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Strategy (MSTR) CEO Says Bitcoin Sale Was About Market 'Inoculation', Not A Retreat

Zero Hedge -

Strategy (MSTR) CEO Says Bitcoin Sale Was About Market 'Inoculation', Not A Retreat

Authored by Micah Zimmerman via BitcoinMagazine.com,

Strategy Inc. CEO Phong Le somewhat pushed back Tuesday against the wave of criticism that followed the company’s first Bitcoin sale since 2022, telling CNBC’s Power Lunch that the move was a deliberate, limited exercise designed to signal operational flexibility — not a philosophical reversal.

“We wanted to inoculate the market and we wanted to test our processes,” Le said in what the network described as a first-time interview. “We learned that everything works.”

Between May 26 and May 31, Strategy sold 32 Bitcoin for approximately $2.5 million at an average price of $77,135 per coin — a transaction that, despite representing just 0.004% of the company’s total holdings, set off an outsized market reaction and reignited debate over whether Michael Saylor’s famous “never sell” doctrine was being abandoned.

Le was careful to frame the disposal in terms of balance sheet management rather than conviction. He cited three reasons for the sale: establishing that Strategy can sell when necessary, confirming that internal systems for executing Bitcoin disposals are fully operational, and creating opportunities to capture tax losses on Bitcoin acquired at lower cost basis — the company has purchased BTC at prices ranging from $10,000 to $125,000 per coin.

Critically, he said the sale was not driven by financial distress.

“We did not need to sell our Bitcoin to satisfy our dividends,” Le said. “We’re able to do that through other capital-raising activities.”

Proceeds from the sale were directed toward distributions on the company’s STRC perpetual preferred stock.

Le also pointed out that Strategy remained a net buyer: on balance, the company purchased approximately 1,500 Bitcoin over the same period it sold the 32 coins.

The most pointed exchange came when the host pressed Le on the backlash from investors who believed Strategy had pledged never to liquidate its Bitcoin reserves. Le acknowledged the frustration but was unapologetic.

“We have a set of constituents that we have to be able to answer to,” he said, listing common stockholders, preferred shareholders, debt holders, and Bitcoin holders. “When it makes sense for our common stockholders for us to sell our Bitcoin, we will.”

Le suggested the loudest critics were retail investors and “crypto anarchists” ideologically committed to permanent hodling — not the institutional shareholders the company interacts with directly.

“Our institutional shareholders that we talked to don’t seem to be unnerved by it,” he said.

This was not Strategy’s first Bitcoin disposal. In December 2022, the company sold 704 BTC at $16,776 per coin and repurchased 810 BTC two days later — a tax-loss harvesting maneuver that exploited the lack of a crypto wash-sale rule.

Jeffrey’s chief market strategist David Zervos, who joined Le on set, asked about the macro picture around Bitcoin, noting weakness across traditional safe-haven assets. Le acknowledged the broader headwinds, citing three macro forces pressuring Bitcoin: uncertainty around the Federal Reserve’s interest rate path, two ongoing global wars, and a lack of regulatory clarity from Congress on pending crypto legislation.

Still, Le remained bullish on Bitcoin’s long-term thesis. 

“I do think Bitcoin is a hedge against inflation. I think Bitcoin is a hedge against big government,” he said, adding that the current environment — potentially a cyclical drawdown — mirrors the roughly 75% pullback seen in May 2022, four years ago.

Bitcoin price and Strategy shares under pressure

The market, for now, is less sanguine. Bitcoin was trading around $61,600 on June 10, 2026 — down more than 40% from its all-time high of $126,198 reached in October 2025. The sell-off deepened after the Strategy announcement coincided with record spot ETF outflows estimated between $2.8 billion and $3.5 billion, triggering $1.8 billion in forced liquidations in a single day.

MSTR shares have been caught in the same downdraft, trading near $117–$127 as of this week — down roughly 67% from their 52-week high of $457.

Strategy has since resumed buying, acquiring 1,550 BTC at an average price of $65,332 between June 1 and June 7 in a move analysts characterized as an effort to restore market confidence. 

As of late May, the company held 845,256 Bitcoin at a total cost basis of approximately $63.97 billion.

Tyler Durden Thu, 06/11/2026 - 07:20

Behavioral Health: HHS and DOJ Offer Grants to Help Human Trafficking Survivors

GAO -

What GAO Found Given the trauma survivors of human trafficking have experienced, they may need behavioral health services, including mental health care services, such as therapy, or substance use disorder treatment. The Department of Health and Human Services (HHS) and the Department of Justice (DOJ) fund grant programs that help provide access to such services. In fiscal year 2025, HHS awarded approximately $7.5 million for two key trafficking survivor services programs and DOJ awarded approximately $45 million for two key programs. The programs assisted approximately 2,600 survivors and 11,300 survivors in that year, respectively, helping them access services. GAO’s review of HHS’s two key grant programs found that the agency followed leading practices in assessing how programs perform. HHS did this by, for instance, setting long-term and measurable near-term goals with targets and time frames that communicated what the agency expected the programs to achieve. For example, to assess its long-term goal to provide services for survivors, HHS set a near-term goal for a grantee to deliver services to 50 survivors in a given fiscal year. DOJ also followed leading practices for its minor survivor assistance program, but did not do so for its adult program. Specifically, DOJ did not set measurable near-term goals for what it expects its adult program to achieve. By setting such near-term goals with targets and time frames, DOJ would be better positioned to assess the effectiveness of its adult program and the progress it makes toward supporting the needs of adult human trafficking survivors. GAO’s analysis of literature and interviews with selected HHS and DOJ grantees and selected stakeholders identified factors that can affect human trafficking survivors’ access to behavioral health services. Such factors included shortages of providers specializing in treating survivors of human trafficking. These are longstanding and complex issues, some of which are beyond federal control. HHS and DOJ officials said they are aware of the factors and have taken actions—such as increasing human trafficking training for behavioral health providers—to help improve survivors’ access to services. Factors That Can Affect Access to Behavioral Health Services for Survivors of Human Trafficking Why GAO Did This Study Human trafficking is a crime that involves compelling or coercing a person to provide labor or engage in commercial sex acts. In 2024, the National Human Trafficking Hotline identified nearly 12,000 human trafficking cases in the United States. The Trafficking Victims Prevention and Protection Reauthorization Act of 2022 includes a provision for GAO to study the accessibility of behavioral health services for survivors of human trafficking in the United States. This report (1) describes the key HHS and DOJ programs that fund behavioral health services for trafficking survivors, (2) evaluates how HHS and DOJ assessed the performance of key programs, and (3) describes factors that can affect survivors’ access to services and federal efforts to improve access. GAO reviewed HHS and DOJ documentation and interviewed agency officials. GAO selected four key programs whose grantees reported providing the largest amount of behavioral health services in recent years and interviewed 15 grantees selected to obtain variation in the amount of services provided and location. GAO analyzed fiscal year 2025 grantee performance data for the four programs, the most recent available. GAO evaluated HHS and DOJ steps for assessing the performance of the programs. GAO also conducted a literature search and interviewed six selected stakeholders, including representatives from survivor organizations and a researcher.

