Individual Economists

Who Counts? Trump Poised To Try To Remove Noncitizens From Census

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Who Counts? Trump Poised To Try To Remove Noncitizens From Census

Authored by Bejamin Weingarten via RealClearInvestigations,

Following a years-long surge in illegal immigration, the Trump administration is poised to challenge a longstanding but legally fraught practice: counting illegal aliens in the U.S. census.

President Trump tried to end the practice during his first term, but President Biden overturned his predecessor’s policy before it was implemented. Now, buoyed by red state attorneys general and Republican legislators, the second Trump administration is determined “to clean up the census and make sure that illegal aliens are not counted,” White House Deputy Chief of Staff for Policy Stephen Miller said last month. 

What Miller didn’t mention are the political implications of the administration’s move. It could have significant political implications because the census count is used to apportion House seats, determine the number of votes each state gets in the Electoral College for selecting the president, and drive the flow of trillions of dollars in government funds. 

Some immigration researchers project that including noncitizens in the census count disproportionately benefits Democratic states with large illegal alien populations. A recent study counters that, based on 2020 census figures, there would have been a negligible shift to the political map had the U.S. government excluded noncitizens from that count. But looking backward, those researchers found, red states would have benefited under the administration’s desired census counting shift. Had authorities excluded such migrants from the 2010 census, Louisiana, Missouri, Montana, Ohio and North Carolina all would have gained one seat in the House, while California would have lost three seats, and Texas and Florida would have each lost one seat – with the total number of Electoral College votes allotted each state changing accordingly.

Since the first census in 1790, the nation has counted not only citizens but also residents to determine such representation. In addition to citing its long history, defenders of the practice say it is only fair that states should be given the power and resources to represent and serve everyone within their borders.

Critics contend the government’s powers come from “We the people” – citizens or eligible voters – a government established before tens of millions of migrants resided in the country illegally. They also say the practice dilutes the representation of American citizens while incentivizing localities to promote illegal immigration.

Trump’s first term hints at what is to come if his administration vigorously pursues a citizen-centric census policy. In July 2020, when the president issued a memorandum to exclude illegal migrants from the census, blue states and immigration groups challenged it in court almost immediately. 

Those challenges rose all the way to the Supreme Court. But it did not rule on the merits – whether all residents must be counted and if the president has the authority to exclude nonresidents – setting the stage for a battle over immigration and presidential power.

The Meaning of the 14th Amendment

The census issue hinges on the Constitution’s language, which calls for apportioning House seats among the states “according to their respective Numbers.” Those “Numbers” originally included “free Persons” and “three-fifths of all other Persons” – namely slaves, a result of the states’ compromise. The framers excluded “Indians not taxed” – Native Americans who were members of sovereign tribal nations, not citizens – from the count. 

After the Civil War, Congress passed the 14th Amendment to recognize the rights of the formerly enslaved. It states that congressional representation “shall be apportioned among the several States according to their respective numbers, counting the whole number of persons in each State,” again excluding Indians not taxed. Under the Indian Citizenship Act of 1924, this population would be granted citizenship.

Congress tasked the secretary of commerce with carrying out the census “in such form and content as he may determine.” The president receives that data, is responsible for carrying out the apportionment calculations, and transmits the information to Congress. 

Echoing arguments against birthright citizenship, critics on the right say that the 14th Amendment aimed to address the status of former slaves, not masses of illegal migrants. They assert that including this population in the census artificially skews political power, effectively disenfranchises citizens, and incentivizes states to adopt sanctuary policies protecting people here illegally. 

“…[R]espect for the law and protection of the integrity of the democratic process warrant the exclusion of illegal aliens from the apportionment base, to the extent feasible and to the maximum extent of the President’s discretion under the law,” President Trump wrote in the 2020 memorandum.

The first Trump administration argued that the “persons in each State” that the 14th Amendment refers to had long been interpreted to mean “inhabitants.” Inhabitants, it asserted, do not include “every individual physically present within a State’s boundaries at the time of the census,” noting that past administrations had excluded temporary aliens and foreign diplomatic personnel for apportionment. 

The administration also argued that the Constitution and relevant law authorize the executive branch to determine who is to be counted as an inhabitant in the census. The president, therefore, had discretion to omit “persons with debatable ties to a State,” like “aliens living within a jurisdiction without the sovereign’s permission to settle there.” 

The administration pointed to Franklin v. Massachusetts to support its claims. There, the Supreme Court held that the President George H.W. Bush administration could include Defense Department employees deployed overseas in the census. Then, the Court found that the president’s duties in the census process are not solely “ceremonial or ministerial,” and that federal law “does not curtail the President’s authority to direct the [Commerce] Secretary in making policy judgments that result in ‘the decennial census.’”

