EU Prepares €4 Trillion Eurobond Push As Russia Eyes Dollar Comeback

Submitted by Thomas Kolbe

The European Union is steering purposefully toward the introduction of Eurobonds. At the preparatory EU summit at Alden Biesen Castle in Belgium, numerous signs suggest that the multi-billion-euro Draghi plan could soon be set in motion. At the same time, geopolitically, a possible Russian comeback is emerging as fresh trouble for Brussels.

The ability to analyze mistakes and rationally weigh realistic courses of action belongs, in evolutionary terms, to our conditio humana. Experience teaches us: those who repeatedly slam their heads against the same wall may not qualify as evolution’s preferred leadership model. Headaches should be understood as a warning sign — not as motivation for the next assault. This preliminary remark serves to highlight a fundamental problem in present-day Europe.

Our political elites are conducting a socialist field experiment: they repeatedly hurl themselves against the same wall — that of the European economy, its businesses, and some 450 million citizens — without allowing persistent failure or pounding headaches to deter them.

One might assume this is a highly complex structure. From the perspective of European policymakers, however, it appears primarily as a challenge to be met with the fatal toolkit of central planning and stubborn ignorance.

We were able to assess the condition of this collective “head” on Thursday in Belgium at the EU summit. Brussels’ inner leadership circle around Commission President Ursula von der Leyen, along with its two political standard-bearers Emmanuel Macron and Friedrich Merz, had correctly diagnosed the issue in advance: the EU economy lacks competitiveness. China and the United States have surged ahead technologically — and they have the audacity to position themselves diametrically opposed to Europe’s ideology of centralized control and transformation logic. The two superpowers flatly refuse to smash their heads against the wall of European delusions — CO₂ elsewhere helps plants grow and herds graze, while here “flutter power” is generated alongside deliberate landscape devastation.

Instead, they have moved to radically deregulate their markets. The Chinese did so earlier; the Americans are now following at full speed, embracing what appears evolutionarily sound: entrusting the social fabric of their societies once again to markets, individuals, and the principle of personal responsibility.

Meritocratic values, a revival of bourgeois culture, perhaps even religion — Europe wants none of it. Everything here remains woke, carefully curated by the supreme censor in Brussels. On the very day of the summit, the European Parliament declared that a trans woman is a woman — full stop.

So much for the “rules-based order” and European values. An order that could be grounded in many things — but apparently not in reason and biological reality. Europe postures as post-Enlightenment, beyond the bounds of common sense.

Back to the summit and the question of how to solve the Eurozone’s economic dilemma. An old acquaintance, former Italian prime minister and ex-ECB chief Mario Draghi, delivered the blueprint for a supposed European comeback two years ago — and may now define the EU’s framework for action.

To deflate the suspense: Europe’s debt club will likely choose the same old wall for its next act, once again demonstrating its skeptical stance toward cognitive progress. If Brussels resorts to the Draghi plan in its economic distress, a trillion-euro debt package would be activated — public credit designed to catapult the continent in green tech, artificial intelligence, digital infrastructure, and even military technology to the level of its geopolitical rivals by 2030. Hubris executed on the bond market.

The financial framework outlined by Draghi is enormous: over five years, €800 billion annually would flow into Eurobonds — unless a few reasonable politicians manage to halt this risky undertaking. €800 billion corresponds to roughly five percent of the EU’s GDP. This additional borrowing alone would, under current conditions, raise member states’ total debt by around 25 percent.

A fiscal gamble whose test phase already occurred during the issuance of NextGenerationEU bonds in the Covid era — at nearly identical volume. €750 billion was raised, and in the end the European Central Bank had to absorb much of it. Demand for European debt appears lukewarm; the money has since flowed into Southern European welfare budgets and selected green prestige projects.

Brussels must literally plant its political beacons across the landscape so that even the last EU citizen remembers who transformed cultural scenery into a kind of Hollywood dystopia filled with wind parks.

You will recall Mario Draghi: once Italy’s technocratic — that is, unelected — prime minister, and earlier the architect of the OMT program (Outright Monetary Transactions), the instrument that empowered the ECB during the 2012 debt crisis to purchase unlimited sovereign bonds of distressed euro states to regulate yields. “Whatever it takes,” declared Mr. Bombastic Draghi at the time — and now his heavy fiscal artillery may once again fire at problems whose causes lie less in the monetary sphere than in the microeconomic fabric and cultural climate of our societies.

These difficulties will not be solved through debt-financed state macro-management. What is missing is entrepreneurial spirit. The continent is overregulated, capital markets are impaired, and Europe’s ever-growing state apparatus consumes vast sums. The private sector struggles to develop viable business models while administrative burdens and fiscal appetites continue to expand.

The self-inflicted energy crisis born of the green transformation frenzy is only one of several nooses tightening around EU citizens’ necks. An even more bloated state apparatus would not loosen these nooses — it would tighten them. Of that there can be no doubt.

For Germany, the simultaneous introduction of Eurobonds alongside the Draghi maneuver would mark the end of any remaining hope for fiscal stability. The current government’s chosen path would drive public debt up by at least five percent annually. Adding Germany’s proportional share of newly issued euro debt, one can already foresee that by 2030 Germany could easily breach 110 percent debt-to-GDP.

In other words: the welfare state would henceforth be financed directly from the printing press.

Chancellor Friedrich Merz demonstratively enjoyed summit unity with French President Emmanuel Macron. As so often, they agreed on the decisive questions, Merz explained, sharing a sense of urgency: Europe must act now and become competitive again — especially in industry.

Precisely the sector most heavily damaged by the very policies now overseen by the chancellor: higher CO₂ levies, supply-chain legislation, and an energy policy that levels industrial ambition.

In the end, it was the usual summit folklore — nothing more.

A “Buy European” rule is meant to guide the way, with supply chains to be more firmly centered in Europe. One may wonder how this resource-poor continent intends to achieve such ambitions. Especially in international trade and in Russia policy — precisely where abundant and affordable resources would be available — Europe has largely abandoned sober assessment. Toward its declared arch-enemy Russia, one of the most resource-rich nations on earth, Europe remains locked in maximal defiance.

The pre-summit ahead of the March gathering offers initial hints that joint debt financing may indeed become serious. Italy’s Prime Minister Giorgia Meloni — facing debt around 130 percent of GDP in the homeland of joint borrowing — may find the idea of shared liability, particularly by the German taxpayer, not entirely unappealing.

While Brussels dances around the golden calf of the transformation agenda and attempts to buy time with massive debt programs and well-sounding pseudo-reforms, decisive developments may unfold behind the scenes.

According to an internal Kremlin memo seen by Bloomberg, Russia is reportedly considering a return to the US dollar payment system. After years of European sanctions, American embargoes, and exclusion from SWIFT, such a move would be a geopolitical shock of the first order — further isolating the European Union while potentially fueling secessionist tendencies, particularly in Eastern Europe.

The memo outlines several areas of overlapping Russian-American interests: energy and raw materials cooperation, as well as possible integration of dollar-based financial instruments into Russia’s banking system. Reuters has confirmed a corresponding contact channel between Washington and Moscow.

Against the backdrop of increasingly coordinated activity among the three major actors — the United States, China, and Russia — Brussels’ strategy appears in a different light. Perhaps this explains its efforts to seek strategic partnerships with classic geopolitical swing states such as India or the MERCOSUR bloc.

For one thing unites the three great powers: all stand in increasingly strained relations with Brussels and the leading capitals of the European Union.

* * * 

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Tyler Durden Tue, 02/17/2026 - 02:00

Voyages To The End Of The World: The Moral Costs Of Techno-Utopianism

In their highly read First Things essay “Voyages to the End of the World,” Peter Thiel and Sam Wolfe use Francis Bacon’s utopian “New Atlantis” to argue that modern faith in unlimited technological progress has subtly redefined salvation as a human-controlled achievement rather than a divine gift, displacing religious understandings of human destiny with promises of security, abundance, and mastery over nature.

They warn that this Baconian project - disguised in Christian imagery - risks creating a seductive but spiritually impoverished civilization where technological power outpaces moral wisdom, potentially leading to an end-times trajectory of false salvation unless reintegrated into a framework that respects natural and spiritual limits.

Authored by William Brooks via The Epoch Times,

Founded in 1990 by the late Fr. Richard John Neuhaus, First Things magazine strives to promote a well-informed public philosophy in the Christian and Jewish traditions.

Last year, one of the most read essays in First Things was titled: “Voyages to the End of the World” by Peter Thiel and Sam Wolfe. Thiel is a tech entrepreneur, investor, and author. Wolfe is a writer and researcher at Thiel Capital.

These thinkers offer a probing examination of our modern technological ambitions. Using Francis Bacon’s unfinished 17th-century work “New Atlantis” as a point of departure, Thiel and Wolfe suggest that modern faith in scientific progress is corroding the religious understanding of human destiny. They contend that Bacon’s utopian tale about knowledge and prosperity contains a warning about the moral costs of unlimited technological mastery.

Thiel and Wolfe’s central claim is not that science itself is evil or that technological progress must be rejected. Rather, they argue that Bacon’s scientific project—and the modern world that has adopted it—rests on a redefinition of salvation. Whereas Christianity views redemption as a divine process that transcends history, Bacon relocates it firmly within human control. In doing so, modern technological civilization risks mistaking power for wisdom. This could have grave consequences as we enter an epoch defined by unprecedented technological advancement.

At the heart of their essay is a close look at Bacon’s fictional account of the island society of Bensalem. On its surface, Bensalem appears harmonious, pious, and benevolent. Its inhabitants are devout, orderly, and humane; its institutions promise healing, abundance, and stability. Its governing institution, Salomon’s House, is dedicated to the systematic investigation of nature for the “relief of man’s estate.” Bacon presents scientific inquiry as a quasi-religious vocation, cloaked in Christian imagery and moral restraint.

Thiel and Wolfe warn that this superficial harmony conceals a radical transformation of the human relationship to nature, knowledge, and God. They argue that Bacon’s true ambition was not merely to advance science but to replace the classical-Christian understanding of limits with a project of total technological mastery. Knowledge, in Bacon’s vision, is not ordered toward moral formation but toward domination and control. Nature is no longer something to be understood within an inherited moral order; it is something that can be conquered and redesigned.

This shift has profound implications. Bacon’s scientific method implicitly promises what religion once offered: security, healing, abundance, and even a form of immortality. By embedding these promises within a framework that appears Christian, Bacon disguised the degree to which his vision subtly marginalized the hand of God. In New Atlantis, God remains present, but increasingly as a symbolic guarantor of human progress rather than as the ultimate judge of human action.

