Happy Halloween! Biden’s FBI turned January 6 investigations into a vast monitoring program aimed at Republicans, the Schumer Shutdown continues, a whole of disturbing illegal alien sex offenders, Milei wins again in Argentina, Russian floating crane does what Russian ships do best, the autopen scandal deepens, and one really weird gun.
It’s the Friday LinkSwarm!
Arctic Frost was an operation by the Biden FBI to use the half-assed January 6 riot to turn the federal government into a Stasi aimed at Republicans, including “Nearly 200 Subpoenas Targeting 400 GOP-Linked Individuals, Entities.”
The Biden-era FBI’s “Arctic Frost” investigation into President Trump and the broader GOP’s role in the January 6, 2021 Capitol riot was more wide-ranging than previously known, according to newly released documents showing the bureau issued nearly 200 subpoenas targeting more than 400 Republican entities and individuals as part of the probe.
Senator Chuck Grassley (R., Iowa) released records on Wednesday showing 197 subpoenas were issued to individuals and businesses during the FBI’s “Arctic Frost” investigation targeting 430 GOP individuals and entities. He obtained the records through protected whistleblower disclosures.
Financial institutions, Trump-aligned political organizations and operatives, conservative think tanks, and payroll companies were among the subpoena recipients, according to a list compiled by the Senate Judiciary Committee. Federal investigators sought communications between the targeted individuals and media companies, prominent Trump-world officials, and legislative staff. The investigative efforts also encompassed MAGA fundraising efforts and donors.
Several GOP members of the Senate Judiciary Committee, the panel Grassley leads as chairman, spoke at a press conference Wednesday afternoon unveiling the new information.
“What is revealed in those 1700 pages of documents, those 197 subpoenas, is nothing short of a Biden administration enemies list,” Senator Ron Johnson (R., Wis.) said.
ohnson said he knew most of the 38 individuals from his state on the Biden administration’s “enemies list” and urged his fellow lawmakers to assist the Trump administration with getting to the bottom of the FBI’s conduct.
“This extended far beyond President Trump and extended to President Trump’s supporters not only here in the United States Senate but more broadly,” Senator John Cornyn (R., Texas) lamented.
“Merrick Garland was a member of Joe Biden’s cabinet. He was willing to do whatever Joe Biden and his political operation wanted him to do, including destroying President Trump,” Cornyn added.
The “Arctic Frost” investigation looked into the role President Trump played in the Capitol riot. The probe eventually morphed into special counsel Jack Smith’s Washington, D.C., criminal case against Trump. Then-Attorney General Merrick Garland and then-FBI Director Christopher Wray personally signed off on the investigation when it was launched in 2022, according to a decision memo Grassley divulged last week.
Snip.
A ninth GOP Senator, Ted Cruz of Texas, was also targeted during the “Arctic Frost” investigation, Axios first reported. Several of the GOP lawmakers in the FBI’s crosshairs promoted Trump’s false claims about the 2020 presidential election being stolen from him. The attempts by Trump’s allies to contest the 2020 election formed the basis of Smith’s D.C. criminal case and criminal prosecutions in the swing-states Trump lost to former President Biden. Numerous individuals targeted in “Arctic Frost” later faced criminal charges for their failed attempts to overturn the 2020 election results.
“Jack Smith was a fundamentally corrupt prosecutor. This was a political enemies list from the beginning,” Cruz said. “This is an executive who believes it is justified spying on their opponents in the legislature because they convinced themselves the ends justified the means.”
Smith attempted to subpoena AT&T to obtain Cruz’s cellphone communications and the company’s legal counsel declined to comply, Cruz said. He praised the company for standing its ground against Smith’s attempt to gain his phone records. Cruz said that Washington, D.C., federal Judge James Boasberg signed an order prohibiting AT&T from informing Cruz of the subpoena for a year because of the potential for Cruz to destroy evidence or intimidate witnesses.
And Cruz has sent me three fundraising emails based on it this week alone.
Victory in Portland. “Antifa Retreats From Portland ICE Facility After Police Dismantle Encampment.”
The decentralized anti-fascist warriors in the Portland-area cell, aligned with the radical Democratic Party, were in full retreat overnight after officers from the Portland Police Department cleared out their encampment in front of the Immigration and Customs Enforcement facility in the Portland metro area.
Nick Shirley, who is an independent journalist and who met with President Trump at the White House earlier this month for a round table on Antifa, wrote on X, “ANTIFA HAS BEEN DISMANTLED IN PORTLAND After 140 days of controlling and camping on this street in Portland, Antifa has officially been cleared out as the police FINALLY stepped in and cleared the encampment.”
“Inside the encampment, they had loads full of medicine, medical gear, party supplies, a fridge, BBQ, etc ANTIFA’s 140 days of control have officially come to an end,” Shirley said, with an accompanying video showing inside the encampment that housed gender-confused purple-haired people who hate the Western world and capitalism.
Federal Reserve drops interest rates by a quarter point. Feel the excitement…
Democrats have badly weakened their party with left-leaning ideas and rhetoric, growing only with self-described “white liberals” while losing ground with other voters, according to a new center-left group’s report shared first with Semafor.
The group, called Welcome, consulted hundreds of thousands of voters over six months for its broad findings, including that 70% of voters think the Democratic Party is “out of touch.” Most voters, the group found, believe the party over-prioritizes issues like “protecting the rights of LGBTQ+ Americans,” and “fighting climate change” while not caring about “securing the border” or “lowering the rate of crime.” (Welcome began as a PAC in 2022, then founded a nonprofit with the same name for political research.)
Elected Democrats will receive copies of the report after its Monday publication, followed by events to promote it in DC and New York. The report urges party members to abandon some of the progressive language about race, abortion, and LGBTQ issues that Democrats began using after the 2012 election — and recommends the nomination of more candidates willing to vote with Republicans on conservative immigration and crime bills.
“The Democratic Party had better listen — for the good of our nation,” former Illinois Rep. Cheri Bustos, who ran the party’s House campaign committee when it lost seats in 2020, wrote in her endorsement of the report.
Inspired by The Politics of Evasion, an influential 1989 paper that inspired the party’s more centrist shift under Bill Clinton, the 70-page Deciding to Win document argues that Democrats must be “willing to break with unpopular party orthodoxies.” Its prescription for getting the party out of its current wilderness isn’t simple: avoidance of “both a pivot to corporate centrism and the pursuit of progressive ideology purity.”
Greg Schultz, who managed Joe Biden’s 2020 primary campaign but was replaced for the general election, worked with Welcome to shape the report.
“For the last 20 years, Democrats have just misunderstood how you actually win elections,” he told Semafor. “I thought Biden had proven in the 2020 primary that the base of the Democratic Party is a 58-year old woman without a college degree. But when you hear people in DC say ‘the base,’ they mean white intellectuals that live in a few coastal cities.”
The report directly challenges Democrats’ predilection for the interests of “highly educated and affluent voters,” arguing that their influence “may be responsible” for the party’s closer association with left-wing politics.
Sort of sounds like Weigel’s friends are finally noticing what Republicans were saying at least as far back as Obama’s first term. But wait!
“We have much to learn from the relentless focus of Bernie Sanders, Alexandria Ocasio-Cortez, and Zohran Mamdani” on those fronts, the authors write.
The risk they see is in Democrats moving left on other progressive policies, which even some in the party establishment have done while criticizing Mamdani and other democratic socialists. From 2013 to 2024, between the beginning of Barack Obama’s second term and the end of Joe Biden’s sole term, the report offers clear metrics to show how the party changed its language and gave support to left-wing bills that had little chance of passage.
So they only want the Democrat Party to be a little bit pregnant with socialism and social justice. Yeah, good luck with that, heretic. (Hat tip: Stephen Green at Instapundit.)
Two rogue Democrat judges think they can bypass the executive and judiciary branches and order specific programs funded during the Schumer Shutdown. “On Friday, US District Judge John McConnell of Rhode Island announced that he would order the US Department of Agriculture to distribute a pool of contingency funds ‘as soon as possible.’ While minutes before, Boston US District Judge Indira Talwani ruled that the US government must announce by Nov. 3 whether they would authorize at least partial funding for the program using around $6 billion in contingency funds – and if so, when will they do it.”
Mexican authorities in August, with the use of DNI intelligence, captured an infamous human trafficker who would lure pregnant women to steal their babies and organs.
She would then sell the stolen babies and organs on both sides of the border, which is how the United States got involved.
Aguilar was part of the Jalisco New Generation drug cartel.
California Democratic Gov. Gavin Newsom’s pimp shield law, pushed by Democratic legislator Rep. Scott Weiner, has helped foster a disturbing new sex market on Figueroa Street in Los Angeles, featuring prostitutes as young as 12 and 13 years old. For far too long, the “kiddie stroll,” as it’s known, has gone unreported because major media outlets refused to cover it, allowing it to flourish under the watch of Democratic politicians.
But now it’s time to shine a light in the darkness and expose the truth about what’s happening to these poor young girls and why nothing has been done to bring the harrowing evil to an end.
An article from the New York Times Magazine is finally covering this horrific scene in Los Angeles, though they’ve conveniently neglected to cover anything concerning the prostitution law Newsom’s administration passed.
“For the 77th Street Division, which covers the northern half of the Figueroa Corridor, prostitution had always been a problem. But in recent years, the officers had seen the magnitude of child sex trafficking explode,” wrote reporter Emily Baumgaertner Nunn.
“Gangs that had long sold drugs began to take advantage of Figueroa’s lucrative opportunity. With a dozen girls, one trafficker could easily make $12,000 a night. ‘Drugs are sold once and gone forever, but girls can be resold indefinitely,’ said [police sergeant Alvaro] Navarro, who had been in the division for two decades. Motel owners who noticed the parades of customers but feared the gangs’ retribution kept quiet,” Nunn continues.
There’s little doubt that much of the silence and fear of gang retaliation for speaking out against this vile form of human trafficking stems from the lack of police presence on California streets, particularly in Los Angeles. Democrats in the state slashed funding for police and tied officers’ hands, making it harder to pull these girls — who are just children — out of sex trafficking.
In fact, Nunn points out that the sex-trafficking unit in the city was disbanded due to budget cuts, which means each division within the police department has fewer resources available to tackle the issue. There are supposed to be a total of six investigators looking into human trafficking. Now there’s only one.
Children suffer abuse in ways too sick and twisted to imagine, and thanks to anti-cop policies from radical leftists trying to appease minorities for votes, leaders ignore it instead of acting. This is truly a miscarriage of justice. It’s immoral and evil.
“Their jobs grew even more challenging when California repealed the law allowing the police to arrest women who loitered with the intent to engage in prostitution. The repeal, known as SB 357, was intended to prevent profiling of Black, brown, and trans women based on how they dressed. But when it was implemented in January 2023, the effect was that uniformed officers could no longer apprehend groups of girls in lingerie on Figueroa, hoping to recover minors among them.
Now officers needed to be willing to swear they had reason to suspect each girl was underage — but with fake eyelashes and wigs, it was nearly impossible to tell. One girl told vice officers that her trafficker had explained things succinctly: ‘We run Figueroa now,’ he said,” Nunn writes in her article.
By the end of 2023, the city attorney started referring to Figueroa as the “Kiddie Stroll” because many of the girls working the street were under 13.
The Democrat Party is now objectively pro-rape and pro-pedophilia.
