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Thu, 21 May 2026 03:25:00 +0000 The Pentagon's Next Critical Minerals Source Is Already In Its Own Warehouses
The Pentagon's Next Critical Minerals Source Is Already In Its Own Warehouses
The Pentagon's Next Critical Minerals Source Is Already In Its Own Warehouses
Authored by Matt Bedingfield via RealClearDefenseolitics ,
Last week, U.S. Navy destroyers began escorting commercial ships through the Strait of Hormuz under Project Freedom, the most aggressive American action in the strait since Iran shut it down in March.
The naval blockade of Iranian ports is now in its fifth week. U.S. warships are running mine-clearance operations, intercepting Iranian-flagged cargo, and absorbing drone threats daily. And the permanent magnets in those destroyers' guidance systems are still refined in China. So are the rare earths in their radar arrays and the cobalt in their battery backups. The war just proved what the 2027 DFARS deadline already assumed: we cannot fight a conflict while depending on an adversary for the materials inside our own weapons.
And the Pentagon's largest untapped source of those materials is already sitting in its own warehouses.
The Pentagon has a multi-year backlog of classified electronics it can't destroy fast enough. It also has a critical minerals shortage it can't solve fast enough. The copper, gold, palladium, silver, and tin locked inside those warehoused devices are exactly the metals it's spending billions to source elsewhere. That elsewhere, increasingly, can't be China. Beginning January 1, 2027, the Pentagon can no longer enter contracts for materials mined, refined, or separated in China, Russia, Iran, or North Korea.
The Numbers Don’t Work
The United States generates roughly eight million metric tons of e-waste every year, and the number is climbing. AI infrastructure is accelerating the cycle. Data centers replace server hardware every three to five years. Each generation of defense electronics contains more critical minerals than the last.
Only about 15 percent of U.S. e-waste gets recycled. And that figure hides a deeper problem. The printed circuit boards inside those devices, the components richest in strategic metals, are almost entirely exported overseas for processing. None of the recovered metals stay here without first leaving.
Washington isn't ignoring it. Project Vault, the administration's $12 billion critical minerals stockpile, is a serious commitment. The Department of Energy just opened a $500 million funding opportunity for domestic critical minerals recycling. There's talk of export restrictions on raw e-waste. But before we build a fence around these materials, we first need something inside it: the domestic capacity to process them onshore.
If an export ban went into effect tomorrow, we'd pile up a mountain of e-waste with no way to recover what's inside. That's the capability gap. New mines take a decade to permit. Traditional smelters cost a billion dollars and take seven to ten years to build. Neither delivers the batch-level traceability federal compliance now demands. The 2027 deadline will not wait.
A Faster Path Already Exists
A new generation of hydrometallurgical processing, including biosorption, can recover high-purity metals from end-of-life electronics at commercial scale without the footprint of a smelter. These facilities can be built in about 15 months for roughly $40 million each. They maintain full chain of custody from waste stream to refined metal. And the upstream supply chain already exists: some 900 certified e-waste recyclers operate across the country today. What's missing is the domestic processing capacity to keep those metals here.
This isn't theoretical. My company, Mint Innovation, proved the model last month when HP announced the PC industry's first certified closed-loop recycled copper . Copper recovered from HP's own end-of-life circuit boards, independently certified, placed back into new HP products. The same technology can close the loop for the Department of War. Add mobile destruction units that process classified hardware on site, feeding directly into domestic metal recovery with no offshore processing, and the result is full auditability from destruction to refined metal.
When I testified before Congress on this issue, not a single member pushed back on the diagnosis. This is one of those rare problems that doesn't break along party lines. The FY 2026 NDAA recognized the potential of recycled-material pathways by expanding exceptions within DFARS sourcing restrictions. Congress has opened the door. The Pentagon needs to walk through it.
A Framework Is Already in Place
The United States doesn't have to do this alone. The State Department's Pax Silica initiative and the February 2026 Critical Minerals Ministerial established a framework for allied cooperation with Japan, Australia, the U.K., South Korea, and others. Five Eyes nations are already coordinating to counter Chinese price manipulation and build friendshored supply chains. Domestic e-waste processing fits squarely into that strategy. A modular biosorption facility built in the U.S. today becomes a template Pax Silica partners can replicate tomorrow.
Modular secure destruction facilities co-located on military installations could clear classified hardware backlogs and recover critical minerals simultaneously. A security liability becomes a strategic asset.
The fastest way to build a domestic critical minerals supply chain is to recover the metals already here . The Pentagon is sitting on both the problem and the solution.
* * *
Matt Bedingfield is President of Mint Innovation, a recycling technology company that recovers critical minerals from electronic waste using proprietary biosorption and hydrometallurgical processing. Mint partnered with HP earlier this year to produce the PC industry's first certified closed-loop recycled copper.