In testimony at the Democrat-led July 2020 House Oversight Committee hearing on the Trump memorandum, Republicans tabbed the head of the Claremont Institute’s Center for Constitutional Jurisprudence, John Eastman, to defend it. The conservative legal scholar, much-maligned by the left for the counsel he provided President Trump regarding challenging the 2020 election, recently told RealClearInvestigations that the Declaration of Independence’s “consent principle” – the concept that government derives its power from the American people – “compels that only citizens be counted for purposes of reapportionment,” and that the principle “is actually codified in the Constitution by excluding ‘Indians not taxed.’” In Eastman’s view, that language signifies that the founders sought to omit “those who are not part of our political community, from the apportionment for representation.”

President Trump would be on solid ground, therefore, were he to direct that the census either not count illegal aliens at all, or at the very least record citizenship status so that a proper apportionment of citizens could be conducted,” Eastman said.

The plaintiffs challenging the Trump administration contended that the 14th Amendment’s “persons” includes all residents irrespective of their immigration status; that the president lacked the discretion to deem otherwise; and that the process the administration had put in place to exclude illegal aliens was legally deficient. The president had issued a July 2019 directive in advance of his memo instructing the Census Bureau to collect citizenship data from various federal agencies, which would have been used to exclude illegal aliens from the apportionment count, raising additional legal questions. 

Testifying opposite Eastman at the committee hearing, former Census Bureau directors warned that the president’s memo would spook potential respondents and suggested the memo would minimally create the appearance of politicizing the census.

Trump’s action reflected an “illegal desire of only counting citizens,” said Vincent Barabba, former Census Bureau director under the Nixon, Ford, and Carter administrations. “[H]is real objective…is to make sure less people will be counted in states with large minority populations which did not support President Trump or the positions he has taken.”

When litigation over the Trump census policy reached the Supreme Court, it punted. In December 2020, the justices held by a 6-3 margin in Trump v. New York that the plaintiffs lacked standing, and that the case was not ripe for adjudication – with Justices Steven Breyer, Sonia Sotomayor, and Elena Kagan dissenting.

Upon taking office, President Biden issued a first-day executive order revoking both of Trump’s policies. Excluding people based on their immigration status “conflict[s] with the principle of equal representation enshrined in our Constitution, census statutes, and historical tradition,” Biden wrote. “Reapportionment shall be based on the total number of persons residing in the several States, without regard for immigration status.”

States Provide a Backup Plan

The first Trump administration lost a related case at the Supreme Court. In 2018, the administration reinstated a question on the decennial survey about the citizenship status of respondents – a move that likewise came under furious legal challenge.

The Commerce Department stated that it reinstated the question at the behest of the Justice Department, which was seeking superior data on voting-age citizens necessary to enforce the Voting Rights Act. Critics sued the administration, saying that including the question, which administrations had dropped after 1960, would chill immigrant respondents, leading to an unconstitutional undercount.

In June 2019, the justices found that while reinstating such a question was legal, the process by which the president sought to do so was invalid, since the Commerce Department’s rationale for including it was “contrived” and “pretextual” – in violation of the Administrative Procedure Act.

If the second Trump administration fails to win court approval of its expected effort to exclude illegal migrants, this time around, it will have backup. 

Three days before Trump’s second inauguration, Louisiana, Kansas, Ohio, and West Virginia sued the Commerce Department, arguing that its prevailing practice of counting foreigners including illegal aliens at their place of “‘usual residence…’ robb[ed] the people of the Plaintiff States of their rightful share of political representation, while systematically redistributing political power to states with high numbers of illegal aliens and nonimmigrant aliens.”

They want the federal court, among other things, to vacate this “Residence Rule” to the extent it requires the Census Bureau to “include illegal aliens and nonimmigrant aliens in the apportionment base.” And they want to require the Census Bureau to include questions on the survey about citizenship, including one to determine whether non-citizen respondents are lawful permanent residents.

In March, the federal court stayed the case at the Trump administration’s request. The administration said it needed time “to determine its approach to the Residence Rule.” The White House and states plan to provide a joint status update on July 1.

The Justice and Commerce Departments did not respond to RCI’s requests for comment.

Republicans Seek a Legislative Fix

In the interim, Congress has acted. During the last session, Republican members introduced the Equal Representation Act, requiring the census to include a citizenship question and exclude all non-citizens from the census count for apportionment.

Democrats panned the bill, with the then-ranking member of the House Oversight Committee, Jamie Raskin, writing in a minority report that “The plain reading of the [constitutional] text is clear as day, and the original purposes have been carefully articulated and never rebutted. For those who like to follow precedent, every apportionment since 1790 has included every single person residing in the United States, not just those lucky enough to have been given the right to vote.”

In 2016, the Supreme Court held that a state or locality may draw legislative districts based on total population, irrespective of the fact that some districts may have significantly larger voter-eligible populations than others. 

Writing for the majority, the late Justice Ruth Bader Ginsburg said that “we need not and do not resolve whether…States may draw districts to equalize voter-eligible population rather than total population.”

Fifty years prior, the Court held that Hawaii could use a registered-voter population base for its apportionment of state legislative seats due to the “large concentrations of military and other transients” in key population center Oahu.