“ICE continues arresting ‘worst of the worst‘ illegal migrants accused of sexual crimes.”
The Department of Homeland Security (DHS) on Tuesday told Just The News exclusively that Immigration and Customs Enforcement (ICE) officials are continuing to arrest the “worst of the worst” illegal migrants, despite a government shutdown.
The latest arrests include illegal migrants who have been convicted of crimes such as lewd and lascivious acts on a minor, aggravated criminal sexual assault with bodily harm, aggravated kidnapping and possession with the intent to distribute.
Monday’s arrests include a Cuban illegal migrant in Florida who was convicted of lewd and lascivious act on a minor, a criminal illegal migrant from Mexico, convicted of aggravated criminal sexual assault with bodily harm, and aggravated kidnapping in Illinois, and an illegal migrant in Tennessee who was convicted of sexual assault.
“Nothing—not even the Democrats’ government shutdown—will slow us down from arresting the worst of the worst criminal illegal aliens,” Assistant DHS Secretary Tricia McLaughlin said in a statement. “Yesterday, the brave men and women of ICE arrested pedophiles, rapists, and kidnappers. These are the types of predators ICE is taking off of America’s streets every single day. DHS will stop at nothing to make America safe again and remove these violent illegal offenders from our streets.”
Another illegal migrant from Mexico, identified as Adan Martinez-Gonzalez, was arrested in Texas after being convicted of aggravated kidnapping. Mexican illegal migrant Nicanor Hernandez-Gutierrez was apprehended by ICE and was previously convicted of possession with intent to distribute a quantity exceeding five kilograms of cocaine.
Former DOE nuclear engineer Matt Von Swol notices something that’s been floating around for years; the insane number of minorities (mexicans and blacks) who are booked as “WHITE” when they get arrested – something which obviously manipulates ‘inconvenient’ crime stats – something that TPUSA’s Andrew Kolvet noted have been “widely corrupted to serve a racist agenda.’
“I searched through thousands of arrests in my county and every single Hispanic individual who has been arrested is labelled as “WHITE”” Van Swol posted on X.
We cannot trust crime stats in America. They have been widely corrupted to serve a racist agenda. https://t.co/UEpwDbnv2F
It’s axiomatic in Washington, D.C., that changes that are undertaken by administrative action alone are easy to reverse.
There’s no doubt that if a Democratic president wins next time, he or she will undo much of what Trump has done through executive action, but will he or she be able to take it all the way back to where it was before?
I don’t think so. It will certainly be goodbye to the Gulf of America and the Department of War, and ICE raids will stop immediately. But Trump has struck blows against long-standing progressive priorities that were pursued in a piecemeal fashion, meant to build up and become irreversible over time. On these, it will be hard for the left to recover — in other words, Trump has broken the progressive ratchet.
How does the ratchet work? It begins with small, unobjectionable, or perhaps even salutary steps, coupled with assurances that potential downsides or extreme outcomes will never come about. Then, over time, incremental moves are made in the same direction until the unreasonable policy that we’d been assured would never happen is entrenched reality.
It is the work of decades, and it depends on no one ever pushing things back in the other direction (that would be reactionary) and everyone’s accepting the endpoint as a fait accompli.
To wit: First, women flying in combat roles. Then, women in ground combat roles, with the proviso that training and standards will stay the same. Then, gender-normed physical fitness tests and lower standards for everyone.
First, race-neutral civil rights laws, then temporary affirmative action, then permanent quotas and set-asides, then a widespread corporate and educational architecture devoted to promoting racialist practices and ideology.
First, respect and rights for gay people, then respect and rights for trans people, then everyone in America having to designate their pronouns, people getting shamed and fired for “misgendering” trans people, “gender-affirming” surgeries for minors, males competing in female sports, and the active encouragement of nonconforming sexual identities in the schools.
Trump has yanked the other way so far on these ratchet issues that it’s not clear when or how the left can get them back to the status quo ante.
It took so long to get there in the first place that snapping back to politicized training standards, pervasive DEI, or the most outlandish forms of the trans agenda will be very difficult.
Also, the sense of inevitability that the ratchet created, and the sense of helplessness on the part of opponents, has now been shattered.
Finally, there’s the problem that plausible deniability has been lost. The ratchet allowed for radical social change to be sheathed in incrementalism and in the righteousness of the starting point — DEI was on a continuum with civil rights; watered-down physical standards on a continuum with the inclusion of women in combat roles who needed no special accommodation.
Now, a revanchist Democratic administration would have to proceed directly to the most controversial and unpopular parts of the left’s agenda.
Top Biden administration officials misused executive authority and took actions without then-President Joe Biden’s authorization as his mental acuity declined, a House investigation found.
President Biden’s inner circle hid the extent of his mental decline from the American people and exercised executive authority by abusing the presidential autopen and taking advantage of a lax chain-of-command, according to a report released Tuesday by the House Oversight Committee.
“The Biden Autopen Presidency ranks among the greatest scandals in U.S. history. As President Biden declined, his staff abused the autopen and a lax chain-of-command policy to effect executive actions that lack any documentation of whether they were in fact authorized,” the report reads.
“The Committee has found that there was, in fact, a cover-up of the president’s cognitive decline and that there is no record demonstrating President Biden himself made all of the executive decisions that were attributed to him,” the report adds.
The Biden White House worked to conceal the extent of his mental decline through scripted messaging, controlled public appearances, and limited access. Staffers controlled Biden’s daily activities, appearances, and workload to prevent the public from seeing his diminishing mental capacity, the report says.
For the most part, Biden’s staff dismissed the possibility that the American people were concerned about his mental faculties. In a similar manner, Biden’s staff attributed his disastrous June 2024 debate performance to a bad cold and minimized Biden’s struggles on that fateful night.
The Oversight Committee investigated the coverup of Biden’s mental capacity with a specific focus on the Biden administration’s autopen usage at the end of his term. According to the committee, Biden officials used presidential authority and initiated executive actions without direct authorization from Biden himself, including using the autopen to sign executive orders without written approval.
Top Biden administration officials misused executive authority and took actions without then-President Joe Biden’s authorization as his mental acuity declined, a House investigation found.
President Biden’s inner circle hid the extent of his mental decline from the American people and exercised executive authority by abusing the presidential autopen and taking advantage of a lax chain-of-command, according to a report released Tuesday by the House Oversight Committee.
“The Biden Autopen Presidency ranks among the greatest scandals in U.S. history. As President Biden declined, his staff abused the autopen and a lax chain-of-command policy to effect executive actions that lack any documentation of whether they were in fact authorized,” the report reads.
“The Committee has found that there was, in fact, a cover-up of the president’s cognitive decline and that there is no record demonstrating President Biden himself made all of the executive decisions that were attributed to him,” the report adds.
The Biden White House worked to conceal the extent of his mental decline through scripted messaging, controlled public appearances, and limited access. Staffers controlled Biden’s daily activities, appearances, and workload to prevent the public from seeing his diminishing mental capacity, the report says.
For the most part, Biden’s staff dismissed the possibility that the American people were concerned about his mental faculties. In a similar manner, Biden’s staff attributed his disastrous June 2024 debate performance to a bad cold and minimized Biden’s struggles on that fateful night.
The Oversight Committee investigated the coverup of Biden’s mental capacity with a specific focus on the Biden administration’s autopen usage at the end of his term. According to the committee, Biden officials used presidential authority and initiated executive actions without direct authorization from Biden himself, including using the autopen to sign executive orders without written approval.
National Review previously reported on internal emails showing the White House’s process for deciding on commutations for violent criminals was chaotic and insular. The Biden administration did not consult with the families of the victims of the violent criminals as part of its clemency process.
Another instance the report mentions is the pardons Biden issued in the final hours of his presidency to members of his family. No records exist for the in-person meeting that led to the decision to grant those pardons.
Rather, Zients verbally authorized the use of the autopen after an aide of his transmitted the decision to issue the pardons. Zients did not know who actually applied the autopen and did not confirm with President Biden that he approved the pardons. The aide sent an email on Zients’s behalf expressing approval of the Biden family pardons.
If Biden didn’t issue the pardon, the pardon is invalid.
Free marketeers have good reason to cheer, or at least sigh with relief, with Milei’s party doing well in the Argentinian midterm elections…
In the middle of the month, this newsletter explained why the Trump administration traded $20 billion in U.S. dollars for the equivalent amount in Argentinian pesos. The Argentinian currency, which had already lost a lot of its value, was dropping perilously over fears President Javier Milei’s party might lose the midterm elections and the country would revert to its previous reckless big-spending habits. The currency trade, spearheaded by U.S. Treasury Secretary Scott Bessent, represented an economic lifeline to Argentina and a metaphorical bet that Milei’s party would do well in the midterms, and keep the country on a smaller-government, more free-market-oriented path.
Secretary Bessent, collect your winnings. From the Wall Street Journal:
With nearly 99 percent of votes counted, Milei’s Freedom Advances party won almost 41 percent of the national vote, more than doubling its representation in Congress. That means his party and allies secured at least one-third of the seats in both chambers — the critical threshold that allows Milei to preserve his veto power and defend his sweeping decrees.
The result, stronger than most polls had predicted, gives Milei fresh political momentum after months of unrest over deep spending cuts and a grinding recession last year. It also shores up his standing with Washington and the International Monetary Fund, which have tied future financial support to the survival of his austerity experiment. Market analysts expect Argentine bonds and the peso to rally when trading opens Monday, reflecting relief that Milei still has political traction after taking office two years ago.
“Ukrainian drones hit the Mariysky oil refinery in Mari El, the Stavrolen chemical plant and the Novospasskoye oil depot.”
Greece sends Ukraine the big guns. “Greece is transferring 60 U.S.-made M110A2 203mm self-propelled howitzers to Ukraine, along with 150,000 shells and thousands of Zuni rockets.”
Finally: “Texas Higher Ed Board Officially Bans In-State Tuition for Illegal Aliens.” Rick Perry was a very conservative governor in many ways, but backing subsidized tuition for illegal aliens was one of his stupidest ideas.
Ken Paxton takes a scalp. “Dallas Doctor Surrenders License After Texas AG Sues For Prescribing Gender Transition Drugs To Minors.” “Paxton announced on Oct. 24 that Dr. May C. Lau has given up her state medical license but that the legal case over her alleged violation of Texas’s ban on gender transition treatment for minors is still ongoing.”
“California’s Retirement Fund Lost 71% Of $468M Investment In Clean Energy And Won’t Say How.” “According to state records analyzed by the Center Square, the CalPERS Clean Energy & Technology Fund (CETF), launched in 2007, has seen its value fall from a total commitment of $468.4 million to $138 million as of March 31, 2025. That represents a loss of more than $330 million, even after paying $22 million in fees and costs to private equity managers.” I’m sure the right pockets got lined. For Democrats, losing taxpayer money is ephemeral, but virtue signaling is forever.
Oklahoma: “State Rep. Ajay Pittman suspected of embezzling campaign funds, forgery, court records show.” Guess the party.
The Peace President keeps on winning. “President Trump participates in a peace treaty, trade and critical mineral agreement signing with the Prime Minister of the Kingdom of Cambodia and the Prime Minister of the Kingdom of Thailand.”