Categories -

Financial Management: Governmentwide Treasury Account Symbol Adjusted Trial Balance System Supports Transparency Efforts

GAO -

What GAO Found The Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) is the central platform federal agencies use to submit standardized data for government-wide financial reporting. GTAS collects budgetary and proprietary data; validates them; and interfaces with other federal systems to support transparency, accountability, and fiscal oversight. Federal laws, including the Chief Financial Officers Act of 1990, the Federal Financial Management Improvement Act of 1996, and the Digital Accountability and Transparency Act of 2014 (DATA Act), require agencies to report standardized financial data. These laws assign implementation responsibilities to the Office of Management and Budget (OMB) and the Department of the Treasury, which issue guidance on budget formulation, technical instructions on GTAS reporting procedures, U.S. Standard General Ledger crosswalks, and attribute requirements. Together, this guidance governs how agencies complete various accounting, validation, and reporting procedures. Through a combination of manual and automated interfaces, GTAS exchanges data with fiduciary authoritative source agencies and major government-wide accounting systems, including the following: Central Accounting Reporting System (CARS) DATA Act Broker Government Invoicing (G-Invoicing) OMB Max Simplified Overview of Selected Data Inflows to and Outflows from GTAS Why GAO Did This Study GTAS plays a central role in the financial management and transparency of the U.S. federal government. It supports a wide array of government financial operations, helping to ensure the accurate reporting of intragovernmental transactions, cash flow, and other financial activities. Federal entities use GTAS as a key system to report financial and budgetary execution information to Treasury. Treasury, in coordination with OMB, uses this information to prepare the annual financial report of the U.S. government. The financial report provides the President, Congress, and the public with a comprehensive view of the federal government’s finances—its revenue, debt, and expenditures. The Government Management Reform Act of 1994 includes a provision for GAO to annually audit the consolidated financial statements of the U.S. government. Because of the importance of GTAS in preparing these financial statements and ensuring the accuracy and completeness of the data, GAO conducted this review to provide a system overview. This report describes the (1) laws and guidance relevant to government-wide financial reporting requirements and the use of GTAS for that purpose, (2) major government-wide accounting systems that interface with GTAS, and (3) data flow and validation processes of GTAS. To address these objectives, GAO reviewed applicable laws, Treasury and OMB guidance, and GTAS system documentation. GAO also discussed GTAS data transmission and validation processes with Treasury officials. Treasury stated the agency did not have any comments on the report. For more information, contact Paula M. Rascona at RasconaP@gao.gov.

Categories -

The Nation's Fiscal Health: Urgent and Sustained Action Needed to Improve the Fiscal Outlook

GAO -

What GAO Found The federal government is on an unsustainable fiscal path that poses serious economic, national security, and societal challenges if not addressed. Nearly every year this century, the government has spent more than it collected in revenue. To finance these deficits, the government has had to borrow by issuing debt. If current spending and revenue policies continue, the nation’s fiscal outlook is projected to deteriorate further, as debt accumulates at a faster rate than the economy grows. GAO projects that under current revenue and spending policies, debt held by the public will reach its historical high of 106 percent of gross domestic product (GDP) by 2029 and grow to 251 percent of GDP in 2056. Debt Held by the Public Projected to Grow Faster than the Economy Projected deficits are driven by projected growth in program spending—largely from Social Security, Medicare, and other federal health care programs—and in interest costs. Under current policy, spending on net interest will be the fastest growing portion of the federal budget and represent an increasingly large share of total spending. The magnitude of policy changes needed to create a sustainable fiscal future for the federal government requires a coordinated strategy that includes fiscal rules to encourage fiscal discipline (and as an alternative to the debt limit); builds consensus about how to reduce annual deficits; addresses financing gaps in the Social Security and Medicare trust funds before they are depleted in 2032 and 2033, respectively; and considers other opportunities to improve fiscal responsibility. Congress and the administration will need to make difficult budgetary and policy decisions to address the key drivers of debt and improve the government’s fiscal outlook. The longer actions are delayed, the more dramatic they will need to be. Why GAO Did This Study GAO produces this annual fiscal health report to examine the current fiscal condition of the federal government and its future fiscal outlook, absent policy changes in revenue and program spending. The report is based on the results of GAO's fiscal simulation using information available as of February 2026. This report presents GAO’s projections—under current policy—of (1) federal debt; (2) primary deficits (the gap between program spending and revenue); (3) interest costs and (4) revenue and spending changes needed for a sustainable fiscal outlook.

Categories -

F-35 Sustainment: Actions Needed to Ensure Updated Strategy Improves Persistent Readiness Challenges

GAO -

What GAO Found Since 2021, F-35 sustainment costs have continued to increase, but the F-35 has not met performance goals and performance has trended down. Across the fleet from fiscal year 2021 through fiscal year 2025: The mission capable rate (percentage of time the aircraft can perform one of its tasked missions) declined from 67 percent to 44 percent. The full mission capable rate (percentage of time the aircraft can perform all of its missions) declined from 38 percent to 25 percent. In response, the F-35 Joint Program Office (JPO) updated its sustainment strategy, which it refers to as the Global Support Solution (GSS) Reset. The GSS Reset requires an estimated $13.7 billion more than previously planned through fiscal year 2031 and seeks to address challenges GAO previously identified, including a lack of spare parts and heavy reliance on contractors. GAO found that multiple risks threaten JPO’s ability to achieve GSS Reset goals. For example, JPO will be reliant on the private sector to deliver more than $7 billion in additional parts and other material. But capacity constraints persist for key parts. Estimated costs for the F-35 also continue to increase. As a result, the U.S. military services will annually face a more than $1 billion gap between the projected costs to sustain their F-35s and their affordability goals by the mid-2030s. GSS Reset is a positive step toward addressing sustainment challenges, but risk mitigation plans would better position JPO to attain GSS Reset goals. Further, JPO’s use of contract incentives did not achieve F-35 readiness goals, due in part to JPO paying incentive fees for performance that did not align with service requirements (see figure). Until JPO ensures the future use of incentives better achieves desired performance, it risks rewarding contractor performance that does not help meet program goals. Minimum Full Mission Capable Rate (FMC) Requirements for Contractors to Receive a Portion of Incentive Fees Compared with Service Requirements, 2020–2023 Why GAO Did This Study The F-35 aircraft is the Department of Defense’s (DOD) most costly weapon system, with lifetime sustainment costs for the United States alone estimated at $1.6 trillion, as of 2024. DOD operates and sustains over 800 U.S. F-35s and plans to buy about 1,700 more aircraft by the mid-2040s. DOD uses the F-35 to perform a wide range of missions. It is vital to the success of U.S. combat operations and homeland defense, according to DOD. The National Defense Authorization Act for Fiscal Year 2022, as amended, includes a provision for GAO to conduct an annual review of F-35 sustainment efforts. This report assesses the extent to which JPO has evaluated the performance of its sustainment strategy and managed sustainment responsibilities with contractors to achieve goals, among other objectives. GAO analyzed performance metrics, cost information, and sustainment contract incentive fee data for, among other things, full mission capable-related goals from 2020 through 2023, the last contract in which that metric was incentivized. GAO also reviewed relevant program documentation and interviewed DOD officials and contractor representatives.