In May 2024, the House passed the Equal Representation Act on a largely party-line vote, but it failed to advance in the Senate.

The current House reintroduced the bill by North Carolina Republican Rep. Chuck Edwards. He told RealClearInvestigations that “Americans deserve fair and equal representation, something that will not be possible until we eliminate the influence of noncitizens in our elections.”

The bill must first move through the Oversight Committee, chaired by Kentucky GOP Rep. James Comer. He told RCI that “American citizens’ representation in Congress should not be determined by individuals who are not citizens of the United States.” 

Comer said his committee plans to move the bill again during this congressional session.

The states suing the Commerce Department are adamant that their view should prevail irrespective of legislative action.

Christopher Hajec, Director of Litigation at the Immigration Reform Law Institute – a legal nonprofit opposed to “unchecked mass migration” that is representing Kansas in the pending states’ suit – told RCI that “Whatever Congress does or does not do, our position is that the Constitution implies that illegal aliens should not be counted in the census for apportionment.”

Tyler Durden Fri, 06/27/2025 - 08:05

Xiaomi Outmaneuvered Silicon Valley With Launch Of New SUV, AI Glasses 

Zero Hedge -

Xiaomi Outmaneuvered Silicon Valley With Launch Of New SUV, AI Glasses 

A team of Goldman Sachs analysts, led by Timothy Zhao, raised their 12-month price target for Chinese EV-maker Xiaomi after its newly launched YU7 SUV garnered 200,000 preorders within minutes and nearly 300,000 in the first hour. The massive demand solidifies Xiaomi's position as a serious challenger to Tesla in the world's largest EV market.

At the launch event on Friday, founder Lei Jun positioned the YU7 against Tesla, echoing his past comparisons between Xiaomi's Mi phones and Apple's iPhone. The YU7 undercuts Tesla's Model Y in price, with a showroom price of 253,500 yuan ($35,360). The top-tier version offers a 760 km (472-mile) range, 800V fast charging, lidar-based driver assistance, and luxury features like massage chairs and oversized screens.

"We believe consumer demand for Xiaomi YU7 far exceeds our and market expectations (i.e., 150k orders within the first 24 hrs), which should enable Xiaomi to continue consolidating its leadership position in the premium auto market in China," Zhao wrote in a note on Friday morning. 

Zhao raised his 12-month forward SOTP-based target price by 6% to HK$69 (up from HK$65) due to strong demand for the YU7. The analyst maintained a "Buy" rating on the stock.

Shares in Hong Kong closed up 3.6% on the day and are now up 71% year-to-date, breaking out into a blue-sky territory.  

Xiaomi's auto division is expected to turn profitable by the second half of 2025, an unusually fast trajectory. The EV push comes despite regulatory scrutiny following a fatal SU7 crash and broader industry warnings from authorities over driver assistance software, ongoing EV price wars, and accounting practices.

Also unveiled were AI smart glasses, the MIX Flip 2 foldable phone, and a new tablet powered by Xiaomi's in-house chip, reinforcing Lei's ambition to make Xiaomi a global smart device powerhouse that will dominate the 2030s.

Where are the U.S. companies that match Xiaomi's full-stack business model? There are none.

It's time for America to wake up—because the 2030s won't be dominated by siloed tech giants. They'll belong to ecosystem-driven players like Xiaomi—companies that seamlessly integrate smartphones, wearables, smart homes, AI, and EVs under one roof. Let's not also forget drones, humanoid robots, space, ect.... Whoever controls that stack will shape markets, economies, and global influence. The clock is ticking.

Tyler Durden Fri, 06/27/2025 - 07:45

Six Million Student Loan Borrowers On Track To Have Wages Garnished

Zero Hedge -

Six Million Student Loan Borrowers On Track To Have Wages Garnished

Authored by Mike Shedlock via MishTalk.com,

It’s 2 million now with another 4 million projected. And jobs are harder to find.

Student-Loan Borrowers Are at Risk of Docked Pay This Summer

The Wall Street Journal reports Nearly Two Million Student-Loan Borrowers Are at Risk of Docked Pay This Summer

Roughly six million federal student-loan borrowers are 90 days or more past due after a pandemic-era reprieve ended, according to TransUnion. The credit-reporting company estimates that about a third of them, or nearly two million borrowers, could move into default in July and start having their pay docked by the government. That’s up from the 1.2 million that TransUnion had estimated in early May.

An additional one million borrowers are on track to default by August, followed by another two million in September. Borrowers fall into default when they are 270 days past due.

Wage garnishment is also set to restart this summer. Until past due payments are paid in full or the default status is resolved, borrowers could see up to 15% of their wages automatically deducted from their paychecks.

Borrowers who have been newly reported as delinquent since then on their student loans have seen an average 60-point drop in their credit scores, according to TransUnion. Nine percent of borrowers who fell into delinquency were current on their payments by April, according to TransUnion.  

