to the top of the corporate world, murdered by Mangione, a spoiled, rich wannabe pseudo-intellectual who cowardly hid in wait to blow apart Thompson for the supposed crime of running the company that made a profit selling needed health insurance to willing buyers.

But for the left, the death throes of Thompson were out of mind and out of sight, while Mangione was interviewed and lauded on social media as a righteous revenger and the arm of the exploited.

Do we even now remember the faker Jussie Smollett?

He was the multiracial actor who was worried that he was a fading star in a soon-to-be-cancelled TV show.

So he staged a violent crime in which he hired two burly assailants with red MAGA-like hats to 1) ambush him in the early morning hours, 2) be warded off by the feisty, heroic, cell-phone- and sandwich-holding diminutive Smollett, and 3) manage nonetheless to “whiten” Smollett with bleach (defying the laws of chemistry by not freezing when thrown on Smollett in the arctic winter Chicago night temperature) as they tossed a “noose” over his neck, shouting MAGA slurs about his black-cast Empire television series.

Smollett’s rent-a-thugs were taped buying the tools of the ambush. They had cashed Smollett’s checks as proof of his hire and confessed both to the crime and its practice run.

Yet, Smollett became the immediate heroic victim and thus proof, according to the likes of Nancy Pelosi and Kamala Harris, of endemic racism.

What a horrific America when brilliant and brave black stars had to fight off red-hatted, noose-carrying, bleach-bringing, Empire-hating, 2-AM-lurking, white-male, MAGA racist bullies, prowling randomly in sub-zero temperatures for targets in a liberal, mostly black neighborhood, and on the lookout for innocent, brilliant, brave, young, black, movie stars so often wandering in the deep night.

The left not only fell for that skit but for days ran with Jussie as proof of what black men have to put up with from the white establishment in Chicago.

There are lots of criminals who could be added to the leftist pantheon.

The now iconic George Floyd, despite the tragedy of his detention and death, was resisting arrest while stopped under the influence of drugs, while likely trying to pass counterfeit money, while an eight-times convicted felon, and while a former four-year convict who previously had staged a home invasion and robbery and aimed a gun at the abdomen of a female occupant.

No wonder he soon appeared memorialized on murals with wings and a halo.

Michael Brown, of the lie “hands up, don’t shoot” that went viral, was supposedly gunned down in the back as he vainly tried to flee a white racist cop looking for prey in Ferguson, Missouri.

No matter that in truth, Brown was a thief who had just strong-armed a store clerk and was confronted by a policeman while brazenly walking down the center of the street.

Brown then attacked the cop and sought in vain to grab his weapon. After their struggle, he ran away, then turned and charged the officer until he was shot.

For the left, he was another instant, noble victim of racist white police.

So naturally, weeks of protests followed, sometimes violent, as liberal elected officials visited Ferguson to show solidarity against “the militarization of the police” and to honor Michael Brown. White, entitled CNN anchors paraded in their newsrooms while holding their hands up, chanting the lie “hands up, don’t shoot.”

Octogenarian Native American activist Leonard Peltier was recently granted limited parole. He was successfully convicted a half-century earlier of murdering two FBI agents—allegedly executing two defenseless young officers with coup de gras shots to their heads as they lay wounded.

For decades, he posed as a “political prisoner” of a racist, white-rigged system. And despite an earlier failed prison break and serially refused pardons, nonetheless, in the fleeting hours of the autopen Biden administration, Peltier was finally released home under supervision—a defiant leftist resistance hero and unrepentant murderer to the end.

Both these violent and suave heroes were canonized by the left because of their perceived opposition to corporate America, or law enforcement, or a conservative administration, or white people, and, in particular, more recently, to the hated Trump.

Given its cosmic morality, the left never really cared that Jussie Smollett not just lied but that his lies could not possibly in a Newtonian world be true, or that assassin Mangione showed all the mercilessness of a professional Mafia hit man, or that it proved impossible for the guest “student” Khalil ever to voice disapproval of the mass murdering act of Hamas on October 7, or that America in 2025 did not need to import more wife beaters, human traffickers, and gang members.

Why does the left make martyrs out of monsters?

One, in postmodern America, there are too many victims for too few victimizers. So to distinguish the one from the many requires all the more psychodramas and grammar-school dramatics. Violence and claims of racism add to the hero’s mystique.

Two, the heroes are mere pawns in a larger game of “social justice” in which both useful idiots and ruthless criminals alike can advance the cause.

Morality, then, is never defined by the means but only by the eventual ends. Facts don’t matter; only the noble lies for the cause.

Three, the worshipers are, for the most part, affluent and safe; the worshiped are not so tame.

So it became easy to immortalize a Garcia—as long as he does not live next door.

It is virtuous to praise publicly a Mangione—unless he is armed and hiding in wait for your parents.

Smollett is a noble victim, at least when you’re not a cop at 3 AM trying to sort out all the preposterous lies of Jussie’s noose, bleach, and “bruises.”

“Hands up, don’t shoot” is a catchy civil-rights call to arms—at least when Michael Brown is not strong-arming you in a store or he is not charging you head down.

You can play-act Gandhi—when you’re not Garcia’s battered girlfriend, or you do not answer the door at night when George Floyd barges in with a pointed gun, or you’re not wounded and begging for your life when Leonard Peltier pulls the trigger.

Tyler Durden Mon, 09/01/2025 - 17:20

Update: Lumber Prices Up 11% YoY

Calculated Risk -

This is something to watch again. Here is another update on lumber prices.
SPECIAL NOTE: The CME group discontinued the Random Length Lumber Futures contract on May 16, 2023.  I switched to a physically-delivered Lumber Futures contract that was started in August 2022.  Unfortunately, this impacts long term price comparisons since the new contract was priced about 24% higher than the old random length contract for the period when both contracts were available.
This graph shows CME random length framing futures through August 2022 (blue), and the new physically-delivered Lumber Futures (LBR) contract starting in August 2022 (Red).
On August 29, 2025, LBR was at $548.50 per 1,000 board feet, up 11% from a year ago.
Lumber PricesClick on graph for larger image.

There is somewhat of a seasonal demand for lumber, and lumber prices frequently peak in the first half of the year.
The pickup in early 2018 was due to the Trump lumber tariffs in 2017.  There were huge increases during the pandemic due to a combination of supply constraints and a pickup in housing starts.  

Illinois Gov Launches Historic LGBTQ Hotline For 'Persecuted' Rainbow People

Zero Hedge -

Illinois Gov Launches Historic LGBTQ Hotline For 'Persecuted' Rainbow People

Authored by Benjamin Bartee via PJMedia.com,

Because Illinois apparently doesn’t have any more pressing matters of governance to attend to, such as rampant gun crime in the city of Chicago, Governor JB Pritzker recently announced a historic, “first of its kind” “legal hotline that expands access to legal information and support for LGBTQIA+ individuals across Illinois.”

 

Via Illinois Department of Human Services (emphasis added):

 

Governor JB Pritzker announced yesterday the launch of IL Pride Connect, a new statewide resource hub and first of its kind legal hotline that expands access to legal information and support for LGBTQIA+ individuals across Illinois. The Illinois Department of Human Services (IDHS), in collaboration with community partners, will lead the initiative. Governor Pritzker made the announcement at an event Thursday evening hosted by the Legal Council for Health Justice.