Thiel and Wolfe interpret this displacement through an eschatological lens. Drawing on biblical imagery, they suggest that Bacon’s utopia resembles the deceptive peace promised in apocalyptic literature—a peace achieved not through repentance or divine reconciliation, but through human ingenuity and centralised power. The danger is not tyranny in its crudest form, but something more seductive: a world so efficient and secure that it no longer recognizes its spiritual impoverishment.

One of the essay’s most troubling conclusions is that modern technological civilization may be better understood as an end-times trajectory rather than a benign accumulation of new tools. Scientific progress does not merely extend human capacities; it reshapes human expectations about the future. When technology promises to eliminate scarcity, suffering, and even death, it inevitably assumes the role once played by theology. In this sense, modernity reconfigures the religious impulse by substituting technique for grace.

The authors argue that this substitution is inherently unstable. Technological power expands far more rapidly than moral wisdom, and the belief that every problem has a technical solution blinds societies to questions of meaning, responsibility, and restraint. The more humanity relies on systems it only partially understands—artificial intelligence, biotechnology, etc.—the more it risks becoming subject to forces it can neither fully control nor morally justify.

A further conclusion concerns the cultural conditions that allow this dynamic to persist. Thiel and Wolfe suggest that widespread biblical and philosophical illiteracy leaves contemporary society unable to recognize the spiritual dimensions of technological ambition. Apocalyptic language, once central to the Western moral imagination, is now dismissed as superstition.

Yet without such language, we lose a critical framework for discerning the difference between genuine progress and false salvation. The result is not rational clarity, but naivete—a readiness to accept sweeping promises of safety and efficiency without asking what is being sacrificed in return.

The relevance of “Voyages to the End of the World” becomes especially clear as we move deeper into the 21st century. Humanity now possesses technologies capable of reshaping life itself, from genetic engineering to autonomous systems that make decisions once reserved for human judgment. Political and economic leaders increasingly speak in utopian terms, promising that innovation will solve social conflict, environmental degradation, and even moral disagreement. These assurances echo Bacon’s vision of a world governed by knowledge rather than virtue, technique rather than tradition.

Thiel and Wolfe suggest we correct our course. They invite readers to reconsider whether the goals of technological civilization are as harmless as they appear. The question is no longer whether we can build more powerful tools, but whether those tools are shaping a conception of life that is ultimately compatible with human well-being.

The authors do not advocate withdrawal from modern life or a rejection of scientific inquiry. Their argument is one of discernment. Technological progress, they assert, must be reintegrated into a moral framework that acknowledges the natural limits of human power. Without such a framework, progress becomes self-justifying, and power becomes an end in itself. We are reminded that the future we build should not be merely technical. It should also be moral, spiritual, and ultimately related to the destiny of human souls.

As the second quarter of the 21st century unfolds, “Voyages to the End of the World” offers a timely caution.

The greatest danger facing technological civilization may not be catastrophe, but success—the achievement of a techno-managed world that no longer knows why or for what it exists.

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

Tyler Durden Mon, 02/16/2026 - 23:35

US Air Force Moves To Quickly Restock 30,000-Pound Bunker-Busters

With tensions between Washington and Tehran soaring, the US Air Force has moved to restock its GBU-57 Massive Ordnance Penetrator (MOP) bunker-buster bombs, which is the same weapons used in June during Operation Midnight Hammer, when several - some reports say over a dozen - were dropped on three Iranian nuclear facilities.

Along with the ongoing US military build-up in the US Central Command (CENTCOM) region of responsibility, this is another big sign that Trump-ordered military action could be imminent, despite that the Iranians have not attacked the United States or its bases abroad. On that, the below is where things stand in terms of deployments...

After the Gerald R. Ford Carrier Strike Group transits the Atlantic, the U.S. will have 2 aircraft carriers and 15 destroyers (plus a few subs) to work with across combatant commands.

Approx. 33% of the deployed U.S. Navy fleet is represented below, which can carry 600+ TLAMs. pic.twitter.com/1vPf9akqTY

— Ian Ellis (@ianellisjones) February 16, 2026

A partially redacted federal notice posted last week confirms the Air Force awarded Boeing a sole-source contract to replenish the depleted stockpile.

The Air Force stated the move was necessary because "this procurement and sustainment activity is critically needed to replenish the inventory of GBU-57’s, ended during Operation Midnight Hammer (21 June 25)."

The notice further explains the Pentagon bypassed a competitive bidding process because Boeing has "uniquely acquired expertise over a period of 18 years of adapting this specialized weapon to meet evolving mission needs as MOP transitioned from proof-of-concept to Full Operational Capability." Also, any alternate decision might have resulted in delays.

Boeing is the only manufacturer of the 30,000-pound GBU-57 MOP, the deep-penetration bomb designed to destroy hardened underground targets.

"No delay in award is acceptable for this effort. Delaying this requirement would undermine force readiness and efficient acquisitions for this key weapons program. A delay undermines Combatant Commanders’ capabilities, jeopardizes force readiness and strategic deterrence, hinders nuclear proliferation prevention efforts, and could result in loss of life," the notice stated.

That is one big bomb...

 US Air Force photo

One remaining key detail from the June war which has been shrouded in contradiction and ambiguity is whether the initial bunker busters really obliterated Iran's nuclear development capability. President Trump certainly claimed this several times soon after the fact, and yet now warns the Iranians against moving forward with their nuclear program.

Tyler Durden Mon, 02/16/2026 - 23:00

China's Debt Model Creates Danger Of Stagnation

Authored by Daniel Lacalle,

The latest social financing figures from China show an economy that is increasingly relying on government debt while private demand for credit remains weak. The strength of the Chinese technology sector and its exporting companies gives enough room for leverage. However, behind the weak private sector credit demand lies an evident economic slowdown that the Chinese government acknowledges, challenging consumption patterns, a significant overcapacity problem, and the depth of the housing crisis.

The current economic model, focused on delivering 5% real economic growth, requires larger doses of debt to achieve smaller increments of growth, especially productive sector growth. The government has focused on reducing debt and overcapacity imbalances while reorienting its exports and financial system to lessen dependence on the US dollar; however, the main challenge for the Chinese economy remains boosting consumer demand, despite rate cuts and easing financial conditions.

To understand the intensity of debt of the Chinese model, we must go to the year 2000 and see the acceleration in the flow of debt, not just the current stock. At that time, real GDP growth was around 8–9%, so each percentage point of growth came with roughly 13–16 points of debt‑to‑GDP. Government debt was very low, at around 25% of GDP, and most leverage sat in the state-owned corporate sector with modest household debt. China was able to deliver near‑double‑digit growth with a total non‑financial debt ratio barely above 120% of GDP.

By 2023, non‑financial sector debt had risen to about 285% of GDP, more than doubling its level of 2000. Chinese think‑tanks and official commentators put the “macro leverage ratio” closer to 300% of GDP by 2025, according to the Chinese Academy of Social Sciences. The macro leverage ratio rose by 11.8 percentage points to 302.3 percent in 2025, exceeding the 10.1-point increase reported in 2024.

Over the same period, the trend of real GDP growth has slowed to roughly 4–5%, so each percentage point of growth now requires around 60–75 points of debt‑to‑GDP, more than three times the debt per point of growth required in 2000. Furthermore, it comes mostly from government debt.

In January 2026, aggregate social financing jumped by 7.22 trillion yuan, significantly higher than in the same month of 2025 and above market expectations, consistent with 5% annual GDP growth and a larger composition of the public sector in the mix. Outstanding social financing reached 449.11 trillion yuan at the end of January, rising 8.2% year‑on‑year, while money supply (M2) rose by 9%.​

New yuan bank loans were 4.7 trillion yuan, about 420 billion less than a year earlier and significantly below consensus, showing the weak private‑sector credit demand and the prudent approach of Chinese customers and businesses to debt addition. RMB loans outstanding stood at 276.62 trillion yuan, up only 6.1% year‑on‑year, clearly below the pace of overall financing and money growth.

The driver of credit growth in China is no longer households and private firms but the government and state-owned companies.

The real estate problem has impacted Chinese families in numerous ways. Not only did most of them see the value of their homes decline, but many families invested in the attractive yields of real estate developers’ commercial paper, which led to large losses and even the wipe-out of savings for many. Additionally, despite the excess in supply of houses, prices have not fallen enough to warrant enough appetite for new mortgages, as affordability remains an issue and the traditional prudence of Chinese citizens when it comes to consuming and borrowing adds to the challenge.

Beijing plans to issue 4.4 trillion yuan in local government special‑purpose bonds in 2025, 500 billion more than in 2024, looking to boost government investment and a “proactive fiscal policy,” knowing that raising taxes would be exceedingly negative for growth and consumption.

Local governments are expected to issue more than 10 trillion yuan in bonds in 2025, including refinancing, general bonds, and new special bonds.

The Chinese government knows that it can manage more debt but also sees the weak investment and household spending and acknowledges that large tax increases would be counterproductive.  However, to prevent future debt-driven stagnation, a focus on productivity is necessary.

The official budget sets a deficit of 4% for 2025. However, once all budget items are consolidated, including government funds, special bonds, and off‑budget vehicles, this true fiscal deficit in 2025 is closer to 9%, up from 7.7% in 2024, according to Rhodium Group and JP Morgan. China increasingly relies on hidden or almost fiscal borrowing to support growth.

With outstanding social financing now around 449 trillion yuan and real growth around 4–5%, each incremental point of GDP is increasingly linked with a much larger stock of debt than a decade ago. This rising credit intensity of growth may prevent a significant slowdown but may create a significant fiscal challenge in the future. The Chinese model demands high growth and low taxes; any change to the fiscal system will be negative.

For years, local governments relied on the sale of land for property development to collect tax receipts. Thus, the drag from real estate is evident in the economy and in fiscal sustainability. Real estate development investment fell 13.9% year‑on‑year in the first three quarters of 2025, with residential investment down 12.9%, the steepest drop since 2021, according to official figures. Property investment and sales both posted double‑digit declines in 2024, and forecasters expect real estate investment to fall another 11% and sales to drop 7.5% in 2025, according to Reuters, with further declines in 2026 before stabilizing only in 2027… if it happens as fast as consensus estimates.

The property sector, once a key engine for economic growth and tax receipts, absorbs new credit to stabilize its accounts without boosting growth or creating a multiplier effect.

Additionally, China’s industrial capacity utilization remained at 74.9% at the end of 2025, well below the 78.4% peak reached in 2021. Overcapacity is clear in steel, autos, legacy chips, and parts of sectors like green tech, where expansion has surpassed domestic and external demand. Thus, the purchasing managers’ indices show weak new orders and foreign demand, while bankruptcies and insolvencies have risen, although not to levels that would indicate a financial crisis.​

The Chinese economy needs to reopen, improve investor and legal security and allow the housing slump to materialize fully to see the type of productive economic growth it needs to avoid much larger increases in debt. Otherwise, the risk of stagnation will likely be elevated as population growth stalls, overcapacity remains, and the stock of unsold property becomes a larger liability.  