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Alcoa Plunges Most In Year After CFO Warns Alumina Unit "Will Be Underwater" Amid Hormuz Disruption

Zero Hedge -

Alcoa Plunges Most In Year After CFO Warns Alumina Unit "Will Be Underwater" Amid Hormuz Disruption

Alcoa shares in New York were hammered the most in over a year on Wednesday after CFO Molly Beerman warned investors that the company's alumina segment faces heavy losses from the energy shock and ongoing disruption at the Hormuz maritime chokepoint.

Beerman was blunt with investors while giving a presentation at the Wells Fargo Industrials & Materials Conference.

She said, "Our alumina segment is very pressured right now," adding, "The segment as a whole will be underwater."

Beerman said the unprofitability in the alumina segment stems from a toxic cocktail of soaring energy costs, supply disruptions in the Gulf region, and LNG disruptions in Western Australia following Cyclone Narelle.

Alcoa's alumina refineries are heavily exposed because they rely on fuel and electricity, and typically ship material to aluminum smelters in the Persian Gulf.

Alcoa's alumina refineries are mainly in Western Australia, Brazil, and Spain. None are located in the Gulf region.

What's important is that the company's refining assets are outside the Gulf, but its alumina cargoes feed Gulf smelters, making the business exposed to ongoing Hormuz shipping disruption and Gulf energy shocks.

Alcoa expects 2026 Alumina segment production of 9.7-9.9 million metric tons and shipments of 11.8-12.0 million metric tons.

Beerman's warning sent shares tumbling 9.5% in New York on Wednesday, marking the largest one-day drop in 14 months. Shares were up 2% in premarket trading, clawing back some of yesterday's losses.

Year-to-date, the stock is up 23.4% and is nearing its 2022 highs.

According to Bloomberg data, Wall Street analysts are mostly bullish on AA. 

We have cited several institutional metal desks, including Mercuria, Goldman, and JPMorgan, all of which see the Gulf energy shock producing a supply shock in the aluminum market. This has sent prices back to 2022 highs.

Mercuria commodities analyst Nick Snowdon recently told Reuters on the sidelines of the Financial Times Commodities Global Summit in Lausanne, Switzerland, that "The scale of the supply shock we're seeing in the aluminum market is probably the largest single supply shock a base metals market has suffered in the post-2000 era."

Snowdon then told the outlet, "We are already in a 'black swan' event. No one could have foreseen something on this scale."

Latest reporting:

Alcoa recently warned investors that the energy shock would weigh on second-quarter earnings.

 

Tyler Durden Thu, 06/11/2026 - 06:55

10 Thursday AM Reads

The Big Picture -

My morning train WFH reads:

The Future of Work & AI: How 16 top economists think AI will change the job market, and how to prepare for AI’s labor-market implications. Useful as a baseline against the louder, less data-grounded takes. (Wall Street Journal)

An entire industry is being propped up by math that is insane. Welcome to fantasy land Jensen Huang has apparently likened the upcoming IPO’s to Amazon, Google and Meta: Gary Marcus on the financial math underneath the generative-AI capex boom. Worth reading even if you disagree — and especially if you don’t. (Gary Marcus) see also Here’s that ‘SpaceX’s IPO is overvalued by 114%’ research in full: The stock’s probably worth $63 per share, a 53 per cent discount to the $135 issue price. SpaceX probably has an addressable market of about $129bn, rather than the $1.6tn claimed in its S-1 filing. In a (metaphorical) moonshot scenario, where SpaceX pioneers orbital data centres and captures 20 per cent of AI computing capacity by 2040, the company would be worth $1.97tn, or $154 per share. The FT publishes the full bear-case research note on SpaceX’s IPO valuation. Pair it with Damodaran for a complete debate. (Financial Times) see also The S&P 500 Just Saved Your Retirement From Elon Musk (for Now): The billionaire is going to hate this—and there’s nothing he can do about it. (Slate)

Back Office: The Hidden Workers Most Threatened by A.I. As artificial intelligence spreads, millions of middle-class jobs in human resources, billing and payroll could be at risk. Most are held by women. NYT on the back-office workforce — the unglamorous middle of the economy — getting hit first and hardest by AI. The displacement isn’t a future story anymore. (New York Times)

Musk Looks to an Army of Loyalists to Help Make Him a Trillionaire: The SpaceX IPO is expected to set records Friday and mark a new pinnacle in Wall Street’s retail revolution. WSJ on the SpaceX IPO retail-marketing playbook designed to channel Musk-fan demand into share prices. Engineered enthusiasm at scale. (Wall Street Journal)

No, Artificial Intelligence Is Not Conscious: Taken to its logical conclusion, this line of thinking is absurd—and damning. A philosophy-grounded pushback against the AI-consciousness creep. The argument: stop confusing fluent mimicry of self-report with the thing itself. (The Atlantic)

Your birth order affects your future, but not for the reason you think: Why birth order leaves an indelible mark has long eluded scientists. Now we have some answers that suggest what parents and policymakers can do about it. WaPo on the new research that reframes birth-order effects as parenting-bandwidth effects. The signal is real; the mechanism isn’t what folklore says. (Washington Post)

WWDC26 — The Small Things: My favorite Apple updates are not the flashy new features, but the quiet little touches: annoyances fixed, workflows made smoother, rough edges sanded down, and longstanding flaws thoughtfully reworked. To me, they’re the clearest sign of a company that cares about its craft. Here’s a collection from a WWDC26 screen-grab, organized for easier reading, on improvements coming later this year. A developer’s read on the WWDC announcements nobody else covered — the small APIs and conventions that quietly reshape what app makers can do. Apple is still Apple. (Oneberri) see also Apple introduces Siri AI, a profoundly more capable and personal assistant: Powered by the next generation of Apple Intelligence, Siri AI is a completely reimagined version of Siri that is more helpful, more capable, and more intelligent. With detailed, engaging responses and natural back-and-forth conversation, Siri AI helps users get more done than ever. Apple’s official Siri-AI launch press release. The marketing copy doesn’t write itself, but read it for the shape of what’s actually shipping. (Apple)

Cops Keep Getting Arrested for Using Flock to Stalk People: There have been more than a dozen cases around the country where police use Flock to obsessively and illegally stalk people. 404 Media on the ongoing pattern of police misuse of Flock’s license-plate-reader network. Surveillance infrastructure plus human nature is an old story. (404 Media)

How many times has Trump claimed an Iran deal is around the corner? In case you’re keeping score, Donald Trump has claimed that a “deal” with Iran was just about to happen at least 38 times since he started the war. CNN’s count of Trump’s “Iran deal soon” claims. Spoiler: a lot. A useful skepticism calibration. (CNN)

The US just got its first new sunscreen in ~30 years: America’s sunscreens have been stuck in the past. With BEMT, that’s finally changing. Vox on bemotrizinol finally getting FDA approval — three decades after the rest of the world. The story is half chemistry, half regulatory dysfunction. (Vox)

Video of the day: Why the SpaceX IPO Is Unlike Any Other

Be sure to check out our Masters in Business interview this weekend with Jean Eric Salata, Chairman of EQT Asia and Head of Private Capital Asia at EQT Group. One of the world’s leading alternative managers, running $316 billion in client assets. The firm was formed by merging Baring Private Equity Asia and Swedish PE giant EQT Group. Salata is on the executive committee and recently succeeded Conni Jonsson as EQT’s Chairman.

