Commercial Flights Diverted After CCP Warships Begin Surprise Live-Fire Exercise Near Australia
Commercial Flights Diverted After CCP Warships Begin Surprise Live-Fire Exercise Near Australia
(emphasis ours),
Commercial flight paths between Australia and New Zealand have been disrupted after Chinese warships began preparing to fire live ammunition as part of an apparent military exercise.
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The three People’s Liberation Army Navy (PLAN) vessels have traversed the Australian coastline for the past week with no indication of their motives, and came within 150 nautical miles (277 kilometres on land) of https://www.theepochtimes.com/world/3-chinese-warships-sighted-off-the-coast-of-sydney-5812634
.
Several flight have been re-routed, including Qantas and Emirates aircraft, following advice that the Chinese Communist Party (CCP) warships had been “live firing in international waters” on Feb. 21.
“As a precaution, we have advised airlines with flights planned in the area,” an Airservices Australia spokesperson said.
“We are also working together to coordinate advice to operators and pilots.”
Australian and New Zealand Defence Forces have been tracking the flotilla since last week.
The weapons firing is understood to be taking place 346 nautical miles (640 kilometres) off Eden, south of Sydney in New South Wales, according to a Defence Department spokesperson.
In a statement, Air New Zealand said it “has modified flight paths as needed to avoid the area, with no impact on our operations.”
Qantas and its subsidiary Jetstar told RNZ they are working with the Australian government to monitor the situation.
The small fleet called Task Group 107, includes the heavily armed Renhai-class cruiser (named Zunyi), a Jiangkai-class frigate (Hengyang), and the Fuchi-class replenishment vessel Weishanhu.
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Australia’s Defence Department Not Officially Notified
The Australian Defence Department said it was not notified of the Chinese fleet’s intent to conduct the activity, and that the only notice came via a verbal radio broadcast to civilian aircraft.
“The process undertaken by the PLAN to inform of the live fire activity was conducted in accordance with applicable international law conventions,” a Defence spokesperson told The Epoch Times.
“However, to minimise disruption to aircraft and vessels, best practice is the establishment of Notice to Airmen or Notice to Mariners [a formal notice to a local authority about potential hazards], which the Australian Defence Force would typically release 24 to 48 hours prior to a live firing activity on the high seas.
“Defence is not aware of a Notice to Airmen or Notice to Mariners for this activity having been submitted or requested by the PLAN.”
Defence said despite moving into firing formation, no weapons were seen or heard to be fired, and the floating firing target was later recovered.
“Defence will continue to monitor the [PLAN] Task Group while it remains in the vicinity of Australia’s maritime approaches.”
Australian Foreign Minister to Discuss With CCP Counterpart
Australia’s Foreign Affairs Minister Penny Wong told the ABC that the events would be discussed with Beijing.
“We already have at official level in relation to the notice given and the transparency provided in relation to these exercises, particularly the live fire exercises,” she said.
“Obviously, this is an evolving situation, but it would be normal practice where a task group is engaging in exercises for there to be advice given to vessels and aircraft in the area, and Airservices Australia is doing what it should do, which is to give that advice.
“We are aware of this task group, we are monitoring this task group very closely. It is, as I understand it, operating in international waters.”
Senator Wong is expected to meet with CCP Foreign Minister Wang Yi on Feb. 21, for a scheduled meeting on the sidelines of the G20.
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Calls for More Direct Action Against Beijing
Lincoln Parker, former chair of the Liberal Party’s Defence and National Security Policy Branch, called for stronger action.
“Chinese warships brazenly conducting live-fire exercises off Australia’s coast—right between us and New Zealand— forcing flight diversions, is nothing short of incendiary, dangerous, and unacceptable,” he told The Epoch Times.
“China has attacked Australian Navy divers, our planes, and now is firing live ordnance in our waters! What’s next?”
The shadow defence spokesman, Andrew Hastie, said the Labor government needed to be more direct with the CCP leadership.
“The Chinese government has built a blue-water navy to project power into the Pacific region. They are now using gunboat diplomacy to test US allies like Australia,” he said in a statement.
“This latest provocation by the Chinese navy comes after continued weakness from the prime minister.
“Our Australian Defence Force personnel on routine lawful patrols in the region have been targeted by the People’s Liberation Army with dangerous and provocative manoeuvres with flares, chaff, and sonar.”
* * *
Speaking of Australians and weapons and whatnot... https://store.zerohedge.com/rosewood-big-bowie
https://store.zerohedge.com/rosewood-big-bowie
* * *
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Sun, 02/23/2025 - 08:10
US Border Czar: "We're Going To Wipe Drug Cartels Off The Face Of Earth"
US Border Czar: "We're Going To Wipe Drug Cartels Off The Face Of Earth"
US Border Czar Tom Homan told Fox News' Jesse Watters that President Donald Trump intends to dismantle the command and control centers of Mexican drug cartels, vowing to "put them out of business" and "wipe them off the face of the Earth." These are strong words against cartels that have fueled a drug overdose crisis responsible for the deaths of 100,000 Americans each year.
Watters asked Homan how cartels have adapted in the last 30 days since Trump's 'America First' border policies of placing the military by the thousands on the southern border...
Homan responded: "Look, they're going maritime. We knew they would. That's why Coast Guard patrols increased by three times. So we're going to shut them down maritime too."
"We're going to put them out of business. President Trump does not mess around with criminal terror organizations. These cartels have killed more Americans than every terror organization combined," the official said.
He continued: "President Trump will end up wiping the cartels off the face of the Earth - putting them out of business. If you put them out of business - you take their money away - they can't buy or bribe Mexican officials. Without money, they have no power.
"We're not just going to attack in Mexico, the Jalisco cartel. We're going to attack them in the 43 countries they have operations currently. We're going to attack them worldwide," the border emphasized.
Watters ended with, "That's a bold statement." ...
Catching up with the latest 'America First' headlines on the border crisis:
Readers should understand that the disrupt-and-dismantle strategy is broad, targeting not only Mexican cartels but also transnational criminal organizations spanning from Canada to China.
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This is what 'America First' looks like. It's time to stop the drug death overdose crisis in America that kills 100,000 per year.
We must caution that the fight against cartels could get messy, considering the Biden-Harris regime intentionally flooded the nation with https://www.zerohedge.com/political/leaked-us-army-documents-thousands-violent-venezuelan-prison-gang-members-run-amok-across
.
https://cms.zerohedge.com/users/tyler-durden
Sun, 02/23/2025 - 07:35
https://www.zerohedge.com/geopolitical/us-border-czar-were-going-wipe-drug-cartels-face-earth
Trump Is Unlikely To Pull All US Troops Out Of Central Europe Or Abandon NATO's Article 5
Trump Is Unlikely To Pull All US Troops Out Of Central Europe Or Abandon NATO's Article 5
https://korybko.substack.com/p/trump-is-unlikely-to-pull-all-us
Germany’s https://www.rt.com/news/613130-bild-us-could-withdraw-troops-nato-east/
.
Friedrich Merz, the frontrunner to become Germany’s next Chancellor, shortly thereafter https://www.politico.eu/article/europe-brace-us-trump-end-nato-germany-friedrich-merz-election/
that his country must prepare for the possibility that Trump abandons NATO’s Article 5.
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He's unlikely to do either of these things, but American policy towards NATO will certainly change in the coming future, which will likely take the form of what was detailed in the policy brief that was published at the Trump-affiliated Center for Renewing America in February 2023.
Titled “https://americarenewing.com/policy-brief-pivoting-the-us-away-from-europe-to-a-dormant-nato/
last July, which readers should review.
This goal explains why Trump is demanding that all NATO allies spend 5% of GDP on defense and accounts for the https://korybko.substack.com/p/heres-what-comes-next-after-putin
.
New US Secretary of Defense Pete Hegseth praised Poland as “https://www.defense.gov/News/Transcripts/Transcript/Article/4068636/defense-secretary-pete-hegseth-and-polish-deputy-prime-minister-wladyslaw-kosin/#:~:text=The%20warmth%20of,Polish%20military%20readiness.
” for the reasons explained in the preceding hyperlinked analysis, which boil down to restoring its historical geopolitical role as a wedge between Germany and Russia.
The Baltics might not fare the same though since they have nowhere near the same regional significance as Poland does and they could try to provoke a war with Russia in order to drag the US in via NATO. Accordingly, Trump might calculate that it’s better to withdraw some or even all American troops from there while conveying to them that the US won’t come to their aid if they instigate a regional conflict, which could be expressed either behind the scenes or through one of his characteristic pronouncements.
The https://www.rt.com/news/613126-germany-us-russia-ukraine/
could even possibly see the US redeploy some troops from there to Poland, which in the most extreme scenario could result in transferring the headquarters of its European Command from Stuttgart to some Polish city, though it’s too early to say for certain. After all, something as serious as the second-mentioned requires a lot of work, and Trump might also wager that it’s better to keep the headquarters where they’re at in order to not lose more influence in Germany.
In any case, redeploying US troops from Europe to Asia would likely please Russia even if some are transferred from Germany to Poland, especially if Trump makes it clear that NATO members can’t provoke a conflict with Russia and expect America to ride to their rescue via Article 5. Retaining some troops in Europe alongside the integrity of Article 5 amidst the aforesaid conditions could be a pragmatic compromise between the US and Russia’s security interests.
The purpose would be to alleviate their security dilemma that was worsened by NATO’s eastward expansion after the end of the Old Cold War all while maintaining some American military influence on the continent as the US “Pivots (back) to Asia” to more muscularly contain China. The era of Europe freeloading off of the US and its liberal-globalists manipulating it into doing their geopolitical bidding against Russia would end to the benefit of peace-loving people and businessmen on all three sides.
https://cms.zerohedge.com/users/tyler-durden
Sun, 02/23/2025 - 07:00
Panic Ensues, Dem Senator Lahes Out At 'Dick Boss' Musk Over Email Requiring Feds Explain Work
Panic Ensues, Dem Senator Lahes Out At 'Dick Boss' Musk Over Email Requiring Feds Explain Work
Update (2356ET): Panic has predictably ensued after Elon Musk's requirement that all federal employees provide a five bullet point summary of what they accomplished last week, due by midnight on Monday.
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While newly minted FBI Director Kash Patel exempted agency employees from the requirement (and we hear the entire intelligence community will basically get the same pass), there's a lot of complaining going on...
A DHS employee emails, re Elon's latest: "Not answering that email, due with baby in three days and already having to use sick leave because of the stress... I hope they fire me at this point can't wait to sue them"
— Sam Stein (@samstein) https://twitter.com/samstein/status/1893479133646061617?ref_src=twsrc%5Etfw
Senator Tina Smith (D-MN) lashed out, posting to X, "This is the ultimate dick boss move from Musk - except he isn’t even the boss, he’s just a dick."
To which the White House Rapid Response team replied, "What did you accomplish this week, Tina? Five bullets, please," and Musk replied with a fire and 'crying while laughing' emojis.
🔥😂
— Elon Musk (@elonmusk) https://twitter.com/elonmusk/status/1893519374297801144?ref_src=twsrc%5Etfw
Indeed, this takes less than 5 mins https://t.co/N9F53zxfbz
— Elon Musk (@elonmusk) https://twitter.com/elonmusk/status/1893519081971589141?ref_src=twsrc%5Etfw
The Rapid Response team, which posts daily information about the Trump agenda, was happy to oblige.