The Education Department has been urging borrowers to resume payments and emphasizing the consequences. Roughly 43 million borrowers owe more than $1.6 trillion in student-loan debt. 

More than nine million of them are expected to see their credit scores drop this year, according to data from the New York Fed released in March. 

This is no small deal. Millions of zoomers and millennials are spending every penny right now and struggling.

Now come wage garnishment up to 15 percent.

And those graduating now are struggling with a much tougher job market.

Gen Z College Grads Hit the Job Market at the Worst Possible Time

Business Insider reports Gen Z College Grads Hit the Job Market at the Worst Possible Time

Zoomers are staring down a tough hiring market: Economic uncertainty has contributed to employees’ wariness to quit and companies’ hesitancy to hire. Artificial intelligence is disrupting the entry-level rung of the career ladder in industries like tech. Recent graduates have told Business Insider that they’re frustrated by hundreds of rejected applications and being ghosted by prospective employers. Some are settling for whatever work they can find.

It’s long been typical for 20-somethings to have a higher unemployment rate than the general population, and the overall US unemployment rate is still relatively low. One relatively new development, however, is that young people with college degrees are being hit hard by the economic slowdown — especially if they’re hoping to land a role in traditionally white-collar fields. Many Gen Zers are losing faith in the ROI of higher education and are turning toward blue-collar opportunities.

The unemployment rate for recent college graduates ages 22 to 27 has soared compared to unemployment for all workers ages 16 to 65 in recent years. This is a new trend: young people with degrees have historically almost always been more likely to be employed than the rest of the labor force.

The unemployment rate gap between the total workforce and recent grads was historically wide this spring, meaning that the job market for 20-somethings with degrees is among the worst the cohort has seen in at least four decades. Those who studied anthropology, physics, or computer engineering had the highest unemployment rates in 2023, per the Federal Reserve Bank of New York’s analysis of Census Bureau data.

The pool of jobs available for Gen Z — and the workforce as a whole — to apply for has shrunk. Job openings have cooled from 12 million in March 2022 to 7 million this past April. In what’s been dubbed the Big Stay, current employees are holding on to their seats as well, with the monthly quit rate falling from 3% in March 2022 to 2% this past April.

Small and midsize businesses aren’t hiring as many recent grads

Gusto, a payroll and benefits platform for small- and medium-sized businesses, found the rate of primarily white-collar hires aged 20 to 24 at small and midsize employers has fallen from pre-pandemic levels, declining from 9.4% in May 2019 to 2.7% this past March.

Even if new graduates have a job, they may be working in a role that doesn’t typically require a college degree. While this figure fluctuates over time, the share of 20-somethings who have jobs they’re overeducated for is rising in 2025. It coincides with the generation’s pivot toward skilled-trades roles such as electricians or plumbers.

Fed Chair Jerome Powell says the labor market is healthy.

I disagree.

Tyler Durden Fri, 06/27/2025 - 07:20

10 Friday AM Reads

The Big Picture -

My end-of-week morning train WFH reads:

The Business of Betting on Catastrophe: World Bank pandemic bonds paid out only after death tolls passed a threshold. They’re part of a booming market where investors turn calamity into capital. (MIT Press Reader)

EU Considers Lowering Tariffs on U.S. Imports in Effort to Woo Trump: European leaders to debate what they could give up to secure speedy trade deal. (Wall Street Journalbut see also Tracking Every Trump Tariff and Its Economic Effect.  Here’s a compilation of measures both implemented and planned, accompanied by a Bloomberg Economics view on the effect. (Bloomberg)

Lessons on Money & Life I Learned From Warren Buffett. The 94-year-old “Oracle of Omaha” announced at his last shareholder’s meeting that he’s stepping down as CEO of Berkshire Hathaway at the end of this year. Though I never met him, he has taught me a lot about money — and life. Here are some brilliantly simple lessons for us all that I learned from Warren Buffett. (Advisor Perspectives)

Happy Birthday, Money. This currency proved to be both a blessing and a curse for the war effort. It’s not mere history: Both the successes and the failures offer crucial lessons about how monetary and fiscal decisions affect the economy, and how they shape the credibility of the nation as a whole. Those lessons have resonated through all the intervening years of independence, expansion, conflict, depression, war, reinvention and more. Today the prospects for our currency are starting to turn ominous again. (New York Times)

Don’t Be Fooled by Treasury Yields: Adjusting appropriately for inflation is key to understanding the expected payoff from government securities versus stocks. (Bloomberg)

The Computer-Science Bubble Is Bursting: Artificial intelligence is ideally suited to replacing the very type of person who built it. (The Atlantic)

Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? He’s a sports mogul, small-business influencer, media personality, health-care disruptor—and the ultimate Trump foil. (Businessweek)

When Does Consciousness Emerge in Babies? Answering the question of when consciousness emerges is deeply tied to the mystery of what it actually is and how it can be measured. (Scientific American)

When Iran’s supreme leader emerges from hiding he will find a very different nation: After spending nearly two weeks in a secret bunker somewhere in Iran during his country’s war with Israel, the supreme leader, Ayatollah Ali Khamenei, 86, might want to use the opportunity of the ceasefire to venture out. (BBC)

This songwriter shaped today’s country music. You’ve never heard of him. Ashley Gorley spent years trying to crack the code behind a hit song. It paid off. We asked him for the stories behind some of his record-breaking 83 No. 1 songs. (Washington Post)

Be sure to check out our Masters in Business this week Velina Peneva, Group Chief Investment Officer, Swiss Re: Previously, she was PE practice leader in Zurich ay Bain & Company.