 

Inflation Accelerates to Fastest Pace in 3 Years as Energy Prices Bite

Source: NYTimes

 

Sign up for our reads-only mailing list here.

 

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

Cancer teleology

Angry Bear -

It astonishes me what passes for reasoning among “conservatives.” “Steve Gruber, host of the conservative network’s morning program Day Break, made the announcement Wednesday alongside his guest and wife, Ivey Ramos Gruber, who agreed sunglasses might also be unnecessary. The segment fits neatly into the MAHA movement’s growing anti-sunscreen wing — and straight into a […]

The post Cancer teleology appeared first on Angry Bear.

Germany's Big LNG Deal With Canada May Never Deliver A Single Cargo

Zero Hedge -

Germany's Big LNG Deal With Canada May Never Deliver A Single Cargo

Authored by Andrew Topf via OilPrice.com,

  • Germany has signed long-term LNG offtake agreements with Canada's Ksi Lisims project, seeking energy security and supply diversification amid heightened geopolitical risks.

  • Despite the deals, Canadian LNG may never physically reach Germany due to geography, shipping economics, and the lack of Atlantic Coast export infrastructure.

  • Instead, Germany could use LNG cargo swaps, sending Canadian gas to Asian buyers while receiving equivalent volumes from suppliers closer to Europe.

The Iran war has made supplies of liquefied natural gas, or LNG, the most strategic since Russia’s invasion of Ukraine in 2022.

Suddenly, countries are scrambling to get their hands on molecules that provide reliable baseload power to industries and homes.

That explains why Germany is buying LNG from Canada. It’s to ensure long-term energy security, reduce reliance on volatile global supplies, and diversify away from Middle Eastern and Russian energy markets.

At the end of May, the Canadian government brokered a deal between the Ksi Lisims LNG facility planned for north of Prince Rupert, on the British Columbia coast, and German company SEFE, which is agreeing to buy 1 million tonnes of LNG per year for up to 20 years

Ksi Lisims LNG is a joint venture owned by the Nisga’a Nation, Texas-based Western LNG, and Rockies LNG, a consortium of Canadian natural gas producers.

The agreement marked the first long-term LNG supply arrangement between a Canadian project and a European buyer.

On June 8, a second, preliminary deal was announced. Germany’s Uniper signed a letter of intent with Ksi Lisims LNG for a possible offtake agreement of 2 million tonnes of LNG per year.

Construction of the facility, which has an annual capacity of 12 million tonnes, could begin in 2027, although there some significant hurdles to overcome.

First and foremost is a Final Investment Decision. To get an FID across the line, Ksi Lisims must show there is enough demand to start construction. The JV already has binding offtake agreements with Shell (NYSE:SHEL) and TotalEnergies. With SEFE and Uniper, up to 7 million tonnes have been annually committed. Will that be enough, and will the facility be profitable in a future LNG market? Ksi Lisims must decide.

The $10 billion project is also facing political and legal challenges about the environmental impacts increased gas production and shipping will have on the area:

Two B.C. Supreme Court petitions were filed over the provincial government's decision last year to deem the Prince Rupert Gas Transmission pipeline "substantially started," meaning it wouldn't need a new environmental assessment.

The liquefied natural gas pipeline's construction, which was authorized in 2014, and a deadline to start it was extended to 2024, spurring the court challenges from Gitxsan Hereditary Chief Charlie Wright and environmentalist groups opposed to the project.

Construction started in 2024 but the pipeline is not yet finished.

These are all significant obstacles, but the bigger question is how Ksi Lisims would get the LNG from the Canadian West Coast to Germany.

Opposition Leader Pierre Poilievre has said the better option would be to ship it from the east coast. But there are currently no operational LNG export plants on that side of Canada; only an import and peaking facility in New Brunswick owned by Repsol.

The only large-scale LNG facility in operation is LNG Canada in Kitimat, close to the proposed Ksi Lisims plant. The first phase of LNG Canada was finished in 2025; a year ago it loaded its first export cargo.

When asked why Ottawa wouldn’t pipe LNG across the country, then ship it directly across the Atlantic to Germany, the energy minister said it's cheaper to move the product by water — through the Panama Canal — than it is to pay tolls through a pipeline.

In practice, Germany may never receive LNG directly from Ksi Lisims, despite the project signing two separate offtake agreements.

Instead, the German companies could employ a concept that is becoming increasingly common in LNG markets: cargo swaps

Here’s how it works:

Instead of purchasing the LNG and physically delivering it to Germany, the companies would purchase the cargo and redirect it to buyers in Japan, South Kora, Taiwan or other Asian markets. In exchange, the companies would receive LNG from suppliers closer to Europe, like the US, Qatar, Algeria or Norway.

The result, says EnergyNow via the Financial Postis lower shipping costs, shorter transit times, reduced congestion risk, and greater flexibility while maintaining the same overall gas supply balance.

This is already how major LNG portfolio players such as Shell, TotalEnergies, BP, and SEFE manage global supply chains. LNG contracts increasingly represent access to molecules rather than a commitment to move specific molecules from one point to another.

In the end, “the molecule doesn’t matter as much as the contract.”

A Canadian LNG contract provides supply from a stable democracy, reduced exposure to political disruptions, diversification from a single supplier, and long-term contractual security, states EnergyNow.

Reuters previously reported that German buyers are increasingly interested in acquiring Canadian LNG cargoes specifically because they can be swapped within global markets. Canadian Energy Minister Tim Hodgson noted that European buyers see value in holding Canadian LNG positions even if the fuel is ultimately consumed elsewhere.

Tyler Durden Thu, 06/11/2026 - 05:00

Libor 2.0?

FT Alphaville -

The death of London’s infamous interest rate benchmark has left a hole

California Gets 80% Of All Federal Cash For Illegal Immigrant Families: Report

Zero Hedge -

California Gets 80% Of All Federal Cash For Illegal Immigrant Families: Report

Authored by Jill McLaughlin via The Epoch Times,

California is home to the lion’s share of illegal immigrant families in the United States with children who received federal welfare assistance in 2024, according to a federal report published on June 10.