An incredible week! https://t.co/D3AlfUfdeQ
— Elon Musk (@elonmusk) https://twitter.com/elonmusk/status/1893520730643669013?ref_src=twsrc%5Etfw
* * *
You can support ZeroHedge by snagging one of these high-quality, sharp, kickass https://store.zerohedge.com/zerohedge-multitool
. On sale until Monday!
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Satisfaction guaranteed or your money back.
* * *
Update (2308ET): New FBI Director Kash Patel sent an email to all agency employees on Saturday night instructing them to "pause any responses" to Elon Musk's request that all federal employees provide summaries of their accomplishments over the past week or face termination.
%282%29_1.jpg?itok=qd5PizX8
"The FBI, through the Office of the Director, is in charge of all of our review processes, and will conduct reviews in accordance with FBI procedures," reads the note from Patel. "When and if further information is required, we will coordinate the responses. For now, please pause any responses."
The power struggles begin.
FBI Director Kash Patel tonight has instructed his employees to ignore https://twitter.com/elonmusk?ref_src=twsrc%5Etfw
— Ken Dilanian (@KenDilanianNBC) https://twitter.com/KenDilanianNBC/status/1893479494079410229?ref_src=twsrc%5Etfw
Meanwhile, at least one federal employee apparently don't have time to answer the email - but did have time to complain to a MSM reporter about having to do it.
First off, if this federal employee had time to email a left-wing reporter, surely she had time to email her manager about what she accomplished last week. Also, she took sick leave last week so she can just say that she took the week off from work. Why is this all so dramatic? https://t.co/A2AjlWf2H3
— Mollie (@MZHemingway) https://twitter.com/MZHemingway/status/1893492461420359836?ref_src=twsrc%5Etfw
* * *
Elon Musk is 'running the Twitter playbook on the government,' after writing in a Saturday post on X that all federal employees will be receiving an email "shortly" requesting to "understand what they got done last week."
Those who fail to reply "will be taken as a resignation."
Consistent with President https://twitter.com/realDonaldTrump?ref_src=twsrc%5Etfw
’s instructions, all federal employees will shortly receive an email requesting to understand what they got done last week.
Failure to respond will be taken as a resignation.
— Elon Musk (@elonmusk) https://twitter.com/elonmusk/status/1893386883444437415?ref_src=twsrc%5Etfw
And there it is (though no mention of the implied resignations for failure to respond):
New: America's diplomats serving around the world have now received Elon Musk's email asking them to explain their work, per a diplomatic source. Here it is, subject line: "What did you do last week?" https://t.co/4bOxUGpSF7
— John Hudson (@John_Hudson) https://twitter.com/John_Hudson/status/1893421394991440123?ref_src=twsrc%5Etfw
When X user 'The Rabbit Hole' commented that Musk is "running the Twitter playbook on the government," Musk replied: "It works."
It works https://t.co/TFkpHlJa7a
— Elon Musk (@elonmusk) https://twitter.com/elonmusk/status/1893393730670829895?ref_src=twsrc%5Etfw
The post came hours after President Donald Trump encouraged Musk to "get more aggressive" with the Department of Government Efficiency (DOGE), adding "REMEMBER, WE HAVE A COUNTRY TO SAVE."
So awesome https://t.co/t2yAXh8qFZ
— Elon Musk (@elonmusk) https://twitter.com/elonmusk/status/1893434301846278440?ref_src=twsrc%5Etfw
Musk's email comes after roughly 77,000 federal employees accepted DOGE's "Fork in the Road" email offering roughly 8 months of pay in exchange for resigning. After that, DOGE moved to fire thousands of employees across various agencies - mostly those in a probationary period who have been in their jobs for less than one year.
It also comes after the Trump administration scored a legal victory when a judge allowed Musk and crew to continue accessing federal data and arranging for mass layoffs.
Last week, Trump signed an executive order directing agencies to work with DOGE to make "preparations to initiate large-scale reductions in force."
* * *
https://cms.zerohedge.com/users/tyler-durden
Sat, 02/22/2025 - 23:57
Bovard: Can Kennedy Save Kids From Psychiatric Ravage?
Bovard: Can Kennedy Save Kids From Psychiatric Ravage?
https://jimbovard.com/blog/2025/02/22/can-kennedy-save-kids-from-psychiatric-ravage/
President Trump issued an https://www.whitehouse.gov/presidential-actions/2025/02/establishing-the-presidents-make-america-healthy-again-commission/
last week creating a Make America Healthy Again Commission, to be chaired by Health and Human Services Secretary Robert F. Kennedy, Jr. Among other targets, the commission will examine "prevalence of and threat posed by the prescription of selective serotonin reuptake inhibitors [SSRIs], antipsychotics, mood stabilizers, stimulants, and weight-loss drugs."
Kennedy has been outspoken on the danger of SSRIs, linking them to school shootings and stating that members of his family "had a much worse time getting off of SSRIs than they have getting off of heroin."
Kennedy’s views mortify the mainstream media. The https://www.washingtonpost.com/health/2025/02/16/trump-psychiatric-medications-drugs-weight/
did a hefty piece portraying Kennedy’s commission as more dangerous than any drugs prescribed to children. To discover the absolute truth, the Post turned to the CEO of the American Psychiatric Association, who assured the Post that "psychiatric drugs can be very effective and generally are given to children carefully after front-line treatments such as talk therapy."
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Decades ago, who would have expected an apology for Adderall, Prozac, Zoloft, and similar drugs to sound like a pitch for Kellogg’s breakfast cereals? Prescription drug use is skyrocketing. Antidepressant prescriptions for young Americans aged 12 to 25 increased by 66% between 2016 and 2022.
The New York Times https://www.nytimes.com/2024/05/06/health/mental-health-schools.html
that many young people were left worse off thanks to “mental health interventions.” The Times showcased psychiatric “prevalence inflation” – a vast increase in reported mental illness among teenagers who are encouraged to view normal feelings as grave maladies requiring intervention. Oxford University psychologist Lucy Foulkes observed that school programs are “creating this message that teenagers are vulnerable, they’re likely to have problems, and the solution is to outsource them to a professional.”
Foulkes explained that “awareness efforts” spur young people “to interpret and report milder forms of distress as mental health problems.” Filing such complaints “leads some individuals to experience a genuine increase in symptoms, because labeling distress as a mental health problem can affect an individual’s self-concept and behavior in a way that is ultimately self-fulfilling.”
Like a New Yorker cartoon from the 1950s, psychiatric diagnoses have become status symbols, propelled by snake oil “social-emotional learning” programs. University of Southern California clinical psychologist https://www.theatlantic.com/ideas/archive/2023/12/therapy-language-anxiety-mental-health/676325/
warns that mental illness labels have “become an identity marker that makes people feel special and unique. That’s a big problem because this modern idea that anxiety is an identity gives people a fixed mindset, telling them this is who they are and will be in the future.” Psychiatric labels can become a ball-and-chain that people drag behind them. Endless classroom presentations on mental health spur “co-rumination” – excessively talking about one’s problems – which evokes memories of first dates from hell.
Hungarian-American psychiatrist Thomas Szasz warned in the last century, “Psychiatrists manufacture mental diagnoses the way the Vatican manufactures saints.” But protests by Szasz and other dissident shrinks did nothing to prevent a sham stampede.
The American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders (DSM) now lists more than 300 mental illnesses, five times as many as it specified in the 1960s. Dr. Allen Frances, writing in Psychology Today, warned that the latest DSM contained “many changes that seem clearly unsafe and scientifically unsound” and is “likely to lead to massive over-diagnosis and harmful over-medication.”
After the DSM redefined autism in the 1990s, the autism rate “quickly multiplied almost 100 fold.” Thanks to another DSM redefinition, the “number of American children and adolescents treated for bipolar disorder increased 40-fold” between 1993 and 2004, the New York Times reported. Psychiatrist Laurent Mottron complained in 2023 that the latest version of the DSM “is full of vague and trivial definitions and ambiguous language that ensures more people fall into various, abnormal categories.”
The DSM provides a road map for federal law. The Americans with Disabilities Act (ADA) compels schools and universities to provide “reasonable accommodation” to students who claim to have a disability, physical or mental. Even before the pandemic, up to 25% of students at top colleges were “classified as disabled, largely because of mental-health issues such as depression or anxiety, entitling them to a widening array of special accommodations like longer time to take exams,” the Wall Street Journal https://www.wsj.com/articles/colleges-bend-the-rules-for-more-students-give-them-extra-help-1527154200
.
Between 2008 and 2019, the number of undergraduate students diagnosed with anxiety increased by 134%, 106% for depression, 57% for bipolar disorder, 72% for ADHD, 67% for schizophrenia, and 100% for anorexia, according to the National College Health Assessment. Students’ struggles skyrocketed after Covid shutdowns. A Boston University analysis of students on almost 400 campuses in 2022 found that “60% of the respondents met the qualifying criteria for ‘one or more mental health problems, a nearly 50% increase from 2013.’” But awarding endless psychiatric Purple Hearts will do nothing to help college graduates adjust to the challenges of life beyond the classroom.
I recognized that the DSM was becoming unhinged after attending the 1986 annual meeting of the American Psychiatric Association in Washington. Here are some riffs from a https://jimbovard.com/blog/2019/01/10/toxic-masculinity-and-pure-madness-from-psychiatrists/
op-ed I wrote at that time:
The APA served attendees a batch of freshly-ordained mental illnesses, including “premenstrual dysphoric disorder.” The APA says symptoms of this “mental illness” include “irritability,” “marked fatigue,” and “negative evaluation of self.” According to the APA’s definition, a third of all women go crazy once a month.
The second newly ordained mental illness is “self-defeating personality type,” previously known as common or garden-variety masochism. The symptoms for this grade disorder include, “complaints, directly or indirectly, about being unappreciated,” “repeatedly turns down opportunities for pleasure,” and “remains in relationships in which others… take advantage of him or her.” Bring on the Valium!
The third “discovery” was guaranteed to raise the APA’s popularity with trial lawyers. The APA tentatively decided that anyone who persistently fantasizes about or actively forces a non-consenting person to have sex suffers from “paraphilic rapism.” In other words, a person would have to be nuts to rape somebody. As one protester at the APA’s meeting declared, “Sexual assault is a crime – not a mental disorder.” The Committee of Women of the APA said the new category would “provide an instant insanity plea for anyone charged with rape.”
If shrinks only cleaned out people’s wallets, then they would be no more harmful than your average politician. But psychiatrists nowadays routinely rely on mind-numbering drugs and mind-shattering electric shock treatments. Some mental patients are developing Parkinson’s disease symptoms as a result of years of heavy medication. Electric shock “therapy” – aside from being a terrifying experience – sometimes causes permanent memory loss, thus making it harder for a patient to handle reality.
We have new mental illnesses not because of new breakthroughs in understanding the mind, but because psychiatrists want more money and more power over the rest of us. Shrinks generally have a poor batting average for curing known mental problems – but that has not stopped them from creating new “illnesses” that supposedly they alone can treat. But a con artist with an MD is still a con artist.