Tyler Durden
Wed, 05/20/2026 - 23:25 Close
Thu, 21 May 2026 03:00:00 +0000 BBC Report Portrays Islamic Child Slavery In Afghanistan As Necessary
BBC Report Portrays Islamic Child Slavery In Afghanistan As Necessary
Anti-immigration movements in the US and Europe have been saying it for years: The Islamic world is barbaric and backwards, built on archaic ideas that are compl
Read more.....
BBC Report Portrays Islamic Child Slavery In Afghanistan As Necessary
Anti-immigration movements in the US and Europe have been saying it for years: The Islamic world is barbaric and backwards, built on archaic ideas that are completely antithetical to western values. Yet, progressive governments and their media allies continue in their attempts to portray these cultures as "the same", or, as sympathetic.
The historical Islamic justification for child marriage comes from the story in the Hadith of Muhammad's marriage to a 6-year-old girl named Aisha, which he consummated when she turned age 9. Apologists often claim this is limited to the poor rural backwaters of places like Afghanistan, but it is common in Iran, Pakistan, Yemen, Iraq and even Egypt. And, in many cases these children are sold into marriage in exchange for monetary compensation or property.
In a recent BBC report from journalists in Afghanistan child marriages are examined in dark detail, yet, the BBC seems to place more sympathy on the parents (fathers) selling their daughters for coin while ignoring the grotesque nature of the tradition. In other words, blame the economic circumstances, not the parents doing the selling.
VIDEO
However, this narrative glosses over the fact that child sex slavery is a longstanding problem in Muslim culture, not a new trend spurred on by recent economic distress. The outlet presents the families selling children as sympathetic, suggesting that the children will be sold, likely into a life of sexual abuse, but at least they will still be alive.
No blame is places on the fathers who are either too incompetent or too lazy to secure the basic needs of their own children. And no blame is placed on the culture which normalizes the practice. In fact, the BBC diverts blame to the loss of foreign funding from outside governments and NGOs.
This is a thinly veiled propaganda hit by the BBC. Afghanistan received substantial funding from the US through the now defunct USAID institution under the Biden Administration. USAID dispersed nearly $4 billion to Afghanistan from 2021 to 2025 until it was shut down by Trump and DOGE. The message seems to be "This is Trump's fault".
Keep in mind, Biden abruptly pulled all troops and private contractors out of Afghanistan in 2021, allowing the Taliban to retake government power and inflict the oppressive theocratic authoritarianism that leads to the conditions the BBC dramatically outlines. Little girls not being allowed to go to school is a direct result of Sharia Law, which is a direct result of Biden leaving Afghanistan in Taliban hands (along with billions of dollars in US military equipment).
Thus, the only value of girls in the Afghan economy is as slaves for sale. The worst part is that, in many cases, these girls are sold for marriage to relatives. Meaning, they will eventually be forced to bear children through inbreeding.
Only 15 years ago this behavior was widely admonished in the western media. Today, it is shielded with spin in the name of protecting the multicultural agenda.
The most interesting aspect of the BBC report is the way in which they build a narrative of distraction rather than addressing the cultural elephant in the room. Their goal was apparently to showcase the dire effects of foreign funding cuts, but they ended up proving once again why the west should have nothing to do with the third world.
Tyler Durden
Wed, 05/20/2026 - 23:00 Close
Thu, 21 May 2026 02:35:00 +0000 Washington State Under Federal Investigation For Housing Men In Women's Prisons
Washington State Under Federal Investigation For Housing Men In Women's Prisons
Washington State Under Federal Investigation For Housing Men In Women's Prisons
Authored by Jill McLaughlin via The Epoch Times (emphasis ours),
The U.S. Department of Justice (DOJ) announced May 19 that its agents have launched an investigation into Washington State’s practice of housing male inmates in women’s prisons.
Washington Gov. Bob Ferguson speaks during a news conference outside the Northwest ICE Processing Center in Tacoma, Wash. on April 28, 2026. Nick Wagner/The Seattle Times via AP
Gov. Bob Ferguson was notified in writing of the federal probe into an alleged pattern of “violating the constitutional rights of female prisoners incarcerated at the Washington Corrections Center for Women in Gig Harbor, Washington,” the DOJ stated.
The investigation is based on allegations that the prison has failed to protect female prisoners from sexual assaults, rape, voyeurism, and sexual intimidation by males who identify as females housed with them at the facility.
Assistant Attorney General Harmeet Dhillon of the DOJ’s Civil Rights Division said the practice would be a violation of the prisoners’ Eighth Amendment protections from cruel and unusual punishment.
“Under my leadership, the Civil Rights Division will not allow women incarcerated in jails or prisons to be subject to unconstitutional risks of harm from male inmates,” Dhillon said in a statement. “The constitutional rights of women cannot be sacrificed at the altar of appeasing unsupported and dangerous ideologies.”
The Washington State Department of Corrections adopted a policy in 2020 to allow men who identify as transgender to request a transfer to women’s facilities. The policy requires housing accommodations for inmates who are transgender, intersex, and gender-neutral to be evaluated on a case-by-case basis.