More than 80 percent of all nationwide cash assistance allocated to such households was spent in California. The report tracked $759 million in Temporary Assistance for Needy Families (TANF) spent in 2024 on families headed by a parent living in the country illegally.

In those cases, the child qualified for federal welfare, even though the parent was excluded from the federal program because of immigration status.

“These cases receive relatively little public attention, yet ... data show that they are far from a negligible part of the program,” wrote authors David Swegle, director of the Office of Family Assistance at the Administration for Children and Families under the U.S. Department of Health and Human Services, and Alex J. Adams, assistant secretary at the Administration for Children and Families, in the report.

Nationally, the federal government paid 85,000 households with qualifying children receiving assistance who were living with their illegal immigrant parents in the U.S. in 2024.

“Although the benefit is formally paid on behalf of the child, it still supports a household that includes an immigration-status-ineligible parent,” the authors stated. “The significance of these cases therefore cannot be judged solely by the fact that the adult is not the formal recipient.”

The cases are also significant because they don’t have to adhere to the TANF rules requiring work expectations, such as regularly applying for jobs, and the payments aren’t limited to the federal 60-month lifetime limit, according to the report. The illegal immigrant families, therefore, can receive federal welfare until the child turns 18 years old.

Low-income American families are held to the federal welfare restrictions that require work participation and are restricted to a 60-month lifetime limit, the authors said.

The number of TANF cases involving an illegal immigrant parent reached nearly 850,000—or 10 percent of all cases—in 2024, up from nearly 6 percent in 2001.

Of those, nearly 78,000 households—or about 91 percent—also received federal food assistance through the Supplemental Nutrition Assistance Program (SNAP), the report revealed.

Most of the illegal immigrant parents—over 106,000—identified as Hispanic, while 5.3 percent were White, 4.3 percent were Black, and 2 percent were Asian, the report stated.

California was the primary driver of the national totals, according to the report.

In 2024, the state accounted for nearly 60,000 affected households, or about 70 percent of the national total of the illegal immigrant-headed households.

The state’s annual cash assistance paid to those homes reached about $618 million, or about 81 percent of nationwide spending on these cases, the authors reported.

The average monthly benefit in California for child-only households with illegal immigrant parents increased from an estimated $408 in 2013 to $875 in 2024—an increase of 114.5 percent, according to the report.

“No other state approached California’s combination of scale, concentration, and fiscal impact,” the authors stated in the report.

The next-largest states were New York, with about 7,635 households and about $47.5 million in annual cash assistance, followed by Massachusetts at about 3,777 households and about $27.3 million, and Washington at about 1,796 households and about $12.2 million, the report found.

From 2001 to 2024, the U.S. spent about $18.3 billion in TANF cash assistance on these cases involving illegal immigrant parents with welfare-recipient children, according to the report.

Tyler Durden Wed, 06/10/2026 - 20:55

MSFT Restricts Internal Use Of Claude Fable Over Data-Retention Concerns; BMO Calls Anthropic A Leading Pure-Play AI Lab

Zero Hedge -

MSFT Restricts Internal Use Of Claude Fable Over Data-Retention Concerns; BMO Calls Anthropic A Leading Pure-Play AI Lab

Anthropic released Claude Fable 5, a next-generation "Mythos-class" AI model, on Tuesday. The model is designed to restrict dangerous capabilities in areas such as cybersecurity and biological research after CEO Dario Amodei warned about risks last month.

The model gives users access to Anthropic's more powerful Mythos model, which the company had previously deemed too risky for public release last month. However, when users ask about sensitive topics, such as bioweapons or software exploitation, Fable 5 redirects them to the older Claude Opus 4.8 model.

"We maintain that Anthropic is the leading pure-play AI lab, combining best-in-class model intelligence with its cutting-edge, benchmark-leading Claude Fable 5 frontier model released June 9, 2026; with clear commercial traction and momentum in its enterprise offerings," BMO analyst Brian Pitz wrote in a note earlier today.

Pitz noted, "Anthropic's strengths are particularly evident in coding, agents, and enterprise, where Claude has emerged as a leading model powering tools such as Claude Code and Cowork, both of which have scaled rapidly. This reinforces the company's advantage in translating model intelligence beyond benchmark performance into viable, real-world applications—what we view as the next key battleground in AI."

The release of Claude Fable 5 prompted Pitz's team to declare, "While it is too early to crown a winner among foundation models, we see Anthropic and OpenAI as the leading pure-play AI labs today."

The Verge's Tom Warren reported that Claude Fable 5 has already raised security concerns within Microsoft, prompting the tech giant to limit internal employee access to the model due to Anthropic's data-retention requirements.

Warren said that Claude Fable 5 has been rolled out to GitHub Copilot and Foundry customers but is not available in the internal GitHub Copilot model picker used by Microsoft employees. Other Claude models remain available internally because they operate under zero data retention rules.

He said the issue centers around Anthropic's safety architecture. Claude Fable 5 requires Anthropic to retain prompts and outputs for 30 days to operate new safety classifiers, while some flagged content can be stored for up to two years if it violates usage policies. These rules could potentially create risks for confidential information.

Pitz published the current AI leaderboard overview with Anthropic's models on top (but at the time of the note, Claude Fable 5 was not included):

Western AI Models Comparison

BMO analysts see the release of new advanced models driving AI revenue to $1.8 trillion by 2032. That would mean the market has expanded at an average annual growth rate of 48% since ChatGPT launched in 2022.

Token prices have declined over the last six days.

"Adoption is becoming less about what frontier models can do and more about the price... the recent drop in the token index may reflect some of this shift toward cheaper models," Citadel analysts noted (read). 

Prices per million tokens for Western models vs. Chinese models

Tokenmaxxing. 

Average cost per task.

What X users have been creating with Claude Fable 5:

Tyler Durden Wed, 06/10/2026 - 20:30

Existing home sales report shows a sub-optimal equilibrium with rangebound sales, prices, and inventory

Angry Bear -

 – by New Deal democrat First of all, my usual caveat: although they constitute about 90% of all housing sales, I don’t pay too much attention to existing sales because they are not nearly so important as new home sales, since the latter involve much more economic activity in the building process, plus more landscaping […]

The post Existing home sales report shows a sub-optimal equilibrium with rangebound sales, prices, and inventory appeared first on Angry Bear.

From FOMO To Oh No! Koreans Face Massive Forced Liquidations As AI Bubble Bursts

Zero Hedge -

From FOMO To Oh No! Koreans Face Massive Forced Liquidations As AI Bubble Bursts

Korean retail investors’ aggressive leveraged bets on the market’s two dominant AI/Semi names - Samsung Electronics and SK Hynix - are now colliding with a sharp KOSPI correction, triggering the largest wave of forced stock sales in years and raising the specter of a self-reinforcing liquidation spiral.