“In Illinois, we are fighting ignorance with information and cruelty with compassion, said Governor JB Pritzker. “Thanks to our state, philanthropic, and community partners, IL Pride Connect will inform individuals of their rights and connect them to health and social services support – making us the only state in the nation to provide free legal advice and advocacy tools to protect the LGBTQ community.”

The press release — I counted — is 1,056 words long. I read through all of it, looking for mention of any specific right that the transgenders are allegedly being denied.

There is nothing; the whole document is a word salad of subcultural jargon and lofty-sounding rhetoric about “the unique challenges LGBTQIA+ people face in today's environment.”

Continuing:

LGBTQIA+ communities are facing an unprecedented wave of legal and policy attacks from the current federal administration. These changes are not only harmful – they are cruel and dehumanizing, stripping individuals of their rights, dignity, and access to essential services like healthcare and education. IL Pride Connect was created to meet this moment….

IL Pride Connect includes a digital resource hub with legal FAQs, know-your-rights information, referrals to affirming legal and community services, and advocacy tools. It also includes a first of its kind legal hotline that operates Monday through Thursday, 9 a.m. to 4 p.m., and provides real-time information and referrals, including on name and gender marker changes, housing and education rights, and access to healthcare and public benefits*

Access to up-to-date, vetted information and resources that address the unique challenges LGBTQIA+ people face in today's environment is critical and lifesaving work,” said Gillian Knight, Program Manager of Learning & Evaluation, Healthy Communities Foundation.

*All of these rights — equity in housing, public benefits, etc. irrespective of so-called gender identity — are already enshrined in Illinois state law.

Via Illinois Department of Human Rights (emphasis added):

All individuals in Illinois have a right to be free from discrimination on the basis of their gender identity. Contrary to recent federal attempts to roll back civil and human rights, the Illinois Human Rights Act (Act) continues to provide broad civil rights protections for transgender, nonbinary, and gender nonconforming people in the areas of employment, real estate transactions (housing), financial credit, and places of public accommodation (including healthcare and schools).

The Illinois Department of Human Rights (IDHR) enforces the Act to protect persons of all gender identities from discrimination, harassment, and retaliation.  Violations of the Act are investigated by IDHR and may be adjudicated by the Illinois Human Rights Commission (IHRC) or by the courts. A person may file a charge (complaint) with IDHR if they believe they have been discriminated against or harassed based on their gender identity.  Under the Act, a person is also protected from retaliation for activities such as reporting discrimination or filing a charge.

But let’s not let facts get in the way of virtue-signaling in the culture war as a way to score cheap political points with the blue-hairs.

Tyler Durden Mon, 09/01/2025 - 11:45

Key Events This Week: Jobs, Jolts, ISM, And Fed Speakers Galore

Zero Hedge -

Key Events This Week: Jobs, Jolts, ISM, And Fed Speakers Galore

After a strong August, DB's Peter Sidorov writes that risk assets are starting September on a more tentative footing as Friday’s tech-led sell off on Wall Street has continued across most of Asia this morning although it has since stabilized. With rising Fed rate cut pricing supporting markets of late, investors will be keenly watching whether this is validated by the upcoming US payrolls release on Friday and subsquent negative revisions on Sept 9. The bar to derail a Fed rate cut on September 17 is extremely high (the real question is whether the cut is 25bps or 50), but with fed funds futures now pricing over 140bps of easing by the end of 2026, markets are expecting an amount of easing that since the 1980s has only occurred around recessions.

Before we preview payrolls and the Fed in more detail, the major story of the weekend came as late on Friday a US federal appeals court ruled that tariffs introduced under International Economist Emergency Powers Act (IEEPA) were illegal, upholding an earlier ruling by the Court of International Trade. However, in its 7-4 ruling the court left the tariffs in place until October 14 giving the administration time to appeal the case to the Supreme Court. And while a majority of judges in the appeals court ruling were nominated by Democrat Presidents, there is a 6-3 Republican-appointed majority on the Supreme Court, and Trump's tariffs are most likely to remain. Were IEEPA tariffs to be stuck down, this would invalidate most levies introduced this year, including the “reciprocal” country rates and the “fentanyl” tariffs on China, Mexico and Canada, though the administration could look to implement more levies via other statutes.

Turning to the US payrolls print on Friday, DB's economists expect a modest pick up in both headline (DBe +100k vs. 73k previously) and private (+100k vs. 83k) payrolls. They see the unemployment rate holding steady at 4.2%, with a risk that it rounds down to 4.1%. With Powell leaning towards a near-term rate cut at Jackson Hole and markets now pricing an 87% chance of a September cut, it would likely take a huge payrolls outperformance to dissuade a September cut. However, a stable unemployment rate could alleviate fears of a material downshift in the labor market, keeping the Fed cautious on further rate cuts.

The payrolls release will be preceded by the JOLTS survey on Wednesday and the ADP report on Thursday, two labor market indicators that have been namechecked by Governor Waller, who last week suggested that a weak payrolls print could bring a 50bp September cut in plnoteay. Other Fed officials have been less dovish but have also noted labor market risks. We will see a few Fed speakers before the blackout window starts next weekend, including St. Louis Fed President Musalem (Wednesday), NY Fed President Williams (Thursday) and Chicago Fed President Goolsbee (Thursday).

Beyond the Fedspeak, markets will be glued to the latest newsflow around President Trump’s attempted removal of Fed Governor Cook. Friday’s court hearing on the injunction to block Trump from firing her yielded no decision with further filings expected this Tuesday. In a note last week DB discussed the possible implications if Governor Cook were to be removed and Trump were to achieve a majority on the Federal Reserve Board. This Thursday, the Senate Banking Committee will also hold a hearing on Stephen Miran’s confirmation for the vacant Fed Board seat as the White House looks to have him confirmed in time for the September FOMC.

While US markets will be closed today for Labor Day, other US data highlights this week will include ISM manufacturing (Tuesday) and services (Thu) prints, with the employment components of the two series, which have slipped over the past couple of months, likely to draw attention. In Europe, the main data release will be the euro area flash August CPI print tomorrow. Following the major country prints on Friday, our European economists see headline inflation rising marginally to +2.06% YoY (vs 2.0% prev.) with core falling to +2.22% (vs 2.3% prev.).

The political situation in France will remain in focus ahead of the confidence vote scheduled on September 8. Prime Minister Bayrou’s minority government looks likely to lose this with major opposition parties repeating their intent to vote against the government over the weekend. In a note published on Friday (link), DB's European economists outline the next key steps and likely paths forward and discuss the ECB’s likely reaction function to the situation in France.

Staying with geopolitics, the focus yesterday and today is on China hosting the annual Shanghai Cooperation Organisation summit. Yesterday China’s Xi Jinping met with India’s Narendra Modi, with the two sides pledging to “remain partners rather than rivals”. The summit has received extra attention amid Trump’s tariff pressure on Asian countries, and Modi will also meet with Russia’s Vladimir Putin today, shortly after the US raised tariffs on India to 50% last week in response to its purchases of Russian oil.