My carping did nothing to slow the white-coated hucksters. In 2019, the American Psychological Association officially designated traditional masculinity as a de facto mental illness. Their new guidelines specifically state that “stoicism” and other traits are “on the whole, harmful.” Did Marcus Aurelius spin in his grave? Apparently, instead of toughing out challenges, people are supposed to spend their lives whimpering to shrinks and getting appropriately drugged. At least prior to the current administration, the Food and Drug Administration has been a shill for Big Pharma and is unlikely to expose or admit the long-term harm from drugs that can partially numb minds.
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Psychiatrists have helped some individuals better understand themselves and deal more deftly with everyday reality. But bogus mental illnesses have turned millions of healthy Americans into “mental patients,” according to Dr. Allen Frances.
But this peril also profoundly endangers freedom. The profusion of new diagnostic labels encourages people to view themselves as psychologically fragile. Actually, the Americans with Disabilities Act rewards people who demand “reasonable accommodations” (extra time for tests, no deadlines, etc.) because they are depressed or anxious. Those incentives create a downward politico-psychological spiral.
Kennedy’s commission will report to Trump within 100 days on the “potential over-utilization of medication” and other unrecognized health perils in America. Hopefully, the commission will deliver a stunning, well-documented report that will help people recognize how psychiatrists have concocted labels that have left millions of Americans at their mercy.
https://cms.zerohedge.com/users/tyler-durden
Sat, 02/22/2025 - 23:20
https://www.zerohedge.com/medical/bovard-can-kennedy-save-kids-psychiatric-ravage
California's High Speed Rail To Face Audit, US Transportation Chief Says
California's High Speed Rail To Face Audit, US Transportation Chief Says
(emphasis ours),
LOS ANGELES—Transportation Secretary Sean Duffy announced he would direct the Federal Rail Administration (FRA) to conduct a https://www.transportation.gov/briefing-room/us-transportation-secretary-duffy-announces-review-california-high-speed-rail-project
of funding allocated to California’s long-embattled high-speed rail—and determine whether the project is worthy of continued federal investment.
?itok=iHlPGIJD
“President [Donald] Trump has thought about this project,” Duffy said Feb. 20 during a press conference with elected officials at Los Angeles’s historic Union Station. “I think he was very kind when he said this project has been mismanaged. I would agree.”
Duffy said California’s high-speed rail has so far consumed nearly $16 billion in 16 years, with almost nothing to show for it, while timelines and budgets have mushroomed, more than tripling since the project was introduced in 2008. The state rail authority reports it has spent https://hsr.ca.gov/programs/economic-investment/
from July 2006 through June 2024, while recent estimates for completion run as high as $130 billion.
The rail authority’s inspector general in a Feb. 3 report https://hsr.ca.gov/wp-content/uploads/2025/02/Schedule-Engagement-Report-FINAL-A11Y.pdf
further delays and a $6.5-billon funding gap in the 171-mile stretch currently under construction from Bakersfield to Merced in the state’s Central Valley region—an interior segment of the envisioned 400-mile track from Los Angeles to San Francisco.
Duffy said he would direct the FRA to focus on the $4 billion promised by the Biden administration to fund two construction projects planned for this segment.
The investigation, which will review how federal money has been spent and whether the state is in compliance with federal agreements, will help determine whether billions in taxpayer dollars should remain committed, Duffy said.
“We want to make sure the California taxpayer understands that even though they might be excited about this project, [it’s] not going to happen,” Duffy said. “There is no timeline in which you’re going to have a high-speed rail that goes from L.A. to San Francisco.”
If California wants to continue to fund the rail, Duffy said, it can do so. “But we in the Trump administration are going to take a look at whether this project is worthy of continual investment.”
Elected leaders were interrupted by a small but boisterous chorus of protesters.
“The California High-Speed Rail is a long-term project that should not be obstructed by oligarchs who only care about profits in the short term,” Jeff Zhang, 24, told The Epoch Times, suggesting delays are just “part of the cost” of the trial and error involved in building what will be the first major bullet train project in the country.
?itok=QotZdSjj
“This is nothing more than a sham investigation,” Eli Lipmann, executive director of transit advocacy organization Move LA, told The Epoch Times. “Yes, the project is behind,” but, he said, the project has created jobs and will play an integral role in future infrastructure.
Pausing funding for high-speed rail, he suggested, will also put other infrastructure projects in jeopardy.
“L.A. County has almost $1.2 billion in grants—signed, sealed, and delivered—that we need to ensure are coming, everything from better bus connections to less traffic on roads to rail projects like the Purple Line, which I took here today.”
Pointing to a recent Emmerson poll showing 55 percent of Californians still support the project, Lipmann said the federal government should be accelerating, rather than pausing, building high-quality transportation.
“What are they going to do during the investigation? They’re not going to give California money, they’re going to put a pause on it. And then they’re going to say this project is over budget,” Lipmann said.
Rep. Doug LaMalfa (R-Richvale) had a different view. The rail’s runaway costs, he suggested during the press conference, would be better spent on agriculture, water infrastructure, and other “things people need.”
LaMalfa said “dribs and drabs” of $4 billion from the feds would never add up to the $110 billion needed to make it to the finish line.
“It was a nice thought,” he said. “It’s failed.”
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Rep. Kevin Kiley (R-Rocklin) said the project symbolizes the “decline of modern California” under current leadership.
Kiley told The Epoch Times his primary focus is to preclude the possibility that a future administration will pick up the mantle. “Once we cut off the federal funding, we can kill the project and focus on things that will actually improve people’s lives.”
Republican leaders are also taking aim at the state budget, including with efforts to redirect the $1 billion California spends each year on the rail project to wildfire prevention and water storage.
Former state lawmaker and current Rep. Vince Fong (R-Bakersfield) had introduced such a bill, which is now being carried by California Assemblywoman Alexandra Macedo (R-Tulare).
“There have been eight business plans, and the inspector general has outlined all the structural mismanagement,” Fong told The Epoch Times. “So we have all the data we need. It’s just, does the governor and his state legislator—the ruling party—do they have the political will to stop this project and put it into other things?”
While announcing the review, Duffy also suggested potential fraud and waste was California’s problem, and an audit should be led by Gov. Gavin Newsom.
“I can’t make decisions for the great state of California, but we do have to be responsible for the tax dollars that are spent from the federal government,” he said.
The bullet train was among a flurry of targets Trump took aim at when he assumed office last month, promising on social media that an investigation would be forthcoming.
Duffy pointed to high-speed rail projects with “great timelines” and “great budgets” currently being proposed to the Federal Rail Administration that he said have a realistic shot at completion—such as the privately funded Brightline West, which will connect Los Angeles and Las Vegas and currently and is due to finish in a few years.
“That seems like a project that is worthy of investment,” he said.
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Several protesters said California has fallen behind other developed nations in public transportation and infrastructure.
“That’s a problem,” said one, of the delays and bleeding costs. “And I also think it needs to get done. We’ve invested so much already. ... It’s not just for California, it’s for the whole country.”
Former Rep. Michelle Steel dismissed any parallels to countries such as Spain, France, China, and Japan, where bullet train projects have succeeded.
“I was raised in Japan. It works in Japan because you can get off from the highway public transportation and you can hop on, you can go to the city. For this one costing $128 or $140 billion, going nowhere to nowhere, we don’t need this kind of wasting taxpayers’ money.”
Marc Joffe, a visiting fellow at the California Policy Center and a longtime critic of California’s high-speed rail, in a conversation with The Epoch Times pointed to the state’s uniquely challenging business climate.
“Lots of high-speed rails in other countries were built a long time ago. China built an enormous amount recently, but they don’t have the private property protections and labor rules like we have here.
“And I don’t think anyone wants to use Chinese standards for property acquisition, or labor.”
State Sen. Shannon Grove (R-Bakersfield), meanwhile, suggested the project has benefited from plenty of preferential treatment and fast-tracking, noting its exemption from California Environmental Quality Act (CEQA) review.
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“It’s proven that the Central Valley is sinking, and they’re building this monstrosity on top of the sinking valley with all that weight of concrete and rail structure,” she told The Epoch Times.
Referring to one part of the project’s Central Valley segment, Grove said:
“You can walk across this thing in 10 minutes, and they spent $13 billion on it. It’s ridiculous.”
In response to the press conference, the rail authority https://x.com/CaHSRA/status/1892697304726966484
on social media platform X on Thursday, “We welcome this investigation & look forward to working with federal partners.”
“CA High-Speed Rail has been audited over 100 [times], every dollar is accounted for & progress is real—50 structures built, 14,600 jobs created & 171 miles under construction.”
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Sat, 02/22/2025 - 14:35
DOJ Moves To Dismiss Immigration Case Against SpaceX
DOJ Moves To Dismiss Immigration Case Against SpaceX
The U.S. Department of Justice (DOJ) filed a motion Thursday indicating it wants to drop a lawsuit accusing SpaceX of hiring discrimination against refugees.
filed by the DOJ in August 2023 alleged that SpaceX, owned by Elon Musk, violated the Immigration and Nationality Act by refusing to hire people with asylum or refugee status.
The aerospace company countersued the DOJ later that year on constitutional grounds.
Last month, a federal judge in Texas granted the DOJ’s request to stay the lawsuit for 45 days, saying that the department lacks the authority to pursue its claims against SpaceX.
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that, in a court filing on Thursday, the DOJ requested that the court lift the stay on the lawsuit so it could proceed with filing a notice of dismissal. It did not provide a reason for the possible dismissal.
Both the DOJ and SpaceX did not respond to a request for comment by publication time.
, the DOJ alleged that between 2018 and 2022, SpaceX discouraged asylees and refugees from applying for jobs and failed to fairly consider their applications due to their citizenship status. The DOJ accused SpaceX of falsely asserting in job postings and public statements that export control laws hindered the company from hiring people without U.S. citizenship.
“Under these laws, companies like SpaceX can hire asylees and refugees for the same positions they would hire U.S. citizens and lawful permanent residents,” it stated.
“And once hired, asylees and refugees can access export-controlled information and materials without additional government approval, just like U.S. citizens and lawful permanent residents.”
The DOJ also stated that the Immigration and Nationality Act barred companies from discriminating against refugees and people granted asylum unless legally mandated to do so.
SpaceX, in its https://www.theepochtimes.com/business/musks-spacex-countersues-doj-says-case-over-refusal-to-hire-refugees-is-unconstitutional-5495952
, denied any wrongdoing, saying that the company has always strived to “hire the very best candidates for every job regardless of their citizenship status.”
The company argued that due to the sensitive nature of its work—such as manufacturing technologies with military applications—it is subject to legal mandates under export control laws, including the International Traffic in Arms Regulations (ITAR), which limit whom it can employ.
“These export control laws and regulations are critical to our national security. Moreover, violating them can have severe consequences for a company like SpaceX,” it stated, noting that failing to comply with the regulations could result in hefty fines and criminal penalties.
On Aug. 25, 2023, Musk https://x.com/elonmusk/status/1694873272029221197?lang=en
on the social media platform X that his company had been told that hiring anyone who is not a permanent U.S. resident would violate ITAR.
“We couldn’t even hire Canadian citizens, despite Canada being part of NORAD! This is yet another case of weaponization of the DOJ for political purposes,” he stated.