“A staffer for Democratic Massachusetts Gov. Maura Healey was hit with drug trafficking charges after authorities intercepted eight kilograms of cocaine being delivered to a state office building. LaMar Cook, who has served as deputy director of Healey’s western Massachusetts office since 2023, was charged with trafficking over 200 grams of cocaine, unlawful possession of a firearm, and unlawful possession of ammunition related to the bust, Hampden District Attorney Anthony Gulluni announced Wednesday. Multiple parcels containing about 21 kilograms of cocaine have been seized by Massachusetts State Police throughout the investigation into Cook.” Why yes, eight kilos of Peruvian Marching Powder is indeed more than 200 grams. Indeed, that’s the sort of quantity that might keep Hunter Biden supplied into the spring…
Biden’s autopen pardons are the gift that keeps giving. “Thirty-one-year-old Khyre Holbert—a convicted felon whose 20-year crack cocaine and firearm-possession sentence was commuted by former President Joe Biden at the end of his term—was slapped with a felon in possession of a firearm and ammunition charge following his alleged participation in a shooting in Omaha, Nebraska.”
Slam Frank is “Holocaust victim Anne Frank reimagined as a pansexual Latina with non-binary lover and neurodiverse family in controversial NYC musical.” Maybe NYC deserves Mamdani…
President Trump does the impossible by bringing peace to the Middle East, France continues to circle the drain, Ukraine continues to wreck Russia’s oil infrastructure, a look at gamed crime statistics, another monthly budget surplus, and stories of various corrupt Americans taking Chinese money.
It’s the Friday LinkSwarm!
President Trump once again confounds his critics by doing the impossible. “All Living Israeli Hostages Return Home.”
Hamas finally released the remaining 20 living Israeli hostages on Monday, ending two years of captivity as part of a cease-fire deal that requires Israel to release hundreds of Palestinian prisoners.
The hostages, taken during the brutal October 7, 2023, attack against Israel, were reunited with their families. In Tel Aviv’s Hostage Square, a public square that became the focal point for protests and rallies over the last two years, thousands gathered to celebrate their return, cheering, waving flags, and holding up signs. Tens of thousands of Israelis also watched the return at public viewings across the country.
After the Israeli hostages, all men under 50, were freed, Israel began releasing 1,900 Palestinian prisoners, who were greeted by cheering crowds as they were bussed into the West Bank. Of the 1,900 prisoners, 250 were serving life sentences on murder and terrorism convictions, and 1,700 had been detained since October 7.
Israeli troops will be escorting four deceased hostages from the Gaza Strip back to Israel, according to Israeli military. The return of deceased hostages is part of the cease-fire deal. The timeline on when the remaining 24 deceased hostages will be returned back to Israel, however, is still unclear.
Israeli Prime Minister Benjamin Netanyahu vowed that he was “committed to this peace” in a speech to the Knesset, the Israeli parliament.
Netanyahu was followed by President Trump, who received a standing ovation from Israeli lawmakers as he took the podium.
Weird how the Israeli Knesset gave standing ovation after standing ovation to Literally Hitler…
When your beat is the whole wide world, from Ukraine to Syria to Taiwan to India, the news is almost never as good as it is today. So, let’s savor today’s images of the Israeli hostages finally reunited with their families. The Israeli hostages were held 296 days longer than the Iranian regime held the American hostages in 1979-1981.
It’s understandable if you thought you would never see this headline: “Last 20 living hostages return to Israel.”
It is a spectacular breakthrough, and yet not every Israeli taken by Hamas is home yet, as our Jessica Hornik notes:
There are some two dozen hostages who are deceased. Among them are two American-Israelis, Itay Chen and Omer Neutra. Some of the dead were murdered by Hamas on October 7, their bodies taken into Gaza. Others were murdered in captivity. As part of the agreement, Hamas must return all their remains. The Chen and Neutra families, and all the families of the dead, may finally be able to bury their loved ones.
This is likely the greatest day of Trump’s second term, so far. The Israelis are thrilled and are effusively singing the president’s praises:
Addressing US President Donald Trump at the Knesset, Opposition Leader Yair Lapid lauds the American leader for saving “millions from the horrors of war,” stating that he has “done the unimaginable.”
“Mr. President, you have saved the lives of our hostages. But you saved so much more. You have saved the souls of the bereaved whose loved ones now will be brought home for burial, you have saved thousands of soldiers who will not fall in battle, and you have saved millions from the horrors of war. You have saved far more than one life, and each life is an entire world,” Lapid declares in the Knesset plenum ahead of Trump’s address to the body.
“When you were elected, you declared that you would be ‘the President of Peace.’ You have kept your word. The fact that you were not awarded the Nobel Peace Prize is a grave mistake by the committee — but they will have no choice, Mr. President. They will have to award it to you next year,” Lapid says.
So how did Democrats celebrate the ceasefire they’ve been demanding for so long? Obviously they didn’t.
Way back on October 11, 2023, New York City Council Member Tiffany Cabán called for a cease-fire between Israel and Hamas. Now, at that point, Hamas had just massacred civilians in 21 communities, killing 1,195 people including 38 children. The Israel Defense Force had barely begun its retaliation for the atrocity, but the answer in the mind of Cabán was clear: Everyone should stop shooting and accept a permanent cease-fire. To some of us, this sounded like allowing Hamas to get a free shot at Israelis and then preventing the Israelis from hitting Hamas back.
Two days later, on October 13, a then-little known state senator by the name of Zohran Mamdani joined the call for a cease-fire: “Now is the moment for all people of conscience to call for a ceasefire and no more military funding.” The same day, another Democratic socialist state senator, Julia Salazar concurred: “A ceasefire is urgent. Please implore your federal elected officials to take every action they can to stop this from continuing.”
On October 28, 2023, Representative Alexandria Ocasio-Cortez joined her call. “Some may dismiss a ceasefire as naïve or worse. Yet who has a plan for what follows this destruction? What do we call that?”
Mamdani offered a statement on Twitter yesterday that declared “Today’s scenes of Israelis and Palestinians are profoundly moving” but also said that “we have watched as our tax dollars have funded a genocide.” At least Mamdani acknowledged that the cease-fire occurred.
AOC’s X feed had nothing about the cease-fire in the past few days. Nor has Cabán’s. Nor Salazar’s.
For two years, prominent leftist Democrats have been screaming their heads off to get a cease-fire between Israel and Hamas in the Gaza Strip, and now they’ve finally got one. But suddenly, it’s as if the issue just doesn’t interest them anymore. It’s like a Men in Black neuralyzer has wiped the issue of the Gaza Strip from their memories. It’s shameless, hilarious, and deeply revealing about how the Democratic Party perceives issues and America’s role in the world.
I’m not going to quote Jim Geraghty’s demonstration that Biden’s being “too pro-Israel” didn’t hurt Kamala Harris, because nobody outside the loony left believes that. Unfortunately for Democrats, the loony left is firmly in charge of their party’s foreign policy. Democrats can’t celebrate President Trump’s peace deal because they wanted Hamas to win.
Kurt Schlichter: “The Well-Deserved, Utter Humiliation of Palestinian Terrorists and Their Friends.”
There is a lot of rejoicing in America, Israel, and among normal people around the world about the peace deal in Gaza, but the Palestinian terrorist-huggers are heartbroken. And, of course, they should be. This isn’t really a peace deal. This is an utter capitulation, a total surrender by the losers of Hamas who have completely and utterly failed. They started a war and got their asses kicked, yet again. Their fight from the sewers, where they hid behind women and children, was not an example of brave resistance as they steadfastly endured victimhood. Every single misery that the Palestinians have suffered over the last two years was utterly deserved – in fact, they deserved much, much worse.
That’s why my beef with Israel is that it has been far too kind. Because of the unique aspects of Israeli politics and culture, and because Joe Biden’s puppet masters refused the total support America should’ve given, this absolutely necessary war has dragged on unnecessarily for two years. If I were in charge, this would’ve been over in November 2023, and the semi-human savages who started this war would use my name to scare children for the next hundred generations.
But I’m not in charge, nor are you, nor are any of us except the Palestinians and the Israelis. It’s those in charge who get to make the choices and bear the consequences. The Palestinians got here because they chose to continue a war they’ve been losing since 1948. The Israelis got here because they chose not to allow themselves to be murdered by the people who’ve been trying to kill them since 1948. But I’m not interested in history, not anymore. There’s a time to argue and there’s a time to fight, and it’s time to fight. But you can still see people, both smart and dumb, arguing about history all over the media, both mainstream and social, yet it doesn’t really matter. Certainly, the Israelis are right on the facts – it’s their land, both in terms of historical precedence and the more important fact of physical reality. The owner of the land is the guy who you can’t knock off it; that’s how history works. Here, history just happens to align with justice. The idea that Jews only turned up in the Holy Land in 1946 after Hitler failed to complete his Holocaust is utter nonsense, and people pushing it know that. They don’t care. History is just another weapon for them in their quest for actual genocide, like Kalashnikovs, flotillas of moronic Westerners, and suicide bombers. That it’s all a lie doesn’t matter to them in the least. Their idols are the people who invented Pallywood and made stars of the guys who would portray honor students, a doctors, and a future Nobel Prize winners who just happened to be murdered by the Israelis for no reason, and whose deaths – complete with subtle breathing by the ubiquitous thespians – just happened to be captured on video by their fake reporters.
The real weapon of Hamas, though, is the suffering of their own people. With it, and its documentation, both real and fraudulent, they hope to leverage the humanity of Westerners to get them to choose suicide rather than righteous resistance to Jihadi savagery. It doesn’t just work on millions of morally illiterate leftists – and some ridiculous idiots on the right – in America and Europe. It even works on some Israelis. The October 7 atrocities fell mostly on the leftist “peace” people in the Jewish state who were trying to show solidarity with the Palestinians by living adjacent to Gaza. They died at the hands of the people they wanted to be friends with, horribly, but that didn’t stop many on the Israeli left from trying to undermine the war. Some people will choose suicide over admitting they were wrong.
And what they were wrong about was considering the Palestinians a wonderful but misunderstood people. In reality, it is a broken and hideous culture, poisoned by radical Islam and the humiliation of being defeated again and again and again by the tiny Jewish outpost that would still be a barren desert if the Israelis had not made the desert bloom. The prosperity and freedom of Israel shame them in their squalor and despotism. It drives the hate that is central to their society. They train their little kids to be terrorists, and these little kids grow up to be terrorists. Mommy and daddy were so proud, delighted when their disgusting spawn called from the bloody kibbutzes to brag about killing unarmed Jews. As gruesome as the Hamas degenerates are, it wasn’t just Hamas. The Palestinians elected Hamas, and they still support Hamas. They got what they voted for.
You know who’s not pleased by President Trump’s Middle East peace success? The ChiComs.
One of the biggest losers in President Trump’s great, historic Middle East peace plan is Communist China.
Maybe that’s a reason for China’s petulant rare earths trade control circular it dropped on everyone last Friday, completely out of the blue.
Was that a Chinese temper tantrum heard around the world?
China wasn’t at the peace summit. Its horse lost.
For years, China was the biggest purchaser of Iranian oil, thereby financing the Iranian-backed terrorist war against Israel.
Iran was always the key — backed by China.
And that is why Israel’s Operation Rising Lion, the war with Iran in June, and the United States’s Operation Midnight Hammer on June 22, obliterating Iran’s nuclear facilities at Natanz, Fordow, and Esfahan — were so essential to the Trump peace plan.
Here’s what Mr. Trump said yesterday: “So we dropped 14 bombs on Iran’s key nuclear facilities. Totally, as I said originally, obliterating them.”