At its peak last week, the benchmark KOSPI index  was up 100% for 2026, rivaling the Nasdaq 100 Index’s 102% surge in 1999 - right before the bubble burst...

Last week we warned, as levered bets soared to record highs... that 'the signal is clear: the cash buffer eroding while active leverage refuses to unwind'.

And the concentration was extremely clear with 'new lows' dominating even as KOSPI hit record-er and record-er highs...

Driven purely by retail momentum chasers, as foreigners were fleeing...

We specifically made the point that the rise of leveraged exchange-traded funds, designed to magnify daily moves, may further intensify a reversal.

Fast forward a week - and sprinkle in some vicious moves in the Korean index (down 17% from the highs in a week) - and those warnings have now punched Korean retail investors in the mouth.

As The Korea Times reports, South Korean investors are facing massive forced liquidations and margin loans come due.

Aggregated over the last few trading sessions, the figure approached ~300 billion won (~$197 million) - the largest such reading in recent memory.

The ratio of forced sales to outstanding margin loans hit 9.1% on that Friday, the highest of the year.

Source

These sales occur mechanically: investors who borrowed from brokerages (typically putting up 30–40% equity) must settle by T+2.

When equity falls below maintenance levels, brokerages automatically sell at the opening call auction - often locking in losses and adding downward pressure that can trigger further margin calls.

“The biggest risk during a sharp market decline is not the drop in prices itself, but forced liquidation,” said Kim Seok-hwan, an analyst at Mirae Asset Securities.

“Investors are advised to reduce leverage, hold more cash and focus on high-quality assets.”

And it is far from over as margin lending balances remain near record highs.

According to the Korea Financial Investment Association, outstanding margin loans climbed to a record 38 trillion won on May 29. Although the balance eased to 37.8 trillion won as of Monday, it remained at an elevated level.

“It is estimated that much of the recently increased margin financing entered the market when KOSPI was trading in the 8,200-8,400 range,” said Noh Dong-gil, an analyst at Shinhan Securities.

“Investors often begin trimming positions voluntarily once losses approach 15 percent, while the risk of forced selling rises significantly around the 20 percent loss level.”

This unwind is the direct consequence of retail investors aggressively piling into Samsung Electronics and SK Hynix using both traditional margin debt and the new wave of single-stock leveraged ETFs launched in late May 2026.

What began as a retail-driven, leverage-fueled melt-up concentrated in two AI stocks is transitioning into a classic de-leveraging event.

The new single-stock 2x ETFs and record margin debt have amplified both the upside and now the downside.

Foreign outflows have provided the fundamental counter-pressure, while mechanical forced sales are adding the accelerant.

Retail leverage that felt like genius in May is now being stress-tested in real time - with the Korean market’s extreme concentration making the moves especially violent.

Tyler Durden Wed, 06/10/2026 - 19:40

CBP Chief Says Border Wall Should Be Finished By Late 2027

Zero Hedge -

CBP Chief Says Border Wall Should Be Finished By Late 2027

Authored by Jack Phillips via The Epoch Times,

The U.S. southern border wall will be completed by the end of next year, said U.S. Customs and Border Protection (CBP) Commissioner Rodney Scott at an event on Tuesday.

Scott told an audience in Washington that the “primary border wall ... will be done by the end of 2027,” adding that there are a “couple of gaps.” The wall will stretch from San Diego to Texas near the Gulf of Mexico.

“The only places we’re not building a border wall is places where we’ve made a conscious decision that we don’t need it,” Scott said at the Center for Immigration Studies conference, adding that Big Bend National Park is an example of a “super remote area” with “some very, very high cliffs” that preclude construction of the wall.

Other parts of the border wall, including a secondary wall and a barrier in the Rio Grande, will be complete by July or August 2028, Scott said. The barrier will also be backed by electronic surveillance and other systems, he added.

The border wall, which was a campaign promise made by President Donald Trump during his 2016 presidential campaign, is designed to curb illegal immigration and drug trafficking into the United States.

But Scott said the wall isn’t enough to completely stop either one. Drug traffickers and human smugglers are using tunnels to find workarounds, he said.

“That is their business model, and drones definitely make it easier,” he said, adding, “They’re also smuggling narcotics across with drones.”

On the first day of his second term in January 2025, Trump signed an executive order directing the Department of War and Department of Homeland Security secretaries to “take all appropriate action to deploy and construct temporary and permanent physical barriers to ensure complete operational control of the southern border.” The One Big Beautiful Bill Act, approved by Congress in July 2025, included $46.5 billion for border wall construction.

Apprehensions of people crossing the border illegally in the Big Bend Sector fell 74 percent in fiscal 2025 compared with fiscal 2023, according to the CBP. Autonomous surveillance towers have also significantly reduced traffic, according to the agency.

Last month, the CBP released data marking a year of zero releases at the southern border, and apprehensions of illegal immigrants have dropped to their lowest levels in more than three decades.

The agency said that the Border Patrol recorded 8,943 apprehensions along the southwest border in April, a 94 percent decline from the monthly average under the Biden administration and 96 percent below the peak in December 2023.

Rodney Scott, commissioner for Customs and Border Protection, testifies on Capitol Hill in Washington on April 16, 2026. Madalina Kilroy/The Epoch Times

“The U.S. Border Patrol released zero illegal aliens into our country again this month, unlike April 2024, when more than 68,000 were released under President [Joe] Biden,” Scott said in a statement in May.

The Trump administration has also prioritized deporting illegal immigrants.

The White House’s border czar, Tom Homan, said in an interview in May that the administration is moving to increase deportations and that around 800,000 illegal aliens have been removed from the country since Trump took office again.

Tyler Durden Wed, 06/10/2026 - 19:15

Goldman Flags Tightening Power Grid In Texas Amid Rapid Data Center Growth

Zero Hedge -

Goldman Flags Tightening Power Grid In Texas Amid Rapid Data Center Growth

Goldman shared some of their thoughts on the tightening of power markets as the decade comes to a close. ERCOT’s own Preliminary Long-Term Load Forecast now sees baseline peak-summer demand (excluding most medium and large loads) growing at a 5.2% average annual rate from 2026 through 2030. This is already well above the 3.4% realized average of 2022-2025. 

Layer in the medium- and large-scale additions, overwhelmingly data centers plus crypto and industrial electrification, and the forecast explodes to 31% average annual peak-summer growth.

Put that in national context and Texas alone would account for 39% of total U.S. peak-summer power demand by 2030, up from just 11% last year, assuming the rest of the country continues its slower recent trajectory. 

Goldman analysts flag a 200 GW queue of large-load applications sitting with the grid operator. Even if only 10% of that queue ultimately energizes, it would still lift the region’s demand growth rate above 9% against an expected 6% annual increase in effective generation capacity over the same window. That math points to a high probability of a critically tight market unless supply-side responses accelerate sharply in the next few years.