Tyler Durden Mon, 02/16/2026 - 22:25

Kremlin's Surprise Overture: Ready To Halt Airstrikes On Election Day If Zelensky Allows Vote

Moscow just potentially created a big opening for Ukrainian elections to actually happen, with an unexpected overture:

Russia is ready to ensure that there will be no airstrikes on election day in Ukraine if Kiev decides to hold elections, Russian Deputy Foreign Minister Mikhail Galuzin said an interview with TASS.

However, the big question remains of if President Zelensky decides to actually proceed with an election. Given that months ago he didn't even cave to Trump pressuring him to do so, it's very up in the air whether he wants to actually see this through, or if martial law will continue to be used as an excuse to block a vote.

via Reuters

Russian President Vladimir Putin himself has floated willingness to halt airstrikes deep into Ukraine on election day if elections are held there - but he's also also recently said that the millions of Ukrainians currently living in Russia should have the right to vote.

These are mostly Russian-speaking Ukrainians who lived in the Donbass - as well as Crimea - before war broke out, or who are still there amid the conflict.

"Of course, Russian President Vladimir Putin's statements remain relevant. But, as I earlier noted, there is no talk yet of the practical organization of voting in Ukraine," Galuzin said.

"I would like to draw attention to our experience. In March 2024, presidential elections were held in Russia, and polling stations - even taking into account the ongoing military operations -were opened in close proximity to the combat zone. Kiev tried every way possible to disrupt the electoral process in the frontline regions, not shying away from resorting to terrorist means and sabotage. However, it proved unable to achieve its goal," Galuzin added.

He then emphasized that Russia "will not stoop to Kiev's practices and will allow the people of Ukraine to fully exercise their constitutionally enshrined electoral rights and independently determine the future development of their country."

"Of course, if the Kiev regime finally decides to take this democratic step," the Russian Deputy Foreign Minister added.

Ukraine has said a parliamentary committee is still studying the issue, and that the total safety of all citizens would have to be guaranteed - also by international powers - while the vote proceeds.

Tyler Durden Mon, 02/16/2026 - 21:50

Indonesia To Send First 1,000 Troops To Gaza By April For 'Stabilization Force'

Via Middle East Eye

Indonesia is readying 1,000 troops to be deployed in Gaza as early as April as part of the UN-mandated International Stabilization Force, an army spokesperson said on Monday.

A total of 8,000 Indonesian soldiers will be ready for deployment by June, while the final decision will be made by Indonesian President Prabowo Subianto. "The departure schedule remains entirely subject to the political decisions of the state and applicable international mechanisms," the spokesman said in a text message to news agency Reuters.

via AFP

Indonesian Army Chief of Staff Maruli Simanjuntak previously estimated that between 5,000 and 8,000 military personnel could be deployed, with final numbers "still being negotiated". 

On Saturday, Indonesia's foreign ministry said that its military's participation in Gaza as part of the peace plan devised by US President Donald Trump should not be interpreted as a normalization of political relations with Israel. 

"Indonesia consistently rejects all attempts at demographic change or the forced displacement or relocation of the Palestinian people in any form," the ministry said.

The deployment, which has a non-combatant, humanitarian mandate, could only be carried out with the consent of the Palestinian Authority, the ministry said.

"Indonesian troops will not be involved in combat operations or any action leading to direct confrontation with any armed group," the statement said. Indonesian troops would also have no mandate to demilitarize any party, it added.

However the mandate of the stabilization force includes ensuring "the process of demilitarizing the Gaza Strip" and "the permanent decommissioning of weapons from non-state armed groups". The resolution authorizes the force to "use all necessary measures to carry out its mandate".

$5bn to rebuild Gaza 

Indonesia confirmed last week that President Prabowo Subianto will attend the inaugural leaders’ meeting of Trump’s "Board of Peace", whose members have pledged $5bn toward "rebuilding war-ravaged Gaza". 

Indonesian foreign ministry said that Prabowo would use the forum on 19 February to advocate for the protection of Palestinians and push for a sustainable peace based on a two-state solution, which envisions the establishment of an independent Palestinian state.

Prabowo is also expected to sign a tariff agreement with the United States during the trip, the government said. "We are just preparing ourselves in case an agreement is reached and we have to send peacekeeping forces," Prabowo told journalists.

The president also said he will seek to negotiate the board’s reported $1bn membership fee. Indonesia’s foreign ministry said that its troops' participation in Gaza would not be aimed at imposing peace, but would instead focus on humanitarian objectives. 

Indonesia is one of the largest contributors to UN peacekeeping operations globally, with more than 2,700 personnel deployed in missions across Africa and the Middle East.

Indonesia's largest deployment is with the United Nations Interim Force is in Lebanon. Public support for Palestine is strong in Indonesia, where mass demonstrations have taken place against Israel's genocide in Gaza. 

On August 3, thousands of Indonesians gathered at Jakarta's National Monument, waving Palestinian flags and holding placards demanding justice for Gaza.

Indonesia, the world’s largest Muslim-majority country, has consistently called for an end to Israeli genocide in Gaza and has pushed for a two-state solution through international forums. Its government has also provided humanitarian aid, medical support and diplomatic backing for Palestinian institutions.

In November, Indonesia's defense minister announced that its military had trained 20,000 troops for healthcare and construction efforts in Gaza. Jakarta has also provided humanitarian aid, including the delivery of 10,000 tonnes of rice in August last year, and has launched a long-term cultivation initiative in Sumatra and Kalimantan to support Palestinian food security.

Tyler Durden Mon, 02/16/2026 - 21:15

Kim Jong Un Gifts New Apartments To Families Of Soldiers Killed In Ukraine War

Last summer North Korea began for the first time airing footage which provided public confirmation that it was receiving many of its soldiers home in coffins after they served alongside Russian forces in the context of the Ukraine war.

It's believed that the some ten to fourteen thousand DPRK troops dispatched to assist Moscow had primarily fought in Russia's Kursk province, where they helped repel the previous six-month Ukrainian occupation of the southern border oblast (in 2024-2025).

On Monday, North Korean leader Kim Jong Un unveiled that families of soldiers killed in the battle abroad would receive free new housing. He presided over a ribbon-cutting ceremony marking the completion of a new block of apartments for that purpose, state media reported Monday.

KCNA/Yonhap

"The new street has been built thanks to the ardent desire of our motherland that wishes that... its excellent sons, who defended the most sacred things by sacrificing their most valuable things, will live forever," Kim said in a speech, as cited by the Korean Central News Agency.

This comes after Kim last week having publicly declared he's ready to "unconditionally support" all of Russian President Vladimir Putin's policies and decisions.

"Before their death, the heroic martyrs must have pictured in their mind's eye their dear families living in the ever-prospering country," the North Korean leader said.

via KCNA

KCNA images also showed Kim touring the new apartments alongside his teenage daughter Ju Ae, believed to be the most likely future successor to Kim.

International reports based on South Korean intelligence estimates say that around 2,000 North Korean soldiers have been killed while fighting alongside Russia so far.

The apartments for families of fallen soldiers is a program clearly intended to create incentives for the military to support Pyongyang's foreign adventurism on behalf of Moscow, and to deflect potential criticism.

Kim Jong Un opens new Saeppyol Street housing in Pyongyang

Homes built for families of fallen soldiers, KCNA reports

Ceremony marks what he called a 'heroic era' pic.twitter.com/kBxdAtm564

— RT (@RT_com) February 16, 2026

Ukraine has bitterly complained about the foreign contingencies helping Russia, and in previously claimed that North Korea could send up to 30,000 - though there's been little evidence of such a high figure.

Tyler Durden Mon, 02/16/2026 - 20:40

A Venezuelan-Like Oil Blockade Against Iran Could Enable The US To Divide-And-Rule RIC

Authored by Andrew Korybko,

The cascading consequences of such a blockade, which might not ultimately be imposed due it entailing a high risk of war with Iran, could simultaneously weaken Russia, India, and China.

The Wall Street Journal reported that Trump 2.0 is considering imposing a Venezuelan-like oil blockade against Iran. It hasn’t yet done so due to concerns that Iran might attack the US’ regional military assets and/or seize its Gulf allies’ oil tankers, with either scenario destabilizing the global oil market and spiking the risk of war, so it might never ultimately happen. If the US were to successfully impose such a blockade, however, then it might be able to adroitly divide-and-rule Russia, India, and China (RIC).

“The US Wants To Replicate The Venezuelan Model In Iran” by coercing Iran into subordinating itself and its energy industry to the US. The “Trump Doctrine”, which is shaped by Under Secretary of War for Policy Elbridge Colby’s “Strategy of Denial”, seeks to deny strategic resources to the US’ rivals. Accordingly, it has an interest in cutting off China’s average import of 1.38 million barrels of Iranian oil per day last year, which could hit its economy hard if they’re not replaced (and that might be difficult).

These exports could then be redirected to India, thus enabling India to more than replace its average import of 1 million barrels per day of Russian oil last month, with the revenue placed in an escrow account per the Venezuelan precedent for release to Iran if it cuts a nuclear and missile deal with the US. Through these means, India could zero out its import of Russian oil while raising the US’ role over its energy security exactly as Trump 2.0 wants, with the end result dealing incredible harm to RIC.

Russia’s budgetary revenue from such sales would be reduced and could only realistically be replaced in part through more sales to China, though that might not be as easy as it sounds. The UK is preparing a campaign to seize Russia’s “shadow fleet” in the English Channel after being emboldened by the US’ seizure of a Russian-flagged oil tanker near its coast. If Russia doesn’t impose unacceptable costs on the UK, and it didn’t impose any on the US for doing this, then its Baltic Sea tankers might never reach China.

Those from the Black Sea might not reach it either if the UK allies with Greece and Cyprus to cut off Russia’s “shadow fleet” from that vector too. Pipeline exports, which have limits to how much they can be scaled, would then be the only means for replacing part of Russia’s lost oil exports to India with China apart from relatively minimal tanker exports from the Far East. The resultant economic pressure on Russia and China might make them susceptible to lopsided deals with the US on Ukraine and trade.

As for India, it already entered into a partially lopsided deal with the US as regards the informal quid pro quo of it agreeing to zero out its import of Russian oil in exchange for their trade deal, and the US’ growing influence over India’s energy security could curtail its hard-earned strategic autonomy. This might then be leveraged for coercing a reduction in India’s purchase of Chinese goods and services so as to place more pressure on the People’s Republic to agree to its own lopsided trade deal with the US.