He added: “If we didn’t do that and assuming we made the same deal that we have today, there’d be a dark cloud over this deal.”
Mr. Trump concluded: “Some of the things I hated to do, I hated certain of the weapons. Because the level of power is so enormous. It’s so dangerous, it’s so bad. But we have to do what we have to do.”
So Iran was crushed. The use of American-Israel military force was crucial. Not Bidenesque appeasement, but Trumpian force.
Mr. Trump is working with Prime Minister Benjamin Netanyahu — the two great warriors saving democracy and freedom in the Middle East, in America, and around the world.
Yet China lost big also. Not only did it watch the judicious use of allied military force to decapitate Iran, but it’s also watching a new coalition of Middle East nations put together by Mr. Trump.
Out of this new coalition can come a Saudi-Israeli alliance, an expanded Abraham Accords, new business ventures to rebuild Gaza, and a whole new panoply of peaceful foreign policies, buttressed by new trade and investment.
China is not likely to be a player in all of this. Its influence is now almost at rock bottom — because its bet on Iran did not pay off.
No Nobel Prize for President Trump, theoretically because all his peace-making deeds fell after their previous deadline (that that that stopped them from ridiculously handing the award to Obama). Instead they gave it to Venezuelan dissident Maria Corina Machado…who promptly dedicated it to Trump.
A foreign-policy expert who had an advisory role with the State Department is being accused of stealing classified information and meeting with Chinese officials several times.
The Justice Department announced Tuesday the arrest of Ashley Tellis, a well-respected scholar specializing in Asia and India, for unlawfully possessing national defense information.
“We are fully focused on protecting the American people from all threats, foreign and domestic. The charges as alleged in this case represent a grave risk to the safety and security of our citizens,” said eastern Virginia U.S. Attorney Lindsey Halligan, an appointee of President Trump.
“The facts and the law in this case are clear, and we will continue following them to ensure that justice is served.”
Tellis was an unpaid adviser at the State Department and a contractor with the Department of War’s Office of Net Assessment, Fox News reported based on a Justice Department affidavit.
He is currently a senior fellow at the Carnegie Endowment for International Peace, a prominent foreign-policy think tank that opposes the Trump administration. Tellis published analysis for the think tank as recently as last week.
Those looking for data on the US budget deficit contained in the Monthly Treasury Statement had to wait a few weeks because of the government shutdown, but better late than never, and today at 2pm, the Treasury unveiled the US income statement for the just concluded fiscal year 2025. It was ugly, but not as ugly as it could have been and the month of September was outright impressive.
Starting at the top with the month of September, the numbers were surprisingly sold: total tax revenue of $543 billion were the highest since April (which is tax-collections month), a 3.2% improvement from a year ago, and pushed the 6-month moving average to a record high $496 billion.
As usual, the vast majority of govt receipts was in the form of individual income taxes ($298BN out of $544BN), with Social Security contributing about a 3rd of the total receipts and Corporate Income Taxes accounting for 11% or $62 billion of the total.
On the outlays side, here too there were notable improvements, with the US government spending only $346 billion, a sharp from from the $689 billion in August, and down a whopping 25% from the $463 billion last September. Even more remarkable is that the six month moving average of govt spending suddenly slumped from $604 billion – the highest since covid – to $573 billion, the lowest since June 2024. Yes, the improvement may be small, but every little bit helps and whatever Trump is doing to shrink govt spending is starting to show.
Snip.
A big reason for the stellar September surplus is that tariff collections continued apace, and in September the US government collected a record $29.7 billion in tariffs, which translated in a record $195 billion for the fiscal year. And since Trump’s tariff regime was only active for 6 of the past 12 month, expect tariffs to deliver about $350 billion in annual revenue every year, unless they are canceled.
Still a long way to go to actually balance the budget.
Data from my new Centre for Heterodox Social Science report, ‘The Decline of Trans and Queer Identity among Young Americans’, shows that since 2023 both trans and queer identification have dropped sharply within Generation Z.
The Foundation for Individual Rights and Expression (FIRE), which conducts a large annual survey of US undergraduates, polled over 60,000 students in 2025. My analysis of the raw data shows that in that year, just 3.6% of respondents identified as a gender other than male or female. By comparison, the figure was 5.2% in 2024 and 6.8% in both 2022 and 2023. In other words, the share of trans-identified students has effectively halved in just two years.
“Two Suspects Indicted on First Antifa-Related Terrorism Charges in Texas ICE Attack…A federal grand jury indicted Cameron Arnold and Zachary Evetts on Wednesday. The pair are charged with providing material support for terrorism, attempting to murder federal officers and assisting officers, and discharging firearms during attempted murders, according to the indictment, which was unsealed Thursday.”
Fiscally bankrupt, France is trapped in economic stagnation.
The immediate issue is the 2026 budget. Prime Minister Sebastien Lecornu resigned due to an inability to negotiate a budget for 2026. Still, President Emmanuel Macron and Lecornu insist that a path to a budget compromise remains possible. Time will tell. However, the political crisis is pushing up interest rates among the countries that make up the European Monetary Union. Through the European Central Bank, the Union backstops France’s sovereign debt. The crisis also weakened the euro relative to the United States dollar.
France’s major problem?
Any budget deal will be a fudge that fails to put France on a path to fiscal stability. France will continue to violate the fiscal deficit limits of the European Union. But France must reduce its annual fiscal deficit to 3% of GDP, or, at least, set a credible path to reaching that level. Next year, regardless of whatever budget agreement is reached, France’s fiscal deficit will exceed 5% of GDP. In addition, France is obligated by its EU membership to enact policies to reduce its total debt from the current 115% of GDP to 60% of GDP. Obviously, this will be impossible. So, expect fudges and more fudges for years to come.
The French left and populist right want to get rid of the 2023 reforms, which increased the national retirement age from 62 to 64. But repealing the pension reform legislation would increase the deficit by about $3.5 billion USD a year. At the same time, fewer people would be working, so tax collections would be lower. Fewer workers would mean slower economic growth. France is already experiencing an extended period of stagnation.
The other possible area of compromise is to implement a wealth tax on French citizens with a net worth of €100 million/$116 million USD or more. Again, proponents of a wealth tax say that the tax would raise to $23 billion USD a year, but mainstream economists say wealth taxes don’t work. The wealthy simply respond with legal tax avoidance strategies and migrate to lower tax jurisdictions.
The top line is that any budget deal will just delay the inevitable reckoning with financial markets and the ECB’s monetary authorities. At some point, the ECB will force France into austerity. Otherwise, France will drag down Europe’s economy, and France’s politics could actually jeopardize the European Monetary Union.
As France lurches from government to government in a political crisis engulfing President Emmanuel Macron, there has been one consistent beneficiary: Marine Le Pen and her far-right Rassemblement National party.
Hours after Macron’s third new prime minister resigned on Monday, Le Pen cast the RN not just as a party ready to govern but also capable of restoring stability to a nation in turmoil.
Snip.
The RN outflanks rivals from across the political spectrum in opinion polls and maintains a solid base of about a third of the electorate, though its lead has not grown exponentially even as it stands to gain from the chaos.
The populist party also has its own internal divides and problems — not least after Le Pen was barred from running for office for five years when she was convicted of embezzling EU funds. She is appealing against the verdict, with further proceedings scheduled for January.
Still, a series of errors by Macron, Le Pen’s opponent in the last two presidential run-offs, is helping her bolster the RN’s credibility, after a long-running effort to shed the racist and antisemitic legacy of her late father and party founder, Jean-Marie Le Pen.
Macron’s unexpected gamble to call a snap parliamentary vote last year in a bid to stem the RN’s rise backfired, leaving him well short of a majority, while the RN won its biggest ever haul of seats, 120 in the 577-strong lower house.
The French president’s subsequent attempts to break the deadlock by naming prime ministers from the centre-right or his own centrist camp — including Sébastien Lecornu, one of his closest allies — further amplified the crisis, with no premier able to stay in office for more than a few months and struggling to pass budgets.
France’s “centre-right” is probably to the left of Obama.
“It feeds the ongoing feeling that there’s a form of political elite that’s occupying positions of power, and in a totally disconnected way from the people, keep bringing back the same figures,” said Jean-Yves Camus, a political scientist at the Iris think-tank.
Snip.
The political damage from recent months is lasting.
Polling group Odoxa found last week that a third of those who voted against the RN in 2024 — heeding calls by Macron and French centrists to band together against the far-right — would not do so again.
“We found voters were really fed up with this idea of being told to vote against [the RN], they had a feeling they had been asked to do so to purely serve political interests,” Odoxa head Céline Bracq said.
Pollsters and analysts said the RN would at the very least do as well as last year in a new election, and would be one of the few parties set to increase its number of seats, even if the two-round voting system complicates predictions. Much would hinge on a left-wing bloc uniting or not.
Within the RN, however, party executives said they were readying for an outright majority if, as they hope, Macron is at some point forced to call another snap election. In that scenario, the president would have no other option than to appoint Le Pen’s right-hand man and party chief Jordan Bardella as prime minister.
“The RN has to get to Matignon,” said Edwige Diaz, an RN lawmaker, in reference to the prime minister’s official residence. “The people of France can’t take it anymore, they want change.”
Once again, gold and silver hit record highs. There is evidently a shortage of physical silver in London, which is helping drive prices.
They also hit Samara and Kstovo oil refineries, and a Samara substation near a railroad. “Kstovo was the first refinery targeted by Ukraine in the current campaign against Russian oil, hitting it on August the 2nd and again on October the 5th. So the third strike targeting this refinery…This is a big one, the fourth biggest in Russia with a 17 million ton capacity a year. This one alone represents 6% of Russia’s refining capacity overall.”
During last year’s presidential debate between Donald Trump and Kamala Harris, Trump said violent crime was rising. ABC moderator David Muir immediately fact-checked him, claiming, “President Trump, as you know, the FBI says overall violent crime is coming down in this country…”
Nearly every major media outlet echoed that narrative. National Public Radio ran the headline, “Violent crime is dropping fast in the U.S. – even if Americans don’t believe it.” The Wall Street Journal declared, “Violent Crime Rate Falls Sharply After Pandemic Surge.” Vox insisted, “Violent crime is plummeting.” Axios reported, “New data shows violent crime dropping sharply in major U.S. cities.”
However, a new Bureau of Justice Statistics report, which includes data through 2024, shows that Trump was right during the debate when he said, “Crime here is up and through the roof.” The National Crime Victimization Survey shows violent crime surged 59%, with rape and sexual assault up 67%, robbery up 38%, and aggravated assault up 62%. That’s the largest four-year increase in the survey’s 52-year history.
The contrast with Trump’s first term is stark. The NCVS data shows that between 2017 and 2020, violent crime fell 15%, including a 6% drop in robbery and a 24% decline in aggravated assault. Although rape and sexual assault rose slightly, the increase was less than 10% of what occurred under Biden.
The federal government tracks crime in two main ways. The FBI’s Uniform Crime Reports count the number of offenses reported to police each year. The Bureau of Justice Statistics’ National Crime Victimization Survey, by contrast, annually asks about 240,000 people living in the United States whether they were crime victims. The latter method captures both reported and unreported incidents.
Last year, the media focused almost entirely on the FBI data.