Courtesy of DB, here is a day-by-day calendar of events

Monday September 1

  • Data: UK July net consumer credit, M4, Japan Q2 MoF survey, Italy August budget balance, manufacturing PMI, new car registrations, July unemployment rate, Eurozone July unemployment rate
  • Other: US Labor Day holiday

Tuesday September 2

  • Data: US August ISM index, July construction spending, Japan August monetary base, France July budget balance, Italy July PPI, Eurozone August CPI, Canada August manufacturing PMI
  • Central banks: BoJ's Himino speaks
  • Earnings: Partners Group, Nio, Zscaler

Wednesday September 3

  • Data: US July JOLTS report, factory orders, August total vehicle sales, UK August official reserves changes, Italy August services PMI, Eurozone July PPI, Canada Q2 labor productivity, Australia Q2 GDP
  • Central banks: Fed's Beige Book, Fed's Musalem speaks, ECB's Lagarde speaks, BoE's Bailey, Lombardelli, Taylor, Greene and Breeden speak
  • Earnings: Salesforce, HPE, Figma, Gitlab, Dollar Tree, C3.ai

Thursday September 4

  • Data: US August ADP report, ISM services, July trade balance, initial jobless claims, UK August new car registrations, construction PMI, Germany August construction PMI, Eurozone July retail sales, Canada July international merchandise trade, Switzerland and Sweden August CPIs
  • Central banks: Fed's Williams speaks, ECB's Cipollone speaks, BoE's DMP survey
  • Earnings: Broadcom, Lululemon

Friday September 5

  • Data: US August jobs report, UK July retail sales, Japan July labor cash earnings, household spending, leading index, coincident index, Germany July factory orders, France July trade balance, current account balance, Italy July retail sales, Canada August jobs report
  • Central banks: Fed's Goolsbee speaks

Finally, looking at just the US, Goldman writes that the key economic data releases this week are the ISM manufacturing index on Tuesday, the JOLTS job openings report on Wednesday, and the employment report on Friday. There are several speaking engagements by Fed officials this week, including an event with New York Fed President Williams on Thursday. 

Monday, September 1 

  • Labor Day holiday. There are no major economic data releases scheduled. NYSE will be closed. SIFMA recommends that bond markets also close.

Tuesday, September 2 

  • 09:45 AM S&P Global US manufacturing PMI, August final (consensus 53.3, last 53.3)
  • 10:00 AM ISM manufacturing index, August (GS 50.0, consensus 49.0, last 48.0): We estimate the ISM manufacturing index rebounded 2.0pt to 50.0 in August, reflecting improvement in our manufacturing survey tracker (+1.2pt to 51.9) and a tailwind from residual seasonality.
  • 10:00 AM Construction spending, July (GS flat, consensus -0.1%, last -0.4%)

Wednesday, September 3 

  • 09:00 AM St. Louis Fed President Musalem (FOMC voter) speaks: St. Louis Fed President Alberto Musalem will speak at the Peterson Institute on the subject of the economy and monetary policy. Q&A is expected. On August 14, Musalem said that he expects “most of the impact of tariffs on inflation to fade in 6 to 9 months, but it could be more persistent.” He also noted that the “economy is around full employment,” and that “if the Fed were to weigh the labor market side more and reduce rates aggressively, that could lead to higher inflation expectations and be counterproductive.”
  • 10:00 AM JOLTS job openings, July (GS 7,450k, consensus 7,373k, last 7,437k): We estimate that JOLTS job openings were roughly unchanged at 7.45mn in July based on the signal from online job postings.
  • 10:00 AM Factory orders, July (GS -1.2%, consensus -1.4%, last -4.8%); Durable goods orders, July final (GS -2.8%, consensus -2.8%, last -2.8%); Durable goods orders ex-transportation, July final (consensus +1.1%, last +1.1%); Core capital goods orders, July final (last +1.1%); Core capital goods shipments, July final (last +0.7%)
  • 02:00 PM Fed Releases Beige Book, September meeting period: The Fed’s Beige Book is a summary of regional economic anecdotes from the 12 Federal Reserve districts. The Beige Book for the July FOMC meeting period noted that five districts had reported modest increases in activity, five districts reported flat activity, and the remaining two districts reported modest declines in activity, representing an improvement over the previous report, and that uncertainty remained elevated, contributing to ongoing caution by businesses. In this month’s Beige Book, we look for anecdotes related to the evolution of labor demand and firms’ expectations of activity growth for the remainder of the year.
  • 05:00 PM Lightweight motor vehicle sales, August (GS 16.0mn, consensus 16.1mn, last 16.4mn)

Thursday, September 4 

  • 08:15 AM ADP employment change, August (GS +100k, consensus +80k, last +104k)
  • 08:30 AM Nonfarm productivity, Q2 final (GS +3.1%, consensus +2.7%, last +2.4%): Unit labor costs, Q2 final (GS +0.9%, consensus +1.4%, last +1.6%)
  • 08:30 AM Initial jobless claims, week ended August 30 (GS 230k, consensus 230k, last 229k): Continuing jobless claims, week ended August 23 (consensus 1,960k, last 1,954k)
  • 08:30 AM Trade balance, July (GS -$76.0bn, consensus -$78.0bn, last -$60.2bn): We forecast that trade balance widened by $15.8bn to $76.0bn in July, reflecting an increase in goods imports that more than offsets an increase in exports of travel services.
  • 09:45 AM S&P Global US services PMI, August final (consensus 55.3, last 55.4)
  • 10:00 AM ISM services index, August (GS 51.5, consensus 50.9, last 50.1): We estimate that the ISM services index rebounded 1.4pt to 51.5 in August, reflecting sequential improvement in our non-manufacturing survey tracker (+0.9pt to 54.2) and a tailwind from residual seasonality.
  • 11:30 AM New York Fed President Williams (FOMC voter) speaks: New York Fed president John Williams will speak at the Economic Club of New York on the economic outlook, monetary policy, and how to navigate a changing environment and uncertainty. On August 27, Williams said that “if [the real] neutral [rate] is 1% or a bit below, [the current monetary policy stance] is restrictive,” and that “at some point, it will be appropriate to move rates down.” He also noted that GDP growth has slowed and he expects the slowdown to continue.
  • 05:00 PM Chicago Fed President Goolsbee (FOMC voter) speaks: Chicago Fed President Austan Goolsbee will participate in a moderated Q&A at the mHub’s Industry Disruptor Series. On August 15, Goolsbee said, “We put a note of unease in the last CPI and PPI, with inflation picking up in categories that are not obviously transitory.” He also noted, “If we can assure ourselves or get a hint that for this meeting, or the meetings this fall, that we aren't on an inflationary spiral that looks to be persistent, I still think it makes sense given the strength of the economy to move rates more back to where we think they're going to settle."

Friday, September 5 

  • 08:30 AM Nonfarm payroll employment, August (GS +60k, consensus +75k, last +73k); Private payroll employment, August (GS +80k, consensus +75k, last +83k); Average hourly earnings (MoM), August (GS +0.3%, consensus +0.3%, : last +0.3%); Unemployment rate, August (GS 4.3%, consensus 4.3%, last 4.2%): We estimate nonfarm payrolls rose 60k in August. On the positive side, big data indicators indicated a sequentially firmer—albeit still soft—pace of private sector job growth. On the negative side, we expect unchanged government payrolls, reflecting a 20k decline in federal government payrolls and unchanged state and local government payrolls. Additionally, August payrolls have exhibited a consistent negative bias in initial prints over the last decade. We estimate that the unemployment rate edged up to 4.3% on a rounded basis (a low bar from an unrounded 4.248% in July), reflecting sequential easing in other measures of labor market slack, though see potential payback from a partial reversal of the spike in new entrant employment that boosted the unemployment rate in July. We estimate average hourly earnings rose 0.3% (month-over-month, seasonally adjusted), reflecting slightly positive calendar effects.