Musk was appointed by President Donald Trump earlier this year to lead the Department of Government Efficiency (DOGE), which has been tasked with reviewing federal agencies for potential downsizing and cost reductions.
Trump had previously https://www.theepochtimes.com/us/elon-musk-is-special-government-employee-white-house-confirms-5803985
that Musk would not be able to take any action without approval from the White House, and the government “won’t let him go near it” if there is a conflict of interest.
DOGE’s work is expected to be completed by July 4, 2026, https://www.whitehouse.gov/presidential-actions/2025/01/establishing-and-implementing-the-presidents-department-of-government-efficiency/
to Trump’s Jan. 20 executive order.
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Sat, 02/22/2025 - 13:25
https://www.zerohedge.com/political/doj-moves-dismiss-immigration-case-against-spacex
US Flies B-52 Bombers Over Middle East In Show Of Force Amid Regional Tensions
US Flies B-52 Bombers Over Middle East In Show Of Force Amid Regional Tensions
(emphasis ours),
The U.S. Air Force sent two B-52 bombers on a high-profile “force projection” overflight across the Middle East on Feb. 17, in a bid to send a clear warning to adversaries and reinforce deterrence against escalating threats.
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The bombers, which launched from RAF Fairford in the UK, flew over the airspace of nine Middle Eastern nations, U.S. Central Command (CENTCOM) said in a Feb. 18 https://www.centcom.mil/MEDIA/PRESS-RELEASES/Press-Release-View/Article/4069174/centcom-conducts-bomber-task-force-mission-in-middle-east/
. The mission included aerial refueling and live munitions drops, with U.S. F-15s and fighter escorts from four partner nations providing security.
“Bomber Task Force missions demonstrate U.S. power projection capability, commitment to regional security, and ability to respond to any state or non-state actor seeking to broaden or escalate conflict in the CENTCOM region,” Gen. Michael Erik Kurilla, CENTCOM commander, said in a statement.
While CENTCOM declined to specify which countries participated in the mission, the deployment follows recent U.S.-led airstrikes against terrorist targets in Syria and Iraq, a carrier withdrawal from the region after a collision with a merchant ship, and heightened Iranian military activity.
Two major airstrikes were carried out in recent days by CENTCOM and regional partners, aimed at degrading terrorist networks.
U.S. forces launched a precision airstrike in northwest Syria on Feb. 15, killing a top financial and logistics official for Hurras al-Din (HaD), an al-Qaeda affiliate. Iraqi Security Forces, enabled by CENTCOM, struck an ISIS cell near Rawa, Iraq on Feb. 12, killing five ISIS operatives and destroying weapons, suicide vests, and explosives.
“We will continue to relentlessly pursue terrorists in order to defend our homeland, and U.S., allied, and partner personnel in the region,” Kurilla said in a https://www.centcom.mil/MEDIA/PRESS-RELEASES/Press-Release-View/Article/4068864/centcom-forces-kill-senior-operative-of-al-qaeda-affiliate-hurras-al-din/
.
The B-52 bomber mission also coincides with a temporary U.S. naval void in the region after the USS Harry S. Truman sustained damage in a collision with a commercial bulk carrier near Egypt’s northern coast, prompting its departure.
This marks the third time since the Israel–Hamas war began in 2023 that the United States has lacked a carrier presence in the Middle East, leaving regional waters open to increased Iranian military activity.
Iran, meanwhile, has continued its military buildup, unveiling new precision-guided drones in Khuzestan province and conducting missile drills near the Strait of Hormuz last month, according to Iranian state media https://www.tasnimnews.com/en/news/2025/02/18/3260140/irgc-unveils-new-drones-in-war-game
.
Tehran has been https://www.theepochtimes.com/world/iran-expands-uranium-enrichment-amid-nuclear-watchdog-concerns-report-5768406
that Iran already has enough material to make around 10 small nuclear warheads about the size of the bombs dropped on Hiroshima in 1945, which killed 100,000 people in an instant. Iranian officials maintain the enrichment program is peaceful and for civilian purposes.
The B-52 flyover also came on the same day as a key U.S.–Russia meeting in Saudi Arabia, where officials tentatively agreed to restore previous diplomatic ties and establish de-escalation working groups over Ukraine.
The talks—led by U.S. Secretary of State Marco Rubio—excluded both Ukrainian and European officials, triggering backlash from America’s European allies.
The B-52 mission marks a revival of the deterrence and strength-projection tactics known from President Donald Trump’s first term, when overflights were used to pressure Tehran after the 2018 U.S. withdrawal from the Iran nuclear deal.
Trump signed a national security https://www.whitehouse.gov/fact-sheets/2025/02/fact-sheet-president-donald-j-trump-restores-maximum-pressure-on-iran/
on Feb. 4 that restores a policy of “maximum pressure” on Tehran, “denying Iran all paths to a nuclear weapon, and countering Iran’s malign influence abroad.”
The memorandum also calls for Iran’s terrorist network to be neutralized and for its development of missiles to be countered.
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Sat, 02/22/2025 - 08:10
Germany's Baerbock Issues Warning To US Over Failure To Back "Liberal Democracies"
Germany's Baerbock Issues Warning To US Over Failure To Back "Liberal Democracies"
After days of EU officials essentially begging Washington to give the bloc a seat at the table in talks with Russia to end the Ukraine war, German Foreign Minister Annalena Baerbock has warned the US that its actions could severely damage relations with Europe.
She urged for the European Union to put more pressure on Washington, and coupled the statement with a warning of what will happen if "liberal democracies" can't be supported. This is after President Trump has blasted Ukraine and the Zelensky government for refusing to hold elections or achieve peace with Moscow.
"We are increasing the pressure on the Americans" to signal "that they have a lot to lose if they stop standing by the liberal democracies of Europe," https://breakingthenews.net/Article/Baerbock-says-EU-must-increase-pressure-on-US/63583862
Friday during a campaign event near Berlin.
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Her words sound like a threat issued in the direct of President Trump, which he's unlikely to take very kindly too, at a moment the US administration has been denouncing Zelensky's 'rude' behavior.
She repeated Berlin's warnings against a "sham peace" in Ukraine, and voiced the need to prevent forcing Kiev into painful and unfair concessions.
"A sham peace - that is, a peace that is not peace, but blackmail or a surrender is not peace, but the opposite: further preparation for even more war and violence," the German top diplomat said. She again emphasized that she and Germany will support Ukraine "as long as it needs it."
On the question of the future of European-US relations under Trump, Baerbock said at this point drawing firm conclusions are premature, noting that "nothing has been decided there."
Meanwhile EU officials aren't the only ones in 'shock' after Trump dismissed Zelensky as a 'dictator' this week, but Ukrainian officials too are alarmed that Kiev's biggest backer has https://thehill.com/policy/international/5155353-ukraine-reacts-trump-attacks/
:
“It is painful, it’s not easy, it’s not easy to process,” Kira Rudik, member of the Ukrainian parliament and leader of the opposition Golos party, said of Trump’s remarks.
...The rhetorical tit-for-tat was a mistake, said Oleksiy Goncharenko, a member of the Ukrainian parliament for the opposition European Solidarity party.
Zelensky's own officials are desperately warning him not to take the bait, and to ignore Trump's rhetorical harshness against Ukraine.
"What’s happening, it’s a catastrophe," Goncharenko added. "That was a very big mistake from Zelensky to react to what Trump said… that Trump is in a disinformation bubble — after that it was clear Trump would react. We know that these things, for him being criticized publicly, I don’t know, it is the worst possible thing."
Der Spiegel cover: "Betrayed. First Zelensky, then us? The US's radical withdrawal from its allies"
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The Ukrainian official continued, "The best thing now, I think, just is not to reply anymore and try to find somebody who will message Trump and try to rebuild at least some kind of relationships — because we need United States, that’s all. We desperately need the US."
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Sat, 02/22/2025 - 07:35
European Military Chiefs Proposed Dubious Plan To Send 30,000 Troops To Ukraine
European Military Chiefs Proposed Dubious Plan To Send 30,000 Troops To Ukraine
The Times reported on Wednesday that European military chiefs have proposed a plan to deploy 30,000 troops to Ukraine to provide security guarantees as part of a potential future peace deal.
The report said the UK and France are leading the discussions about deploying a "reassurance" force to Ukraine, an idea that’s been firmly rejected by Moscow. In response to the report, Kremlin spokesman Dmitry Peskov https://www.rt.com/russia/613064-peskov-responds-report-uk-troops-ukraine/
to the deployment of NATO troops to Ukraine.
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Peskov pointed to recent comments from Russian Foreign Minister Sergey Lavrov, who said the "presence of armed forces from NATO countries [in Ukraine]… is completely unacceptable to us."
US Secretary of Defense Pete Hegseth https://news.antiwar.com/2025/02/12/hegseth-says-no-nato-membership-for-ukraine-return-to-pre-204-borders-unrealistic/
of a NATO deployment to Ukraine, saying if a peacekeeping force is deployed, it must be a non-NATO mission. But the British and French plan envisions the US providing support for the European deployment.
reads: "A US backstop, which is deemed essential for the plan, would likely be based on the ‘extraordinary strength in air power’ that NATO countries have. It could be in the form of US aircraft based in Poland and Romania, subject to the agreement of President Trump, an official suggested."
The report comes after British Prime Minister Keir Starmer https://news.antiwar.com/2025/02/17/starmer-says-hes-ready-to-put-british-troops-in-ukraine-as-part-of-peace-deal/
the British military is too "run down" to lead the mission.
Keir Starmer will present Trump a plan to send fewer than 30,000 European troops to Ukraine.
He will urge Trump to have US jets and missiles on standby in Eastern Europe to respond with if Russia breaks the terms of the deal.
European forces will be deployed to Ukrainian… https://t.co/z4BD6Dh6bW
— Clash Report (@clashreport) https://twitter.com/clashreport/status/1892515738436477340?ref_src=twsrc%5Etfw
"Our military is so run down at the present moment, numerically and as far as capability and equipment is concerned, it would potentially be quite embarrassing," Danatt said.
"If we were to deploy 10,000 troops each rotation for six months, that would effectively tie up 30,000 or 40,000 troops, and we just haven’t got that number available."
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Sat, 02/22/2025 - 07:00
Arctic Defense: The Growing Geopolitical Battle For The North
Arctic Defense: The Growing Geopolitical Battle For The North
The Distant Early Warning Line (https://www.britannica.com/technology/Distant-Early-Warning-Line
) runs north of the Arctic Circle from Alaska in the west to Baffin Island in the east, then continues across Greenland.
It was built by the United States, with the cooperation of Canada, at the height of the Cold War in the 1950s as a defence against the Soviet Union.
Most of the self-sufficient bases on this _Line.jpg)
had a paved runway, with equipment and personnel necessary to keep the runway cleared. The bases had to be operational for the dozens of fighter planes that were kept at the ready by U.S. Strategic Air Command, in case Soviet jets came over the North Pole.
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Most of those sites fell into disuse, and the DEW Line became the https://www.nasittuq.com/projects/north-warning-system/
. Not much has happened since then.
Although the federal government has promised to address the deterioration of our defences, nothing of substance has been done by Ottawa to deal more effectively with the https://macdonaldlaurier.ca/canadas-military-neglect-has-made-it-an-anglosphere-outsider-tony-abbott-in-the-national-post/
its NORAD (North American Aerospace Defence Command) commitments, it has been largely ignored.