Before 2020, the FBI and Bureau of Justice Statistics trends generally moved in tandem. Since then, they’ve diverged sharply: The FBI reports fewer crimes, while more Americans say they’ve been victimized. Unreported crime was always a factor – and the reasons for it vary. They range from people reluctant to report being victimized by loved ones to a simple aversion by undocumented people to involve themselves with the criminal justice system. In recent years, however, another factor appears to have skewed the FBI data: the breakdown of law enforcement in this country. When people believe police won’t catch or prosecutors won’t punish criminals, they’re simply less likely to report crimes. Between 2010 and 2019, victims reported 63.3% of violent crimes to police. In the last three years, that number plummeted to 48.8%. Arrests fell as well – from 26.5% before COVID-19 to just 16.6% afterward.
They’re slashing their payrolls in anticipation of spinning off basket-case MSNBC from also basket-case NBC “News…”
NBC News eliminated its teams dedicated to covering issues affecting Black, Asian American, Latino and LGBTQ+ groups as part of its layoffs of about 150 staffers on Wednesday, according to two sources familiar with the matter, a significant culling as the Peacock network separates from its sister news network, MSNBC.
The cuts mean that the verticals NBC BLK, NBC Asian America, NBC Latino and NBC OUT will no longer have dedicated teams bolstering their coverage. The verticals will continue to publish stories related to the specific groups and NBC News may ultimately retain up to five staffers who will contribute coverage on the verticals to the newsroom, according to one source, as the dedicated teams focused exclusively on these verticals are sunset.
The total reductions, which affected NBC News’ entire news operation, make up about 7% of NBC News’ newsroom of about 2,000 staffers and 2% of the wider NBCU News Group, which includes Telemundo and the network’s owned-and-operated local news stations. The cuts did not target specific teams and were driven by the network’s budget and the desire to streamline its editorial efforts, according to one source.
They should purge all DEI/social justice hires to help improve shareholder value.
That was quick. “Court Orders Immediate Halt to Loving County ‘Takeover’ Scheme.”
A state district judge has granted Attorney General Ken Paxton’s request for a temporary restraining order against Malcolm Tanner, the Indiana man accused of orchestrating an illegal plan to “take over” Loving County by importing out-of-state voters with promises of free housing.
The order immediately bars Tanner and anyone acting with him from allowing new residents onto the property or discharging sewage that could contaminate soil or groundwater.
A hearing on whether to extend the order or issue a temporary injunction is set for October 31.
“The show is over,” Paxton said in a statement. “A court has ordered that this illegal and deceptive political sham must come to an immediate end. Malcolm Tanner is a two-bit charlatan attempting to defraud people out of their money with false promises of free homes and unlawful government payouts. Texas is for Texans, not out-of-state grifters trying to steal political power from the people who live here.”
The judge found that Tanner and his associates “violated or are threatening to violate Texas Health and Safety Code § 341 by discharging or allowing the discharge of sewage or human excreta in a manner that could contaminate the soil, sub-surface drinking water, or create the potential for disease transmission.”
The court agreed that such contamination posed “immediate and irreparable injury” to public health and justified emergency relief.
The ruling follows Paxton’s earlier lawsuit accusing Tanner of violating public-health laws, running a public nuisance, and committing deceptive trade practices by luring followers—mostly women and children—to a remote site in West Texas with false promises of “free homes” and monthly cash payments.
Tanner, who has described his group as “Melanated People of Power,” claimed on social media he plans to rename Loving County and replace local officials in the 2026 elections.
I feel about Paxton the same way Abraham Lincoln felt about Ulysses S. Grant: “I cannot spare this man. He fights.” (Previously.)
Attorney General Ken Paxton has informed the Texas State Securities Board that his office has uncovered evidence showing entities connected to the East Plano Islamic Center and its controversial proposed EPIC City land development project violated both federal and state securities laws.
In a letter to Chairman E. Wally Kinney and Commissioner Travis J. Iles, Paxton said his office conducted an investigation into Community Capital Partners LP (CCP), the group raising funds for EPIC City, after receiving multiple complaints. The attorney general’s office requested extensive records from CCP and says it has now reviewed more than 750 documents related to the offering of securities tied to the project.
“In the course of the investigation, the OAG identified evidence that CCP violated federal and state securities laws and regulations, including both procedural violations and fraudulent conduct,” Paxton wrote. He invited the Securities Board to meet with his investigative team, review the evidence, and—if it agrees with his findings—refer the case back to the attorney general’s office so that legal action can proceed.
Paxton noted that the Texas Securities Act requires the commissioner and the attorney general to work together to “prevent or detect a violation of the law,” saying he looks forward to collaborating “to ensure that Texas law is being enforced and Texans are protected.”
“After a thorough investigation, it has become clear that the developers behind EPIC City flagrantly and undeniably violated the law,” said Paxton. “The bad actors behind this illegal scheme must be held accountable for ignoring state and federal regulations.”
The development marks a significant escalation in the state’s ongoing crackdown on EPIC City. Multiple state agencies have launched investigations into the project, including the Funeral Service Commission, the Commission on Environmental Quality, and the Workforce Commission.
Additionally, Gov. Greg Abbott has also recently signed legislation he said will effectively ban “Sharia compounds” like EPIC City in Texas. The measure removes certain religious exemptions from the Texas Fair Housing Act for organizations owning more than 25 acres and prevents them from limiting home sales based on religion.
Snip.
If the Securities Board agrees with his office’s conclusions and formally refers the case, the attorney general is expected to file suit against Community Capital Partners and other parties tied to EPIC City for violations of securities law.
At this point the whole project is deader than the last three leaders of Hamas…
Lonoke County, Arkansas: “Dad charged with killing his 14-year-old daughter’s rapist now running for sheriff.” “Aaron Spencer allegedly gunned down Michael Fosler, 67, after catching him driving off with his daughter, whom Fosler had already been charged with grooming and abusing, according to court docs.” “The monster who hurt our child was charged quickly, but released even faster on a $50k bond. He was awaiting court in December for several felonies in relation to what he did to our child.”
Among those charged include Kanaisha Middleton, a supervisor at the Garden City branch of the DMV, as well as her sister, Jamie Middleton, who is accused of taking at least 10 different permit tests for no-show drivers.
Surveillance images show Jamie Middleton wearing different disguises, even fake facial hair as she posed as a man who would be applying for a commercial driving permit, but she forgot to take off her fake nails.
A woman with prior convictions in several southeastern Texas counties and multiple pending felony charges is free on at least nine bonds despite allegations that she has frequently violated the terms of her probation.
Juanetta Solomon’s criminal history dates to at least 2015 with convictions in Brazoria, Fort Bend, Galveston, and Harris counties related to drugs, personal care fraud, and felony theft. She has served time in the state prison system and county jails.
While on probation, in 2023 Solomon was charged with two counts of aggravated assault with a deadly weapon in Harris County, and in 2024 for practicing dentistry without a license. According to Houston police records, she allegedly pretended to be a dentist with ISmilez Cosmetic Designz and injured a patient after using a dental drill, file, and chemicals.
Not Juanetta Solomon.
Last year Solomon was also charged with unlawfully carrying a weapon and prosecutors alleged she repeatedly violated the terms of her probation.
Despite Solomon’s record, 232nd Criminal District Court Judge Josh Hill declined to revoke her probation, and she is free on seven felony bonds out of Harris County.
Electing social justice Democrats means letting black criminals walk the streets so they can continue victimizing law-abiding black citizens.
“Men charged with sex crimes in three states get in girls’ locker rooms by invoking gender identity…Case High School Aquatic Center staff invoked Racine Unified School District’s gender-identity policy to justify letting 64-year-old Rohan de Silva use the girls’ locker room.” So thanks to social justice, high schools are now letting 64 year old perverts into girl’s locker rooms. Keep doing that, and you’re going to get a lot more Aaron Spencers…
“ICE Arrests Illinois Cop For Being Illegal Alien Who Arrived On Six-Month Tourist Visa.” Radule Bojovic of Montenegro came over on a tourist visa in 2015…
A Chinese businessman whose company has strong ties to the Chinese Communist Party has poured at least $65,000 into Rep. Mikie Sherrill’s bid for New Jersey governor, records show.
Pin Ni, the founder of Wanxiang America Corporation, cut at least two checks for a combined $60,000 this year for the One Giant Leap super PAC, which is backing Sherrill’s bid against Republican Jack Ciattarelli.
Pin also gave another $5,800 — the maximum allowable — directly to Sherrill’s campaign in June, records indicate.
Only American citizens or permanent legal residents are allowed to make donations to political campaigns. Pin’s status is not fully clear, though records indicate he has a Social Security number.
Remember Des Moines public schools chairman Jackie Norris, who hired an illegal alien superintendent? She just suspended her campaign for U.S. Senate. Do you think that maybe ordinary Iowa voters aren’t as gung ho about importing illegal aliens as the Democrat Party’s ideological core?
Louis Rossmann reports on an interesting story: Denver City council votes 12-0 not to purchase AI cameras. Denver mayor Mike Johnston buys them anyway. Seems like there’s a big push to install these in American cities over the wishes of voters. (Previously.)
Another attempt to “reinvent farming” goes awry. “A company known for its vertical farming is shutting down its North Texas facility and laying off more than 100 employees, according to a recent filing with the Texas Workforce Commission. Both of Eden Green Technology’s greenhouses at 1845 Sparks Dr. in Cleburne are set to close permanently on Dec. 13. The layoffs affect employees at every level—from executives, including the CEO, CFO and Chief Innovation Officer, to greenhouse managers, production and packing staff, and sanitation workers.” There are probably places were “vertical farming” might prove a viable option, like Alaska or Saudi Arabia, but there’s very little point to trying it in a place so well supplied with sun, water and soil as north central Texas… (Hat tip: Dwight.)
Iconic Corpus Christi building fails to attract a bidder. Downtown Corpus is weird. As so0meone once said, “it’s like they rebuilt the city after the monster attack but none of the people came back.” I heard someone that a small group of money Corpus families bought up all downtown with the express intention of not letting it be developed. of course, I was last there in 2000, so maybe things have changed…
“Tough Love” Level: Illegal. “Florida parents reportedly ditched 16-year-old son on roadside with sack of guns: ‘You are the chosen one… good luck.'”
An annoyingly awesome and well-thought out vanlife build. I say “annoying” because they evidently paid to have all the custom work done rather than laboriously building it up from bare metal themselves like most van life videos I watch…
If you live in the City of Austin, today the City Council will be hearing testimony on a sneaky proposal to buy AI-enabled surveillance cameras that they scheduled without giving mere citizens a chance to comment. Louis Rossmann has the details:
“Today, I’m going be making the case for every single one of you who lives in the city of Austin to show up to City Hall September 25th, 10:00AM.”
“In a few videos I’ve done recently, I talked about these AI powered surveillance cameras that are everywhere and why I don’t like them.”
“These AI powered surveillance cameras [have] been going up all over the country. They’ve been used for everything from police officers spying on their exes to people getting pulled over on the side of the highway because the AI powered camera got a seven or a three or seven and a B wrong, and just nonsense like this.”
“And a lot of people signed up for a hearing that was 10:00AM on a Thursday morning.”
“10:00AM on a Thursday morning on a Thursday morning is a really bad time to have a hearing because most people are going to be at work. And many of you were saying, ‘I don’t think they’re going to listen to me anyway.'”