This worst-case scenario of the US’ dividing-and-ruling RIC can be averted by Iran deterring or breaking a US blockade on its oil in parallel with Russia doing the same with respect to any British one against its “shadow fleet”. These options require immense political will since they entail the potential cost of a hot war breaking out between Great Powers so it’s unclear whether they’ll be implemented, but likewise, so too might the US and UK ultimately back off from their possible blockades for the same reason.

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

Pelosi Appears To Have Picked Their Candidate For President In 2028

Rep. Nancy Pelosi (D-Calif.) may be retiring from Congress at the end of this term, but she's not done trying to shape presidential races. The 85-year-old former House speaker has turned into what one former aide calls "a Gavin fan-girl," deploying her legendary donor network and political capital to boost California Gov. Gavin Newsom as a 2028 White House contender. The move lands as a calculated slight to Kamala Harris, who polls ahead of Newsom nationally but appears to have lost Pelosi's confidence after the 2024 debacle.

According to a report from Axios, Pelosi has spent months publicly and privately vouching for Newsom.

 "From the standpoint of leadership, vision, and values, knowledge of the issues, strategic thinking about how to get things done, he's masterful," she told The New Yorker. She told Vogue earlier this month, “I’ve seen him grow politically, I've also seen him have this beautiful family, and for all of us who love him, seeing him evolve has been wonderful to behold.”

She’s even trying to help Newsom shed the perception of coming from privilege, telling The Atlantic, "Everybody thinks of Gavin and a silver spoon. But that isn't right. He was a very hard worker in everything that he did, whether it was personally, professionally, and then civically."

This week, Pelosi told Politico that Newsom "would make a great president," though she added Democrats have many strong potential candidates. 

The hedge shouldn’t fool anyone. 

Pelosi isn’t likely to gush unless she's decided. Former aides say she's been eager to publicly vouch for Newsom whenever asked and has privately admired how he's navigated Trump "with a combination of defiance and charm." One former staffer said Pelosi "doesn't crush on many people" and added, "She's hardly ever wrong. When she says she sees something, it's a real thing."

Of course, Pelosi’s connection to Newsom isn’t limited to politics. Her brother-in-law was married to Newsom's aunt, and Pelosi frequently says she knew Newsom before he was born. Politically, they’ve been connected for years, as she's mentored him since his days as San Francisco mayor, watching him rise through California politics like a puppet master or a kingmaker.

While Pelosi is reportedly focused on helping Democrats retake the House in November and making Minority Leader Hakeem Jeffries speaker, she’s clearly looking to the future and sees Newsom as the next leader of the party who will bring Democrats to the White House. This may be a significant vote of confidence for Newsom, but it’s also an undeniable betrayal of another California Democrat, Kamala Harris. 

Pelosi endorsed Harris quickly after Joe Biden dropped out of the 2024 race, reportedly frustrating Barack Obama, who wanted a more open process.

“The Obamas were not happy,” a Pelosi confidant told ABC’s Jonathan Karl for his book Retribution. 'This person summed up Obama's message to Pelosi as, essentially, "What the f*** did you just do?"' 

Harris lost badly to Trump, spending more than a billion dollars in the process, leaving many major donors deeply disillusioned with her. Pelosi’s support would have gone a long way to repair the damage, but Pelosi appears to have moved on. 

Harris leads the 2028 field with a 27.5 percent national polling average, according to Race to the White House, while Newsom trails at 22.7%. Rep. Alexandria Ocasio-Cortez sits at 9%, former Transportation Secretary Pete Buttigieg at 8.7%, Pennsylvania Gov. Josh Shapiro at 4.9%, and Illinois Gov. J.B. Pritzker at 3.4%.

Neither Newsom nor Harris has publicly announced their intent to seek the presidency, but both are reportedly considering, which makes Pelosi's public courtship of Newsom a calculated snub. Pelosi's endorsements carry weight with the donor class and party elites who decide primaries long before voters cast ballots. By elevating Newsom now, she's signaling to those constituencies where the smart money should flow.

Whether Pelosi's bet pays off depends on factors beyond her control. Newsom has baggage from California's struggles with homelessness, crime, and out-migration on his watch. Harris, meanwhile, carries the weight of a failed campaign but has name recognition and institutional support, and isn’t a white male — a huge plus for a party that has gone all in on identity politics. 

Tyler Durden Mon, 02/16/2026 - 19:30

Why Your Personal Data Are Floating Around On The Darknet, Which Just Keeps Growing

Authored by Chris Summers via The Epoch Times (emphasis ours),

In June 2025, police in Europe shut down a darknet marketplace for drugs called Archetyp Market, which had more than 600,000 users, and the following month the FBI announced that Operation Grayskull had led to the sentencing of 18 offenders to a total of 300 years for offenses relating to child sexual abuse material on the darknet.

An undated image of a bald researcher at security company DBI searching the darknet at an undisclosed location. DBI

The FBI maintains a Joint Criminal Opioid and Darknet Enforcement team, and in May 2025 it announced that 270 people had been arrested globally as part of Operation RapTor and that hundreds of pounds of fentanyl had been seized as part of an operation targeting drug traffickers on darknet websites.

But experts say the darknet—sometimes known as the dark web—keeps growing and is home to millions of megabytes of personal data, which are used by cybercriminals and ransomware gangs.

“You would be amazed how much personal data is drifting around on the darknet just from breach notifications,” Bob Erdman, associate vice president of research and development at cybersecurity company Fortra, based in Eden Prairie, Minnesota, told The Epoch Times.

“It seems like every month you get a new breach notification from some company or website you’ve interacted with, and all those little pieces keep getting assembled to build a profile of you, and then get resold to someone who’s either going to try [to] attack you or try and use you to attack somebody else,” Erdman said.

Darknet Generation Gap

“When I speak with older Americans, many are shocked by the types of data on the darknet and how often it’s exposed or traded,” Chris Nyhuis, CEO at Vigilant, an Ohio-based cybersecurity firm and a human trafficking investigator, told The Epoch Times in an email.

“For younger more technical generations there is ... often a sense of resignation,” Nyhuis said. “They’ve grown up with breaches, so data exposure feels almost inevitable to them.”

“Data released on the darknet is not a darknet problem, it just makes distributing data easier,” Nyhuis said.

He said he believes that companies are still not protecting data well enough.

Erdman said criminals were always trying to get access to logins and passwords, bitcoin addresses, and other data, which they would sell in darknet marketplaces that trade in stolen identities and compromised databases.

So how does the darknet work?

Nyhuis said the darknet is almost a “mirror image” of the internet most of us know, and that it even has its own search engines.

But it can only be accessed through the Tor browser, which provides secrecy and anonymity by passing messages through a network of connected Tor relays, which are specially configured computers.

Nyhuis said a simple way of understanding the darknet is imagining each Tor node as a house with numerous doors opening off of it, which are not visible.

“So if you walk in that house, and if someone’s monitoring that first door and you walk out a different one, then they’re not going to see you,” he said.

Silk Road Showed the Way

In the early days of the darknet, sites such as Silk Road began to operate and enable illicit marketplaces for narcotics and other illegal products and services.

Silk Road operated between January 2011 and October 2013. In May 2015, its 31-year-old founder, Ross Ulbricht, aka “Dread Pirate Roberts,” was jailed for life and ordered to forfeit $183 million.

Ross Ulbricht, creator of the website Silk Road, appears in an undated photograph made from his computer and presented as an exhibit during his trial in New York City in 2015. U.S. Attorney's Office for the Southern District of New York/Handout via Reuters

Ulbricht created the blueprint that made such darknet marketplaces so successful, Brian Townsend, a retired Drug Enforcement Administration special agent who runs courses on the darknet, told The Epoch Times by email.

There is a myth that the darknet is hard to use, according to Missouri-based Townsend.

“In reality, the learning curve is very low, and it is quite easy to get on the dark web,” Townsend said. “With relative ease, people can buy and sell drugs, stolen credit cards, fake identities, child pornography, or pretty much anything else you can think of.”

In September 2022, Reed Churchill, 27, from Fayetteville, Arkansas, became a victim of the darknet when he took pills containing fentanyl that he had bought from a darknet website, thinking that they were oxycodone.

Since then, Churchill’s father, David Churchill, has been attempting to warn others.

“These are not good people you’re talking to on the darknet, whether it’s about drugs or pornography or whatever is on there,” he told the FBI. “Nobody on that side of the computer has any good intentions for you.”

In October 2024. Rajiv Srinivasan, 37, from Houston was jailed for 19 years and Michael Ta, 25, from Westminster, California, was jailed for 21 years for supplying the counterfeit M30 oxycodone pills containing fentanyl that killed Reed on a darknet website called Dark0de.

Nyhuis said there are people using the darknet for good reasons such as investigative journalism or the exposure of human rights abuses in totalitarian states.

“On the [darknet] there are people who say ‘I’m trying to be anonymous because I’m trying to fight evil’ and then there are the bad parts where ‘I’m trying to be anonymous because I want to do evil,’” he said. “Those are the two paths.”

‘Fighting Evil, or Doing Evil’

“The majority [of] uses of it are either fighting evil, or doing evil,” said Nyhuis, who said more darknet users have bad motives than have good ones.

Nyhuis said he has a theory that a lot of people who had time on their hands during the COVID-19 pandemic learned a lot about the darknet.

“Now people are setting up nodes left and right, and you have a much more anonymous environment,” he said.

According to him, it is now possible to use ChatGPT to create a Tor node.

“It will walk you through the exact steps to do that, even give you the code that you need to copy and paste, and you can turn up a Tor node,” Nyhuis said.

There are an estimated 1.3 billion websites in the world. Delaware-based cybersecurity company DeepStrike estimates that only 0.01 percent of those are on the darknet but that Tor traffic rose to 3 million users per day in 2025.

So why can we not just ban Tor browsers and switch off the darknet?

China has tried to use its Great Firewall to block the darknet, but with limited success.

“China has tried blocking known Tor nodes to try to throttle traffic,” Nyhuis said. “But it’s really a cat-and-mouse game. There’s no main kill switch.”

An undated image of a computer displaying a message from the Chinese Great Firewall at an internet cafe in Beijing. Ng Han Guan/AP

So rather than try to kill off the darknet—which appears to be impossible—intelligence services and law enforcement are learning to live with it and deal with the threats within it.

“I can assure you that law enforcement is active on these [darknet] marketplaces,” Townsend said. “We aren’t just watching from the sidelines.”

“Investigators are embedded in these communities, often operating undercover to identify the players behind the screen,” he said.