 

Due to historical and geographical reasons, European countries tend to spread their populations across many medium and smaller cities rather than concentrating everyone in a few megacities

Source: @simongerman600

 

Sign up for our reads-only mailing list here.

 

The post 10 Friday AM Reads appeared first on The Big Picture.

What Types Of Jobs Will Survive The AI Revolution?

Zero Hedge -

What Types Of Jobs Will Survive The AI Revolution?

Authroed by Javier Simon via The Epoch Times (emphasis ours),

As artificial intelligence (AI) spreads its tentacles into industries throughout the globe, many wonder whether their jobs are on the chopping block. And it’s not surprising.

A photographer takes a picture of AI robots at an AI summit in Geneva, Switzerland, on July 7, 2023. Fabrice Coffrini/AFP via Getty Images

Today, it seems like you can do anything with AI. And the world’s biggest companies are pumping billions into this emerging technology.

But despite its rapid development, AI has struggled to replicate interpersonal communication, creativity, and critical thinking. And jobs that require these skills are considered by experts to be less likely to be overtaken by AI.

“While AI can be proficient at handling logical and repetitive tasks, it cannot match the creativity and emotional intelligence inherent in humans,” Smart Forum, a digital services provider for businesses, stated in a blog post. “AI cannot replace jobs that require human intuition, empathy, ethical judgment, emotional depth and physical presence.”

So let’s take a look at some of the fields that could stand strong in the face of the AI job-eating machine.

Health Care Professionals

While AI can contribute to diagnosis and treatment, it simply can’t replace the human touch offered by experienced doctors, nurses, therapists, and psychologists.

In fact, employment of registered nurses alone is expected to grow 6 percent from 2023 to 2033, or faster than the average for all occupations, according to data from the Bureau of Labor Statistics (BLS).

In addition, the BLS expects demand for health care professionals to grow because of an increase in the number of older citizens who tend to require more health care.

Overall, the future seems bright for the health care field—and even AI may not be able to keep up. Here are the median salaries for different members of the health care system, according to the BLS:

Skilled Trades

Can AI swing a hammer? No, thankfully. Skilled laborers like construction workers, electricians, plumbers, and carpenters rely heavily on hands-on skills, complex problem solving, and critical thinking in real time. This is something AI struggles to mimic.

And it’s a good time for skilled tradespeople. Cities throughout the country are experiencing construction boosts, leading to a spike in demand for skilled laborers. Plus, an aging workforce is creating a hole that these people would need to fill. The job outlook for construction workers between 2023 and 2033 alone is 7 percent, faster than average, according to the BLS. Here are, according to BLS data, the median salaries for different tradespeople:

Educators

AI can certainly solve complex math problems and answer your questions about science, history, and much more. But an educator’s role goes beyond simply transferring knowledge.

Teachers strive to develop personal connections with their students in order to understand their unique needs and adapt their techniques accordingly. It’s a very “human” role that AI may have trouble trying to imitate. Plus, the median pay for high school teachers in 2024 was $64,580 per year, according to BLS data.

Creatives

Sure, AI can write articles and produce graphics and audio. But can it really capture what’s unique to a creative’s mind? The answer is a resounding “No.” That’s why writers, musicians, painters, and others who draw from the mind and heart should not fear the rise of AI.

Lawyers

You may think that feeding every law book into an AI algorithm would make it a good digital lawyer. But the machine lacks the critical thinking skills and acumen that a human lawyer displays in court. And skilled lawyers make a good amount of money. The mean annual wage for a lawyer is $151,160, according to research from the BLS.

Social Worker

Being a good social worker requires empathy, care, and a drive to help people get through their darkest hours. It is human at its core, and AI simply can’t compete on an emotional level. And the field is expected to expand. The BLS estimates a 7 percent growth in employment for social workers between 2023 and 2033, faster than the average for all occupations.

The Bottom Line

AI can be as revolutionary as it is alarming. Many people worry that their livelihoods could be replaced by machines and complex algorithms. But no matter how advanced AI gets, it likely won’t develop the human touch. Jobs that require interpersonal skills, emotional support, empathy, critical thinking, and complex problem solving are likely to survive the AI revolution.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. 

Tyler Durden Fri, 06/27/2025 - 06:30

U.S. House Bans WhatsApp Over Data Security Concerns

Zero Hedge -

U.S. House Bans WhatsApp Over Data Security Concerns

The U.S. House of Representatives has officially banned the use of WhatsApp on all government-issued devices, citing serious cybersecurity concerns, according to The Guardian.