“I did a video, came out and they said, ‘There’s no way in hell these people are actually going to cancel after getting you to take off work at 10:00AM on a Thursday with no notice.’ Unfortunately, that’s what they did. Over 10 years in in lobbying, never seen some shit like this.”
So they bring the item back for September 25th, but do it in a really sneaky way. “I go to check the agenda. I search for LiveView. I notice it’s not in the agenda. However, even though it’s not on the agenda, it shows up in Public Communication General. The only two people that are scheduled to speak are Kevin Rabininoitz and Kohar Ramini…Investment into LiveView Technologies for cameras at Austin Parks. LiveView Technologies Parks and Rec contract for mobile security units. There’s no agenda item.”
“So, I’m not able to sign up to speak, but they are.”
Turns out you have to sign up to speak 21 days before the meeting. The meeting they didn’t announce in advance for the item that’s not listed. “A person who intends to speak during general public communication must register between 9:00AM on the 21st day before the council meeting at which the person intends to speak, and 4:30PM on the 14th day before the council meeting at which the person intends to speak via the online form of the city’s website, by telephone, or in person. And this is a separate form than the form that you use to speak on regular issues.”
“Here’s what’s going to happen on Thursday morning. People who work as the lead salespeople at this company are going to show up and they’re going to speak to the City Council and they’re going to speak to you and they’re going to tell you why it is you’re going to sign a contract for $400,000 to $2 million of AI powered surveillance all over your city and you’re not allowed to say anything back.”
The marketing representative for the company said that they’re not going to use the cameras for facial recognition, but guess what? Their website says “Video analytics is a technology that utilizes artificial intelligence and deep learning algorithms to automatically analyze video content from surveillance cameras, enables functionality such as facial recognition.”
Supposedly the cameras are for crime prevention. Fine. But that makes me wonder why they want to put them in parks rather than, say, crime hot spots like Sixth Street? Because they’re too bulky to locate there?
Though they say customers own all the data, it’s all be fed to LiveView’s own backend servers.
Rossmann is hoping that lots of people show up to express their opposition to the surveillance cameras, and has a page up on when and where to show up today to make your voice heard. (Given that I live outside the boundaries of Austin, I will not be going, though I’d still like to interview Rossmann on a variety of topics one day.)
There’s a case to be made for surveillance cameras in public places in crime hot spots, but not ones using unproven AI technology. And these bulky, solar-powered things aren’t going in crime hot spots, they’re going in public parks. True, there was been a plague of drug-addicted transients living in parks since former mayor Steve Adler invited them into the city, but these expensive, stationary things seem particularly unsuited to combing the parks for illegal campers; you’d be better off hiring more park employees to do that for the same money. Or, better yet, hiring more APD officers, as the city still hasn’t fully recovered from the damage done by the “defund the police” madness.
So there’s a case, but not for these bulky things, at this extravagant price, and not in city parks most days of the year. (I can see a partial exception for things like the gates of big outdoor public concerts, like ACL, or for the entrance to the Zilker trail of lights. Even then, there are better, cheaper alternatives available.) I also see a parallel with gunshot acoustic tracking systems, which were similarly hyped, similarly expensive, and seemed to yield practically no real-world benefits.
Rossmann is right: This thing stinks to high heaven, and it certainly smells like various palms have been greased to get this thing to slide through on the sly. Hopefully there’s enough outcry to put the kibosh on this bad, expensive idea.
Adobe has just changed the terms for subscription applications like Photoshop. Nothing big, just a demand of unlimited use of everything you ever create, forever. Oh, and you’re locked out of your existing work until you agree.
A change to Adobe terms & conditions for apps like Photoshop has outraged many professional users, concerned that the company is claiming the right to access their content, use it freely, and even sub-licence it to others.
The company is requiring users to agree to the new terms in order to continue using their Adobe apps, locking them out until they do so …
Adobe says that its new terms “clarify that we may access your content through both automated and manual methods, such as for content review.”
The terms say:
Solely for the purposes of operating or improving the Services and Software, you grant us a non-exclusive, worldwide, royalty-free sublicensable, license, to use, reproduce, publicly display, distribute, modify, create derivative works based on, publicly perform, and translate the Content. For example, we may sublicense our right to the Content to our service providers or to other users to allow the Services and Software to operate with others, such as enabling you to share photos
If you’re using our tools, we get unlimited rights to anything you ever created on our tools for any purpose forever, plus we get to sublicense them. It’s as if Microsoft announced that it was publishing Joe Schmoo’s Misery II: Misery Harder because Stephen King agreed to the license agreement for Word 4.0.
Designer Wetterschneider, who counts DC Comics and Nike among his clients, was one of the graphics pros to object to the terms.
Here it is. If you are a professional, if you are under NDA with your clients, if you are a creative, a lawyer, a doctor or anyone who works with proprietary files – it is time to cancel Adobe, delete all the apps and programs. Adobe can not be trusted.
But don’t worry! It gets worse! You can’t access your server-stored work or even uninstall the app until you agree to the term!
Concept artist Sam Santala pointed out that you can’t raise a support request to discuss the terms without first agreeing to them. You can’t even uninstall the apps!
I can’t even get ahold of your support chat to question this unless I agree to these terms beforehand.
I can’t even uninstall Photoshop unless I agree to these terms?? Are you f**king kidding me??
But don’t worry! Adobe has “clarified” that they’re really not going to steal your content, despite the terms and conditions clearly giving them the permissions to do precisely that. They also swear up and down that they’re never, ever, ever going to use your work to train AI on, despite the fact that we all know that’s exactly what they’re doing.
All of this points out how stupid it is to rely on a subscription model for your software.
Is there a Louis Rossmann rant on the subject? Yes. Yes there is.
“When you are at the mercy of connecting to somebody else’s computer to use your software, this means that your data can be held hostage and they can change the terms on you at any time.”
He states he feels anything he’s published on the Internet is fair game for training AI. But: “I do not want Adobe’s machine learning algorithms going through my personal private content. When I have something in my drawer, that belongs to me. That is not for anybody else to learn from.”
“If you have a halfway finished creative project, you are literally not able to access it unless you agree to terms and conditions that allow their machine learning algorithms to go through all of your private fucking library. You rapist pieces of shit!”
“The problem with having your data on somebody else’s computer is that they can roofy you anytime they want and get access to it.”
“Where on this page does it say that if you don’t want us to access your data, that you can grab all your data out of there and cancel? Does it say that? No, it says you either accept and continue you take the roofy or you don’t get access to any of your stuff ever again.”
Until Adobe actually changes the terms and conditions to provide the narrow permissions they claim they actually need (like the ability to create thumbnails), no one should agree to their terms. And not allowing someone to retrieve or delete their data without agreeing to draconian terms and conditions first is unconscionable extortion.
The Senate’s bad border deal goes down badly, Big Brother is (still) watching you, Netanyahu tells everyone calling for a Gaza ceasefire to stick it in their murder tunnels, more Democrats arrested for (or convicted of) fraud, and a tiny bit of Disney news. It’s the Friday LinkSwarm!
Republicans took one look at the abomination of a “bipartisan” border deal and declared it dead on arrival.
In a key vote on Wednesday, Senate Republicans moved to block the long-anticipated bipartisan border deal, which ties border-security provisions to aid for both Israel and Ukraine.
The bill was blocked in a 49 to 50 procedural vote, with only four Republicans joining Democrats in backing the legislation. The bill needed 60 votes to advance.
This setback comes after months of negotiations between Senate Republicans and Democrats on a measure President Joe Biden strongly requested. While the GOP wants more resources allocated toward the southern border, House Republicans and former president Donald Trump have made it clear they don’t want the legislation tied to foreign aid.
Hours after the bill’s details were revealed Sunday night, House GOP leaders rejected the package and declared it “DEAD on arrival in the House.”
Trump, who has made the border crisis a central issue of his 2024 presidential campaign, also weighed in on the border deal earlier this week. “Don’t be STUPID!!! We need a separate Border and Immigration Bill. It should not be tied to foreign aid in any way, shape, or form!” Trump posted on Truth Social.
Before the Senate voted on the matter, Biden blamed Trump for Republicans’ fierce opposition to the bill.
“Now, all indications are this bill won’t even move forward to the Senate floor,” Biden said Tuesday. “Why? A simple reason: Donald Trump.”
Hey Biden, I’m already going to vote for Trump. You don’t need to keep giving me new reasons.
The $118 billion Senate proposal includes about $60 billion in Ukraine funding, $14 billion in Israel aid, and $20 billion in border-security improvements, among various other items listed in the legislative package.
Senators James Lankford of Oklahoma, Lisa Murkowski of Alaska, Susan Collins of Maine, and Mitt Romney of Utah were the only Republicans to vote in favor of the bill on Wednesday.
Lankford should be ashamed to be in such company.
Texas isn’t taking the Biden Administrations abrogation of the rule of law lying down. “Texas Attorney General’s Legal Challenge to Biden Administration’s ‘Asylum Rule’ Will Proceed. A federal judge ruled Texas raised a plausible claim that the federal government is violating the Appointments Clause of the U.S. Constitution.”
The Texas Office of the Attorney General (OAG) announced a procedural victory in one of its many ongoing lawsuits against the federal government this week, after a federal district judge ruled against a motion by the Department of Homeland Security (DHS) to dismiss a legal challenge to its “asylum rule,” saying Texas had a plausible constitutional challenge.
According to the OAG, the federal government violated the Appointments Clause in the U.S. Constitution when the DHS granted power to review asylum cases to immigration officers — a power uniquely held under federal statute by immigration judges.
“This case offers a rare opportunity to litigate the application of the Appointments Clause of the Constitution, which states that Congress may only vest the power to appoint “inferior Officers… in the President alone, the Courts of Law, or the Heads of Departments,” the OAG wrote in a press statement regarding the case.
The office explained that by using asylum officers to perform jobs Congress assigned to judges when said officers were not appointed in the same manner, DHS violated the Constitution.
The OAG also argues that asylum officers are granting more noncitizens asylum than otherwise would be entitled to it. This is causing surges at the border and population increases that are in turn increasing the state’s costs relating to the increases, the state says.
“It is tremendously important for Texas and for our Constitutional order that this case is allowed to move forward,” Attorney General Ken Paxton said regarding the case. “The Biden Administration must not be permitted to ignore Congress and violate the Constitution. We take every opportunity to hold Biden accountable for his unlawful overreach.”
Rank-and-file Border Patrol agents have slammed the Senate’s $118B Senate funding bill that would guarantee 1.5 million illegal migrants entry to the United States, while sending the majority of funds to Ukraine ($60B+) and Israel ($14.1B).
Snip.
“Now that I’ve seen more of it, they can respectfully go fuck themselves. The more I’m seeing the more it just puts what they’ve been doing in writing. You want to shut this down, it’s real easy. Team up [the Department of Defense] with DHS and let us enforce like we were supposed to,” one agent told the Caller, adding “I feel like we are the only nation in the world that is this dumb about the border. Maybe it’s because we haven’t.”
Oh, and “Aliens from noncontiguous countries shall not be included in the sum of aliens encountered.” Did America’s enemies write this thing?
Cruz went on to say he knew [the Biden border bill] “had zero chance of passage” and that the entire purpose of the bill was to give “political camouflage to Democrats running in November.”
“Joe Biden can secure the border any day he wants,” Cruz said. “He doesn’t want to.”