“The international law enforcement community also works incredibly well together, sharing intelligence across borders to combat these global criminal networks,” Townsend said. “Because the darknet doesn’t recognize national boundaries, our response has to be just as seamless.”

Last year, ransomware negotiator Mark Lance told The Epoch Times that attackers usually leave ransom notes within a targeted information technology system, which will usually advise the victim to download a Tor browser, go to a website on the darknet, and initiate communications with the attackers.

But even when law enforcement learns about these darknet websites, closing them down is not necessarily the solution.

“Shutting down one darknet communication channel rarely solves the problem because hackers can quickly bring another one online, either from backups or [by] simply moving to another platform,” Nyhuis said.

“The darknet is just a tool and even if a specific site is taken offline criminals can spin up another one quickly.”

Erdman said he does not see the darknet going away as long as there is a market for drugs, stolen data, and child sexual abuse images.

“Even if Tor was ripped down tomorrow, something would be built back up in its place,” he said.

“It’s a lot of work for governments to crack down,” Erdman said. “You can try and limit it, you can try and block the traffic ... but users will find a way to get around it.”

Tyler Durden Mon, 02/16/2026 - 18:55

"Meat Grinder": Behind The Burnout And High Turnover Rates In The AI Industry

Authored by Autumn Spredemann via The Epoch Times,

Across the artificial intelligence (AI) supply chain, insiders describe a precarious, high-turnover workforce with limited support and stability.

This “invisible” human labor that labels data, evaluates outputs, and filters harmful material has become a revolving door of talent that navigates high-pressure gigs and burnout. Moreover, workers and industry experts say this talent churn can degrade the very AI models workers are paid to improve.

Across the board, workers who are hired to support, evaluate, or operationalize AI systems face similar challenges: high-stress environments that often involve complex tasks, unrealistic timelines, job instability, and low wages.

It’s no secret that the tech industry has long suffered from high turnover rates. Numbers vary, but many studies put the average rate of talent churn in the tech sector at between 13 percent and 18 percent.

This becomes clear when considering the cost of replacing tech talent, which can be up to 150 percent of a worker’s salary, including recruitment expenses, onboarding time, productivity losses, and impacts on customer relationships.

Some believe that the loss of institutional knowledge alone makes worker retention critical.

“People love to talk about the ‘magic’ of AI, but the work culture behind it is a meat grinder. I’ve seen talent turnover in model evaluation hit record highs because the work is repetitive and psychologically draining,” Barry Kunst, vice president of marketing at Solix Technologies, told The Epoch Times.

“When you lose a lead researcher to churn, you don’t just lose a body; you lose the ‘why’ behind the model’s safety guardrails,” Kunst said.

This is why he’s adamant about AI workforce stability, which he said correlates directly with model reliability: “If you’re rotating contractors every six months to keep labor costs low, your data governance will fail, period.”

Sovic Chakrabarti, the director of digital marketing agency Icy Tales, said, “Team turnover is more common than people expect.

“In some groups, especially those tied to model training, evaluation, or data labeling pipelines, churn can happen every few months. Short contracts, project-based funding, and constant reorganization mean people cycle in and out quickly,” he told The Epoch Times.

A technician works at an Amazon Web Services AI data center in New Carlisle, Ind., on Oct. 2, 2025. Noah Berger for AWS/Reuters

Chakrabarti has worked on the development and support side of AI systems long enough to see patterns that, as he put it, “rarely make it into public discussions.”

“That [workforce] churn absolutely leads to lost knowledge,” he said. “Important context about why a dataset was filtered a certain way, why a safety rule exists, or why a model behaved oddly in testing often lives in someone’s head.”

When that person leaves, documentation rarely captures the full story, according to Chakrabarti.  “New hires inherit systems without understanding the original tradeoffs, which can quietly introduce risks,” he said.

The Human Cost

Burnout rates among information technology (IT) workers are high. LeadDev’s Engineering Leadership Report 2025 found that 22 percent of the 617 polled engineering leaders and developers felt critically burned out at work.

An additional 24 percent of respondents reported feeling “moderately” burned out, while 33 percent reported low levels of burnout.

Some of this is driven by job-security fears after two years of layoffs at big tech companies, but the pay for many of the workers fueling the AI revolution is often low.

The Alphabet Workers Union (AWU), Communications Workers of America (CWA), and TechEquity led a study on the working conditions of U.S.-based data workers and found conditions similar to those of tech contractors in developing countries.

In a survey of 160 U.S. data workers, 86 percent worried about being able to pay their bills, and 25 percent relied on public assistance to get by. The same group reported a median hourly wage of $15, with a median annual salary of $22,620.

Eighty-five percent of the study group said they’re expected to be “on call” for work, but only 30 percent reported being paid for this time. More than a quarter of respondents reported spending more than 8 hours per week on call.

“If there’s anything I wanted the general public to know, it is that there are low paid people [in the United States] who are not even treated as humans—just little more than employee ID numbers —out there making the 1 billion dollar, trillion dollar AI systems that are supposed to lead our entire society and civilization into the future,” Kirn Gill II, a search quality rater working on Google products at Telus, told the CWA.

Chakrabarti said the work culture behind AI fuels these challenges.

“There is real pressure to keep labor costs low. I have seen unrealistic timelines, understaffed teams, and expectations to ‘do more with less’ while the stakes keep rising. That tension creates stress, especially when the systems affect millions of users,” he said.

Chat GPT app icon is seen on a smartphone screen, in Chicago, on Aug. 4, 2025. AP Photo/Kiichiro Sato, File

He added that being part of the shadow workforce behind AI can also be psychologically demanding.

“You carry responsibility without always having authority or time to do things properly. ... As tools evolve, roles shift fast, and many people feel replaceable even while being essential,” Chakrabarti said.

Nicky Zhu, an AI Interaction Product Manager at Dymesty, agrees that the cost-containment pressure on data workers is “unrealistic” and is fueling the burnout phenomenon.

“Companies employ contractors instead of using permanent staff, mandate 60-hour crunch weeks, and expect rapid learning of intricate systems. I have witnessed multiple capable engineers exit the field of AI completely because of the high levels of instability and the unmanageable workload,” Zhu told The Epoch Times.

Zhu said the mental strain associated with data work is often unacknowledged.

“Staff are regularly exposed to disturbing material during safety testing, including assessing harmful content. Knowing that your work impacts millions of users increases the stress. The combination of rapid AI development, job uncertainty, and high turnover is mentally overwhelming,” she said.

In the data worker conditions analysis, respondents reported limited or no access to mental health benefits, despite being what the study authors called a “first line of defense, protecting millions of people from harmful content and imperfect AI systems.”

Only 23 percent of data workers surveyed reported having employer-provided health benefits.

The International Labor Organization noted that large language AI models such as ChatGPT and Claude still require “invisible workers” who fine-tune AI responses, mitigate biases, and eliminate toxic or disturbing content behind the scenes.

“As a result, workers are routinely exposed to graphic violence, hate speech, child exploitation, and other objectionable material. Such constant exposure can take a toll on their mental health and trigger post-traumatic stress disorder, depression, and reduced ability to feel empathy,” the International Labor Organization stated.

Revolving Door Risks

A knock-on effect of AI’s constant labor change is an increase in cybersecurity risks.

“Labor turnover literally impacts the quality, safety, and reliability of models,” Janero Washington, education director at ACSMI Cybersecurity Certification, told The Epoch Times.

“Large turnover interferes with domain knowledge, delays in the iteration process, and the probability of missing key details in the development.”

Washington said this could have a “direct influence on the accuracy and strength of [AI] models, particularly during deployment phases.”

He added that low labor costs are the primary pressure point in AI projects, which tend to prioritize cost-efficiency over balanced investment in skilled labor.

“It may result in corners being cut, including overworking teams, unrealistic deadlines, or having to use less experienced hires to keep budgets,” he said.

Zhu has seen firsthand how workforce churn affects the efficiency of AI tools: “Knowledge is lost faster than it is documented. Important information about model edge cases, limitations, safety procedures, and related details is lost when contractors leave after six or 12 months.”

When she started her current position, Zhu found that three teams had attempted to resolve the same set of problems using an AI feature that had already been built.

“Still, no one had documented the rationale for the different design decisions. Ultimately, we had to remake previously developed design solutions for problems that had already been solved. This is an all-too-common reality for the industry,” she said.

The data security platform Cyberhaven observed that 24 hours before a layoff or employee resignation, organizations can experience a 720 percent surge in data exfiltration. This includes everything from downloading sensitive files to forwarding emails or copying customer lists, all of which can have significant consequences.

Washington said that critical knowledge or details can be easily lost when a data team is reliant on a short-term contract or experiencing a high talent turnover.

“This affects continuity of knowledge of datasets, edge cases, or versioning issues, causing inefficiencies and possibly a rework of the same issue,” he said.

Chakrabarti agreed. “When teams are stretched thin or constantly rebuilding, issues get patched instead of deeply solved,” he said.

Tyler Durden Mon, 02/16/2026 - 17:45

The Obama Administration's Prostitution Scandal And The Ruemmler-Epstein Connection

Remember Obama's 2012 Colombian prostitution scandal? Turns out, Jeffrey Epstein was involved...

Newly released Department of Justice documents from the Epstein files have exposed a previously unknown connection between a 2012 White House advance-team scandal in Cartagena, Colombia, and Kathryn Ruemmler - the former Obama White House counsel who later became Goldman Sachs’ top lawyer.

Ruemmler resigned from Goldman late last week, after the latest Epstein document dump revealed her extensive, affectionate, and years-long correspondence with the convicted sex offender. The emails show she called him “Uncle Jeffrey,” accepted expensive gifts, and turned to him for advice on sensitive legal and reputational matters - including how to respond to a 2014 Washington Post report that accused her of helping suppress evidence of prostitution involving a rich kid White House aide whose daddy was a huge Obama donor. 

The WaPo report, by all accounts, cost Ruemmler a job as Obama's Attorney General. 

The 2012 Cartagena Prostitution Scandal

In April 2012, ahead of President Obama’s trip to the Summit of the Americas in Cartagena, Colombia, at least 20 Secret Service agents, military personnel, and others were involved in hiring prostitutes. The scandal led to multiple firings and disciplinary actions.

A lesser-known element involved Jonathan Dach, a 25-year-old Yale Law student and unpaid White House advance-team volunteer (son of prominent Democratic donor Leslie Dach). Hotel records obtained by investigators showed a prostitute was checked into Dach’s room at the Hilton Cartagena shortly after midnight on April 3, 2012.

Secret Service Director Mark Sullivan briefed White House counsel Kathryn Ruemmler on the evidence. The White House conducted a review, interviewed advance-team members (including Dach), and publicly declared “no indication of any misconduct” by White House personnel. Dach was later cleared and went on to work at the State Department.