The Trump administration has made it clear that it finds Canada’s defence https://thehub.ca/2024/06/14/joe-varner-canadas-selfish-disregard-of-defence-is-the-achilles-heel-of-natos-northern-security/
to be unacceptable. The complaint is legitimate.
The fact is that the world is very different from what it looked like in the 1950s and 60s. At that time, the Soviet Union was the major threat to the West, while communist China was desperately poor and weak. Under Mao’s “Great Leap Forward” and later his “Cultural Revolution,” millions starved. China looked then more like North Korea than the economic and military behemoth it has become today. We certainly didn’t fear it as a threat.
Now, both communist China, and an increasingly aggressive Russia are formidable foes. They are also very interested in the North. Ominously, they have recently partnered with each other in a “https://carnegieendowment.org/research/2024/08/taiwan-and-the-limits-of-the-russia-china-friendship
” which raises the possibility that they might collaborate (or be collaborating right now) on joint plans for the military and commercial exploitation of the North.
The fact that shipping on a large scale through the Northwest Passage might be a possibility in the not-so-distant future is one of the reasons why. The passage can cut shipping distances drastically, so huge amounts of money and fuel can be saved. Future passage from Asia to Europe via the Northeast Passage (also called the Northern Sea Route) and Northwest Passage would be incredibly valuable—strategically, militarily and commercially—for both Russia and China.
Russia is far ahead of Canada on northern strategy and development. It has at least 40 ships capable of breaking through ice, including eight nuclear-powered https://www.thebarentsobserver.com/news/here-comes-yakutia-russias-newest-nuclear-icebreaker/422559
two are years away from fruition. The Americans are acutely aware of Russia’s northern superiority.
Northern security goes some way to explaining Donald Trump’s very public offer to buy Greenland.
Whether he is serious about buying it, or just wants better access guarantees, is something known only to Trump and his closest advisers.
The prospect of Greenland falling under the control of its adversaries (and possible future enemies) must alarm the Pentagon. Is such a prospect remote? Consider the fact that there are only 56,000 Greenlanders. China and Russia, separately or jointly, could make each Greenlander a millionaire with $56 billion. That is a small sum for those giants. Is it not possible that America wants to get to Greenlanders with an offer first? After all, Denmark has assured the Greenlanders that they can become independent with a simple vote. The prospect of becoming millionaires might have strong appeal to the relatively poor indigenous inhabitants of that huge, cold island. Trump’s concerns about the security of his nation are very real. He probably sees preventing China or Russia (separately or as a combined force) from gaining control of Greenland as absolutely vital.
More likely than bribing Greenlanders, Chinese Communist Party-controlled corporations could gain a foothold in Greenland by making attractive offers to the inhabitants, as the CCP has done throughout the developing world with its https://www.theepochtimes.com/china/belt-and-road-initiative-helps-ccp-control-international-technical-standards-5597383
. The days of European empires, with Europeans waving attractive trinkets in the faces of poor natives, have been replaced with today’s savvy Chinese businessmen doing essentially the same thing.
But a glance at the map shows how close Greenland is to Canada. Trump probably has many of the same concerns about the vast, largely undefended Canadian Arctic that he has about Greenland. And some of Canada’s recent actions are probably causing alarm in the Trump camp.
An example might be the https://www.theepochtimes.com/opinion/brian-giesbrecht-land-resource-transfer-to-nunavut-not-a-wise-move-5576844
of partial sovereignty by Canada to Nunavut. Nunavut is a huge land mass. Like Greenland, it is rich in natural resources, particularly natural gas. And, like Greenland, it is also strategically important.
Nunavut sits smack dab on a Northwest Passage that might be worth trillions of dollars in the future. Who controls the passage could turn out to be a determining factor in whether the West, or “no-limits” China/Russia, will be the victor in future Great Power struggles. Like Greenland, Nunavut has a small population, about 38,000 mainly poor Inuit people. The https://www.theepochtimes.com/world/advocacy-groups-disappointed-with-final-hogue-commission-report-5800132
has been clear that besides targeting governments at different levels, foreign actors also try to exploit indigenous communities.
We have seen how important the issue of CCP control of the Panama Canal is to the Americans. The possibility of China/Russia control of the Northwest Passage could well be equally important to them. Not to be alarmist, but shouldn’t the fact that that China has already—very quietly—been making huge https://www.thebureau.news/p/china-clandestinely-targeting-first
with semi-autonomous indigenous territories concern Canadians as well?
Will semi-autonomous Nunavut decide that their consent is required to use the passage, perhaps even from Canadian vessels? Now that United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) has become law in Canada, could indigenous people in these semi-autonomous indigenous territories assert tribal law that would trump other laws? If you think this is too far-fetched, consider that fact that our Supreme Court has already held that tribal law cancels Charter protections in some cases, and even held that indigenous people who are not Canadian citizens and do not live in Canada can have rights to Canadian resources. How does the United States view such giveaways of Canadian sovereignty to indigenous groups?
Nunavut is not the only part of Canada that is being ceded, or partially ceded, to indigenous groups. In British Columbia, https://vancouversun.com/news/canada-recognizes-aboriginal-title-over-haida-gwaii-off-b-c-in-historic-agreement
(formerly Queen Charlotte Islands) looks like it will have a status similar to Nunavut.
BC’s government seems determined to https://cassels.com/insights/a-great-unknown-government-of-british-columbia-creates-considerable-uncertainty-with-recognition-of-aboriginal-title-to-private-land/
other parts of the province over to the many First Nations who live there as well. Each would presumably be able to make their own laws, and make commercial agreements with whomever they choose. That would include CCP-controlled companies.
There will no doubt be protective provisions in those agreements, but B.C. has adopted the Declaration on the Rights of Indigenous Peoples Act (https://www2.gov.bc.ca/gov/content/governments/indigenous-people/new-relationship/united-nations-declaration-on-the-rights-of-indigenous-peoples
to give indigenous groups what they want. What are the chances that Haida Gwaii separatists are even now planning business deals with CCP-controlled corporations that will make Washington—and should make Ottawa—extremely uncomfortable?
How will the Trump, or future administrations, see these developments? Will Americans tolerate a British Columbia, or a Canada, that cedes its sovereignty to people who are increasingly being urged to see themselves not as British Columbians or Canadians but as victims of a “colonizing” Canada? Or how does the United States regard a Canada that closes its eyes to https://repository.law.miami.edu/cgi/viewcontent.cgi?article=2693&context=umialr
Mohawk border reserves? Americans see their security being compromised.
Under pressure from the United States, Canada is only now promising to build more https://foreignpolicy.com/2025/02/17/canada-trump-icebreakers-ice-pact/
and improve northern defence.
A federal election is in the offing. A prime minister will be chosen. His or her new government will negotiate agreements with the United States that will undoubtedly include doing things we should have done long ago: enhancing our northern defence, meeting our NATO commitments, and rebuilding our dilapidated armed forces. Our political leaders will also be forced to do a major rethink on all matters relating to North American security.
Trump, or any American president, would not even think of giving away sovereignty as Canada is doing so casually. As we think about security, perhaps this is a good time for Canada to work closely with indigenous communities to strengthen Arctic defence, ensuring that all regions remain integrated within a unified security framework.
Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.
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Fri, 02/21/2025 - 23:25
https://www.zerohedge.com/geopolitical/arctic-defense-growing-geopolitical-battle-north
First In-Orbit Image Released From Classified X-37 Spaceplane
First In-Orbit Image Released From Classified X-37 Spaceplane
On Thursday evening, the Secretary of the Air Force Public Affairs published the first-ever in-orbit image captured by Boeing's X-37 spaceplane, which was shared on the https://www.dvidshub.net/image/8878863/novel-space-maneuver-conducted-x-37b
.
USAF Public Affairs described the photo, taken by an onboard camera designed to monitor the X-37's "health and safety," as showing Earth in the distant background during a series of "experiments in a highly elliptical orbit in 2024."
"As part of the X-37 B's seventh mission, the vehicle executed a series of first-of-its-kind maneuvers, called aerobraking, to safely change its orbit using minimal fuel," the public affairs office said.
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The top-secret spaceplane, built by Boeing and operated by the Air Force Rapid Capabilities Office and the Space Force, has spent years in space quietly conducting classified missions. Its real purpose has yet to be revealed.
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With each successive top-secret mission, the X-37B spends long and longer time in orbit:
OTV-1: launched on Apr. 22, 2010 and landed on Dec. 3, 2010, spending over 224 days in orbit.
OTV-2: launched on Mar. 5, 2011 and landed on Jun. 16, 2012, spending over 468 days in orbit.
OTV-3: launched on Dec. 11, 2012 and landed on Oct. 17, 2014, spending over 674 days in orbit.
OTV-4: launched on May 20, 2015 and landed on May 7, 2015, spending nearly 718 days in orbit.
https://www.zerohedge.com/technology/watch-live-spacex-launches-mysterious-x-37b-spaceplane-orbit
In the age of DOGE, perhaps it's time for the Space Force to provide more color on the spaceplane's objectives to determine if the return on investment for taxpayers is truly justified.
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Fri, 02/21/2025 - 23:00
https://www.zerohedge.com/military/first-orbit-image-released-classified-x-37-spaceplane
Epstein Client List Today? AG Pam Bondi Says It's 'Sitting On My Desk Right Now'
Epstein Client List Today? AG Pam Bondi Says It's 'Sitting On My Desk Right Now'
Attorney General Pam Bondi says the Jeffrey Epstein client list is 'sitting on my desk right now to review,' per a 'directive by President Trump.'
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Speaking with Fox News, Bondi was asked one day after the confirmation of FBI Director Kash Patel whether "The DOJ may be releasing the list of Epstein's clients," to which she replied:
🚨 FOX: "The DOJ may be releasing the list of Jeffrey Epstein's clients. Will that really happen?"https://twitter.com/AGPamBondi?ref_src=twsrc%5Etfw
— Rapid Response 47 (@RapidResponse47) https://twitter.com/RapidResponse47/status/1893002280972018040?ref_src=twsrc%5Etfw
Epstein, a financier and convicted sex offender was found dead in a New York jail cell while awaiting trial on sex trafficking charges. While his death was rules a suicide, he was also good friends with the Clintons and several other high-profile figures such as Britain's Prince Andrew, former Israeli Prime Minister Ehud Barak, former Barclays CEO and 'https://www.zerohedge.com/political/say-hello-snow-white-ex-jpmorgan-exec-emailed-jeffrey-epstein-about-disney-princesses
.
On Thursday, Bondi told journalist Benny Johnson from CPAC that the Epstein and P Diddy lists contain "Lots of documents," adding "We are keeping this promise" to release them, adding "I was briefed on that yesterday I can't talk about that that publicly."
When asked by Johnson whether Americans can expect "actual movement on this," Bondi replied: "Donald Trump doesn't make empty promises. I think promises made, promises kept. And that's why we're all there to carry out his directive about making America safe and prosperous."
🚨PANIC: Attorney General Pam Bondi reveals imminent release of the Jeffrey Epstein and P. Diddy lists:
“I was just briefed on this topic. There are LOTS of documents. LOTS of documents. Stay tuned. We are keeping this promise.”