The Secure the Border Act, which passed in the lower chamber as as House Resolution (H.R.) 2, was introduced to the Senate by Cruz in September of 2023, a fact he highlighted Wednesday, saying to “give me Ukraine aid and H.R. 2 and I’ll vote for that.”
H.R. 2 would have continued construction of the border wall, reinstated the “remain in Mexico” policy, and added border patrol agents and technology for both the southern and northern borders.
“Democrats do not want to secure the border; they want this invasion,” Cruz continued. “The Americans who are dying as a result, they’re [Democrats] willing to look the other way.”
A few weeks ago, Ohio congressman and Judiciary Committee chairman Jim Jordan’s office released a letter to Noah Bishoff, the former director of the Financial Crimes Enforcement Network, or FinCEN, an arm of the Treasury Department. Jordan’s team was asking Bishoff for answers about why FinCEN had “distributed slides, prepared by a financial institution,” detailing how other private companies might use MCC transaction codes to “detect customers whose transactions may reflect ‘potential active shooters.’”
The slide suggested the “financial company” was sorting for terms like “Trump” and “MAGA,” and watching for purchases of small arms and sporting goods, or purchases in places like pawn shops or Cabela’s, to identify financial threats.
Jordan’s letter to Bishoff went on:
According to this analysis, FinCEN warned financial institutions of “extremism” indicators that include “transportation charges, such as bus tickets, rental cars, or plane tickets, for travel to areas with no apparent purpose,” or “the purchase of books (including religious texts) and subscriptions to other media containing extremist views.”
During the Twitter Files, we searched for snapshots of the company’s denylist algorithms, i.e. whatever rules the platform was using to deamplify or remove users. We knew they had them, because they were alluded to often in documents (a report on the denylist is_Russian, which included Jill Stein and Julian Assange, was one example).
However, we never found anything like the snapshot Jordan’s team just published:
The highlighted portion shows how algorithmic analysis works in financial surveillance.
First compile a list of naughty behaviors, in the form of MCC codes for guns, sporting goods, and pawn shops.
Then, create rules: $2,500 worth of transactions in the forbidden codes, or a number showing that more than 50% of the customer’s transactions are the wrong kind, might trigger a response.
The Committee wasn’t able to specify what the responses were in this instance, but from previous experience covering anti-money-laundering (AML) techniques at banks like HSBC, a good guess would be generation of something like Suspcious Activity Reports, which can lead to a customer being debanked.
If Facebook, Twitter, and Google have already shown a tendency toward wide-scale monitoring of speech and the use of subtle levers to apply pressure on attitudes, financial companies can use records of transactions to penetrate individual behaviors far more deeply. Especially if enhanced by AI, a financial history can give almost any institution an immediate, unpleasantly accurate outline of anyone’s life, habits, and secrets. Worse, they can couple that picture with a powerful disciplinary lever, in the form of the threat of closed accounts or reduced access to payment services or credit. Jordan’s slide is a picture of the birth of the political credit score.
Tiabbi says worse revelations are to come…
“Netanyahu Rejects Hamas Cease-Fire Demands, Vows to Fight until ‘Absolute Victory.'”
Israeli prime minister Benjamin Netanyahu rejected Hamas cease-fire demands on Wednesday, vowing to fight on until “absolute victory.”
Netanyahu made the comments shortly after meeting with Secretary of State Antony Blinken, who arrived in the region Tuesday night after meeting with leaders of Qatar and Egypt in the most serious diplomatic push of the war to secure a cease-fire agreement. Through these diplomatic channels, Hamas presented Israel with a proposal for a three-stage cease-fire that would last for 135 days and culminate in the end of the war.
“Surrendering to Hamas’s delusional demands that we heard now not only won’t lead to freeing the captives, it will just invite another massacre.”
Indeed.
The Special Counsel’s report on Biden’s mishandling paints a picture of Biden’s mental decline we all know is true but which the media refuses to report.
President Biden couldn’t even remember when he was vice president or when his son Beau had died, leading special counsel Robert Hur to conclude that he could not bring charges for mishandling of classified documents, because a jury would see the president “as a sympathetic, well-meaning, elderly man with a poor memory.”
In a report, Robert Hur concluded that Biden “willfully retained and disclosed classified materials after his vice presidency when he was a private citizen.” But he declined to issue any charges, in part because Biden’s poor recollection would make him hard to convict.
If you want to see Fani Willis taken down only the way Ace of Spades can, then I direct your attention to “CashApp Cougar Fani Willis: Okay, Fine, So I Used Taxpayer Money to Hire a Human Meat-Mallet to Pound My Snizz Into Thin Tender Strips Like Veal Scallopini.” (Hat tip: Reader Tig if Brue.)
Members of the Austin American-Statesman took one look at the vast wave of layoffs hitting newsrooms across the country and decided “Now is the perfect time to go on strike!” (Note: Elon Musk should buy the name, fire everyone, and build a national quality newspaper from scratch.)
Dell demands all workers (no matter how far away) return to the office. Those who don’t will be “placed on a ‘career limiting’ fully remote contract. In my experience, working for Dell is itself career limiting…
Budget drag race community comes together to help fan with terminal brain tumor who’s also the happiest guy they know. “Don’t feel bad for me. Everyone’s terminal.”
Louis Rossmann has ample reason rant today, namely news of a failed software update that bricks your car.
Note: This happened on the Ford Mach-E Mustang, the ugly crossover SUV that shouldn’t be called a Mustang.
“Unfortunately a recent software update was not successful your vehicle cannot be driven. Please call customer support.”
“I’m confident that when you call that number, you’re going to be dealing with is somebody who helps talk you through how to restore your car’s operating system from backup memory. Because of course, if you’re dealing with mission critical firmware or something, surely you would have a copy of the original that came with it?”
“Or perhaps a copy of the last known good update that was actually working over there that you could go back to if the update was not successful?”
“Of course not! You paid $63,000 for a device that is literally more buggy than Windows 10.”
“This car is over $60,000 and they don’t have even the most basic, fundamental redundancy built in, so that if your update fails it will flash back to a known good [version] on the backup memory. Apparently that’s not a thing.”
Says that this problem isn’t because the Mach E is an EV vehicle.
“I do not believe there is a circumstance where the vehicle is so screwed up because the version of software that it had from February of 2023 was so behind that that vehicle is now fundamentally unfit to be on a road, even in limp mode. That’s ridiculous.”
“The ability to roll back a version of software to an older version if the update that you put on is an update that screwed it up this is something that has been more than perfected in the modern day.”
“To not implement it into a vehicle that costs over $60,000 to the point where the entire 4,000 lb hunk of metal needs to be towed, and you no longer have a method of transportation because of that? There’s no excuse for it.”
“One of the things that bothers me a lot is that every time you move to a new technology paradigm, we accept less freedom. We accept that things are going to suck more in ways that they don’t have to suck.”
“You see this subscription bullshit, this less reliability bullshit, this everything made to break bullshit, this everything made to be replaced in a year or two, this every…this is not something that is simply inherent to electric vehicles this is something that is pervasive. This is something that is happening everywhere.”
“This is something that we need to push back against every single time we see this happen.”
Right-to-repair advocate, former New Yorker and current Texan Louis Rossmann did a video (and then a follow up) on a man whose Amazon smart home devices were all locked out of functioning after an Amazon delivery driver falsely accused him of having a “racist doorbell.” (The followup video covers his access being restored.) Rossmann noted that this was a good reason to never have “smart” devices in your home that third parties (like Amazon) can turn off at will.
Well, guess what? Amazon just disabled Rossmann’s 7+ year affiliate account over bogus reasons.
This is a crappy and petty move, Amazon, and only underscores why no one should entrust you with control over their “smart” devices.
Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping. The “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.
There’s also a negative side.
Even the summary is pretty breathtaking in the rang of allegations:
Most analysts are excited about the post-pandemic surge of Block’s Cash App platform, with expectations that its 51 million monthly transacting active users and low customer acquisition costs will drive high margin growth and serve as a future platform to offer new products.
Our research indicates, however, that Block has wildly overstated its genuine user counts and has understated its customer acquisition costs. Former employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual.
Core to the issue is that Block has embraced one traditionally very “underbanked” segment of the population: criminals. The company’s “Wild West” approach to compliance made it easy for bad actors to mass-create accounts for identity fraud and other scams, then extract stolen funds quickly.
Even when users were caught engaging in fraud or other prohibited activity, Block blacklisted the account without banning the user. A former customer service rep shared screenshots showing how blacklisted accounts were regularly associated with dozens or hundreds of other active accounts suspected of fraud. This phenomenon of allowing blacklisted users was so common that rappers bragged about it in hip hop songs.
Block obfuscates how many individuals are on the Cash App platform by reporting misleading “transacting active” metrics filled with fake and duplicate accounts. Block can and should clarify to investors an estimate on how many unique people actually use Cash App.
CEO Jack Dorsey has publicly touted how Cash App is mentioned in hundreds of hip hop songs as evidence of its mainstream appeal. A review of those songs show that the artists are not generally rapping about Cash App’s smooth user interface—many describe using it to scam, traffic drugs or even pay for murder…
“I paid them hitters through Cash App”— Block paid to promote a video for a song called “Cash App” which described paying contract killers through the app. The song’s artist was later arrested for attempted murder.
Cash App was also cited “by far” as the top app used in reported U.S. sex trafficking, according to a leading non-profit organization. Multiple Department of Justice complaints outline how Cash App has been used to facilitate sex trafficking, including sex trafficking of minors.
There is even a gang named after Cash App: In 2021, Baltimore authorities charged members of the “Cash App” gang with distribution of fentanyl in a West Baltimore neighborhood, according to news reports and criminal records.
Beyond facilitating payments for criminal activity, the platform has been overrun with scam accounts and fake users, according to numerous interviews with former employees.
Examples of obvious distortions abound: “Jack Dorsey” has multiple fake accounts, including some that appear aimed at scamming Cash App users. “Elon Musk” and “Donald Trump” have dozens.
To test this, we turned our accounts into “Donald Trump” and “Elon Musk” and were easily able to send and receive money. We ordered a Cash Card under our obviously fake Donald Trump account, checking to see if Cash App’s compliance would take issue—the card promptly arrived in the mail.
Former employees described how Cash App suppressed internal concerns and ignored user pleas for help as criminal activity and fraud ran rampant on its platform. This appeared to be an effort to grow Cash App’s user base by strategically disregarding Anti Money Laundering (AML) rules.
The COVID-19 pandemic and nationwide lockdowns posed an existential threat to Block’s key driver of gross profit at the time, merchant services.
In this environment, amid Cash App’s anti-compliance free-for-all, the app facilitated a massive wave of government COVID-relief payments. CEO Jack Dorsey Tweeted that users could get government payments through Cash App “immediately” with “no bank account needed” due to its frictionless technology.
Within weeks of Cash App accounts receiving their first government payments, states were seeking to claw back suspected fraudulent payments—Washington State wanted more than $200 million back from payment processors while Arizona sought to recover $500 million, former employees told us.
Once again, the signs were hard to miss. Rapper “Nuke Bizzle”, made a popular music video about committing COVID fraud. Several weeks later, he was arrested and eventually convicted for committing COVID fraud. The only payment provider mentioned in the indictment was Cash App, which was used to facilitate the fraudulent payments.
We filed public records requests to learn more about Block’s role in facilitating pandemic relief fraud and received answers from several states.