More recently, Dach was found to have 'chronically violated state rules' in his role as former chief of staff to Connecticut Gov. Ned Lamont (D) by using a state vehicle as his personal car for nearly two years "and driving at speeds constituting reckless driving under Connecticut law."

The 2014 Washington Post Revival and Ruemmler’s Response

In October 2014, while Ruemmler was in private practice at Latham & Watkins and reportedly under consideration to replace Eric Holder as Attorney General - WaPo published new details. Reporters Carol D. Leonnig and David Nakamura revealed that the White House had received specific evidence (hotel records and witness accounts) implicating a White House advance-team member but had not fully investigated or disclosed it.

On October 9, 2014, Epstein emailed Ruemmler: “Doing fine. Was talking to reporters until late in the morning last night. Trying to isolate/contain wapo.”

On October 17, 2014, Ruemmler forwarded Epstein a draft of her response to the Post reporter and asked for his input. In the draft she downplayed the allegations, writing:

“The whole thing is ridiculous - they had to obtain the record ‘under the table’ because the last thing the Hilton wanted to do is to voluntarily give over info implicating the privacy of their guests. The procedure for checking in prostitutes is hardly rigorous.”

Epstein replied with suggestions, including the line: “Important point.”

Ruemmler ultimately withdrew from consideration for Attorney General on October 24, 2014 - one week after the email exchange.

Finally, here is the letter that then-Obama White House Deputy Press Secretary Eric Schultz sent in coordination with Ruemmler, to Carol Leonnig who wrote the WaPo article exposing Jonathan Dach's prostitution scandal, where they beg her to "from this point forward refrain from using Mr. Dach’s name," as "He has served his purposes for your reporting—repeating his name in connection with these allegations only deepens the wounds he has already suffered."

Beyond the obvious questions over the Obama admin prostitution scandal cover-up - which Congress/DOJ should finally ask - the most important question is: why did Obama's top lawyer summon the help of disgraced pedophile Epstein in planning her defense against the Obama admin's biggest prostitution scandal?

Tyler Durden Mon, 02/16/2026 - 17:10

Epstein-itis

Authored by James Howard Kunstler,

"If you tolerate the intolerable, you’re communicating that it’s okay to mistreat you."

- Aimee Terese on X

Did you think the American zeitgeist - our collective spirit plus our thinking - could not get crazier?

Gird your loins. It’s getting worse by the hour.

The Jeffrey Epstein files suggest that people will do anything and that people will believe anything.

Pizza, hot dogs, white sharks. . . boys, girls, babies, teens, Russian whores. . . celebrities by the score. . . billionaires. . . cannibal orgies. . . vivisection parlors. . . adrenochrome. . . blood. . . dead bodies. . . demon worship. . . a depraved and insane global leadership. . . lemme outa here!

I don’t know what’s real in Epstein and what’s not — but neither do you. What you ought to know is that the colossal inventory of Epstein files is perhaps the greatest instrument of mass mind-fuckery ever seen in the history of Western Civ. How interesting, too, that the deluge of material coincides exactly with the critical capability emergence of Artificial Intelligence as a tool for the manipulation of documentary evidence. And also consider all the years since 2019 that interested parties have had to mess with, destroy, possibly fabricate, and catalog all this stuff.

Apparently, the Woke-Jacobin-Marxist eruption was not enough to destabilize the consensus about reality.

The absurdities you were asked to swallow about all-women-are-women-including-men. . . the police killed George Floyd. . . mostly peaceful riots. . . the vaccine is safe and effective. . . the free-est, fairest elections ever. . . “Joe Biden” is president. . . the border is secure. . . speaking English is white supremacy - did not push America deeply enough into Crazyland.

More was required to completely demolish your sense of an ordered world.

Donald Trump was correct, at least, that releasing the Epstein files would bring on more chaos than clarity and impede the effort to get our country back on the rails with an economic engine based on the production of goods instead of financialized hyper-casino voodoo. Well, now we’re in a maelstrom of innuendo, code-talk, gossip, and redaction, and you can hardly begin to sort it out. The Attorney General of the USA, bless her heart, has already botched the management of this monster.

Epstein’s relations with Israel and its Mossad intel blob, along with his connections to global banking interests, have aroused the zestiest breakout of antipathy to Jews since the SS busied itself loading the crematoriums of Europe. Hatred of Jews is a recurring symptom of civilization distress. But it is also possible that Israel has behaved badly — and it is certain that many political intellectuals are reevaluating the way that nation was established after World War Two. To some degree, Israel has become a paranoid state (though even paranoiacs have real enemies).

Where does that go from here? Thoughtful people are pessimistic. For sure, they resent the money and influence seeded by Israel in the US Congress. They might be concerned as well about all the other interests pounding money into American politics. Grift is everywhere, and everyone can see it now. The looming end of the grift orgy is probably behind the Democratic Party’s current psychotic disposition. Having lost its 20th century base of factory workers, the party has had to work the extreme margins of American life to build a coalition of the feckless, the reckless, the brainless, and the shameless. They have become the party’s wards in a reimagined patronage system even more pernicious than the old one under characters like Boss Tweed and Mayor Richard Daley-the-First of Chicago.

The Democratic Party can’t win elections without rigging them and it’s astonishing that they’ve gotten away with building such sturdy armature of ballot fraud in plain sight with next to zero objection from the supposed guardians in officialdom. The features of it are so arrant that a political class with any sense or dignity would have laughed it straight into the criminal courts — and its perps straight into the penitentiary. The fraud became especially acute with the 2020 and 2022 elections. It is about to be revealed in the troves of evidence extracted lately from Fulton County, GA, and presently from Maricopa County, AZ. These birds are cooked. Not a few people will eventually go to jail over these shenanigans. And meanwhile, the SAVE Act pulsates in the Senate like a lump of kryptonite.

Now, you may realize that a political party based entirely on socially marginal persons — many of them mentally ill — will adopt a roster of ideas and policies that are patently marginal, which is to say, crazy. The party elders are now straining to eliminate some of that. Last week, Barack Obama unloaded on California Governor Gavin Newsom’s botched handling of the state’s epic homeless crisis.

“We should recognize that the average person doesn’t want to have to navigate around a tent city in the middle of downtown,” the ex-president said in an interview with progressive YouTuber Brian Tyler Cohen.

Hillary Clinton, dropping in on the Munich Security Conference, said, amazingly, “There is a legitimate reason to have a debate about things like migration. It went too far, it’s been disruptive and destabilizing. . .” before tossing in some Woke word-salad:

“. . . and it needs to be fixed in a humane way with secure borders that don’t torture and kill people and how we’re going to have a strong family structure because it is at the base of civilization.”

Say, what. . . ?

But then, poor Hillary, who can’t help being a Cluster-B psycho, turned up moderating a panel at the same Munich meet-up to take up the issue: “Girls Just Want to Have Fundamental Rights: Fighting the Global Pushback.“

To nail down her point, Hillary brought onstage as the featured speaker, Rep. Sarah McBride (D-DE), known previously as Tim McBride, a man.

Hillary and Rep. Sarah McBride (D-DE) at Munich

The insanity is, of course, self-evident.

The take-away from all this. They’re not trying hard enough to get their minds right.

And in the meantime, America and the other nations of Western Civ, must contend with the gigantic trip laid on them that is the Epstein files.

We know the newspapers and cable news channels are hopeless.

Is there anyone or any sense-making institution that can usher us through this nightmare back into the daylight?

 

Tyler Durden Mon, 02/16/2026 - 15:30

Coffee Tied To Lower Dementia Risk, Harvard-MIT Study Finds

New research published in JAMA reveals a strong reason to feel even better about being three to four espressos deep before the cash market opens in New York. 

Here's the short version of the findings:

• Caffeinated coffee was linked to lower dementia risk. Comparing the highest vs lowest consumption groups, the study reported a hazard ratio of 0.82 (95% CI, 0.76 to 0.89), which means higher caffeinated coffee intake was associated with lower risk.

• People also reported less subjective cognitive decline. The higher-intake group had 7.8% prevalence vs 9.5% in the lower-intake group (prevalence ratio 0.85).

• The "sweet spot" looked moderate. The most pronounced differences showed up around 2 to 3 cups per day of caffeinated coffee.

• Decaf did not show a significant association with dementia risk.

The long-running study, led by researchers from Mass General Brigham, Harvard T.H. Chan School of Public Health, and the Broad Institute of MIT, tracked 131,821 U.S. adults for four decades and documented 11,033 dementia cases. One major finding was a very clear pattern: adults who drank about three cups of coffee per day, or one to two cups of tea, had a much lower risk of dementia and more favorable cognitive outcomes over their lifetimes. Decaf, however, did not show the same relationship.

Both male and female participants who drank more than three cups of caffeinated coffee per day had an 18% lower risk of dementia compared with those who reported little or no daily caffeinated coffee consumption.

"When searching for possible dementia prevention tools, we thought something as prevalent as coffee may be a promising dietary intervention - and our unique access to high-quality data through studies that have been going on for more than 40 years allowed us to follow through on that idea," said senior author Daniel Wang, associate scientist with the Channing Division of Network Medicine in the Mass General Brigham Department of Medicine and assistant professor at Harvard Medical School.

Wang noted, "While our results are encouraging, it's important to remember that the effect size is small and there are lots of important ways to protect cognitive function as we age. Our study suggests that caffeinated coffee or tea consumption can be one piece of that puzzle."

The cognitive upside of caffeinated coffee is clear.

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2. Ashwagandha: An herb often marketed for stress support and calmer mood.

3. Alpha GPC: choline compound (a building block for acetylcholine, a neurotransmitter tied to memory and attention).

4. L-Theanine: An amino acid naturally found in tea. Often paired with caffeine because it may help you feel calm and focused, and reduce "coffee jitters."

Thank you for your support.

Tyler Durden Mon, 02/16/2026 - 15:30

NASA Awards Next 2 Private Astronaut Missions To International Space Station

Authored by T.J. Muscaro via The Epoch Times (emphasis ours),

NASA has awarded its next two private astronaut missions to the International Space Station (ISS) in as many weeks, marking a further expansion of the private sector in low Earth orbit and continuing Administrator Jared Isaacman’s intention to make the most use of the orbiting outpost.

In this image from video, the 11 International Space Station crew members representing Expedition 70 (red shirts) and Axiom Space 3 (dark blue suits) crews gather for a farewell ceremony calling down to mission controllers on Earth on Feb. 2, 2024. NASA via AP

The latest mission was awarded to private space station company Vast.