In a memo sent Monday, the House’s Office of Cybersecurity warned staff that WhatsApp poses a “high-risk to users due to the lack of transparency in how it protects user data, absence of stored data encryption, and potential security risks involved with its use.”

The notice, issued by the Chief Administrative Officer (CAO), advised House employees to use alternative messaging platforms considered safer by the office. Recommended apps included Microsoft Teams, Amazon’s Wickr, Apple’s iMessage and Facetime, and Signal.

Meta, the parent company of WhatsApp, strongly objected to the ban and the reasoning behind it.

“We disagree with the House Chief Administrative Officer’s characterization in the strongest possible terms,” a Meta spokesperson said. “We know members and their staffs regularly use WhatsApp and we look forward to ensuring members of the House can join their Senate counterparts in doing so officially.

Messages on WhatsApp are end-to-end encrypted by default, meaning only the recipients and not even WhatsApp can see them. This is a higher level of security than most of the apps on the CAO’s approved list that do not offer that protection.”

The Guardian writes that among the apps still permitted is Signal, which also provides end-to-end encryption. However, Signal has recently faced its own controversy. Defense Secretary Pete Hegseth reportedly used private Signal group chats to discuss sensitive military actions, including details of planned strikes on Yemen.

According to reports, one chat group was created by National Security Adviser Mike Waltz and included top U.S. security officials — as well as, unintentionally, journalist Jeffrey Goldberg from The Atlantic. A second group, created by Hegseth, reportedly included his wife, brother, and about a dozen others.

Despite Signal’s encryption, the Pentagon has expressed concerns about its use. A March 18 bulletin, described by NPR as an “OPSEC special bulletin,” warned Pentagon employees that Russian hackers could exploit a known vulnerability in Signal. The memo indicated that encrypted messaging apps could be targeted by state-backed cyber actors seeking to access sensitive communications.

While apps like Signal remain authorized for sharing general, unclassified information, the Defense Department memo clarified that “third party messaging apps” must not be used to transmit “non-public” unclassified content, reinforcing ongoing caution across federal agencies regarding digital security practices.

Tyler Durden Fri, 06/27/2025 - 05:45

Europe's LNG Gamble Exposed By Middle East War

Zero Hedge -

Europe's LNG Gamble Exposed By Middle East War

Authored by Irina Slav via OilPrice.com,

  • The Israel-Iran conflict has driven up diesel, jet fuel, and gas prices.

  • With 20% of global LNG flowing through the Strait of Hormuz, even threats of disruption have raised EU gas prices by 20%.

  • Europe’s refusal to sign long-term LNG deals or develop local hydrocarbon resources is backfiring.

Oil and the security of its supply have stolen the media spotlight in the context of the new Middle East war, and with good reason. Ever since Israel first bombed Iran, diesel prices have soared, jet fuel prices have soared, and importers have been troubled. For Europe, the situation is even worse due to natural gas.

Europe has been hurt more than others by the diesel price surge because it has boosted its imports considerably over the past years. About 20% of the diesel Europe consumes comes from imports, and a lot of these imports come from the Middle East. The situation is not much different in jet fuel. Europe depends on imports and a solid chunk of these imports comes from the Middle East.

What’s true of these essential fuels is doubly true of natural gas—even though direct imports of gas from the Middle East constitute a modest 10% of total imports. Yet they constitute a substantial portion of global gas exports, so any suggestion of disrupted supply affects gas prices in exactly the same way it has affected oil prices—and makes a vital commodity less affordable for Europeans.

The latest import figures from the European Commission, for 2024, show that Norway was the EU’s biggest supplier of natural gas via pipeline, and the United States was its biggest supplier of liquefied natural gas. Other large suppliers of LNG included—awkwardly—Russia, with 17.5% of the total inflows of LNG, and Algeria, with 10.7%. Qatar’s share in EU LNG imports stood at 10.4%, largely because Qatar prefers to deal in long-term contracts, and European Union planners don’t.

Yet it is not these 10.4% that matter. It is the fact that around 20% of global LNG trade passes through the Strait of Hormuz and Iran threatened to close the waterway in response to Israeli and U.S. attacks. This prompted a jump in European natural gas prices by a fitting 20% per the Financial Times, which highlighted the dangers of import dependence in energy commodities.

To be fair, the European leadership is aware of these dangers.

They are one reason for many European leaders’ near-obsession with the energy transition, on the assumption that wind and solar would be able to provide local energy—which is true—and that this energy can replace that provided by gas—which is not true. The latter was proven rather conclusively by the April 28 events in Spain, although it will be a while before the facts become accepted.

In the meantime, Europe is in for more suffering, even if Iran doesn’t close the Strait of Hormuz, which for the time being seems to have been taken off the table amid ceasefire efforts. The reason is that Europe needs to refill its gas storage caverns for next winter. Even if it cancels the 90% refill rate requirement, it still needs to buy a lot of gas, most of it on the spot market because of that aversion to long-term gas commitments it believes is part and parcel of the transition effort. And geopolitics has made LNG costlier—which will add billions to the refill bill.