It’s Happening. https://t.co/roFqY982FD
— Benny Johnson (@bennyjohnson) https://twitter.com/bennyjohnson/status/1892740366052323482?ref_src=twsrc%5Etfw
On the campaign trail, Donald Trump suggested that he would be open to releasing the Epstein list, while Bondi said in November that anyone named in the documents who are "still fighting to keep their names private, Sean, they have no legal basis to do so unless they're a child, a victim or a cooperating defendant."
revealed a flood of visitors who visited Epstein's notorious 'pedo island,' with some of the travel originating from gated communities in Michigan, Florida, as well as homes in Martha's Vineyard and Nantuckett and a nightclub in Miami.
?itok=K6eY85wS
?itok=63qL5jm6
Media Room?
In late 2019, Jeffrey Epstein victim Maria Farmer alleged that the deceased pedophile had a "https://www.zerohedge.com/political/epsteins-ny-mansion-had-secret-media-room-record-bedrooms-and-bathrooms-accuser
" on the first floor where high-profile johns were allegedly recorded having sex with women and children.
"So if you’re facing the house, there’s a window on the right that’s barred – that’s the room, the ‘media room’ is what he called it," Farmer said. "And so there was a door that looked like an invisible door with all this limestone and everything and you push it and you go in and I saw all the cameras."
Maria said: "What it was – was like old televisions basically, like stacked."
"They were monitors inside this cabinet and there were men sitting here and I looked on the cameras and I saw toilet, toilet, bed, bed, toilet, bed.
"And I was like I’m never going to use the restroom here and I am never going to sleep here." -https://www.thesun.co.uk/news/10385875/jeffrey-epsteins-a-list-guests-filmed-bathroom-accuser/
The claim was supported in a 2024 lawsuit by two women - Danielle Bensky and Jane Doe 3, who said Epstein employed a sophisticated system involving constant CCTV surveillance within his New York mansion.
?itok=UHzgsUhC
The two women say that Epstein and his circle of enablers collected compromising information in order to keep people quiet, and that the victims received monetary payments described as "hush money" following abusive incidents, or when they acted as recruiters to lure more young women and girls into Epstein's sex-trafficking operation.
The room worked like a panopticon, a circular prison with cells arranged around a central well from which prisoners can at all times be observed.
The lawsuit details that https://www.washingtontimes.com/topics/epstein-enterprise/
not only hired individuals to keep watch but also provided his victims with transportation and communication devices, purportedly under the guise of security and convenience while allegedly using these means to track their whereabouts.
"The Epstein Enterprise would not have existed for the duration it did and at its scope and scale, without the collaboration and support of others," reads the lawsuit. "No one, except perhaps [convicted Epstein accomplice] Ghislaine Maxwell, was as essential and central to Epstein’s operation as these Defendants."
Why were Epstein and Ghislaine (daughter of a suspected https://www.publishersweekly.com/9780786710782
asset) recording all of these people again? Mysteries abound.
?itok=2bsTeARk
https://cms.zerohedge.com/users/tyler-durden
Fri, 02/21/2025 - 14:00
Far-Left Judge Who Fought Trump At Supreme Court Refuses To Dismiss DOJ Case Against NY Mayor Eric Adams
Far-Left Judge Who Fought Trump At Supreme Court Refuses To Dismiss DOJ Case Against NY Mayor Eric Adams
of the case against Michael Flynn, a federal judge on Friday refused to dismiss the DOJ's case against New York Mayor Eric Adams, and has instead appointed an outside lawyer to argue against dropping the charges - a motion which was otherwise unopposed.
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The Biden DOJ notably began pursuing Adams after the NY Mayor spoke out about unchecked crime and illegal immigration into the Big Apple.
Biden-appointed Judge Dale E. Ho - a former director of the ACLU's Voting Rights Project, and who argued twice against the Trump administration in front of the Supreme Court on behalf of immigrant advocacy groups, appointed former George W. Bush US Solicitor General, Paul Clement (extra deep state) to analyze the Trump DOJ's decision to drop the case.
The order came after federal prosecutors argued that the ongoing case "improperly interfered" with Adams' 2024 reelection campaign and "unduly restricted" his ability to help the Trump administration fight illegal immigration.
"Here, the recent conference helped clarify the parties’ respective positions, but there has been no adversarial testing of the Government’s position generally or the form of its requested relief specifically," wrote Ho, the former attorney for illegal immigrant advocates.
Ho also called for additional briefs from the parties, and scheduled a tentative oral argument for March 14 if he felt it was necessary.
"The Court reiterates that it understands the importance of prompt resolution of the pending motion and will endeavor to rule expeditiously after briefing (and, if necessary, oral argument) is complete. The adjournment of trial and all related deadlines alleviates any prejudice resulting from a short delay," Ho wrote.
Ho's decision, made in a five-page ruling, will now prolong New York's largest political upheaval in a long time - and comes amid mass resignations and firings of federal prosecutors in New York and Washington DC, and several of Adams' opponents calling on him to step down.
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Fri, 02/21/2025 - 13:40
US CEO Confidence Increases Sharply From Cautious Optimism To Confident Optimism
US CEO Confidence Increases Sharply From Cautious Optimism To Confident Optimism
Optimism among American CEOs surged in the first quarter of this year from the previous quarter, with concerns about various business risks easing down, according to a new survey from the think tank The Conference Board.
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The “Measure of CEO Confidence,” an assessment of the U.S. economy from the perspective of U.S. chief executives, rose by nine points in the first quarter of 2025 to 60—the highest level in three years—the think tank said in a Feb. 20 https://www.conference-board.org/topics/CEO-Confidence/press/CEO-confidence-Q1-2025
. This is the first time since early 2022 that the index scored a value “well above 50,” suggesting that CEOs were moving away from the cautious optimism from last year to a more “confident optimism.” The survey was conducted among 134 CEOs.
The improvement in CEO confidence in the first quarter was “significant and broad-based,” said Stephanie Guichard, senior economist of global indicators at The Conference Board.
“All components of the Measure improved, as CEOs were substantially more optimistic about current economic conditions as well as about future economic conditions—both overall and in their own industries.
“There was a notable increase in the share of CEOs expecting to increase investment plans and a decline in the share expecting to downsize investment plans. Still, a majority of CEOs indicated no revisions to their capital spending plans over the next 12 months.”
Roger W. Ferguson Jr., chair emeritus of The Conference Board, said CEOs reported that concerns regarding a wide range of business risks had eased.
He said fewer chief executives ranked regulatory uncertainty, supply chain disruptions, financial and economic risks, and cyber threats as “high-impact” risks in the first quarter of 2025 compared to the fourth quarter of 2024.
While executives expressed optimism, many businesses reported challenges. A recent poll by the National Federation of Independent Business (NFIB) https://www.nfib.com/news-article/new-nfib-survey-small-businesses-remain-optimistic-but-uncertainty-rising-on-main-street-4/
that even though owners were optimistic about future business conditions, uncertainty was rising.
“Hiring challenges continue to frustrate Main Street owners as they struggle to find qualified workers to fill their many open positions. Meanwhile, fewer plan capital investments as they prepare for the months ahead,” said NFIB Chief Economist Bill Dunkelberg.
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Impact of Tariffs
The optimism among businesses comes amid concerns that President Donald Trump’s various tariffs could negatively affect the country’s trade and economy.
Earlier this month, the Trump administration imposed an additional 10 percent tariff on imports from https://www.theepochtimes.com/us/us-tariffs-hit-china-beijing-responds-with-counter-tariffs-5803790
imports was paused for a 30-day period. Steel and Aluminum imports now face 25 percent tariffs.
Trump signed a plan to institute reciprocal tariffs on America’s trading partners.
“For many years, the U.S. has been treated unfairly by other countries, both friend and foe. This system will immediately bring fairness and prosperity back into the previously complex and unfair system of trade,” he https://www.theepochtimes.com/us/today-is-the-big-one-trump-set-to-sign-sweeping-reciprocal-tariffs-5809519
.
This week, Trump announced plans for new tariffs on https://www.theepochtimes.com/us/trump-says-hell-announce-new-tariffs-including-on-lumber-5813284
and similar duties on chips and drugs.
According to the Tax Foundation, the tariffs imposed on China are https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/
to reduce long-run U.S. GDP by 0.1 percent, and the tariffs proposed on Mexico and Canada by 0.3 percent. These estimates do not take into account “foreign retaliation.”
The 2018–2019 tariffs implemented by the Trump administration and carried forward by the subsequent Biden administration “raised prices and reduced output and employment, producing a net negative impact on the U.S. economy,” the foundation said.
U.S. Chamber of Commerce Senior Vice President John Murphy https://www.uschamber.com/international/u-s-chamber-tariffs-are-not-the-answer
the imposition of tariffs “unprecedented,” warning that such a move “will only raise prices for American families and upend supply chains.”
However, Federal Reserve Governor Christopher J. Waller does not https://www.theepochtimes.com/business/pausing-interest-rate-cuts-is-appropriate-given-inflation-concerns-fed-governor-5812892
Trump’s tariff push to significantly impact inflation.
“My baseline view is that any imposition of tariffs will only modestly increase prices and in a non-persistent manner,” he said in a recent speech.
“I concede that the effects of tariffs could be larger than I anticipate, depending on how large they are and how they are implemented. But we also need to remember that it is possible that other policies under discussion could have positive supply effects and put downward pressure on inflation.”
https://cms.zerohedge.com/users/tyler-durden
Fri, 02/21/2025 - 13:25
Zelensky Acted Two-Faced & Trump Is "Personally Very Upset" With Him: Rubio
Zelensky Acted Two-Faced & Trump Is "Personally Very Upset" With Him: Rubio
US Secretary of State Marco Rubio revealed in a televised interview that President Trump is "personally very upset at President Zelensky" over Ukraine's reaction to discussions on access to Ukraine's mineral wealth, for which Treasury Secretary Scott Bessent was dispatched to Kiev last week.
"We discussed this issue about the mineral rights, and we explained to them, look, we want to be in a joint venture with you — not because we’re trying to steal from your country, but because we think that’s actually a security guarantee," Rubio explained to Canadian journalist Catherine Herridge.
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He described that Zelensky expressed openness to such a deal before apparently reversing course. Rubio said the Ukrainian leader conveyed that "sure, we want to do this deal; it makes all the sense in the world — the only thing is I need to run it through my legislative process, they have to approve it."
"I read two days later that Zelensky is out there saying: I rejected the deal; I told them no way, that we’re not doing that. Well, that’s not what happened in that meeting. So, you start to get upset by somebody — we’re trying to help these guys," Rubio continued.
That's when the top US diplomat emphasized, "We're trying to help these guys. Ukraine doesn't directly impact the daily lives of Americans, there should be some gratitude here."
"When you see him accusing the President of disinformation, that's highly counterproductive. President Trump isn't going to take that. He's not going to get gamed," Rubio added. "He hopes Zelensky isn't trying to hustle the United States, that's not going to be productive here."
"I think President Trump is very upset with Zelensky, and rightfully so." Watch:
🚨NEW: Marco Rubio claims that President Zelenskyy acted two-faced with him and President Trump and warns him not to hustle the United States.