The state is one of a small number of states to adopt similar policies. Maine, California, New York, Minnesota, and New Jersey also allow people who identify as transgender to be housed in a prison that matches their choice in gender. California and Maine were notified in March that their policies were also under investigation.
The DOJ said it was also collecting information from the public on men housed in women’s jails and prisons anywhere in the country as part of a wider investigation.
Investigating transgender prison policies is part of the Trump administration’s program to eliminate “gender ideology extremism and restore biological truth to the federal government,” which was an executive order signed by President Donald Trump in 2025.
The DOJ plans to review policies at the Washington prison and the Department of Corrections, and any evidence that has been reported. Federal investigators will work with the state to remedy any violations, according to the letter.
The investigation comes weeks after the America First Policy Institute, a right-leaning nonprofit think tank, filed a lawsuit challenging the state’s corrections policy, alleging it has led to violence, sexual abuse, intimidation, and fear among female inmates.
Assistant Attorney General for Civil Rights Harmeet Dhillon, accompanied by her aides, speaks at the Justice Department in Washington on Sept. 29, 2025. Andrew Harnik/Getty Images
The complaint was filed on behalf of the Foundation Against Intolerance and Racism, Fair for All, Inc., and Faith Booher-Smith, an inmate who was allegedly violently attacked by a transgender inmate at the prison in 2025.
In the lawsuit, the plaintiffs claim female inmates have been forced to share cells, showers, bathrooms, and other intimate living spaces with male inmates, stripping them of the sex-based protections of a women’s prison.
“A women’s prison is supposed to protect women ,” said Leigh Ann O’Neill, chief legal affairs officer at the institute. “Washington’s policy turned that basic duty on its head.”
The Washington governor’s office did not return a request for comment about the investigation.
Tyler Durden
Wed, 05/20/2026 - 22:35 Close
Thu, 21 May 2026 02:10:00 +0000 1 In 5 Jobs Faces High Risk Of AI Automation
1 In 5 Jobs Faces High Risk Of AI Automation
1 In 5 Jobs Faces High Risk Of AI Automation
As concerns about AI-driven job losses grow, new research sheds light on how artificial intelligence could impact the U.S. labor market in the short term.
According to an OpenAI framework analyzing how AI affects different occupations, published last April, nearly half of all jobs (46 percent) are expected to see little immediate change, while around 24 percent are likely to be reorganized as tasks shift rather than disappear .
As Statista's Tristan Gaudiaut shows in the chart below , a smaller but still significant share of roles face more direct disruption , with roughly one in five jobs (18 percent) categorized as being at high risk of automation .
You will find more infographics at Statista
At the same time, only about 12 percent of roles could actually grow with AI , as lower costs and increased productivity expand demand for certain services.
The findings suggest that exposure to AI does not automatically translate into job losses . Instead, outcomes depend on factors such as how essential human input remains and whether increased demand for a product or service is sufficient to offset lower labor demand from efficiency gains .
In many cases, AI is therefore likely to reshape tasks and workflows rather than eliminate entire occupations.
While other recent studies have pointed to a higher risk for job displacement, OpenAI’s analysis suggests a more nuanced picture of how the labor market may evolve.
Tyler Durden
Wed, 05/20/2026 - 22:10 Close
Thu, 21 May 2026 01:45:00 +0000 Could Deep Blue California Elect A Republican Governor?
Could Deep Blue California Elect A Republican Governor?
Could Deep Blue California Elect A Republican Governor?
Authored by Brad Jones via The Epoch Times,
As tensions mount in the high stakes race for California governor, early results show Republicans have returned more than 905,000 ballots ahead of the June 2 primary election—a massive surge compared with the last governor’s race during the 2022 midterms.
Ballots from Republicans made up 37 percent of the early ballot returns—up 11 percent from four years ago at this point in the primary process, while those from Democratic voters have dropped by 13 percent, according to a Political Data (PDI) poll released on May 16.
Most of the ballots submitted so far—54 percent—were cast by voters 65 and older, while about 10 percent of voters ages 18-34 have returned early ballots.
The Real Clear Politics polling average shows Republican Steve Hilton, a political commentator, and Democrat Xavier Becerra, former Health and Human Services secretary, essentially tied, each with about 20 percent of the vote, followed by Democratic billionaire and environmental activist Tom Steyer at 14 percent and Riverside County Sheriff Chad Bianco with 13 percent. The rest of the candidates show less than 10 percent support.
Hilton has publicly pressured Bianco to drop out of the race to avoid splitting the Republican vote, ensuring that at least one GOP candidate—himself—advances to the general election. But at the CBS-hosted televised debate on April 28, Bianco rejected the notion, saying he and Hilton will both be on the Nov. 3 ballot.
‘Break the Glass’ Strategy
Meanwhile, California Gov. Gavin Newsom, who is terming out, told reporters at his recent state budget presentation he’s confident a Democrat will be on the Nov. 3 ballot.
Newsom alluded to a “break the glass” strategy to prevent a Democrat lockout in the nonpartisan, jungle primary, which allows the possibility of two Republicans—no Democrats—on the general election ballot.