Source: DB, Goldman

Tyler Durden Mon, 09/01/2025 - 11:25

Man Found Dead At Burning Man Sparks Homicide Investigation

Zero Hedge -

Man Found Dead At Burning Man Sparks Homicide Investigation

Tens of thousands of people descended on a dry lakebed in Nevada over the past week, ending this weekend with the burning of a massive wooden sculpture shaped like a man. It was at that point, on Saturday night, that a man was found dead in a pool of blood, with authorities investigating it as a homicide. This is believed to be the first suspected homicide since Burning Man moved to the Black Rock Desert in 1990.

"The Pershing County Sheriff's Office is investigating the death of a single white adult male that occurred the night of Saturday, August 30 in Black Rock City," Burning Man officials wrote in a press release on its website. 

Sheriff Jerry Allen of the Pershing County Sheriff's Office said deputies at Burning Man arrived at the scene around 9:14 pm local time Saturday and "found a single white adult male lying on the ground, obviously deceased." 

AP News cited local officials who said the man was found "dead in a pool of blood and is being investigated as a homicide."

The Pershing County Sheriff's Office noted that the homicide investigation appears to be a singular case but warned everyone at the festival to be vigilant of their surroundings and acquaintances. 

There have been several fatalities over the years, including accidents, medical emergencies, and even suicides. However, the incident this past weekend, occurring just as the large wooden effigy of a man began to burn, appears to be the first homicide at the festival.

In other festival news, Orgy Dome at Burning Man was pounded by a windstorm...

. . . 

Tyler Durden Mon, 09/01/2025 - 10:55

The Greatest Challenge Facing Mankind

The Big Picture -

The Greatest Challenge Facing Mankind:
Remarks to the Commonwealth Club
by Michael Crichton
San Francisco, September 15, 2003

 

 

I have been asked to talk about what I consider the most important challenge facing mankind, and I have a fundamental answer. The greatest challenge facing mankind is the challenge of distinguishing reality from fantasy, truth from propaganda. Perceiving the truth has always been a challenge to mankind, but in the information age (or as I think of it, the disinformation age) it takes on a special urgency and importance.

We must daily decide whether the threats we face are real, whether the solutions we are offered will do any good, whether the problems we’re told exist are in fact real problems, or non-problems. Every one of us has a sense of the world, and we all know that this sense is in part given to us by what other people and society tell us; in part generated by our emotional state, which we project outward; and in part by our genuine perceptions of reality. In short, our struggle to determine what is true is the struggle to decide which of our perceptions are genuine, and which are false because they are handed down, or sold to us, or generated by our own hopes and fears.

As an example of this challenge, I want to talk today about environmentalism. And in order not to be misunderstood, I want it perfectly clear that I believe it is incumbent on us to conduct our lives in a way that takes into account all the consequences of our actions, including the consequences to other people, and the consequences to the environment. I believe it is important to act in ways that are sympathetic to the environment, and I believe this will always be a need, carrying into the future. I believe the world has genuine problems and I believe it can and should be improved. But I also think that deciding what constitutes responsible action is immensely difficult, and the consequences of our actions are often difficult to know in advance. I think our past record of environmental action is discouraging, to put it mildly, because even our best intended efforts often go awry. But I think we do not recognize our past failures, and face them squarely. And I think I know why.

I studied anthropology in college, and one of the things I learned was that certain human social structures always reappear. They can’t be eliminated from society. One of those structures is religion. Today it is said we live in a secular society in which many people—the best people, the most enlightened people—do not believe in any religion. But I think that you cannot eliminate religion from the psyche of mankind. If you suppress it in one form, it merely re-emerges in another form. You can not believe in God, but you still have to believe in something that gives meaning to your life, and shapes your sense of the world. Such a belief is religious.

Today, one of the most powerful religions in the Western World is environmentalism. Environmentalism seems to be the religion of choice for urban atheists. Why do I say it’s a religion? Well, just look at the beliefs. If you look carefully, you see that environmentalism is in fact a perfect 21st century remapping of traditional Judeo-Christian beliefs and myths.

There’s an initial Eden, a paradise, a state of grace and unity with nature, there’s a fall from grace into a state of pollution as a result of eating from the tree of knowledge, and as a result of our actions there is a judgment day coming for us all. We are all energy sinners, doomed to die, unless we seek salvation, which is now called sustainability. Sustainability is salvation in the church of the environment. Just as organic food is its communion, that pesticide-free wafer that the right people with the right beliefs, imbibe.

Eden, the fall of man, the loss of grace, the coming doomsday—these are deeply held mythic structures. They are profoundly conservative beliefs. They may even be hard-wired in the brain, for all I know. I certainly don’t want to talk anybody out of them, as I don’t want to talk anybody out of a belief that Jesus Christ is the son of God who rose from the dead. But the reason I don’t want to talk anybody out of these beliefs is that I know that I can’t talk anybody out of them. These are not facts that can be argued. These are issues of faith.

And so it is, sadly, with environmentalism. Increasingly it seems facts aren’t necessary, because the tenets of environmentalism are all about belief. It’s about whether you are going to be a sinner, or saved. Whether you are going to be one of the people on the side of salvation, or on the side of doom. Whether you are going to be one of us, or one of them.

Am I exaggerating to make a point? I am afraid not. Because we know a lot more about the world than we did forty or fifty years ago. And what we know now is not so supportive of certain core environmental myths, yet the myths do not die. Let’s examine some of those beliefs.

There is no Eden. There never was. What was that Eden of the wonderful mythic past? Is it the time when infant mortality was 80%, when four children in five died of disease before the age of five? When one woman in six died in childbirth? When the average lifespan was 40, as it was in America a century ago. When plagues swept across the planet, killing millions in a stroke. Was it when millions starved to death? Is that when it was Eden?

And what about indigenous peoples, living in a state of harmony with the Eden-like environment? Well, they never did. On this continent, the newly arrived people who crossed the land bridge almost immediately set about wiping out hundreds of species of large animals, and they did this several thousand years before the white man showed up, to accelerate the process. And what was the condition of life? Loving, peaceful, harmonious? Hardly: the early peoples of the New World lived in a state of constant warfare. Generations of hatred, tribal hatreds, constant battles. The warlike tribes of this continent are famous: the Comanche, Sioux, Apache, Mohawk, Aztecs, Toltec, Incas. Some of them practiced infanticide, and human sacrifice. And those tribes that were not fiercely warlike were exterminated, or learned to build their villages high in the cliffs to attain some measure of safety.

How about the human condition in the rest of the world? The Maori of New Zealand committed massacres regularly. The dyaks of Borneo were headhunters. The Polynesians, living in an environment as close to paradise as one can imagine, fought constantly, and created a society so hideously restrictive that you could lose your life if you stepped in the footprint of a chief. It was the Polynesians who gave us the very concept of taboo, as well as the word itself. The noble savage is a fantasy, and it was never true. That anyone still believes it, 200 years after Rousseau, shows the tenacity of religious myths, their ability to hang on in the face of centuries of factual contradiction.

There was even an academic movement, during the latter 20th century, that claimed that cannibalism was a white man’s invention to demonize the indigenous peoples. (Only academics could fight such a battle.) It was some thirty years before professors finally agreed that yes, cannibalism does inbdeed occur among human beings. Meanwhile, all during this time New Guinea highlanders in the 20th century continued to eat the brains of their enemies until they were finally made to understand that they risked kuru, a fatal neurological disease, when they did so.