RUBIO: "We discussed mineral rights with Zelenskyy and said we want to be in a joint venture with you because we think we need a… https://t.co/Tczl8KEnwl
— Autism Capital 🧩 (@AutismCapital) https://twitter.com/AutismCapital/status/1892806427808522684?ref_src=twsrc%5Etfw
President Trump "wants this war with Ukraine to end. And he wants to know: Are the Russians serious about ending the war, or not serious about ending the war?" Rubio said in the Thursday interview.
"The only way is to test them, to basically engage them and say, okay, are you serious about ending the war, and if so, what are your demands," he added.
While explaining he's "not a fan of most of what Vladimir Putin has done" - Rubio made clear that "We ultimately have to be able to talk to a nation that has, in some cases, the largest tactical nuclear weapons stockpile in the world, and the second largest, if not the largest, strategic nuclear weapons stockpile in the world."
"I don't think he's very important to be at meetings," Trump says of Zelensky.
"Frankly I wish he didn't go there," he says of Treas Sec Scott Bessent. "It was a wasted trip."
— Jennifer Jacobs (@JenniferJJacobs) https://twitter.com/JenniferJJacobs/status/1892958533152338412?ref_src=twsrc%5Etfw
Watch: President Trump spoke to Zelensky right after he hung up with Putin. Rubio was present for both phone calls. "To say that we have not consulted with them is not accurate, it’s not true."
Marco Rubio https://twitter.com/SecRubio?ref_src=twsrc%5Etfw
— NanLee Marie Carissimi (@NanLee1124) https://twitter.com/NanLee1124/status/1892805464515088884?ref_src=twsrc%5Etfw
The State Department recently described that such talks are ongoing, saying Trump and Putin appointed "respective high-level teams to begin working on a path to ending the conflict in Ukraine as soon as possible," according to a statement.
* * *
Watch the full interview below:
EXCLUSIVE: Our full, unedited interview with Secretary of State Marco Rubio(https://twitter.com/SecRubio?ref_src=twsrc%5Etfw
) on his first 30 days leading the Department.
Restarting U.S./Russia relations following the Biden Administration, direct engagement with Ukraine, U.S. proposal for Gaza, preventing Iranian… https://t.co/cxkHmNZWw0
— Catherine Herridge (@C__Herridge) https://twitter.com/C__Herridge/status/1892766345760014657?ref_src=twsrc%5Etfw
https://cms.zerohedge.com/users/tyler-durden
Fri, 02/21/2025 - 13:05
Delta Offers $30,000 To Each Passenger Aboard Plane That Crashed, Flipped In Toronto
Delta Offers $30,000 To Each Passenger Aboard Plane That Crashed, Flipped In Toronto
(emphasis ours),
Delta Air Lines is offering US$30,000 to each of the 76 passengers aboard the plane that flipped upside down while landing at the Toronto Pearson International Airport on Feb. 17.
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Those hurt in the crash sustained non-critical injuries, according to the airport’s chief executive.
A Delta spokesperson said the payment offer is a good-faith gesture with no strings attached, according to a statement sent to media outlets on Feb. 19. They will be offered to all passengers, not just the injured.
There were 76 passengers and four crew members aboard Flight 4819 when it crashed during landing and overturned at a snowy Toronto-Pearson International Airport just after 2 p.m. EST on Feb. 17.
Communications between the tower and pilot were normal on approach, and the cause of the crash is still under investigation. The airport’s fire chief has said that the runway “was dry and there was no crosswind conditions.”
The flight originated from Minneapolis. There were no fatalities, though 21 people were injured. As of the morning of Feb. 19, one person remained in the hospital, according to an update by the airline.
The crash left passengers, who were buckled into their seats, dangling upside down, before being helped by the crew to get off the plane.
If all passengers aboard the jet, a Mitsubishi CRJ-900LR, take the offer, the total payout amounts to more than $2.2 million. Some passengers have already retained legal representation to pursue further action.
The airport authority has credited the actions of the flight crew and first responders in saving the passengers.
“The crew of Delta flight 4819 heroically led passengers to safety evacuating a jet that had overturned on the runway, on landing amidst smoke and fire,” Greater Toronto Airports Authority CEO Deborah Flint said on Feb. 18.
The plane’s cockpit voice recorder and flight data recorder have been recovered and sent to a lab for further analysis, according to the Transportation Safety Board of Canada, which is leading the investigation into the incident.
“Following this initial impact, parts of the aircraft separated and a fire ensued,” Transportation Safety Board of Canada senior investigator Ken Webster https://www.youtube.com/watch?v=FbDDBXe1TFg
in a Feb. 18 update. “The fuselage came to rest slightly off the right side of the runway, upside down, facing the other direction.”
The agency has said it’s still unclear what led to the crash.
“At this point, it’s far too early to say what the cause of this accident might be,” Webster said.
The U.S. Federal Aviation Administration, U.S. National Transportation Safety Board, Delta’s incident response team, and Mitsubishi, the maker of the CRJ900 aircraft (originally made by Bombardier), are also taking part in the investigation.
As of Feb. 19, two of the airport’s five runways remained closed. Crew began removing parts of the wreckage on Feb. 19. The airport authority says once the wreckage is removed, it is expected that delays will persist as authorities inspect the runway to ensure everything is in proper condition.
Jennifer Cowan and The Canadian Press contributed to this report.
* * *
You can support ZeroHedge by picking up a https://store.zerohedge.com/zerohedge-waxed-canvas-hat
!
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Fri, 02/21/2025 - 11:30
Another Undersea Fiber Optic Cable Damaged In Baltic Sea As Incidents Pile Up
Another Undersea Fiber Optic Cable Damaged In Baltic Sea As Incidents Pile Up
A new subsea data cable incident occurred in the Baltic Sea on Thursday, raising concerns about the vulnerability of underwater infrastructure in the heavily trafficked shipping lane. The incident adds to increasing fears of potential sabotage in the region.
Mattias Lindholm, a spokesman for the Swedish Coast Guard, told https://www.nytimes.com/2025/02/21/world/europe/baltic-sea-cable-sweden.html
that the C-Lion1 Finland-Germany fiber line was damaged off the Swedish island of Gotland in the Baltic Sea. He provided no details on when the damage occurred or what caused it.
Prime Minister Ulf Kristersson of Sweden said that his government took "all reports of possible damage to infrastructure in the Baltic Sea very seriously."
Finnish networking company Cinia, which operates the high-speed fiber line, told https://www.bloomberg.com/news/articles/2025-02-21/sweden-reports-another-damaged-submarine-cable-in-baltic-sea
that the connection between Finland and Germany remains uninterrupted. However, they noted there appears to be a "scratch" on the line but provided no further details.
What is clear is that the cable was not completely severed, unlike previous incidents in recent years.
Between November and January, there were three incidents of damaged undersea cables in the Baltic Sea - from data cables to power cables...
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"It's a great concern to see the number of incidents over recent months in our critical undersea infrastructure," Henna Virkkunen, executive vice president of the European Commission for tech sovereignty and security, told reporters in Helsinki, adding, "These incidents have the potential to disrupt vital services to our society, such as connectivity and electricity transmission, and also carry a significant security risk."
However, a Washington Post article last month citing anonymous officials said these cable incidents were likely caused by https://www.zerohedge.com/geopolitical/wapo-undersea-cable-damage-baltic-sea-result-accidents-not-russian-sabotage
. Sure.
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Fri, 02/21/2025 - 07:45
Subprime Redux: Commercial Real Estate Bond Distress Hits Another Record High
Subprime Redux: Commercial Real Estate Bond Distress Hits Another Record High
At the end of Q4 2024, commercial real estate continued to exhibit severe weakness, with commercial real estate bonds hitting record distress levels, surpassing the previous records reached in Q3 2024. Commercial real estate bonds are just commercial real estate loans packaged into securities and sold to investors. One category of bonds, commercial mortgage-backed securities (“CMBS”), saw their https://cred-iq.com/blog/2025/01/09/office-distress-rate-eclipses-17/
, a fourth consecutive monthly record.
Most notably, in the CMBS category—which comprises approximately $625 billion in outstanding commercial real estate debt—loans on office properties now exhibit a distress rate above 17 percent while apartment loan distress accelerated to 12.5 percent. While loans underlying CMBS bonds—which are generally longer-term and fixed-rate—appear woefully insolvent, another group of bonds comprising short-term floating-rate commercial real estate loans are even worse.
These bridge loans—which are packaged up into CRE-CLO (commercial real estate-collateralized loan obligation) bonds—represent roughly $75 billion of outstanding commercial real estate debt today. At year-end, they were sporting a https://cred-iq.com/blog/2025/01/17/cre-clo-distress-rate-reaches-a-new-record-high-of-13-8-in-december-driven-by-a-180bp-increase-in-special-servicing-transfers/
, eclipsing the prior record of 13.1 percent set at the end of Q3 2024.
.jpg?itok=ePbm3lgL
Worse than It Looks
As bad as the above stats may seem, they do not convey the true extent of malinvestment in commercial real estate, and the consequences thereof. For starters, the analysis leaves out the market for https://internationalbanker.com/banking/commercial-real-estate-loans-a-ticking-time-bomb-for-us-banks/
.
Simple distress rates also fail to recognize the potential for distress in nominally healthy loans, only identifying those that have explicitly been deemed distressed. In this case, distressed means 30 days or more delinquent on a payment, past the maturity date, currently in special servicing (a condition where property performance puts the health of a loan in jeopardy or specific loan agreement clauses have been violated), or a combination thereof.
A loan that is not currently distressed can nonetheless be potentially distressed and susceptible to losses once that distress is formally recognized. A recent analysis, published in a https://www.wsj.com/real-estate/commercial/apartment-loans-distress-2cab11c0
, of distress in CRE-CLO bonds for apartments noted that 81 percent of such loans showed this potential distress.
Lastly, the distress rate is simply a measure of the loan balances considered distressed divided by all outstanding loan balances. As a metric, it does not convey the magnitude of losses in the event of default. This is critical, as it pertains to specific values by which these loans—and their corresponding bonds—must eventually be marked down. Once “marked to market,” these losses can have a significant impact on the financial statements of bond holders, comprising vast swaths of institutional investors—including banks—that must ultimately account for the true value of this $4 trillion asset class.
And therein lies the rub. Bondholders have not marked these investments down to their true value. Realizing losses on bonds reduces net income and balance sheet values for those bondholders. This, in turn, can affect perceived financial health, ability to raise capital, and—especially for banks—threaten compliance with regulatory requirements.
By avoiding marking down their bonds, they’ve been able to escape the ramifications for the time being. These bondholders can ignore reality, but they can’t ignore the consequences of ignoring reality. Ultimately, the truth will out. Bonds and loans require a certain amount of cash to support their contractual debt service requirements and, at some point, the fact that the loans do not generate enough cash will become unavoidably apparent. To see the matter clearly, a close look at the bond data—at the level of the underlying loans and properties—is required.
Anatomy of a CRE-CLO Bond
A randomly selected bond I reviewed comprises loans from 63 apartment properties with a total loan balance of approximately $1.7 billion. Upon review, it is immediately clear that this bond is insolvent. 15 of the 63 loans are currently delinquent to some degree and an additional 4 loans are not currently delinquent but have been delinquent at some point in the last 12 months.