Massachusetts sought to claw back over 69,000 unemployment payments from Cash App accounts just four months into the pandemic. Suspect transactions at Cash App’s partner bank were disproportionate, exceeding major banks like JP Morgan and Wells Fargo, despite the latter banks having 4x-5x as many deposit accounts.
In Ohio, Cash App’s partner bank had 8x the suspect pandemic-related unemployment payments as the bank that processed the most unemployment claims in the state, even though the latter bank processed 2x the claims as Cash App’s, according to data we obtained via a public records request.
The data shows that compared to its Ohio competitor, Cash App’s partner bank had nearly 10x the number of applicants who applied for benefits through a bank account used by another claimant – a clear red flag of fraud.
Block had obvious compliance lapses that made fraud easy, such as permitting single accounts to receive unemployment payments on behalf of multiple individuals from various states and ineffective address verification.
In an apparent effort to preserve its growth engine, Cash App ignored internal employee concerns, along with warnings from the Secret Service, the U.S. Department of Labor OIG, FinCEN, and State Regulators which all specifically flagged the issue of multiple COVID relief payments going to the same account as an obvious sign of fraud.
Block reported a pandemic surge in user counts and revenue, ignoring the contribution of widespread fraudulent accounts and payments. The new business provided a sharp one-time increase to Block’s stock, which rose 639% in 18 months during the pandemic.
As Block’s stock soared on the back of its facilitation of fraud, co-founders Jack Dorsey and James McKelvey collectively sold over $1 billion of stock during the pandemic. Other executives, including CFO Amrita Ahuja and the lead manager for Cash App Brian Grassadonia, also dumped millions of dollars in stock.
With its influx of pandemic Cash App users, our research shows Block has quietly fueled its profitability by avoiding a key banking regulation meant to protect merchants. “Interchange fees” are fees charged to merchants for accepting use of various payment cards.
Congress passed a law that legally caps “interchange fees” charged by large banks that have over $10 billion in assets. Despite having $31 billion in assets, Block avoids these regulations by routing payments through a small bank and gouging merchants with elevated fees.
Block includes only a single vague reference in its filings acknowledging it earns revenue from “interchange fees”. It has never revealed the full economics of this category, yet roughly one-third of Cash App’s revenue came from this opaque source, according to a 2022 Credit Suisse research report.
Competitor PayPal has disclosed it is under investigation by both the SEC and the CFPB over its similar use of a small bank to avoid “interchange fee” caps. A Freedom of Information Act (FOIA) request we filed with the SEC indicates that Block may be part of a similar investigation.
Block’s $29 billion deal to acquire ‘buy now pay later’ (BNPL) service Afterpay closed in January 2022. Afterpay has been celebrated by Block as a major financial innovation, allowing users to buy things like a pair of shoes or a t-shirt and pay over time, only incurring massive fees if subsequent payments are late.
Afterpay was designed in a way that avoided responsible lending rules in its native Australia, extending a form of credit to users without income verification or credit checks. The service doesn’t technically charge “interest”, but late fees can reach APR equivalents as high as 289%.
The acquisition is flopping. In 2022, the year Afterpay was acquired, it lost $357 million, accelerating from 2021 losses of $184 million.
Fitch Ratings reported that Afterpay delinquencies through March 2022 had more than doubled to 4.1%, from 1.7% in June 2021 (just prior to the announced acquisition). Total processing volume declined -4.8% from the previous year.
Block regularly hypes other mundane or predatory sources of revenue as technological breakthroughs. Roughly 31% of Cash App’s revenue comes from “instant deposit” which Block says it pioneered and works as if by “magic”. Every other major competitor we checked provides a similar service at comparable or better rates.
On a purely fundamental basis, even before factoring in the findings of our investigation, we see downside of between 65% to 75% in Block shares. Block reported a 1% year over year revenue decline and a GAAP loss of $540.7 million in 2022. Analysts have future expectations of GAAP unprofitability and the company has warned it may not be profitable.
Despite this, Block is valued like a profitable growth company at (i) an EV/EBITDA multiple of 60x; (ii) a forward 2023 “adjusted” earnings multiple of 41x; and (iii) a price to tangible book ratio of 13.1x, all wildly out of line with fintech peers.
Despite its current rich multiples, Block is also facing threats from key competitors like Zelle, Venmo/Paypal and fast-growing payment solutions from smartphone powerhouses like Apple and Google. Apple has grown Apple Pay activations from 20% in 2017 to over 70% in 2022 and now leads in digital wallet market share.
In sum, we think Block has misled investors on key metrics, and embraced predatory offerings and compliance worst-practices in order to fuel growth and profit from facilitation of fraud against consumers and the government.
We also believe Jack Dorsey has built an empire—and amassed a $5 billion personal fortune—professing to care deeply about the demographics he is taking advantage of. With Dorsey and top executives already having sold over $1 billion in equity on Block’s meteoric pandemic run higher, they have ensured they will be fine, regardless of the outcome for everyone else.
That’s just the high level summary. There’s a whole lot more detail in the report.
I have never once used Cash App. I have an ancient Square Reader floating around in a bag somewhere, but I never actually ran any transactions on it. I do have PayPal, because I pretty much have to in order to buy or sell on eBay (though I’ve gotten to the point I do almost no selling there). I don’t even use Apple Pay, despite having a MacBook Pro and iPhone.
Speaking of fees, here Louis Rossmann rants about how Square refuses to return fees for refunds:
Anyway, if you’re using Square or CashApp, maybe it’s a good time to look into alternatives…
Blackstone (NYSE:BX) has defaulted on part of a €531M bond backed by a commercial portfolio owned by Finnish property investment firm Sponda, which it acquired in 2017.
The private equity firm has repaid almost half of that figure, closer to €300M, according to a person familiar with the matter.
Currently €297.1M of the loan remains outstanding, according to ratings agency Fitch. The loan is secured against 45 properties in Finland, most of which are offices and the rest are stores.
Blackstone (BX) earlier sought an extension from holders of the securitized notes so that it could sell the assets and repay the debt, Bloomberg reported citing people aware of the matter. The commercial mortgage-backed security has since matured, without being repaid.
A Blackstone (BX) spokesperson told Seeking Alpha that “this debt relates to a small portion of the Sponda portfolio. We are disappointed that the servicer has not advanced our proposal, which we believe would deliver the best outcome for noteholders.”
Translation: “Shut up and let us force our losses on you rather than taking them ourselves.”
Though off in Finland, this story should probably receive more notice due to the “mortgage-backed” angle.
Remember the 2008 Subprime Meltdown, fueled by easy taxpayer-backed Fannie Mae money and bundled subprime mortgage securities? And how all sorts of banking fatcats got bailed out and never paid a price for their shenanigans?
Well, mortgage backed assets never went away, they just moved into commercial real estate. There’s untold trillions of dollars in Commercial Mortgage-Backed Securities (CMBS) across the world, and almost no one is keeping track of them. The average retail investor probably knows less about CMBS now than they did about subprime mortgages in 2008.
And you know one of the hardest-hit sectors following the Flu Manchu lockdowns? Commercial real estate. A whole lot of companies figured out that a whole lot of their work force can work from home, freeing them from having to pay expensive rent on office space.
Add to that the fact that the way CMBS are structured has immediate negative consequences on several cities. Because the rules of many CMBS state that the value of a property doesn’t need to be reevaluated as long as the asking price per square foot doesn’t change, commercial real estate spaces stay vacant for years rather than lowering their prices, screwing would-be renters and shrinking tax bases. (Louis Rossmann has been ranting about this for years.)
Blackstone Inc’s (BX.N) fourth-quarter distributable earnings fell 41% year-on-year as the world’s largest manager of alternative assets said on Thursday it cashed out fewer investments across key portfolios.
Blackstone has been dealing with rising redemptions at its flagship real estate income trust (BREIT), prompting the private equity firm to exercise its right to block investor withdrawals at 5% of the quarterly net asset value of the fund.
That’s not exactly a sign of unassailable strength.
I am very far indeed from being an expert on how Blackstone has structured its various holdings. I suspect that its various funds and trusts and CMBS are all well-siloed and isolated from each other, which is the smart way to do things. But The Biden Recession That Dare Not Speak Its Name, falling real estate prices, frozen rental prices and huge shift in the need for commercial real estate all point to some very difficult challenges for Blackstone to navigate.
Given the amount money Blackstone has spread around to the Chuck Schumers of the world, expect that there are going to be a whole lot of swamp creatures ready and willing to make any serious Blackstone financial problem into a big problem for the America taxpayer.
One-Party Democratic California is so desperate for cash they want to tax people for leaving.
Desperate to stem the stampede of cash cows — affluent residents — out of their state, they are trying to pass an exit tax for households with assets of $50 million or more. Current residents would have to keep paying for years after they have decamped to less hostile states.
Heaven forbid that these legislators should instead come to terms with the reasons so many productive residents flee or what they could do to make their state a more attractive destination for people and businesses. They aren’t much concerned with that, merely with stopping the flight of all that revenue. If they cared about the livelihoods of the people leaving, they probably would have governed in a way that didn’t prompt people to head for the exits.
This is probably unconstitutional nine ways to Sunday. Wealth tax, Ex-Post Facto law, taxation without representation, etc. It’s also likely to be counterproductive, as rich people are not only likely to leave the state preemptively to avoid being subject to it, but are exactly the people that can hire top-notch lawyers to get it overturned.
Louis Rossmann, who recently fled New York City to Austin, has additional thoughts:
“They are showing and demonstrating here they have no confidence in their ability to govern better, or in their ability to actually give the customers of that state what they want, because they’re telling you ‘We’re not going to make things better. Rather, if you leave we are going to figure out a way to fine you.'”
“It demonstrates a sick ideology that’s both just authoritarian and disgusting in nature.”
“It’s not like [the tax rates in California and New York] just spiked up insanely over the past one or two years, they’ve been higher than the tax rate in Texas and Florida for as long as I’ve been alive, by a fairly large margin. This is not news. It’s something else in addition to that, and they don’t even appear to be interested in trying to figure out what that is.”
“Florida and Texas…have not had income tax for a very long time.”
“Maybe it would make sense to actually ask people what changed over the past two or three or five years that caused you to decide that you want to move your business and get the fuck out.”
“I could tell you from experience that losing half of your employees, putting all your stuff in a truck, carting it across the country. and spending months putting it all back together is insanely stressful, and not something that I’m going to do so I could save six or eight percent of my income tax.”
“Why are you then going to bake more taxes, and then have a fine for leaving that is then going to discourage anybody else that has the same concern from ever coming to your state thereby ensuring that the population of people that are productive and create value diminishes.”
“The idea of being taxed based on what you are worth at a particular time without actually cashing it out is insane to me.”
Long, correct discussion of why long-term capital gains are taxed at a lower rate snipped. (I doubt many of my readers don’t already understand, or disagree.) Ditto the discussion of how investment creates jobs.
“People deciding to defer their gratification, to decide ‘I will wait for the large payoff 10 to 20 years from now rather than make a decision that results in me getting more money right now,’ and I think that that it should be discussed more often because if it’s not, then we are going to end up with stuff like this.”
He discusses the slippery slope argument: The bill already states the tax will start at billionaires, but then in two years hit people with a net worth of $50 million or more. “Once it gets low enough like once this makes its way off to 10 million or a million, because again this is going to slip.”
And just wait until it hits the net worth not only of individuals, but of businesses.