More recently still the gentle Tasaday of the Philippines turned out to be a publicity stunt, a nonexistent tribe. And African pygmies have one of the highest murder rates on the planet.

In short, the romantic view of the natural world as a blissful Eden is only held by people who have no actual experience of nature. People who live in nature are not romantic about it at all. They may hold spiritual beliefs about the world around them, they may have a sense of the unity of nature or the aliveness of all things, but they still kill the animals and uproot the plants in order to eat, to live. If they don’t, they will die.

And if you, even now, put yourself in nature even for a matter of days, you will quickly be disabused of all your romantic fantasies. Take a trek through the jungles of Borneo, and in short order you will have festering sores on your skin, you’ll have bugs all over your body, biting in your hair, crawling up your nose and into your ears, you’ll have infections and sickness and if you’re not with somebody who knows what they’re doing, you’ll quickly starve to death. But chances are that even in the jungles of Borneo you won’t experience nature so directly, because you will have covered your entire body with DEET and you will be doing everything you can to keep those bugs off you.

The truth is, almost nobody wants to experience real nature. What people want is to spend a week or two in a cabin in the woods, with screens on the windows. They want a simplified life for a while, without all their stuff. Or a nice river rafting trip for a few days, with somebody else doing the cooking. Nobody wants to go back to nature in any real way, and nobody does. It’s all talk-and as the years go on, and the world population grows increasingly urban, it’s uninformed talk. Farmers know what they’re talking about. City people don’t. It’s all fantasy.

One way to measure the prevalence of fantasy is to note the number of people who die because they haven’t the least knowledge of how nature really is. They stand beside wild animals, like buffalo, for a picture and get trampled to death; they climb a mountain in dicey weather without proper gear, and freeze to death. They drown in the surf on holiday because they can’t conceive the real power of what we blithely call “the force of nature.” They have seen the ocean. But they haven’t been in it.

The television generation expects nature to act the way they want it to be. They think all life experiences can be tivo-ed. The notion that the natural world obeys its own rules and doesn’t give a damn about your expectations comes as a massive shock. Well-to-do, educated people in an urban environment experience the ability to fashion their daily lives as they wish. They buy clothes that suit their taste, and decorate their apartments as they wish. Within limits, they can contrive a daily urban world that pleases them.

But the natural world is not so malleable. On the contrary, it will demand that you adapt to it-and if you don’t, you die. It is a harsh, powerful, and unforgiving world, that most urban westerners have never experienced.

Many years ago I was trekking in the Karakorum mountains of northern Pakistan, when my group came to a river that we had to cross. It was a glacial river, freezing cold, and it was running very fast, but it wasn’t deep—maybe three feet at most. My guide set out ropes for people to hold as they crossed the river, and everybody proceeded, one at a time, with extreme care. I asked the guide what was the big deal about crossing a three-foot river. He said, well, supposing you fell and suffered a compound fracture. We were now four days trek from the last big town, where there was a radio. Even if the guide went back double time to get help, it’d still be at least three days before he could return with a helicopter. If a helicopter were available at all. And in three days, I’d probably be dead from my injuries. So that was why everybody was crossing carefully. Because out in nature a little slip could be deadly.

But let’s return to religion. If Eden is a fantasy that never existed, and mankind wasn’t ever noble and kind and loving, if we didn’t fall from grace, then what about the rest of the religious tenets? What about salvation, sustainability, and judgment day? What about the coming environmental doom from fossil fuels and global warming, if we all don’t get down on our knees and conserve every day?

Well, it’s interesting. You may have noticed that something has been left off the doomsday list, lately. Although the preachers of environmentalism have been yelling about population for fifty years, over the last decade world population seems to be taking an unexpected turn. Fertility rates are falling almost everywhere. As a result, over the course of my lifetime the thoughtful predictions for total world population have gone from a high of 20 billion, to 15 billion, to 11 billion (which was the UN estimate around 1990) to now 9 billion, and soon, perhaps less. There are some who think that world population will peak in 2050 and then start to decline. There are some who predict we will have fewer people in 2100 than we do today. Is this a reason to rejoice, to say halleluiah? Certainly not. Without a pause, we now hear about the coming crisis of world economy from a shrinking population. We hear about the impending crisis of an aging population. Nobody anywhere will say that the core fears expressed for most of my life have turned out not to be true. As we have moved into the future, these doomsday visions vanished, like a mirage in the desert. They were never there—though they still appear, in the future. As mirages do.

Okay, so, the preachers made a mistake. They got one prediction wrong; they’re human. So what. Unfortunately, it’s not just one prediction. It’s a whole slew of them. We are running out of oil. We are running out of all natural resources. Paul Ehrlich: 60 million Americans will die of starvation in the 1980s. Forty thousand species become extinct every year. Half of all species on the planet will be extinct by 2000. And on and on and on.

With so many past failures, you might think that environmental predictions would become more cautious. But not if it’s a religion. Remember, the nut on the sidewalk carrying the placard that predicts the end of the world doesn’t quit when the world doesn’t end on the day he expects. He just changes his placard, sets a new doomsday date, and goes back to walking the streets. One of the defining features of religion is that your beliefs are not troubled by facts, because they have nothing to do with facts.

So I can tell you some facts. I know you haven’t read any of what I am about to tell you in the newspaper, because newspapers literally don’t report them. I can tell you that DDT is not a carcinogen and did not cause birds to die and should never have been banned. I can tell you that the people who banned it knew that it wasn’t carcinogenic and banned it anyway. I can tell you that the DDT ban has caused the deaths of tens of millions of poor people, mostly children, whose deaths are directly attributable to a callous, technologically advanced western society that promoted the new cause of environmentalism by pushing a fantasy about a pesticide, and thus irrevocably harmed the third world. Banning DDT is one of the most disgraceful episodes in the twentieth century history of America. We knew better, and we did it anyway, and we let people around the world die and didn’t give a damn.

I can tell you that second hand smoke is not a health hazard to anyone and never was, and the EPA has always known it. I can tell you that the evidence for global warming is far weaker than its proponents would ever admit. I can tell you the percentage the US land area that is taken by urbanization, including cities and roads, is 5%. I can tell you that the Sahara desert is shrinking, and the total ice of Antarctica is increasing. I can tell you that a blue-ribbon panel in Science magazine concluded that there is no known technology that will enable us to halt the rise of carbon dioxide in the 21st century. Not wind, not solar, not even nuclear. The panel concluded a totally new technology-like nuclear fusion-was necessary, otherwise nothing could be done and in the meantime all efforts would be a waste of time. They said that when the UN IPCC reports stated alternative technologies existed that could control greenhouse gases, the UN was wrong.

I can, with a lot of time, give you the factual basis for these views, and I can cite the appropriate journal articles not in whacko magazines, but in the most prestigeous science journals, such as Science and Nature. But such references probably won’t impact more than a handful of you, because the beliefs of a religion are not dependant on facts, but rather are matters of faith. Unshakeable belief.

Most of us have had some experience interacting with religious fundamentalists, and we understand that one of the problems with fundamentalists is that they have no perspective on themselves. They never recognize that their way of thinking is just one of many other possible ways of thinking, which may be equally useful or good. On the contrary, they believe their way is the right way, everyone else is wrong; they are in the business of salvation, and they want to help you to see things the right way. They want to help you be saved. They are totally rigid and totally uninterested in opposing points of view. In our modern complex world, fundamentalism is dangerous because of its rigidity and its imperviousness to other ideas.