A quick look at Goldman's recent nuclear report for last month shows the large grid-scale reactor industry is still sleeping in the US…

Earlier we highlighted ERCOT’s disclosure that multiple clusters of proposed hyperscale loads and crypto facilities failed voltage ride-through testing. Four of those groups alone could shed more than 5,000 MW (Boston-sized chunks of demand) during routine transmission disturbances. That is the demand-side mirror of the Spain blackout dynamics we referenced, where rapid disconnections and inadequate reactive power support turned a manageable event into a cascading failure.

ERCOT is not alone in upgrading its outlook. PJM lifted its 10-year average annual peak-summer demand growth forecast from 3.1% to 3.6% earlier this year. MISO raised its 20-year view from 1.6% to 2% in April, more than doubling its realized 2022-2025 average of 0.8%. 

These changes reflect the same AI-driven commercial load surge now visible in the data. Goldman shows the U.S. commercial sector posting the strongest year-over-year power demand growth in January-February at +1.8%, while industrial and residential lagged. Nationally, data-center capacity additions are accelerating, with Texas, Virginia, Arizona, Ohio, Indiana, and Georgia leading the way on a year-over-year basis.

On the generation side, the picture is mixed. Solar continues its seasonal ramp with solid year-over-year capacity additions. 

Natural gas-fired output has been responsive. But nuclear has been weaker due to maintenance outages, hydro is suffering from drought across more than half the country, and coal remains under pressure. 

Construction employment tied to data-center and utility work is rising sharply, which is welcome, but employment is not the same as energized megawatts and reinforced lines.

We noted flags starting to pop up regarding the lack of construction industry manpower back in October…

And we also noted other analysts starting to recognize the same body count issue – the lack of engineers and other skilled laborers to build the energy generating side of the grid. 

Tyler Durden Wed, 06/10/2026 - 18:50

The Potemkin Ballot

Zero Hedge -

The Potemkin Ballot

Authored by Spyridon Andrews via American Greatness,

The only completely predictable result of an election in a Western democracy is election fraud.

Fraud is so fundamental to Western democracies that it is fair to say that democracies exist in name only. In fact, elections have become so essential to illegitimate power that they are almost the surest path to subvert the will of the people. Potemkin elections are essential ways for the ruling class to mask that they are truly in control. The notion of the divine right, or right of the aristocracy to rule, died a relatively quick death after the Renaissance. And the 14th-century political Renaissance led by figures such as Leonardo Bruni, the brilliant Renaissance historian who later became chancellor of Florence, brought back the notion of the Roman Republic to the modern era. Florence reinvented free elections of the citizenry; however, the notion of citizenry was limited compared to today.

Palazzo Vecchio, the town hall of Florence, which sits on the Piazza della Signoria.

Uniquely, Florence had no king, duke, or hereditary monarch during much of the Renaissance. Power was vested in the city’s executive governing council, or the signoria. The Council was led by a chief magistrate, known as the Gonfaloniere di Giustizia or justice. There were various legislative and advisory councils, as well as guilds that represented merchants, banks, craftsmen, and professionals.

In order to avoid “corruption,” the Florentines used the lottery system. When a government position opened, names were drawn from bags. As a further precaution, terms were short, only two months, and rotations were constant.

Cosimo the Elder or “Father of the Fatherland.” Posthumous portrait attributed to unknown 16th-century Florentine workshop artists.

Enter the Medici. It was Cosimo de’ Medici who transformed the system into the dynasty that is famous in history. The Medici controlled the largest banking network in Europe and, consequently, extended credit to many of the continent’s most powerful families. The success of a merchant’s business relied upon loans or assistance from the Medici. As a result, patronage opportunities were abundant, and the Medici had a ready-made army of supporters. They also had the support of the intelligentsia through their patronage of literature and the arts. There was no need for Cosimo to be elected to office or even to be seen all that much.

This, however, did not prevent the Medici from influencing electoral outcomes in their favor. Although appointments were decided by lot, there was an art to ensuring that the correct names got dropped into the lottery in the first place. Committees controlled by the Medici determined which citizens were eligible to be elected to posts. So, although a genuine lottery was held, the candidate pool was not so genuine. Florence, on the surface, held free elections and had councils, debates, and all the symbolism of republicanism. But it was controlled by the family who controlled the money supply.

If this sounds familiar, this is because the Medici’s influence extended well beyond their patronage of literature and the arts. During the reign of Louis XIII in France, Cardinal Richelieu never wore a crown. Nevertheless, he controlled foreign policy, court appointments, political alliances, and intelligence networks.

William “Boss Tweed” (1823–78)

In America in the 19th and 20th centuries, the New York machine at Tammany Hall ran the show. The outward constitutional order remained in place, while the political bosses determined the candidates who could run, who received the patronage jobs, and who was awarded the political contracts. While Boss Tweed was an important part of the machine while he was alive, the machine outlived him, and the candidates became fungible.

The same type of arrangement was in place in Chicago from the time of Mike McDonald in the late 19th century all the way to the Daleys in the late 20th and early 21st centuries. McDonald and his political machine financed businesses and candidates, controlled networks, and made or broke political careers. McDonald was succeeded by the duo of Michael “Hinky Dink” Kenna and John Coughlin, an unlikely pair of Irish mobsters who ran the gambling houses and brothels, owned the police, and made sure that their business interests were fully accommodated by the mayors they owned. While neither Boss Tweed nor Mike McDonald were above stuffing ballot boxes or breaking a few legs to ensure the appropriate result, those were matters that only needed to be resorted to in dire emergencies.

The Old Federal Building, where Washington took the First Presidential Oath of Office in 1789.

The modern-day Rothschilds are perhaps less interesting as a secret cabal than as the outrageously wealthy banking family that can make or break global banks and governments. In the late 18th century, Mayer Amschel Rothschild placed his five sons in the European financial centers of London, Frankfurt, Paris, Vienna, and Naples. From there they went on to finance governments, underwrite sovereign debt, fund railroads and infrastructure, and move money across borders as fast as their clients needed it. And it is indisputable that the Rothschilds were fundamental in creating the modern state of Israel—from funding settlements to funding the Israeli parliament building.

It is not simply that the wealthy classes needed additional help to grab political power, but they sure received it in the Citizens United case in 2010. A majority of conservative justices held that political speech is protected by the First Amendment and that the identity of the speaker, whether it is a corporation, union, or nonprofit, does not eliminate that protection. While that was all very noble, the Supreme Court further held that independent expenditures are different from direct campaign contributions and that the states could not limit such spending. Needless to say, political spending exploded, and Super PACs, industry associations, labor-backed organizations, and ideological advocacy groups began buying up politicians and votes like a Blue Light Special at K-Mart.