Earlier this year, it became clear that Europe’s bill for natural gas would be higher this year than last because the winter of 2024-25 was colder and storage levels fell lower than in the previous two years. So, this year, Europe needs to buy more gas, adding some $11.2 billion to its total tab. But that was before the latest Middle Eastern war broke out. Now, the tab has gone further up—and Europe is already struggling with high energy costs, not least because of its dependence on LNG imports.

Once again, then, Europe would need to rely on luck. If it is lucky, demand for liquefied natural gas from Asia will remain tepid, as it has been over the first half of the year. If it is lucky, the war between Israel and Iran will be over within the month, removing the supply disruption premium from LNG prices. If it is lucky, finally, winter 2025-26 will be as mild as winter 2023-24 and gas demand will be lower.

Even if Europe gets lucky on all three, however, the cost of its energy will remain elevated compared to places such as China and the United States—its main business rivals. The reason is as simple as it is unpalatable for European political decision-makers: local supply. Both the U.S. and China are putting their local natural gas resources to good use. Europe isn’t, although in all fairness, it doesn’t have as much of an easily accessible gas resource abundance as either the U.S. or even China.

The staunch refusal to develop any hydrocarbon resources locally, however, is as counterproductive as the refusal to make long-term LNG supply commitments. It is a refusal to acknowledge the reality of energy demand and supply. The sooner Europe gets over this, the better for energy supply security.

Tyler Durden Fri, 06/27/2025 - 05:00

Kremlin Condemns White House Envoy's Comparing Iran & Ukraine Wars

Zero Hedge -

Kremlin Condemns White House Envoy's Comparing Iran & Ukraine Wars

Moscow has reacted angrily to fresh words of Trump special envoy to the Middle East Steve Witkoff, who has also been working on US diplomacy with Russia's Putin, after he drew parallels between the Ukraine war and Israel-Iran conflict.

"We’re hopeful that people look at what happened in Iran and say: ‘we want a part of that sort of peace process as well,’" Witkoff told CNBC on Wednesday. "This may well gravitate towards Russia and Ukraine."

In the interview he expressed hope for expanding the Abraham Accords, particularly to Saudi Arabia: "We are hoping for normalization across an array of countries, maybe that people would never have contemplated coming in before," he said. "We’re excited for that prospect. That would also be a stabilizer in the Middle East."

Via Al Jazeera

But the fact that he briefly drew comparison to the Ukraine war, expressing hope that Russia would take note of President Trump's peace 'successes' - has drawn condemnation from the Kremlin:

Israel’s “unprovoked” attack on Iran bears no comparison to the Ukraine conflict, Kremlin spokesman Dmitry Peskov said on Thursday, rejecting an assessment made by the US special envoy to the Middle East, Steve Witkoff.

Witkoff had suggested earlier that the recent ceasefire between Iran and Israel could serve as a model for ending the hostilities between Russia and Ukraine.

Peskov emphasized that the two wars greatly differ in "in their essence and nature" and further asserted that the "Israeli attacks on Iran were absolutely unprovoked."

He said that the Russia-Ukraine conflict is something "going back several decades" - and highlighted constant NATO expansion up to Russa's doorstep, and especially the "armed coup" in Kiev in 2014.

"It is hardly appropriate to draw parallels here," Peskov continued, and said that unlike Israel's and the United States' aerial assaults on Iran, the notion of "peace by force" is not something Russia did in the context of Ukraine. Israeli officials have even dubbed their actions 'preemptive'.

But of course, the West is going to vehemently disagree with this narrative, with the difference fundamentally coming down to whether the Ukraine war was provoked or unprovoked.

The question has increasingly been belatedly hotly debated over the last year, & finally even in mainstream publications...

Tyler Durden Fri, 06/27/2025 - 04:15

Only Political Engineering Can Restore Russian Language Rights In Ukraine Like Lavrov Wants

Zero Hedge -

Only Political Engineering Can Restore Russian Language Rights In Ukraine Like Lavrov Wants

Authored by Andrew Korybko via Substack,

Only the US is capable of pulling this off since Russia lacks influence over Ukraine’s political processes...

Russian Foreign Minister Sergey Lavrov pledged in early June on Russian Language Day that “Russia will not leave Russians and Russian-speaking people in trouble and will make sure that their legal rights, including the right to speak their native language, are restored in full. We will continue to speak about this pressing problem on international platforms. We will insist on having it resolved as a prerequisite for a lasting peaceful settlement of the Ukraine conflict.”

This aligns with Russia’s denazification goal and was included in the memo for ending the conflict that it handed to Ukraine during the second round of their newly resumed bilateral talks in Istanbul. Objectively speaking, the restoration of full Russian language rights in Ukraine is required for a sustainable peace, but this can only be brought about via legislative changes. Therein lies the problem since the Rada isn’t interested in repealing 2019’s “state language law” that entered into force in early 2022.