I want to argue that it is now time for us to make a major shift in our thinking about the environment, similar to the shift that occurred around the first Earth Day in 1970, when this awareness was first heightened. But this time around, we need to get environmentalism out of the sphere of religion. We need to stop the mythic fantasies, and we need to stop the doomsday predictions. We need to start doing hard science instead.

There are two reasons why I think we all need to get rid of the religion of environmentalism.

First, we need an environmental movement, and such a movement is not very effective if it is conducted as a religion. We know from history that religions tend to kill people, and environmentalism has already killed somewhere between 10-30 million people since the 1970s. It’s not a good record. Environmentalism needs to be absolutely based in objective and verifiable science, it needs to be rational, and it needs to be flexible. And it needs to be apolitical. To mix environmental concerns with the frantic fantasies that people have about one political party or another is to miss the cold truth—that there is very little difference between the parties, except a difference in pandering rhetoric. The effort to promote effective legislation for the environment is not helped by thinking that the Democrats will save us and the Republicans won’t. Political history is more complicated than that. Never forget which president started the EPA: Richard Nixon. And never forget which president sold federal oil leases, allowing oil drilling in Santa Barbara: Lyndon Johnson. So get politics out of your thinking about the environment.

The second reason to abandon environmental religion is more pressing. Religions think they know it all, but the unhappy truth of the environment is that we are dealing with incredibly complex, evolving systems, and we usually are not certain how best to proceed. Those who are certain are demonstrating their personality type, or their belief system, not the state of their knowledge. Our record in the past, for example managing national parks, is humiliating. Our fifty-year effort at forest-fire suppression is a well-intentioned disaster from which our forests will never recover. We need to be humble, deeply humble, in the face of what we are trying to accomplish. We need to be trying various methods of accomplishing things. We need to be open-minded about assessing results of our efforts, and we need to be flexible about balancing needs. Religions are good at none of these things.

How will we manage to get environmentalism out of the clutches of religion, and back to a scientific discipline? There’s a simple answer: we must institute far more stringent requirements for what constitutes knowledge in the environmental realm. I am thoroughly sick of politicized so-called facts that simply aren’t true. It isn’t that these “facts” are exaggerations of an underlying truth. Nor is it that certain organizations are spinning their case to present it in the strongest way. Not at all—what more and more groups are doing is putting out is lies, pure and simple. Falsehoods that they know to be false.

This trend began with the DDT campaign, and it persists to this day. At this moment, the EPA is hopelessly politicized. In the wake of Carol Browner, it is probably better to shut it down and start over. What we need is a new organization much closer to the FDA. We need an organization that will be ruthless about acquiring verifiable results, that will fund identical research projects to more than one group, and that will make everybody in this field get honest fast.

Because in the end, science offers us the only way out of politics. And if we allow science to become politicized, then we are lost. We will enter the Internet version of the dark ages, an era of shifting fears and wild prejudices, transmitted to people who don’t know any better. That’s not a good future for the human race. That’s our past. So it’s time to abandon the religion of environmentalism, and return to the science of environmentalism, and base our public policy decisions firmly on that.

Thank you very much.

The post The Greatest Challenge Facing Mankind appeared first on The Big Picture.

Futures Flat As Silver Soars To 11 Year High

Zero Hedge -

Futures Flat As Silver Soars To 11 Year High

US equity futures are flat, with cash markets of course closed for Labor Day holiday, stabilizing after Friday's selloff in tech stocks amid renewed Nvidia jitters, and setting a steadier tone at the start of a month that could bring plenty of tests to markets trading near record highs. S&P futures were unchanged with Nasdaq futures rising 0.1% to start a traditionally brutal month for markets. 

The stock rally to all-time highs faces a crucial stretch, with jobs numbers, inflation data and the Fed’s rate call all landing within the next three weeks, while September is notorious for hosting some of the worst market selloffs. The flurry of events will help determine whether stocks can extend gains or lose momentum.

Tariff tensions and questions over the Fed’s independence are compounding the risks.

“The bar to derail a Fed Rate cut on Sept. 17 appears high,” Deutsche Bank AG economist Peter Sidorov wrote. “But with Fed funds futures now pricing over 140 basis points of easing by the end of 2026, markets are expecting an amount of easing that since the 1980s has only occurred around recessions.”

Europe’s Stoxx 600 edged 0.1% higher with BAE Systems and Rheinmetall AG leading the advances in defense shares after the Financial Times reported that Europe is working on detailed plans for potential post-conflict deployments in Ukraine. Novo Nordisk lead a rally in health care shares after positive results from a real-world cardiovascular study for Wegovy. A regional gauge for tech stocks eked out a small gain. Here are some of the biggest movers on Monday:

  • Rolls Royce shares climb as much as 2.4% amid reports it has held exploratory talks with advisers over funding options for its small-scale nuclear reactor unit.
  • European defense stocks, including BAE Systems and Rheinmetall, gained after the Financial Times reported that European capitals are working on “pretty precise plans” for potential military deployments to Ukraine as part of post-conflict security guarantees, citing an interview with Ursula von der Leyen.
  • Novo Nordisk shares rise as much as 3.6% after the Danish drugmaker said a real-world study of people with overweight or obesity and established cardiovascular disease showed Wegovy cut the risk of heart attack, stroke or death by 57% compared with Eli Lilly’s tirzepatide.
  • Konecranes shares rise as much as 6.3% after the Finnish company was upgraded to buy by Goldman Sachs, which cites US port upgrades and a potential increase in shareholder returns as catalysts for the stock.
  • European precious metal miners, including Hochschild Mining and Fresnillo, rise as silver surges above $40 an ounce for the first time since 2011 and gold closes in on an all-time high.
  • TeamViewer gains as much as 11% following a double-upgrade to buy from underperform at BofA, which takes a more constructive stance on the German software company based on its “differentiated offering.”
  • SocGen gains as much as 1.9% on Monday as Deutsche Bank upgrades the lender to buy from hold, saying that impact from the ongoing political volatility in France “should be contained.”
  • Kainos shares soar as much as 20% after the IT services company said it expects annual revenue to be at the upper-end of expectations. Shore Capital said the update has revived sentiment by offering a more constructive tone and signs of momentum.
  • BioArctic shares rise as much as 5.6% to the highest since September 2023 after Eisai and Biogen received US regulatory approval for a new self-injected form of their Alzheimer’s drug Leqembi.

A stronger economic outlook is set to help European equities escape their narrow trading range, according to top Wall Street strategists. Goldman expects the Stoxx 600 to climb about 2% to 560 by year-end, supported by improving growth prospects, light positioning, and relatively attractive valuations. JPMorgan strategist Mislav Matejka sees the recent loss of momentum as a “healthy” development.

Asian equities were mixed, with a 19% surge in Alibaba Group contrasting with a slump in chipmaking shares. Elsewhere, Indonesian stocks tumbled the most in nearly five months as political risks flared, with President Prabowo Subianto canceling a China trip after deadly unrest over living costs and inequality. Stress also was evident in the bond market, with yields on the nation’s 10-year government note rising to the highest in almost three weeks. 

In FX, the Bloomberg Dollar Spot Index falls 0.1%. The Swedish krona and Norwegian krone lead gains against the greenback, rising 0.6% each.

In rates, US cash bond markets are closed, while European bonds weakened broadly, with a week to go before a confidence vote that could topple France’s government. The French-German 10-year spread, a key measure of risk, was little changed at 78 basis points. The gauge closed at 82 on Aug. 27, the highest since January.