“I don’t anticipate this need to be the case, but there’s a like break-the-glass scenario,” he said. “There’s many people that have a deep understanding of what it would look like if Democrats were locked out, and we’re going to do everything to make sure that doesn’t happen.”
The Democratic Governors Association has recently sent out mailers positioning Hilton as the top GOP threat, which could drive Bianco supporters to Hilton, making it more likely for a Democrat to finish in the top two.
“The Democrats wouldn’t be spending money trying to help Steve if they weren’t scared of me,” Bianco posted on X.
Steve Hilton speaks during a gubernatorial candidate forum in Sacramento on April 14, 2026. Godofredo A. Vásquez/AP Photo
Democratic Strategy Favors Hilton
Rob Pyers, a nonpartisan political analyst and research director for California Target Book, suggested the Democrats prefer to run against Hilton.
“The Democratic Governors Association really wants GOP voters to know that Steve Hilton is ‘Endorsed by Trump’ and ‘Pro MAGA’, and that they would be devastated if he advanced out of California’s top two primary alongside a Democrat,” Rob Pyers wrote on X.
When Amy Reichert, a San Diego based conservative activist, asked if the mailer from the Democrats was only mailed to Republicans to bump Hilton to the top two spot, Pyers said that “appears to be the case.”
Pyers replied that the “attack ads” contain “language tailored to appeal to conservative primary voters and to highlight Hilton’s Trump endorsement.
He noted that a Democrat versus Democrat race “would suck up hundreds of millions of dollars” that could be spent elsewhere.
“A D vs R race, not so much,” he wrote.
Riverside County Sheriff Chad Bianco fields questions from reporters and students following the California Governor’s Debate hosted by CBS at Pomona College in Claremont, Calif., on April 28, 2026. Brad Jones/The Epoch Times
Bianco’s Response
Bianco said in a text message to The Epoch Times on May 18 that Californians are voting differently in this election because they’re tired of dishonesty and corruption and “are absolutely sick of politicians rigging the system for their own benefit.”
“Newsom has never said one word in the past when two Democrats have moved on to the general elections,” he said.
“Saying the corrupt part out loud, exposing their plans to again rig the system, is exactly why people are voting different,” he said.
Corruption Scandal
As Health and Human Services (HHS) secretary during the Biden administration, Becerra has come under fire from critics who blamed him for putting migrant children at risk of trafficking when the agency lost track of 85,000 migrant children.
During his tenure at HHS from March 19, 2021, to Jan. 20, 2025, Becerra also faced scrutiny over tenuous ties to a corruption scandal involving his former aide Sean McCluskie, who pleaded guilty to his role in an alleged scheme to skim funds from a dormant campaign account for a “no-show” job for his wife.
A Fair Political Practices Commission (FPPC) complaint against Becerra over the alleged violation of state campaign finance laws remains open and unresolved. The complaint hinges on Becerra’s dormant state Attorney General campaign funds, which were allegedly used to pay out tens of thousands of dollars to his former adviser’s firm months after Becerra was appointed HHS secretary.
Political consultant Dana Williamson, Newsom’s former chief of staff, has also pleaded guilty in the case, admitting to conspiracy to commit bank fraud and wire fraud, subscribing to a false tax return, and making false statements to a federal agent.
California gubernatorial candidate Xavier Becerra at a campaign event in Los Angeles on April 18, 2026. Jae C. Hong/AP Photo
Becerra has not been charged with any crimes or been accused of any wrongdoing related to the federal investigation, and has repeatedly denied any knowledge of illegal campaign fund transfers.
He also faced scorn over his handling of the COVID-19 pandemic.
Some recent polls, including an Emerson poll, show Becerra with a slight lead while others show Hilton is the frontrunner.
Becerra surged into the lead among Democratic voters when disgraced then-congressman Eric Swalwell dropped out of the governor’s race in April amid sexual assault allegations. Swalwell resigned from Congress about a week later. Swalwell is under investigation but no criminal charges have been filed to date.
Official primary ballots list 61 candidates for governor, including Swalwell and former state controller Betty Yee, who has also dropped out of the race.
Political Predictions
According to Polymarket, an online betting house which claims 90-percent accuracy in predicting event outcomes one month ahead and 94 percent four hours before an event, the odds favor Becerra with a 58 percent chance of winning the election in a Democrat versus Democrat race in the Nov. 3 election followed by Steyer with a 28 percent chance . Hilton is ranked with a 10 percent chance and Bianco at 3 percent as of May 18.
Source: Polymarket
The Cook Political Report shows the California governor race as “Solid D” with partisan voter index score of “D +12,” which means the state, on average , is 12 percentage points more Democratic than the rest of the nation and indicates that statewide Democratic candidates have an entrenched advantage.
Sabato’s Crystal Ball also shows the California governorship as “Safe D.”