Politicians selling themselves like hookers on South Figueroa Street in L.A. is not enough these days. Donors need insurance policies for the peace of mind that their investments do not go to waste. And so, they are not above good old-fashioned voter fraud. The alleged appearance of 24,000 votes from nowhere in the Los Angeles Mayoral primary election this week is a testament to the new era of “mail-in balloting,” which is about as legitimate as a Florida time-share. It was the midnight deliveries of mail-in ballots in swing districts during the 2020 election that led to the Capitol protests on January 6, 2021—and the perception by nearly half of Americans that the election was outright stolen.

The utter ignorance of the history of election fraud in the United States is perhaps the major reason that anyone would believe that our federal elections are trustworthy. Apart from the outright purchase of votes in Congress, American history has consistently had patterns of repeat voting, padded rolls, absentee-ballot abuses, vote buying, dead voters, false or corrupted registrations, not to mention election-official complicity, patronage pressure, counting manipulation, control of election officials, and downright intimidation. Election fraud is not prosecuted as often as it should be, but it is prosecuted with regular frequency. The 1982 Illinois Election Fraud cases, combined with the Greylord investigations and indictments of federal and local judges, have clearly demonstrated the infiltration of organized crime into the courtroom. And allegations of organized crime connections between presidents such as Kennedy and Nixon have swirled for decades.

This does not account for the recent charges and countercharges regarding gerrymandering, the reluctance to impose voter ID requirements, allegations regarding dark-money pools, and “legal” lobbying, which is considered outright bribery in other countries. Chicago’s corruption runs so deep that the residents of the city just assume that’s the way it’s all supposed to work. In fact, I hear Chicagoans complain that the system ran better when there was more of a sticker price on what it cost to fix a traffic ticket, reduce a murder charge, or buy an alderman’s vote on a zoning permit.

The demands of a democratic society have equally necessitated workarounds for unsavory results that stem from the will of the people. It was not the will of the people that brought us into either of the World Wars in the 20th century—certain workarounds had to be put into place. Although the cost of life, around 27,000 Americans, was regrettable during the Meuse-Argonne Offensive during World War I, the conveniently placed Zimmerman telegram alleging a German–Mexican alliance was necessary to bring us into the war in the first place.

American Doughboys in the final year of the Great War, likely captured at the Meuse-Argonne Offensive.

Pearl Harbor was regrettable, but apparently our leaders determined that the loss of life was necessary in order to make a highly unpopular war seem necessary. Americans did not vote to intern Japanese citizens, nor did they vote to infect black soldiers with syphilis. But our politicians knew better. In the last two wars, the threat of weapons of mass destruction has led to wars that politicians wanted to fight against Iraq and Iran. And so democratic government does not just necessitate vote buying and election tampering, but also an occasional well-placed lie in order to meet the demands of governing in accordance with the desires of the moneyed interests.

A cynical interpretation might hold that extending suffrage to women and the poor was less about social justice than about creating larger, more easily mobilized voting blocs. Vast voter pools, especially ones that can be purchased through government programs, motivated by single issues or through perceived grievances brought on by other groups, are terrific tools to stay in power.

When these issues become supercharged with emotion, usually through manipulation of media sources or outright lies, they usher forth passionate armies that stand for a candidate or a political party. A much more economical way to hold a voter base together is to convince them that Neil, who coaches your son’s little league team, is a fascist because he’s a Republican, or that Ahmed, who runs the 7-11 next to the dry cleaner, is an existential threat.

One could be cynical and believe that our political class has nothing but disdain for their voters and that they are capable of literally any act to stay in power. One could even believe that because they have seemingly lied to us about everything from the reasons to go to war, the origin of a global pandemic financed by our own government, or the extent of government surveillance by the NSA, they would be capable of anything.

We could say that. But that would be undemocratic.

Tyler Durden Wed, 06/10/2026 - 18:25

Bank Of Japan Governor Ueda Hospitalized, Will Miss June Meeting

Zero Hedge -

Bank Of Japan Governor Ueda Hospitalized, Will Miss June Meeting

Bank of Japan's 74-year-old Governor Kazuo Ueda has been hospitalized for medical treatment and will miss the June 15 to 16 ‌policy meeting, the central bank said on Wednesday. It is the first time for the governor, who chairs the BOJ's policy discussions, to miss a scheduled meeting since the central bank began deciding policy ​under the current arrangement in 1998.

The governor will submit a written statement on his view on policy but will not participate in ​next week's vote, the BOJ said in a statement.  Ueda is expected to remain in hospital for about two ⁠weeks getting treatment for an infected liver cyst, work remotely and attend the next July 30 to 31 policy meeting, the central bank said.

The central bank is widely expected to raise interest rates next week to levels unseen in three decades to counter the plunging yen, crashing bond prices and reverse soaring inflationary pressures from the Iran war.

Ueda's hospitalization is unlikely to affect next week's decision, with a rate hike highly anticipated, but it will complicate the BOJ's communication ​about what may come next, said Mari Iwashita, executive rates strategist at Nomura Securities.

"With Ueda's absence, the BOJ may decide not to send clear signals on the future rate path. Given uncertainty on how long it may take for the governor to fully recover, it's also become more unclear on whether the BOJ would hike again this ​year."

The BOJ said that Deputy Governor Ryozo Himino will preside over the rate review in place of Ueda, while the other deputy governor, Shinichi Uchida, is set to ​host the post-meeting press conference. 

The announcement follows one the BOJ made in late May that its Deputy Governor Uchida had been discharged from hospital after recovering ‌from leukaemia ⁠treatment. 

The yen was roughly steady on the day against the dollar, which traded at 160.5, a level traders watch closely as it has triggered official intervention in the past.

Since taking control of the BOJ in 2023, Ueda has spent the first half of his tenure dismantling the remnants of his predecessor's massive stimulus as rising commodity and energy costs and intensifying labor shortages propelled inflation above the BOJ's 2% target.

The BOJ is now at a ​critical juncture as it moves away from ​withdrawing stimulus in baby steps ⁠towards fighting inflation - something it has not done for decades.

Ueda's hawkish speech earlier this month underscored the BOJ's changed narrative that led markets to near fully price in the chance of a June rate hike, yet which saw no upside for the yen. At the previous meeting in ​April, three of the BOJ's nine board members already voted in favor of hiking its short-term policy rate ​to 1% from 0.75%, ⁠and since then two more, Junko Koeda and Kazuyuki Masu, called for a near-term rate hike.

However, Prime Minister Sanae Takaichi, known as an advocate of loose fiscal and monetary policy, has voiced reservations over the BOJ's rate-hike plans (because like every other politicians, she is focused on the "wealth effect" first and foremost, even if it means galloping inflation).

Some analysts said Ueda's health issue may offer Takaichi an opportunity to influence the BOJ policy including ⁠by selecting ​his successor if the governor were to step down. Yet according to Norihiro Yamaguchi, senior economist at Oxford Economics ​in Tokyo, such a scenario now appeared unlikely.

"That said, it is also true that Takaichi is likely to appoint a more dovish person if she were to appoint a new ​governor," he said.

Tyler Durden Wed, 06/10/2026 - 18:00

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