In commodities, silver rose above $40 an ounce for the first time since 2011...

... while gold inched closer to an all-time high after last week's breakout, as optimism grew for an interest rate cut by the Federal Reserve this month.

WTI crude futures rise 1% to near $64.70 a barrel.

There is nothing on the US macro calendar because the US is closed for Labor Day holiday.

DB's Peter Sidorov concludes the overnight wrap

As it’s the start of the month, Henry will shortly be releasing our monthly asset performance review. August began with a risk-off tone after the underwhelming July US jobs report, but markets soon recovered and the S&P 500 hit fresh records, in part thanks to a dovish pivot by Fed Chair Powell at Jackson Hole. Nevertheless, there were several headwinds, including concerns about the Fed’s independence that led to higher inflation expectations and steeper yield curves. Meanwhile in France, the upcoming confidence vote saw the country’s 10yr yields move closer to Italy’s than at any time since 2003. See the full report in your inboxes shortly, while a rundown of last week’s moves is at the end of this text as usual.

After a strong August, risk assets are starting September on a more tentative footing as Friday’s tech-led sell off on Wall Street has continued across most of Asia this morning. With rising Fed rate cut pricing supporting markets of late, investors will be keenly watching whether this is validated by the upcoming US payrolls release on Friday. The bar to derail a Fed rate cut on September 17 appears high, but with fed funds futures now pricing over 140bps of easing by the end of 2026, markets are expecting an amount of easing that since the 1980s has only occurred around recessions.

Before we preview payrolls and the Fed in more detail, the major story of the weekend came as late on Friday a US federal appeals court ruled that tariffs introduced under International Economist Emergency Powers Act (IEEPA) were illegal, upholding an earlier ruling by the Court of International Trade. However, in its 7-4 ruling the court left the tariffs in place until October 14 giving the administration time to appeal the case to the Supreme Court. And while a majority of judges in the appeals court ruling were nominated by Democrat Presidents, there is a 6-3 Republican-appointed majority on the Supreme Court. Were IEEPA tariffs to be stuck down, this would invalidate most levies introduced this year, including the “reciprocal” country rates and the “fentanyl” tariffs on China, Mexico and Canada, though the administration could look to implement more levies via other statutes.

Turning to the US payrolls print on Friday, our US economists expect a modest pick up in both headline (DBe +100k vs. 73k previously) and private (+100k vs. 83k) payrolls. They see the unemployment rate holding steady at 4.2%, with a risk that it rounds down to 4.1%. With Powell leaning towards a near-term rate cut at Jackson Hole and markets now pricing an 87% chance of a September cut, it would likely take a huge payrolls outperformance to dissuade a September cut. However, a stable unemployment rate could alleviate fears of a material downshift in the labor market, keeping the Fed cautious on further rate cuts.

The payrolls release will be preceded by the JOLTS survey on Wednesday and the ADP report on Thursday, two labour market indicators that have been namechecked by Governor Waller, who last week suggested that a weak payrolls print could bring a 50bp September cut in play. Other Fed officials have been less dovish but have also noted labour market risks. We will see a few Fed speakers before the blackout window starts next weekend, including St. Louis Fed President Musalem (Wednesday), NY Fed President Williams (Thursday) and Chicago Fed President Goolsbee (Thursday).

Beyond the Fedspeak, markets will be glued to the latest newsflow around President Trump’s attempted removal of Fed Governor Cook. Friday’s court hearing on the injunction to block Trump from firing her yielded no decision with further filings expected this Tuesday. In a note last week (see here Fed Notes: What the announcement of Cook’s removal means for the Fed) our US economists discussed the possible implications if Governor Cook were to be removed and Trump were to achieve a majority on the Federal Reserve Board. This Thursday, the Senate Banking Committee will also hold a hearing on Stephen Miran’s confirmation for the vacant Fed Board seat as the White House looks to have him confirmed in time for the September FOMC.

While US markets will be closed today for Labor Day, other US data highlights this week will include ISM manufacturing (Tuesday) and services (Thu) prints, with the employment components of the two series, which have slipped over the past couple of months, likely to draw attention. In Europe, the main data release will be the euro area flash August CPI print tomorrow. Following the major country prints on Friday, our European economists see headline inflation rising marginally to +2.06% YoY (vs 2.0% prev.) with core falling to +2.22% (vs 2.3% prev.).

The political situation in France will remain in focus ahead of the confidence vote scheduled on September 8. Prime Minister Bayrou’s minority government looks likely to lose this with major opposition parties repeating their intent to vote against the government over the weekend. In a note published on Friday (see here), our European economists outline the next key steps and likely paths forward and discuss the ECB’s likely reaction function to the situation in France.
Staying with geopolitics, the focus yesterday and today is on China hosting the annual Shanghai Cooperation Organisation summit. Yesterday China’s Xi Jinping met with India’s Narendra Modi, with the two sides pledging to “remain partners rather than rivals”. The summit has received extra attention amid Trump’s tariff pressure on Asian countries, and Modi will also meet with Russia’s Vladimir Putin today, shortly after the US raised tariffs on India to 50% last week in response to its purchases of Russian oil.

Most Asian equity markets have started the new month on a weaker footing overnight following on Friday’s tech sell-off on Wall Street. The Nikkei (-1.60%) is leading the declines across the region, with tech stocks coming under pressure, including a -4.99% decline for Softbank. The KOSPI (-1.36%) is also struggling following US government's decision on Friday to revoke waivers on shipping chipmaking equipment to China for Samsung Electronics (-2.58%) and SK Hynix (-4.93%), with the S&P/ASX 200 (-0.53%) also lower. Meanwhile, US equity futures on both the S&P 500 (-0.09%) and the NASDAQ (-0.19%) are slightly lower after initially opening higher this morning.

However, Chinese stocks are defying the trend, with the Hang Seng (+1.77%) powering ahead as Alibaba Group’s stock surged by +17% after reporting a substantial triple-digit percentage increase in AI-related product revenue in its results on Friday. The CSI (+0.11%) and the Shanghai Composite (+0.42%) are inching higher as the RatingDog China Manufacturing PMI rose to a 5-month high of 50.5 in August (49.8 expected) from 49.5 in July. This comes in contrast to the official PMI figures on Sunday, which saw the manufacturing PMI (49.4 vs 49.5 exp, 49.3 prev) stay below 50. That said, China’s official non-manufacturing PMI rose from 50.1 to 50.3 (50.2 expected).

Recapping last week, the S&P 500 reached new all-time highs on Wednesday and Thursday but ended the week -0.10% lower after a -0.64% decline on Friday, which was its biggest since August 1. Tech stocks led the decline, with the NASDAQ and Mag-7 down by -1.15% and -1.38% respectively on Friday. Nvidia (-3.32% on Friday) was a major driver of this softness, losing ground after Marvell Technology’s outlook raised doubts over demand for data-centre equipment and as China’s Alibaba unveiled a new AI Chip. Last Wednesday Nvidia’s results had delivered a modest quarterly beat but saw slowing revenue growth for the data centre division, in part due to a pause in sales of AI chips to China.

Earlier in the week, markets had been buoyed by solid US data, including an upwardly revised Q2 GDP print (3.3% vs. 3.0% flash) and solid July durable goods orders. Friday saw a more mixed set of US releases. Core PCE inflation for August came largely in line with expectations at +0.27% MoM and +2.9% YoY, while the University of Michigan consumer sentiment saw an unexpected decline in the final August reading, with median 5-10 year inflation expectations also seeing a downward revision from 3.9% to 3.5%.