Tom Steyer speaks during a gubernatorial candidate forum on Latino and immigrant communities in Sacramento on April 14, 2026. Godofredo A. Vásquez/AP Photo
Campaign Finances
According to Transparency USA , as of May 19, Becerra was running a $3.3 million campaign deficit, taking in about $6.3 million in donations but spending more than $9.6 million. His campaign spending is mainly attributed to aggressive advertising.
A billionaire environmental activist, Steyer has raised about $134 million and spent about $255 million, He is on track to outspend Meg Whitman, a former eBay executive, who set a $159 million campaign spending record in her unsuccessful bid for governor in 2010.
Steyer’s wealth stems mainly from hedge fund investments in fossil fuels and private prisons, which his political opponents have used against him despite his progressive bent.
Steyer is facing an FPPC investigation over allegations his campaign paid social media influencers to post promotional videos without including legally required sponsored content disclosures.
Hilton has raised about $9.8 million and spent about $8.9 million, while Bianco has raised about $5.3 million and spent about $4.2 million.
The Issues
Several lively debates have drawn the national media spotlight on hot-button issues including the high cost of living in California —especially housing, tuition, and state taxes on gasoline—and ongoing problems with homelessness, the drug crisis, crime and public safety, and illegal immigration.
Tyler Durden
Wed, 05/20/2026 - 21:45 Close
Thu, 21 May 2026 01:20:00 +0000 The US Is Still A Decade Away From Breaking China’s Rare Earth Hold
The US Is Still A Decade Away From Breaking China’s Rare Earth Hold
The U.S. is still at least a decade away from meaningfully reducing its dependence on China for the most critical rare earth minerals, despite billions of dollars i
Read more.....
The US Is Still A Decade Away From Breaking China’s Rare Earth Hold
The U.S. is still at least a decade away from meaningfully reducing its dependence on China for the most critical rare earth minerals, despite billions of dollars in new investment and political pledges to move faster, according to a new report from Bloomberg .
While Washington has pushed to build domestic mining, refining, and manufacturing capacity, analysts say China is likely to retain its dominance over heavy rare earths—particularly dysprosium and terbium—until at least the mid-2030s. Those minerals are essential for the high-performance magnets used in fighter jets, submarines, missiles, electric vehicles, wind turbines, and other advanced technologies.
Forecasts from McKinsey & Company, CRU Group, and Benchmark Mineral Intelligence suggest producers outside China will meet less than 20% of global demand for dysprosium and terbium by 2035. The U.S. and its allies may make faster progress in reducing reliance on China for more abundant light rare earths, but the heavier materials remain far harder to replace.
The challenge is not simply digging more minerals out of the ground. Rare earth production involves mining ore, separating it into oxides, and then converting those materials into metals and magnets...a supply chain China dominates at nearly every step.
Heavy rare earths are especially difficult because they are less abundant and far more complex to refine. Producing ultra-pure material can require more than 1,000 chemical separation stages, and even small mistakes can affect magnet performance. Over decades, China built a deep advantage through refining infrastructure, technical expertise, and government-backed industrial policy. It also restricted exports of certain processing technologies, making it harder for competitors to catch up. The U.S., by comparison, has only a small pool of specialists with experience in rare earth separation and processing.
Bloomberg writes that Washington has begun investing heavily to rebuild domestic capacity, including Pentagon support for Lynas Rare Earths Ltd., currently the only commercial refiner of heavy rare earths outside China.
But production remains limited. Lynas produced just eight tons of dysprosium and terbium combined in the first quarter of 2026, while global demand is measured in thousands of tons each year. New projects in the United States, Australia, and Brazil could expand supply, but analysts still expect significant shortages in mining, refining, and magnet manufacturing by 2035.
China’s lower production costs have made the market even harder for rivals; past price swings wiped out many non-Chinese projects before they could scale. That leaves the U.S. facing a long and expensive effort to loosen China’s hold over a supply chain that has become increasingly important to both economic competitiveness and national security.
Tyler Durden
Wed, 05/20/2026 - 21:20 Close
Thu, 21 May 2026 00:55:00 +0000 New Fed Chair Pledges 'Regime Change' To Fight Inflation - Here's What That Could Mean In Practice
New Fed Chair Pledges 'Regime Change' To Fight Inflation - Here's What That Could Mean In Practice
New Fed Chair Pledges 'Regime Change' To Fight Inflation - Here's What That Could Mean In Practice
Authored by Kevin Stocklin via The Epoch Times (emphasis ours),
Newly confirmed Federal Reserve Chair Kevin Warsh, pledging new tactics to fight inflation, faces an uphill battle to keep rising prices in check.
At left is former Federal Reserve Chair Jerome Powell; at right is newly confirmed Federal Reserve Chair Kevin Warsh. Courtesy of the Federal Reserve; Hoover Institution
At his April 21 Senate confirmation hearing, Warsh called for “a regime change in the conduct of policy” at the Fed under former chair Jerome Powell, whose tenure saw annual inflation exceed 8 percent during the Biden administration and has failed since 2021 to keep inflation below its target.