Launching no earlier than the summer of 2027 on a SpaceX Crew Dragon spacecraft, it will be NASA’s sixth private astronaut mission to the space station overall and is expected to last 14 days.

“Vast is honored to have been selected by NASA for the sixth private astronaut mission to the International Space Station,” Vast CEO Max Haot said in a press release. “Leveraging the remaining life of the International Space Station with science and research-led commercial crewed missions is a critical part of the transition to commercial space stations and fully unlocking the orbital economy.”

The company said it would plan “a robust science and research portfolio” for the mission, focusing on biology, biotechnology, physical sciences, human research, and technology demonstrations. It also said the mission would “generate invaluable insights into the infrastructure and processes required for Vast to safely accomplish human spaceflight missions,” and deepen its collaborative relationship with NASA and international space agency partners as it continues its campaign to have its proposed Haven-2 station chosen as the successor to the ISS.

Vast’s single-module station, Haven-1, is slated to be launched into orbit in early 2027.

Now, this private astronaut mission to the space station will follow one awarded to Axiom Space, targeting a launch no earlier than January 2027.

Announced on Jan. 30, it marks the fifth private mission Axiom will undertake. Its previous four missions featured 14 private and government astronauts, including two European Space Agency astronauts. Those missions were led by retired NASA astronauts who left the agency to join the private sector: Michael Lopez-Alegria, Axiom Space’s chief astronaut, and Peggy Whitson, Axiom Space’s vice president of human spaceflight.

Axiom missions delivered the first female Saudi astronaut and first Turkish astronaut into space, as well as carried the first Saudi, Indian, Polish, and Hungarian astronauts to the ISS.

Axiom Space has also been developing its own commercial space station and new spacesuits that NASA intends to use for moon walks.

Meanwhile, this will be Vast’s first private astronaut mission with NASA.

“Private astronaut missions represent more than access to the International Space Station—they create opportunities for new ideas, companies, and capabilities that further enhance American leadership in low Earth orbit and open doors for what’s next,” NASA Administrator Jared Isaacman said in a press release. “We’re proud to welcome Vast to this growing community of commercial partners. Each new entrant brings unique strengths that fuel a dynamic, innovative marketplace as we advance research and technology and prepare for missions to the Moon, Mars, and beyond.”

Neither mission has announced a crew yet. NASA made it clear that each company would propose four crew members for it and its international partners to review and approve.

Once a crew is approved and confirmed, the astronauts will train for their mission with NASA, its international partners, and SpaceX for their flight.

Tyler Durden Mon, 02/16/2026 - 14:30

Ship Orders From South Korea Are Surging Thanks To U.S. Fees On Chinese-Made Ships

South Korea is tightening the race with China in global shipbuilding after U.S. plans to curb Chinese-built vessels disrupted order flows and redirected demand , according to Nikkei. 

Worldwide new orders fell 27% in 2025 to 56.42 million compensated gross tonnage (CGT) — the first annual drop in two years — according to U.K.-based Clarksons Research.

China remained No. 1 but saw orders tumble 35% to 35.36 million CGT, shrinking its share to 62.7%. South Korea, ranked second, moved the other way: orders climbed 8% to 11.59 million CGT, lifting its share to 20.6%. Japan, in third, recorded a 53% plunge to 2.77 million CGT, with its slice slipping to 4.9%.

The shift followed a U.S. announcement last April outlining fees on Chinese-built ships entering American ports starting in October 2025. Although the policy was delayed for a year after a U.S.-China summit in late October, uncertainty had already prompted global shipping companies to hesitate on new Chinese orders.

A unit of China State Shipbuilding Corp. said it was disadvantaged in contract talks last summer, opening the door for South Korean yards to win more large container ship deals. HD Korea Shipbuilding & Offshore Engineering cited weaker demand for Chinese shipyards as a key reason for its recent surge in orders.

Nikkei writes that the company posted record results for the year ended December: revenue rose 17% to roughly 29 trillion won ($20.1 billion), while net profit doubled to about 3 trillion won.

Government-backed workforce initiatives have also supported the industry. Seoul opened a training center in Indonesia in 2024 to prepare skilled workers, including Korean language instruction, before dispatching them to local yards. Shipbuilders have raised wages and introduced AI tools to ease labor strain.

Foreign employment in South Korea’s shipbuilding sector hit a record 22,824 at the end of 2024 — about four times the level five years earlier — with foreigners making up more than 20% of the workforce.

Japan, meanwhile, has struggled to capture orders shifting away from China. Data from the Japan Ship Exporters' Association show export contracts in 2025 fell 20% to 8.93 million gross tons, marking a fourth straight year of decline. Limited yard capacity, slipways booked through around 2029, and labor shortages have constrained growth and pushed up costs.

Looking ahead, global demand is expected to rebound in 2026 as stricter environmental rules accelerate orders for vessels powered by next-generation fuels such as hydrogen and ammonia. HD Korea Shipbuilding & Offshore Engineering has set a 2026 order target of $23.3 billion, up 26% from this year, citing steady demand for new builds and fleet replacements.

China is working to regain momentum. In December, Cosco Group placed 50 billion yuan ($7.23 billion) in orders with China State Shipbuilding Corp., underscoring coordinated support among state-owned enterprises.

Japan is also attempting a reset. Imabari Shipbuilding recently completed its acquisition of Japan Marine United to streamline operations. The government aims to double domestic shipbuilding capacity to 18 million gross tons by 2035, seeking to narrow the wide gap with South Korea and China.

Tyler Durden Mon, 02/16/2026 - 14:00

Strait Showdown: Iran Launches "Smart Control" Exercise At Oil Transit Point

Iran's elite Islamic Revolutionary Guard Corps (IRGC) kicked off naval drills Monday in the strategically vital Strait of Hormuz, according to state media.

The exercise, dubbed "Smart Control of Hormuz Strait," is being carried out by IRGC naval forces under the direct supervision of the Guards' top command, state television reported, with semi-official Tasnim news agency describing the drills as testing combat readiness against "possible security and military threats." Energy markets are watching closely.

IRNA: IRGC Navy conducts a hybrid, live exercise dubbed "Smart Control of the Strait of Hormuz."

Under the supervision of IRGC Commander-in-Chief Major General Mohammad Pakpour, a state media press release described the exercise further as "A rapid, decisive, and comprehensive response to maritime security threats form the core focus of the intelligence and operational components of the units deployed during the exercise."

Indirect nuclear talks between the US and Iran have lately resumed after collapsing when Israel launched strikes on Iran in June 2025, igniting a 12-day conflict that included US attacks on three Iranian nuclear facilities - with another round of negotiations scheduled for Tuesday in Geneva, with Oman serving as mediator.

The timing is no coincidence, given that late last week President Trump announced he was dispatching a second aircraft carrier to the Middle East, while continuing to warn that military action against Iran remains on the table.

The IRGC has been conducing sporadic and in some cases unannounced drills in regional waters in order to demonstrate to Washington the Islamic Republic's military readiness.

Two weeks ago, when some of the first drills kicked off, US Central Command (CENTCOM) warned the IRGC it better be careful in the vicinity of US naval assets.

"We will not tolerate unsafe IRGC (Islamic Revolutionary Guard Corps) actions including overflight of U.S. military vessels engaged in flight operations, low-altitude or armed overflight of U.S. military assets when intentions are unclear, highspeed boat approaches on a collision course with U.S. military vessels, or weapons trained at U.S. forces," CENTCOM said at the time.

"US forces acknowledge Iran's right to operate professionally in international airspace and waters," it added, and noted that "any unsafe and unprofessional behavior near U.S. forces, regional partners or commercial vessels increases risks of collision, escalation, and destabilization," the statement had warned.

Source: Getty Images/iStockphoto

None of Iran's drills or threat of counterstrike have deterred the ongoing Pentagon build-up in the Middle East with an eye on Iran, however. One thing the White House should be able to perceive, however, is that any military action against Tehran is going to clearly be much more complex, and harder, than some one-off mission in Venezuela.

The potential for massive blow-back and for things to go seriously awry is much greater in the case of a potential US conflict with Iran.

Tyler Durden Mon, 02/16/2026 - 13:00

Why Firing 9% Of The Federal Workforce Didn't Move The Needle

Authored by James Hickman via SchiffSovereign.com,

In January 2025, the federal government employed about 3 million people. By November, that number had fallen by roughly 270,000 workers — a reduction of about 9%.

According to the Cato Institute, that was the largest peacetime federal workforce reduction EVER.

More than 150,000 employees took the “Fork in the Road” buyout offer to resign or retire. Tens of thousands more were laid off outright. Entire offices were emptied. Agencies that had been growing for decades shrank to staffing levels not seen since 2014.

And yet, despite historic federal layoffs, government spending went UP last year.

The federal government spent $7 trillion in Fiscal Year 2025— roughly $300 billion more than the year before. Bear in mind, 2025 was the year that DOGE was supposed to take a chainsaw to the budget and cut spending.

This is not a failure of DOGE. It’s a revelation about the actual problem.

The total federal payroll— every salary, every benefit, for every civilian federal employee (excluding the military)— comes to about $336 billion a year— less than 5% of total federal spending.

In other words, you could fire every federal employee tomorrow— every bureaucrat, every regulator, every paper-pusher in Washington— and 95% of the spending would continue as if nothing happened.

That’s because around 60% of the budget is mandatory spending— Social Security, Medicare, Medicaid— programs that pay out automatically based on laws that were passed decades ago. Congress doesn’t vote on these expenditures each year. The checks just go out.

Then there’s interest on the national debt, which in total runs about $1.2 trillion per year. It’s the second-largest line item in the entire federal budget, bigger than Medicare, bigger than national defense.

(The government uses a lower number called “net” interest; they exclude hundreds of billions in interest owed to Social Security and military retirees. But unless they plan on screwing those people over, that interest still has to be paid. So, we use the “gross” interest number and not “net” interest).

All of these obligations grow automatically, every year, regardless of who’s in charge or how many people show up to work.

Social Security alone grew by over $100 billion last year. Interest payments grew by another nearly $100 billion. Those two-line items, by themselves, swallowed more than the entire savings DOGE could theoretically achieve by cutting the workforce.

In fact, according to the Congressional Budget Office, more than 80% of projected spending growth over the next decade comes from Social Security, federal healthcare programs, and interest on the debt.

This is the structural problem nobody in Washington wants to talk about honestly: America’s deficit problem isn’t exclusively because of bad decisions today. It’s a failure to address bad decisions made years ago… decades ago– commitments that are baked into law, growing on autopilot, funded by borrowing roughly $2 trillion every year.

In an ideal world, Congress would address these entitlement programs directly. They are, after all, the biggest driver of the problem. But reforming Social Security or Medicare is the political third rail— nobody wants to touch it.