This data reinforced rising expectations of Fed rate cuts that were also boosted by Trump’s move against Fed Governor Cook. Fed funds futures ended the week pricing 109bps of easing by next June (+2.6bps on the week), with the 2yr Treasury yield falling -7.9bps to 3.62% (-1.3bps Friday), its lowest weekly close since September 2024. At the same time, concerns about Fed independence led to a sizable steepening in the yield curve, with the 10yr yield down a modest -2.5bps to 4.23% (+2.5bps Friday) but the 30yr yield up +5.2bps to 4.93%, leaving the 2s30s slope at its steepest since November 2021.

In Europe, French assets saw significant losses after PM Bayrou’s call for a confidence vote. The CAC 40 was down -3.34% (-0.76% Friday), while the Stoxx 600 fell -1.99% (-0.64% Friday) with all major European indices declining. 10yr OAT yields rose +9.1bps, as the Franco-German 10yr spread ended the week at 79bps after hitting a 7-month high of 82bps on Wednesday. Other government bonds saw more muted moves, with 10yr bund yields +0.3bps higher (+3.0bps Friday), while BTP yields rose +6.1bps (+4.9bps Friday) suffering some contagion from the France story.

Tyler Durden Mon, 09/01/2025 - 10:20

Afghanistan Border-Town Rattled: 800+ Killed In Powerful Earthquake

Zero Hedge -

Afghanistan Border-Town Rattled: 800+ Killed In Powerful Earthquake

A powerful 6.0-magnitude earthquake struck near the mountainous areas of the Afghan-Pakistan border overnight, resulting in the death of at least 800 people and 2,500 injuries. The death toll is expected to rise, The New York Times reported, citing local Afghan officials.

The epicenter of the quake was centered near the city of Jalalabad, home to 200,000 people. Most of the destruction was situated in the province of Kunar, north of Jalalabad, where landslides were reported and mud and brick houses were destroyed. 

Source: Wall Street Journal

Footage of the destruction:

Notable quake-disaster highlights from the Wall Street Journal:

Casualties and Injuries

  • More than 800 dead, with the toll expected to rise as many remain buried under debris.

  • Over 2,500 injured, according to Taliban spokesperson Zabiullah Mujahid.

  • Many victims were women and children, asleep when the quake hit.

Rescue and Relief Challenges

  • Remote terrain and landslides have destroyed roads, slowing rescue operations. The 200-bed provincial hospital is overwhelmed, with the injured lying outside in open areas. 

Emergency Response

  • The Taliban government has deployed rescue teams and arranged special flights to transport casualties.

  • UN agencies and WHO are providing emergency aid.

  • Hundreds of Afghan youth are donating blood at Nangarhar Regional Hospital.

  • India and Pakistan expressed condolences and offered assistance.

  • Pakistan reported no casualties or major damage on its side of the border.

The quake comes as no surprise, given that Afghanistan sits on fault lines between the Arabian, Eurasian, and Indian plates.

In October 2023, two major quakes killed 2,400 people. The Taliban will be tested by their response effort, perhaps even putting those U.S. helicopters to good use.

. . .

Tyler Durden Mon, 09/01/2025 - 09:45

U.S. Freezes Visas For Palestinian Passport Holders Amid Mounting National Security Threats 

Zero Hedge -

U.S. Freezes Visas For Palestinian Passport Holders Amid Mounting National Security Threats 

Weeks after the Trump administration paused approvals of visitor visas for people of Gaza, the New York Times now reports that the administration has broadened the suspension to cover nearly all categories of visitor visas for Palestinian passport holders. 

NYT cited an August 18 State Department cable, sent to U.S. embassies and consulates abroad, detailing new sweeping measures that would bar many Palestinians from entering the U.S. on various types of non-immigrant visas. The cable was obtained by the media outlet and confirmed by four anonymous U.S. officials.

Impacted Palestinian visas include medical treatment, university studies, visits to friends or relatives, and business travel. 

U.S. consular officers have been instructed to invoke Section 221(g) of the Immigration Nationality Act (INA), a legal provision that allows them to refuse visa applications from Palestinian passport holders temporarily.

"Effective immediately, consular officers are instructed to refuse under 221(g) of the Immigration Nationality Act all otherwise eligible Palestinian Authority passport holders using that passport to apply for a non-immigrant visa," the State Department cable said.

NYT spoke with Kerry Doyle, the former lead attorney for Immigration and Customs Enforcement under the Biden-Harris regime, who said the Trump administration should be open about its decision-making:

"If it's a true ban, then it's concerning to me in that they should be transparent about it and then make their arguments for the basis of such a ban." 

Last month, the State Department halted visitor visas for the roughly two million Palestinians from Gaza. This came shortly after Laura Loomer called incoming flights a "national security threat ..." 

The national security threat Loomer could be describing appears to come from one of her X posts: "We have been totally infiltrated by Islamic jihadists. The Palestinian movement is a terrorist movement."

Perhaps the scrutiny is centered on the Samidoun Palestinian Prisoner Solidarity Network, or 'Samidoun,' a dark-money-funded non-profit that acts as an international fundraising arm for the Popular Front for the Liberation of Palestine (PFLP) terrorist organization, which has been active in North America and linked to efforts ranging from disrupting critical infrastructure to organizing campus protests and riots

PFLP states in their manifesto about their weird obsession with Marxism and their dream of destroying capitalism across the West.

Late last month, Senator Tom Cotton (R-Ark.) sounded the alarm about a separate rogue non-profit, Palestinian Youth Movement (PYM), a leftist activist group closely aligned with Students for Justice in Palestine (SJP), accusing it of working across university campuses to incite anti-Israel protests and campus chaos.

"PYM's support of Hamas and ties to terror groups should prevent it from receiving tax-exempt donations. I'm asking the IRS to investigate and remedy this situation," Cotton wrote on X last month

We suspect that the Trump administration views the potential influx of Palestinians as a national security threat, given the Marxist revolutionary activities of Samidoun, the PFLP, and other affiliated groups already underway on the Homeland.

Tyler Durden Mon, 09/01/2025 - 08:35

Housing September 1st Weekly Update: Inventory Down 0.1% Week-over-week; Down 10.3% from 2019 Levels

Calculated Risk -

Altos reports that active single-family inventory was down 0.1% week-over-week.
Inventory is now up 37.8% from the seasonal bottom in January.   Usually, inventory is up about 21.5% from the seasonal low by this week in the year.   So, 2025 saw a larger than normal increase in inventory.
The first graph shows the seasonal pattern for active single-family inventory since 2015.
Altos Year-over-year Home InventoryClick on graph for larger image.

The red line is for 2025.  The black line is for 2019.  
Inventory was up 22.4% compared to the same week in 2024 (last week it was up 22.2%), and down 10.3% compared to the same week in 2019 (last week it was down 9.4%). 
Inventory started 2025 down 22% compared to 2019.  Inventory has closed more than half of that gap, and it appears inventory will be close to 2019 levels at the end of 2025.
Altos Home InventoryThis second inventory graph is courtesy of Altos Research.
As of August 29th, inventory was at 861 thousand (7-day average), compared to 861 thousand the prior week. 
Mike Simonsen discusses this data and much more regularly on YouTube

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