“Once you let inflation take hold in the economy, it’s more expensive and harder to bring it down, and so the fatal policy error going back four or five years is still a legacy that we’re dealing with,” Warsh stated. “Hard-working Americans are no doubt feeling it.”
Americans are suffering as price increases outpace wages. And as of April, the inflation rate of 3.8 percent remains persistently above the 2 percent target set by the Federal Reserve.
What is the new Fed chair’s plan to get inflation under control? Analysts predict that he will bring a different approach, which will include reducing the Fed’s massive $6.8 trillion bond holdings, prioritizing interest-rate actions over quantitative easing, and focusing on the money supply over other metrics.
“Warsh is likely going to pursue a smaller Fed balance sheet and try to use this ‘tightening’ as a bargaining chip to get the Federal Open Market Committee to lower short-term rates,” Chris Whalen, investment banker and former Fed staffer, told The Epoch Times. “His comments on the disaster of quantitative easing are quite clear.”
The Legacy of Cheap Dollars
Except for a brief interlude during President Donald Trump’s first term, the Fed has pursued a cheap-money strategy since the mortgage crisis of 2008–09, keeping its benchmark short-term interest rate—the federal funds rate—near zero, and only raising rates in 2022 when inflation was approaching double digits. Simultaneously, the Fed pursued an experimental policy called quantitative easing (QE), in which it created money to buy bonds from money-center banks, flooding the U.S. economy with dollars.
Between 2008 and 2022, the Fed accumulated $8 trillion in new financial assets on its balance sheet, effectively transforming it into one of the world’s largest asset managers and the largest single owner of U.S. Treasuries . Warsh has been an outspoken critic of quantitative easing, leading many economists to predict he will try to reverse this policy and shrink the Fed’s balance sheet.
During his confirmation hearing, he stated that “the Fed has an interest rate tool and a balance sheet tool … The balance sheet tool disproportionately helps those with financial assets; the interest rate tool hits the entire economy.”
While QE and low interest rates boosted demand in the wake of the mortgage collapse and pandemic lockdowns, they also drove up asset prices—notably stocks, bonds, and houses—to the benefit of wealthier Americans. Simultaneously, living standards fell for many Americans, whose dollars have lost more than 20 percent of their value over the past five years.
“The primary driver of inflation is the Fed’s expansion of the money supply, which the new Fed chair Kevin Warsh has addressed numerous times,” Julia Cartwright, economist with the American Institute for Economic Research, told The Epoch Times.
Between 2020 and 2022, the Fed injected approximately $6.4 trillion in new money into the economy to finance COVID stimulus payments, she said, and about 29 percent of America’s entire money supply today has been created since January 2020.
“Compounding this, the Iran conflict has choked off the Strait of Hormuz, disrupting roughly 20 million barrels of oil per day and a fifth of global LNG trade, driving up energy, fertilizer, plastics, food, and virtually every input price across the economy,” Cartwright said.
Follow the Money Supply
While the Iran war and tariffs have driven up prices, Steve Hanke, professor of economics at Johns Hopkins University who served on President Ronald Reagan’s Council of Economic Advisers, maintained that inflation is fundamentally a monetary phenomenon, a matter of too much money chasing too few goods.
“To put the inflation genie back in the bottle, the Fed must dump the post-Keynesian economic models it relies on and start paying attention to the quantity theory of money and the money supply, broadly measured,” Hanke told The Epoch Times.
“The Fed should announce that it is going to target the growth rate in the money supply that is consistent with hitting its two-percent-per-year inflation target, ” he said. “Based on the quantity theory of money, that would require the rate of growth in M2 to be around 6 percent per year.”
The M2 measurement of the money supply includes cash, bank deposits, and funds that are readily convertible to cash, such as certificates of deposit and money market funds. During America’s low-inflation period, between 2008 and 2020, the annual growth rate in the money supply (M2) was 6.11 percent, Hanke said, and inflation, measured by the Consumer Price Index (CPI), averaged 1.77 percent.
Indeed, Warsh has indicated that he will focus on different metrics to measure and control inflation, beyond short-term price fluctuations.
“What I’m most interested in is: What is the underlying inflation rate—not what is the one-time change in prices because of a change in geopolitics or change in beef,” Warsh told senators at his confirmation hearing.
The Power of the Supply Side
What can the Trump administration do to help the Fed fight inflation? Economists call for supply-side initiatives, such as continuing deregulation, lowering tariffs, and boosting energy supply, as well as cutting government spending.
“Deficit financing pressures the Fed to expand the money supply and keeps interest rates higher than necessary ,” Cartwright said.
She also advocated for a hands-off approach to private industry, despite the recent stakes the Trump administration has taken in companies like Intel.
“In a functioning economy, business compete primarily by bringing prices down—the more competition, the lower the prices and the better off consumers are,” Cartwright said. “The most persistent and under-appreciated source of higher prices is government interference in that competition through subsidies, preferential corporate deals, tariffs, and industrial policy that substitutes Washington’s judgment for the market’s.”