But there are other ways to move the needle as well.

The $38+ trillion national debt is manageable as long as the economy grows faster than the debt— which right now is not happening. But America still has absurdly strong economic potential to make that happen.

Treasury Secretary Scott Bessent has publicly stated that roughly 10% of the entire federal budget— about $600 billion per year— is outright fraud. Not waste. Not inefficiency. Fraud. And much of that fraud is within entitlement programs— the welfare fraud that came to light in Minnesota, the hundreds of billions in Medicare and Medicaid fraud that have been documented for years.

So, reducing fraud would be extremely helpful. Stop paying criminals!! It shouldn’t be that hard.

Then they can take a hatchet to the regulatory maze that strangles productivity; this would substantially reduce the deficit and boost real economic growth— putting America in striking distance of growing the economy faster than the debt.

To its credit, DOGE proved that the federal government could function with far fewer employees.

After the historic reduction in federal employees, services didn’t collapse.

The IRS still processed returns. Air traffic controllers still showed up. The essential machinery of government kept running with 9% fewer people.

That confirms what many have long suspected: a significant portion of federal workers exist to justify their own existence.

But DOGE also proved something far more uncomfortable. Whenever the executive branch tries to go beyond workforce cuts and tackle the spending itself— even fraudulent spending— someone files a lawsuit, and a judge issues an injunction.

Federal judges blocked DOGE from accessing Treasury payment systems. A coalition of 20 state attorneys general sued to halt layoffs at over a dozen agencies. Even relatively modest cuts were tied up in litigation for months.

The legal system functions as a ratchet: spending can go up easily, but it almost never comes down.

Ultimately, the spending trajectory won’t change until Congress decides to root out fraud, cut spending across the board, and stop obstructing economic growth.

But Congress won’t act until voters force them to do so— which, based on the current state of American politics, isn’t happening anytime soon.

The window to fix this relatively painlessly is still open. But it’s narrowing. Within seven years, Social Security’s trust funds will be exhausted, and the national debt will exceed $50 trillion. At that point, the math won’t just be uncomfortable. It will be unavoidable.

We can hope they figure it out. But hope isn’t a strategy. And that’s what a good Plan B is all about— ensuring your family’s financial future doesn’t depend on Congress suddenly discovering fiscal discipline after decades of proving they have none.

Tyler Durden Mon, 02/16/2026 - 12:30

Waste Of The Day: Secret Settlements Get Taxpayer Money

Authored by Jeremy Portnoy via RealClearInvestigations,

Topline: Eight Massachusetts state agencies and 13 colleges spent $6.8 million to settle grievances, partly in secret, brought by their own employees from 2019 to 2024, according to a Jan. 16 report from State Auditor Diana DiZoglio. 

At least 80 of the 263 settlements contain confidentiality language such as a nondisclosure agreement — to keep certain details confidential between the two parties — which the audit claims is banned by state guidelines. 

Key facts: The Massachusetts Port Authority transit agency was responsible for 11 of the settlements, costing taxpayers $1.7 million. Most of the money came from a $1.4 million settlement in 2022 with an employee who alleged they were denied a promotion because of their gender. The details are sealed by an NDA.

Six of the confidential settlements involved alleged sexual harassment, and two involved alleged racial discrimination. Most of the others were about violations of collective bargaining agreements and employees who were fired without cause.

NDAs were seemingly used on an arbitrary basis. None of the colleges and state agencies included in the audit had a written policy explaining when confidentiality language should be used, except the inspector general’s office.

“By not having a documented policy on the use of confidentiality language in state employee settlement agreements, there is a risk that confidentiality language may be abused to cover up harassment; discrimination; or other inappropriate, unlawful, or unethical behaviors, potentially allowing perpetrators to continue to remain in their positions and engage in further inappropriate, unlawful, or unethical behavior,” auditor DiZoglio wrote.

All of the colleges and state agencies receive legal assistance from the state attorney general’s office. The office’s guidelines prohibit nondisclosure agreements, and the attorneys told auditors that all state agencies were made aware of the guidelines. 

DiZoglio argued that the NDAs may not even be enforceable. In June 2013, Suffolk County Superior Court sided with the Boston Globe newspaper in ruling that settlements between state agencies and their employees are public records.

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

Background: The audit is a follow-up to a 2025 report that found 75 state agencies had spent $41 million on more than 2,000 employee settlements from 2010 to 2022.

Summary: Massachusetts’ NDAs hurt the public twice. They essentially use taxpayer funds to cover up potentially unethical behavior perpetrated using taxpayer funds.

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

Tyler Durden Mon, 02/16/2026 - 11:40

Pentagon Threatens To Blacklist Anthropic As 'Supply Chain Risk' Over Guardrails On Military Use

• The Pentagon is reportedly about to cut ties with Anthropic, makers of Claude, which is already embedded in classified systems

• The company insists on implementing guardrails over how the US military can use Claude - specifically when it comes to mass surveillance and autonomous weapons - after it was used in the Maduro raid without their knowledge.  

• The Pentagon is now calling Claude a threat to national security

• Some are accusing the overwhelmingly left-leaning company of trying to undermine the Trump administration, while Elon Musk says Claude 'hates whites, Asians, heterosexuals, and men.'

Defense Secretary Pete Hegseth is reportedly "close" to cutting business ties with Anthropic and designating the firm a supply chain risk - a penalty typically reserved for foreign adversaries, a senior Pentagon official told Axios.

Anthropic's flagship model, Claude, is already embedded in the military's classified systems - however the company's CEO has been pushing for abstract guardrails over ethical concerns for what the government sees as urgent national security needs. 

If classified as a national security risk, the designation would force any company that wants to do business with the U.S. military to certify it does not use Anthropic’s AI - effectively blacklisting the firm from large swaths of the defense ecosystem.

“It will be an enormous pain in the ass to disentangle,” the senior official told Axios. “And we are going to make sure they pay a price for forcing our hand.”

Chief Pentagon spokesman Sean Parnell confirmed the review, framing it as a matter of national security.

“Our nation requires that our partners be willing to help our warfighters win in any fight,” Parnell said. “Ultimately, this is about our troops and the safety of the American people.”

Claude was notably used during the January operation targeting Venezuelan leader Nicolás Maduro, highlighting how deeply embedded the software already is within U.S. defense operations. As Axios noted on Saturday: 

 The tensions came to a head recently over the military's use of Claude in the operation to capture Venezuela's Nicolás Maduro, through Anthropic's partnership with AI software firm Palantir.

• According to the senior official, an executive at Anthropic reached out to an executive at Palantir to ask whether Claude had been used in the raid.
• "It was raised in such a way to imply that they might disapprove of their software being used, because obviously there was kinetic fire during that raid, people were shot," the official said.

Since then, Pentagon officials and Anthropic executives have been locked in contentious negotiations over how the military may use the AI, particularly in surveillance, intelligence collection, and weapons development.

Anthropic CEO Dario Amodei at the World Economic Forum in Davos in January 2026. Photo: Krisztian Bocsi/Bloomberg via Getty Images

Anthropic CEO Dario Amodei has pushed for guardrails to prevent mass surveillance of Americans or the use of AI in fully autonomous weapons systems without human involvement, however the Pentagon says those restrictions are unworkable. Anthropic's own Acceptable Use Policy (UAP) explicitly prohibits the use of Claude for: 

• The design or use of weapons
• Domestic surveillance
• Facilitating violence or malicious cyber operations

These restrictions are not waived for military/government users unless the contract includes specific safeguards that Anthropic judges adequate, however defense officials insist that military AI tools must be available for "all lawful purposes," arguing that real-world operations are riddled with gray areas that rigid rules cannot anticipate. The same standard is being demanded of other major AI labs, including OpenAI, Google, and xAI.

One source familiar with the talks said senior defense officials had grown increasingly frustrated with Anthropic - and seized the opportunity to escalate the dispute publicly.

Musk piles on - 'evil' and 'misanthropic'

As the Pentagon showdown escalated, Anthropic also found itself under fire from another powerful adversary - Elon Musk.

Earlier this month, Musk launched a blistering public attack after the company announced a massive $30 billion funding round valuing it at roughly $380 billion. Musk labeled the company’s AI “evil” and “misanthropic,” accusing Claude of ideological bias and hostility toward certain demographic groups, accusing it of "hating Whites, Asians, heterosexuals, and men" in its outputs. 

Musk - whose own company xAI competes directly with Anthropic - mocked the firm’s name, suggesting that a company branded as Anthropic had paradoxically become anti-human.

Your AI hates Whites & Asians, especially Chinese, heterosexuals and men.

This is misanthropic and evil. Fix it.

Frankly, I don’t think there is anything you can do to escape the inevitable irony of Anthropic ending up being Misanthropic. You were doomed to this fate when you…

— Elon Musk (@elonmusk) February 12, 2026

That said, in January Anthropic cut off xAI's access to Claude models, which xAI engineers had been using via the Cursor coding tool to speed up internal work. Anthropic enforces a strict policy against using its models to build/train competitors (they had done the same to OpenAI earlier). Musk’s co-founder Tony Wu (who just left) sent an internal note acknowledging the productivity hit but saying it would motivate xAI to build better tools, while Musk later called the cutoff "not good for their karma."

Musk's beef isn't baseless; tests and user reports show Claude often declines queries that could be seen as offensive or non-inclusive (e.g., jokes about certain demographics, historical hypotheticals).

To check for the inner woke programming of Claude and Gemini.

In earlier tests where a hospital triage was used as an example. Claude valued the life of a white man as 1/23 important as a black woman. (I.e. one black woman is more valuable than 23 white men)

— Edward Northman (@EdwardNorthman) December 10, 2025

Musk has positioned xAI’s Grok as a less restricted, “truth-seeking” alternative to what he and allies describe as overly constrained or ideologically filtered models. Anthropic, by contrast, has built its reputation around "constitutional AI" - a framework designed to impose ethical limits on how its systems behave.

High stakes, limited alternatives

Designating Anthropic a supply chain risk would force defense contractors to rip Claude out of their internal workflows - a massive compliance headache given the company’s reach. Anthropic recently said eight of the ten largest U.S. companies already use its technology.

The Pentagon contract at risk is valued at up to $200 million - small compared to Anthropic’s reported $14 billion in annual revenue, but symbolically enormous.

Complicating matters, a senior administration official acknowledged that competing AI models are still “just behind” Claude when it comes to specialized government and classified applications, making an abrupt transition risky.

Still, Pentagon officials appear confident that other AI providers will ultimately agree to the “all lawful use” standard, even as sources close to the negotiations say much remains unsettled.

Tyler Durden Mon, 02/16/2026 - 11:15