The weighted average https://www.investopedia.com/terms/d/dscr.asp
(“DSCR”)—the ratio of net cash flow to debt service—for the entire bond is a lousy 0.54x. This means that the properties comprising the bond’s collateral produce only $54 in net cash flow for every $100 of debt service due. Remarkably, only one of the 63 loans has a DSCR above 1.0x. Recall that these are bridge loans, where debt service is interest-only. Unlike a residential mortgage, no principal is due with debt service payments.
Generally, as properties fail to produce the cash required to meet debt service payments, appraisals are performed to adjust values so that the reappraisal conforms to operational reality. Within this bond, however, only eight of the 63 properties have been reappraised. And of those eight re-appraisals, the average reduction in appraised value has been only 4 percent.
As an example, the property underlying the largest loan within this bond—a 500-unit apartment complex in a large western metro—was reappraised slightly downward in late 2024, from $105 million to $98 million, despite producing less than $3MM in net cash flow and carrying a DSCR of 0.36x. A proper market valuation on this property would likely land in the $50-60MM range, resulting in a $40-50MM loss on this single loan. A similar analysis of all loans within the bond would lead an analyst to suggest a significant impairment to its value.
Lipstick on a Pig
A review of various CRE-CLO and CMBS bonds, particularly those originating in the 2020-2022 period, paints a similar picture to what I’ve just described while offering additional insights.
Line items within the bond data often show loan-level DSCR markedly lower than that indicated by comparing the property’s net cash flow to the current debt service on the loan. This suggests an additional source of debt financing—aside from the loan in question—that is required to be included in the DSCR calculation but is not subject to detailed reporting within the bond data. This additional, https://www.investopedia.com/terms/m/mezzaninefinancing.asp
is provided to distressed borrowers by the bond managers and loan originators in order to temporarily cover current debt shortfalls on the main loan. This has the effect of keeping the loans out of formal delinquency but puts the borrower deeper in debt, exacerbating the existing problem.
Lenders and bond servicers have also offered many borrowers https://www.investopedia.com/terms/f/forbearance.asp
—including temporarily lowering interest rates or allowing cash interest to accrue—making loan and bond performance appear better than it would otherwise. Again, a temporary tactic that kicks the can down the road, doing nothing to address the fundamental problem of poor underlying property performance.
Appraisals and revaluations of the properties underlying the bond’s loans are also not being carried out honestly. This is because the admission of large reductions in property values would lead to the same for loan values, impacting bondholders directly, but also indirectly hurting adjacent entities and industries in a cascading effect. As losses on specific bonds are reported, those bondholders book losses on their own income statement. Equity is reduced on the balance sheet. For banks that hold such bonds, these movements imperil their compliance with regulatory standards. As these pieces of information become public, that cascading effect ripples out from a particular bond to other, similar bonds. Bondholders of all types are then viewed with scrutiny, raising questions about the health of the entire commercial real estate industry and every institution that has exposure to it.
Surprisingly, most or all of these types of bonds—including the specific bond described above—are rated investment-grade and “stable” by rating agencies.
If this sounds a lot like the subprime crisis of 2006-2008, that’s because there are many similarities.
At approximately $4 trillion, the commercial real estate loan market is the same size as the subprime mortgage market at its peak. Also like subprime loans, commercial real estate loans made over the last few years were issued in the midst of a raging bubble that saw prices reach unprecedented levels. To facilitate this bubble, loans were issued repeatedly to those who had no real experience in commercial real estate or investment management.
All of this was underpinned by the hysterical Federal Reserve and US government interventions during the covid panic, pushing monetary and fiscal madness upon the capital markets in the form of near-zero interest rates and trillions of newly-created dollars. The result is a burgeoning crisis in commercial real estate—which the data unmistakably confirms—despite attempts by bondholders to postpone reality.
https://cms.zerohedge.com/users/tyler-durden
Fri, 02/21/2025 - 07:20
Trump's Tariffs – History Has Lessons To Be Followed
Trump's Tariffs – History Has Lessons To Be Followed
,
Interesting times. Just one month into President Donald Trump’s second term in office and one would be forgiven for feeling a little whiplashed. From invoking and revoking Federal Government-wide https://urldefense.proofpoint.com/v2/url?u=https-3A__urldefense.com_v3_-5F-5Fhttps-3A_www.politico.com_news_2025_01_29_trump-2Drescinds-2Dspending-2Dfreeze-2Don-2Dfederal-2Dassistance-2D00201280-5F-5F-3B-21-21JCruJraw-21LLCrhCM-2Dvoc1t-2DRj8jt-5FtauTQ4SLu5-5Fqiy-2D8aWi-5FZG5bUJz3njAaGsJ-2D2j3HWx3N8WYyasxP3jpW3-5FneozSq3UZ4-24&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=aRHuIY93lEZwJRrFe19K2dkXemCAULYjUbZkMZ4rUrA&m=6i5oUCjATDaWbFb53Wk1OkI5IRRSMaoAUz-g2dLo9oPteDf2h--B1iNbmLW2K52W&s=uYsW2ETnZbJa_EsaLhW3fOUJhZxvriGqmXv7SwE1mvQ&e=
to announcing wide-reaching tariffs and then staying implementation those same tariffs, Trump’s second tour White House has started eventfully.
?itok=6r-TN84W
Hopefully, at least as far as Trade Policy is concerned, once personnel are in place, deliberate, rational, and thoughtful trade and trade negotiations will continue that seeks the long-term goals established by the president, while also helping American businesses in the short term to better fight back, level the playing field, and win here in the U.S. market with American consumers.
On President Trump’s first working Monday in office his Office of Management and Budget released a memorandum freezing all federal financial assistance and grants. This might have been a well-meaning attempt for the new Administration to review federal spending priorities, but such a blanket call to freeze funds was unprecedented and confusing to those not consulted – including the other branches of government. Within hours, https://urldefense.proofpoint.com/v2/url?u=https-3A__urldefense.com_v3_-5F-5Fhttps-3A_www.politico.com_news_2025_01_29_trump-2Drescinds-2Dspending-2Dfreeze-2Don-2Dfederal-2Dassistance-2D00201280-5F-5F-3B-21-21JCruJraw-21LLCrhCM-2Dvoc1t-2DRj8jt-5FtauTQ4SLu5-5Fqiy-2D8aWi-5FZG5bUJz3njAaGsJ-2D2j3HWx3N8WYyasxP3jpW3-5FneozSq3UZ4-24&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=aRHuIY93lEZwJRrFe19K2dkXemCAULYjUbZkMZ4rUrA&m=6i5oUCjATDaWbFb53Wk1OkI5IRRSMaoAUz-g2dLo9oPteDf2h--B1iNbmLW2K52W&s=uYsW2ETnZbJa_EsaLhW3fOUJhZxvriGqmXv7SwE1mvQ&e=
the far reaching, over broad memo, but will continue their review of funding – as they rightfully should.
On Tariffs, the Presidential-candidate Trump ran on his plan to utilize tariffs as a tool of foreign policy, economic policy, and to Make America Great Again. It should have come to no surprise that one of the first acts now President Trump did was to threaten the country of Columbia with tariffs if they did not accept back illegal aliens that our government plans to return. Columbia caved on the threat and accepted the returnees.
Next has come a broad 25 percent tariff on Canada and Mexico announced January 31st, 2025. Purportedly tied to the https://urldefense.proofpoint.com/v2/url?u=https-3A__urldefense.com_v3_-5F-5Fhttps-3A_www.foxnews.com_politics_this-2Dabout-2Dfentanyl-2Dtariffs-2Dcrucial-2Dcombating-2Ddrug-2Dwar-2Dtrump-2Dcabinet-2Dofficials-2Dsay-5F-5F-3B-21-21JCruJraw-21LLCrhCM-2Dvoc1t-2DRj8jt-5FtauTQ4SLu5-5Fqiy-2D8aWi-5FZG5bUJz3njAaGsJ-2D2j3HWx3N8WYyasxP3jpW3-5Fneo0np9nQ8-24&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=aRHuIY93lEZwJRrFe19K2dkXemCAULYjUbZkMZ4rUrA&m=6i5oUCjATDaWbFb53Wk1OkI5IRRSMaoAUz-g2dLo9oPteDf2h--B1iNbmLW2K52W&s=kWK7CvtHB8vfzpI5XWku3fV65S5vZWkqV9UeWZumy8s&e=
into the United States, within hours of implementation, Mexico has agreed to send troops to the border to stop illegal immigration, resulting in at least a month delay in imposing the 25 percent tariff on Mexico goods. Canada similarly agreed to work with the Trump Administration to stem the flow of illegal drugs in exchange for a halt to implementation of tariffs.
Bold actions, some positive results, however, a better model could be found in the careful, deliberate negotiated approach of 2017-2020 Trump White House and Team.
Still, with the confirmation of Secretary of Treasury Scott Bessent, Secretary of Commerce Howard Lutnick and nomination of Jamieson Greer to serve as the U.S. Trade Representative (USTR), President Trump has an experienced team coming to hopefully make judicious use of Tariff policy.
Another thing the first Trump Administration got right was a laser focus on China and its predatory practices. Trump’s team needs to continue pushing the goals and intentions of China tariffs – to increase domestic production and jobs across America over Chinese government-assisted and enabled entities. The tariffs are designed to encourage more domestic production, making it at least as expensive to import from abroad over manufacturing domestically.
The tariff regime is broken if it can advantage Chinese companies while disadvantaging American companies. This is an inequity about the current tariff system that President Trump can fix. One example is Milwaukee Tool, which contrary to popular belief is actually a Chinese company. The https://urldefense.proofpoint.com/v2/url?u=https-3A__urldefense.com_v3_-5F-5Fhttps-3A_www.tariffintegrity.org_tti_milwaukeetool-5F-5F-3B-21-21JCruJraw-21LLCrhCM-2Dvoc1t-2DRj8jt-5FtauTQ4SLu5-5Fqiy-2D8aWi-5FZG5bUJz3njAaGsJ-2D2j3HWx3N8WYyasxP3jpW3-5FneoynmWPUF-24&d=DwMFaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=aRHuIY93lEZwJRrFe19K2dkXemCAULYjUbZkMZ4rUrA&m=6i5oUCjATDaWbFb53Wk1OkI5IRRSMaoAUz-g2dLo9oPteDf2h--B1iNbmLW2K52W&s=JS1OVdVzirh-JWkQToig1vXv-oclT08Ip1TpGgKxYaQ&e=
of America and hurting American competitors in the process.
Moving forward, this second Trump Administration should ensure the system doesn’t disadvantage American companies over their Chinese competitors that benefit from government subsidies. Trump should use his tariff authority judiciously, including the use of exemptions to help American companies battle back and, ultimately, invest more in the U.S. and create new manufacturing career opportunities in the process. The same way the threat of tariffs gives the president leverage with world leaders; the use of targeted tariff exemptions can do the same to help American businesses grow strong again.
These are indeed interesting times, and as the old English Phrase connotated, may we live up to their challenges. The second Trump Administration has started with a bang, now the hard work of detailed negotiation and focused policy needs to follow.
Gregory T. Kiley, former senior professional staff member, Senate Armed Services Committee; and U.S. Air Force Officer
https://cms.zerohedge.com/users/tyler-durden
Thu, 02/20/2025 - 23:25
https://www.zerohedge.com/political/trumps-tariffs-history-has-lessons-be-followed