Lastly, economists say, politicians should let the Fed focus on fighting inflation rather than pressuring Fed officials to cut interest rates before inflation is tamed.
“The best course of action for the Trump administration to take would be to go radio silent on monetary policy,” Hanke said. “Do what President Reagan did with [then-Fed chair] Paul Volcker: Reagan gave Volcker the monetary policy reins and left him alone.”
Tyler Durden
Wed, 05/20/2026 - 20:55 Close
Thu, 21 May 2026 00:30:00 +0000 Texas Democrat Wants A Prison Camp for 'American Zionists'
Texas Democrat Wants A Prison Camp for 'American Zionists'
A San Antonio Democrat running for Congress has proposed turning a federal immigration detention facility into an internment camp for "American Zionists,” a
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Texas Democrat Wants A Prison Camp for 'American Zionists'
A San Antonio Democrat running for Congress has proposed turning a federal immigration detention facility into an internment camp for "American Zionists,” and that is only the beginning of what she has been saying out loud. Maureen Galindo, a candidate in Texas' newly redrawn 35th Congressional District, faces a Democratic primary runoff next week against former Bexar County Public Information Officer Johnny Garcia.
Maureen Galindo
With early voting running through Friday, May 22, she has managed to make national headlines for all the wrong reasons . In an Instagram post written in the third person, Galindo declared that she'll “turn Karnes ICE Detention Center into a prison for American Zionists and former ICE officers for human trafficking." The same post described the South San Antonio facility as "a castration processing center for pedophiles, which will probably be most of the Zionists." The Karnes facility currently serves as an immigration detention center that the Trump administration has used to house migrants.
This is not a one-off outburst. Galindo has built her campaign around the assertion that Garcia, her Democratic opponent, is a participant in a human trafficking conspiracy orchestrated by "billionaire Zionist Jews." She has vowed to put him "on trial" for treason. Her broader worldview is a litany of antisemitic tropes, including the claims that Jewish Zionists control Hollywood, the media, and local politicians.
"I think it's actually the Zionists who are putting Jewish people at the most risk," Galindo said last week, framing her remarks as ideological criticism rather than ethnic targeting.
Jewish community leaders in San Antonio are not buying the semantic wall she is trying to erect between her words and their plain meaning.
The San Antonio Jewish Federation responded with a formal statement: "The JFSA strongly condemns the spread of antisemitic tropes and conspiracy theories in public discourse."
The same statement added that "Divisive and hateful rhetoric targeting the Jewish community has no place in our civic life."
The Democratic Party's mainstream has begun, however belatedly, to distance itself from Galindo. John Lira, who lost to Galindo in the earlier primary, rescinded his endorsement last week. State Rep. James Talarico, the Democratic nominee for Texas’s U.S. Senate race, told the Jewish Telegraphic Agency that he refuses to share a campaign stage with Galindo even if she wins the runoff. "This antisemitic rhetoric has no place in our politics," Talarico said. "We need leadership in both parties willing to stand up and call out hate where it rears its ugly head." It is a fine statement.
It would land with more force if Talarico's party were not increasingly accommodating to exactly this strain of politics, because Galindo is not an anomaly; she is a symptom.
In Maine, the presumptive Democratic Senate nominee, Graham Platner, reportedly carried a Nazi totenkopf tattoo on his chest for years, even bragging about it, before covering it up once the campaign made such imagery inconvenient. Other progressive firebrands like Zohran Mamdani, Ilhan Omar, and Pramila Jayapal have all been criticized for antisemitic posturing. The party has also done nothing to distance itself from progressive commentator Hasan Piker, who is known for making antisemitic comments.
Galindo's campaign has become a national flashpoint precisely because her positions are expressed with unusual candor.
While antisemitism continues creeping into the Democratic mainstream under the cover of euphemisms and activist jargon, Galindo skipped the dog whistles entirely and went straight for the megaphone.
She emerged from the primary narrowly ahead of Garcia. Now, the runoff election will test whether openly antisemitic rhetoric is finally disqualifying in modern Democratic politics, or whether the party’s activist base has already normalized something that would have ended a political career not long ago.
Tyler Durden
Wed, 05/20/2026 - 20:30 Close
Thu, 21 May 2026 00:05:00 +0000 Obamacare Enrollment Expected To Drop By Nearly Five Million As Costs Surge
Obamacare Enrollment Expected To Drop By Nearly Five Million As Costs Surge
Obamacare Enrollment Expected To Drop By Nearly Five Million As Costs Surge
Via American Greatness,
Enrollment in the Affordable Care Act marketplace is projected to fall by nearly 5 million people this year as rising premiums and higher deductibles force many Americans to reconsider whether they can still afford health insurance coverage, according to a new analysis from healthcare nonprofit KFF.
The report estimates ACA enrollment could decline from 22.3 million participants in 2025 to roughly 17.5 million this year, representing a drop of more than 20 percent.
At the same time, Americans who remain enrolled are paying substantially more out of pocket. According to the analysis, average deductibles have climbed by more than $1,000, while monthly premium payments have increased by an average of $65.