For precisely this reason, Russia’s memo also calls for elections to the Rada in parallel with those for the presidency, though there still wouldn’t be any guarantee that Russian-friendly forces (in the context of repealing the aforementioned law) would come to power for implementing that pragmatic demand. That’s why political engineering is ultimately required for restoring full Russian language rights in Ukraine, but Russia lacks influence over its political processes as proven by its inability to effect change.

Therefore, this part of Russia’s denazification goal might not be met unless the US takes on this responsibility, which it’d be wise to do so as to remove the roots of another conflict. After all, so long as Russian language rights aren’t fully restored, the Kremlin will keep championing this cause and possibly even consider covert action of some sort in pursuit of it. The millions of discriminated Russian speakers in Ukraine could provide a fertile recruiting ground for such operations after martial law is lifted.

The Trump Administration thus far doesn’t seem interested in that though as evidenced by the absence of pressure upon Zelensky to comply with Russia’s more important demanded concessions for peace like territorial claims and demilitarization. In fact, Trump suggested during his meeting at the White House with new German Chancellor Friedrich Merz in early June that it might be better for Russia and Ukraine to fight each other for a bit longer, which hints that he’s disinterested in these finer details for peace.

Even if he learned about them and agreed that they’re the best way for sustainably ending the conflict, perhaps under the influence of his pragmatic Special Envoy to Russia Steve Witkoff, questions would then arise about the means for politically engineering the desired outcome. It remains unclear how many Rada members will run for re-election, who’d oppose them, and what their position towards this highly sensitive issue would be in the domestic post-conflict context if they won.

Even if these details were known, secretive funding and media support for preferred candidates can only go so far, let alone for politically engineering an outcome where the Rada votes to repeal the “state language law” and the (new?) president doesn’t veto it or is overridden by a two-thirds majority. The most realistic way of advancing this goal is for the US to make post-conflict military and intelligence aid contingent on it being met, but for that to happen, Trump must rethink his entire envisaged endgame.

Tyler Durden Fri, 06/27/2025 - 03:30

UK To Buy US F-35s As Starmer Signals NATO Commitment

Zero Hedge -

UK To Buy US F-35s As Starmer Signals NATO Commitment

The UK will purchase at least 12 U.S.-made F-35A stealth fighter jets, restoring the Royal Air Force’s nuclear strike capability for the first time since 1998, according to Bloomberg.

Prime Minister Keir Starmer announced the move ahead of the NATO summit in The Hague, in a move widely seen as both a gesture to President Donald Trump and a step to reinforce Europe's defense amid doubts about long-term American security guarantees.

“You have to get relatively close to targets in order to drop it,” said Justin Bronk, a senior research fellow at RUSI, referring to the B61-12 tactical nuclear bomb the F-35A was certified to carry in 2023. “If the RAF is to be given a free-fall nuclear capability as part of the beefed-up deterrent plans, the F-35A is the only choice.”

Defense Secretary John Healey emphasized that this is not a new weapons program, but a reinforcement of NATO’s nuclear mission. “We’re facing increasing threats, we’re facing rising nuclear risks,” he told Sky News. “This is not the UK taking on a new nuclear weapon, it’s playing a part in the established nuclear mission in NATO.”

Under current arrangements, the U.S. would retain control over the nuclear bombs, and any deployment would require joint authorization by the U.S. and NATO’s top commander.

The £3.2 billion ($4.4 billion) purchase will include 27 aircraft by decade’s end, replacing more costly short-takeoff versions and supporting 20,000 UK jobs. “These planes will save money,” said defense procurement minister Maria Eagle, explaining that the UK will host 15% of the supply chain.

Bloomberg writes that the announcement comes as NATO is expected to adopt a bold new defense spending target of 5% of GDP, aimed at appeasing Trump’s long-standing criticism of European underinvestment in defense.

Starmer’s move reflects broader European anxiety over Trump’s wavering commitment to NATO’s Article 5, the alliance’s mutual defense clause. With Russia’s war in Ukraine ongoing and fears growing about President Vladimir Putin’s intentions, the UK is renewing its broader nuclear deterrent. This includes £15 billion ($20.4 billion) in new nuclear warheads and up to 12 nuclear-powered submarines as part of the AUKUS pact with the U.S. and Australia.

While most MPs backed the move, critics—including former Labour leader Jeremy Corbyn—warned it undermines nuclear non-proliferation commitments. Eagle dismissed the concerns, saying the UK was “establishing a way to use another state’s nuclear weapons to support an existing mission.”

Starmer’s strategy is to present the UK as a serious NATO contributor while courting a U.S. president known to reward big defense deals. However, Trump has so far offered little in return—ignoring EU calls for stronger sanctions on Russia and launching airstrikes on Iran despite European objections.

Tyler Durden Fri, 06/27/2025 - 02:45

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