“No matter how you slice it, people are paying more,” said Cynthia Cox, who co-authored the report.
The sharp enrollment decline comes after the expiration of enhanced COVID-era subsidies that had artificially lowered costs for many Obamacare enrollees over the past several years. Without those subsidies, many middle-income Americans are now struggling to keep up with rising monthly payments.
KFF found that middle-income Americans were among the most likely to drop their coverage . Many earn too much to qualify for the remaining low-income subsidies but not enough to comfortably absorb the higher costs now hitting the marketplace.
The ACA marketplace, once promoted as a cornerstone of Democrat healthcare policy, has become increasingly important for gig workers, farmers, ranchers, hairstylists, and self-employed Americans who do not receive employer-sponsored coverage.
According to the report, many consumers were automatically renewed into plans from the previous year, only to discover that costs had risen dramatically after the subsidies expired. In many cases, Americans initially kept their coverage before dropping it later in the year once the monthly bills became unaffordable.
“People are trying to hang on to their health insurance coverage any way they can, even if that means they have a deductible of $7,000,” Cox said.
The report found that enrollment declines occurred across most states, although states operating their own healthcare exchanges generally retained more participants than states relying on the federal marketplace.
The Trump administration has argued that some of the enrollment decline stems from efforts to remove fraud and improper enrollments from the ACA system. Federal officials have not yet released final 2026 enrollment figures.
KFF had previously projected that premiums could more than double after the COVID-era subsidies ended. The new analysis found that premiums instead rose by an average of 58 percent, partly because many Americans switched into cheaper plans with significantly higher deductibles and reduced coverage.
The rising costs and shrinking enrollment are expected to become a major issue heading into the midterm elections as voters increasingly focus on inflation, affordability, and broader economic pressures.
Cox suggested insurers may now be adjusting to the post-subsidy market environment, potentially reducing the likelihood of another major premium spike next year.
“I’m hopeful that this could be a one-time market correction,” she said.
Tyler Durden
Wed, 05/20/2026 - 20:05 Close
Wed, 20 May 2026 23:40:00 +0000 The Water Economics Of Data Centers V. Almond Farms & Golf Courses
The Water Economics Of Data Centers V. Almond Farms & Golf Courses
A recent Gallup poll shows that nearly 70% of Americans oppose the Read more.....
The Water Economics Of Data Centers V. Almond Farms & Golf Courses
A recent Gallup poll shows that nearly 70% of Americans oppose the construction of a data center in their communities, highlighting the rise of local resistance movements against hyperscaler buildouts. This resistance is driven by concerns over skyrocketing power bills, the destruction of farmland as it is transformed into industrial-scale AI infrastructure, and fears that data centers will drain local resources, particularly water.
It's no surprise that data center resistance is only gaining steam and will likely accelerate from here, as tech bros on the All-In podcast recently sounded the alarm . This resistance is emerging not just as power bills explode and water scarcity fears mount, but also as corporate America unleashes the "white-collar purge ," with human labor swapped for GPUs. Meta was the latest to announce rising AI adoption alongside a new round of layoffs.
Water has become a flashpoint in data center debates , as some of these facilities can use 5 million gallons of water every day, as much as 16,000-plus average U.S. households, according to Environmental Protection Agency estimates.
There is also the extraordinary amount of power required to run the chip stacks, which consumes millions of additional gallons of water - more than the water used for cooling.
Hyperscalers are set to deploy $700 billion in capex this year to build out data centers and key AI infrastructure products, suggesting that local resistance nationwide will only continue to build as tech bros search for alternative options (low-Earth orbit and or residential backyards). Permitting denials and other issues may delay or block nearly half of data center projects this year.
However, on the subject of water, critics of data centers often fail to point out - especially in California - that agriculture also consumes a tremendous amount of water.
X user Smirkley compared the economics of a 5-gallon water-cooler jug, arguing that 5 gallons of water generates about $132 in economic output in data centers, but only about 2 cents in almonds.
Yet where is the outrage here?
Here is Smirkley's math:
Data centers : $529.1 billion ÷ 20 billion gallons × 5 = $132.28 per 5 gallons
California almonds : $5.66 billion ÷ 1.59 trillion gallons × 5 = 1.78 cents per 5 gallon s
Smirkley's point is that AI infrastructure produces far more economic output per gallon than almonds.
"Anti-data-center luddites may be worse than anti-nuclear activists. It is the same emotional panic, but even dumber somehow," the X user noted, adding, "Almonds grown in the U.S. use 80x more water than every American data center combined. This is the difference between an 8 oz. glass and a 5-gallon jug."
"Data centers aren't stealing your water. Even if the total water draw of data centers triples by 2030, they'd require just 8% of the water consumed by American golf courses.@dodgeblake interviewed @AndyMasley, the man who's been debunking AI water doomerism ," outlet Pirate Wires wrote on X.
Where is the outrage for almonds and golf courses?
Tyler Durden
Wed, 05/20/2026 - 19:40 Close