In the least anticipated team-up since Kathleen Kennedy and any Star Wars project, a Mexican Cartel drug cartel and Chinese underground bankers have formed an alliance.
A federal indictment has alleged an alliance between one of Mexico’s biggest drug cartels and Chinese underground bankers—who are accused of jointly conspiring to cover up more than $50 million in drug profits.
A Tuesday press release from the U.S. Justice Department’s Office of Public Affairs detailed the 10-count indictment, which charged 24 Los Angeles-based Sinaloa drug cartel associates with working alongside groups that have been linked to Chinese underground banking systems.
The name given to the federal government’s multi-year investigation was “Operation Fortunate Runner.” It ended with a superseding indictment of the group back in April, though it was only unsealed on Monday—revealing that the 24 individuals were each charged with one count of conspiring to perpetuate the distribution of cocaine and methamphetamine, one count of money laundering conspiracy, and one count of conspiring to operate an unlicensed monetary transmitting company.
“The superseding indictment alleges that a Sinaloa Cartel-linked money laundering network collected and, with help from a San Gabriel Valley, California-based money transmitting group with links to Chinese underground banking, processed large amounts of drug proceeds in U.S. currency in the Los Angeles area,” explains the DOJ press release.
“They then allegedly concealed their drug trafficking proceeds and made the proceeds generated in the United States accessible to cartel members in Mexico and elsewhere,” it continued.
Chinese and Mexican law enforcement agencies collaborated with the Justice Department to arrest fugitives who fled the United States to other countries after being indicted and initially charged last year.
Edgar Joel Martinez-Reyes, 45, is the lead defendant. According to reporting done by the Associated Press, prosecutors say that Martinez-Reyes played the part of manager—leading couriers who retrieved the drug cash from the Los Angeles area. Authorities say that he partnered with leaders of the Chinese money laundering operation and traveled to Mexico to negotiate contracts with the Sinaloa cartel.
Anne Milgram of the Drug Enforcement Administration said at a recent news conference, “This investigation shows that the Sinaloa Cartel has entered into a new criminal partnership with Chinese nationals who launder money for the cartels.”
Drug seizures at the unsecured southwest border have dropped over the past four years, although hundreds of thousands of pounds of illegal drugs have still been seized.
Meanwhile, there has been a rise in encounters with Chinese nationals.
According to data from U.S. Customs and Border Patrol, the number of Chinese nationals encountered at the southwest border during fiscal year 2024 has already eclipsed the numbers of the previous three years.
In FY 2024, there have been 27,700 encounters with Chinese nationals from October to April, as their data for May has yet to be released. During the entire FY 2023, that number was 24,314—compared to only 2,176 in FY 2022 and 450 in FY 2021.
We’ve been wondering what all these Chinese nationals were doing pouring into America, and “Cartel Thug” seems to be among the possibilities.
How much Chinese authorities have cooperated with the DEA, given that there is wide suspicion that the Chinese government has given its blessing to flood America with fentanyl, remains to be seen. But given how widespread the practice of siphoning off money for other enterprises is the Chinese banking sector, it’s entirely possibly that Chinese authorities are actually cracking down on it. Plus the underground bankers may not be current on their CCP bribes.
Crime cartels in one country do frequently cooperate with the cartels in another, though we’re use to thinking of such cooperation working on ethnic lines (Sicilian mobs cooperating with the American mafia, or Mexican cartels working with Mexican Americans or illegal aliens.) But where there are large amounts of illicit money to be made, strange bedfellows bloom.
All those “new jobs” created in the Biden Recession have gone to illegal aliens, two Trump court cases appear to be in the process of derailment, more Hunter Biden shenanigans come to light, a whole lot of anniversaries this week, and a chance to own the Ark of the Covenant! It’s the Friday LinkSwarm!
The first Wall Street analyst daring to point out that the employment emperor is naked, is Standard Chartered’s global head of macro, Steve Englander who in a note titled simply enough “Immigration leading to labor-market surge” [writes] that according to his estimates “undocumented immigrants account for half of job growth in FY24 so far” (the actual number is far higher but we understand his initial conservatism), and adds that “asylum seekers and humanitarian parolees explain the surge in undocumented immigrants” before concluding that the continued rise in EAD approvals likely will extend strong employment growth in 2024. In other words, “strong employment growth” for American citizens, always was and remains a fabulation, and the only job growth in the US is for illegals, who will work for below minimum wage, which also explains why inflation hasn’t spiked in the past year as millions of illegals were hired.
How is this not the biggest political talking point right now: since October 2019, native-born US workers have lost 1.4 million jobs; over the same period foreign-born workers have gained 3 million jobs. pic.twitter.com/Z5HVWmQ24C
Does a mistrial loom in the Trump kangaroo court case? Seems like a juror celebrating a guilty verdict before the trial was over on Facebook is yet another reason to throw out the conviction…
Speaking kangaroo Trump prosecutions, the Georgia Court of Appeals has ordered that case halted until the Fani Willis conflict of interest issue is resolved.
In other court news, in Hunter Biden’s defense just blew up.
Hunter’s defense, carefully crafted by attorney Abbe Lowell during his opening statement on Tuesday, was blown up by the testimony of an ex-girlfriend and ex-wife who described the extent of Hunter’s crack-cocaine usage around the time he purchased a firearm in October 2018 — and by the salesman who sold Hunter the gun he allegedly lied in order to purchase.
Hunter is facing two federal charges related to his allegedly lying about his drug addiction on a gun-purchase background-check form and he faces a third charge for allegedly possessing the firearm while addicted to crack cocaine. Hunter pleaded not guilty to the charges last year and faces up to 25 years in prison.
Most of the day was taken up by testimony from Hunter Biden’s ex-girlfriend Zoe Kestan, a woman who dated Biden from roughly December 2017 to November 2018, despite being half his age at the time.
Prosector Leo Wise conducted a lengthy direct examination of Kestan accompanied by pictures from her cellphone to corroborate her recollection of events.
Wise and Kestan seemed to get into a rhythm throughout the direct examination, as Kestan recalled large events and small details from her time with Hunter Biden. Kestan remembered exact dates and named the various hotels they stayed at during their time together.
Each time Kestan described an experience with Hunter Biden, Wise asked her if Hunter Biden smoked crack at their hotel or Airbnb, and Kestan always replied affirmatively.
“Every 20 minutes or so,” Kestan said of Hunter Biden’s crack habit during one of the hotel stays. She noted that he smoked crack less frequently in public, and she never noticed a change in his demeanor when he smoked.
Wise shared photos from Kestan’s cellphone showing drug paraphernalia scatted around the bathrooms and tables of their lodgings. One of the images appeared to show Biden in a hotel bathtub holding a crack pipe in the wee hours of the morning. When Wise showed the images, Kestan easily pointed out the drug paraphernalia and explained to the courtroom how the various materials were used to cook and consume crack.
Biden allowed Kestan to withdraw cash from his account when he needed to spend it on drugs, she recounted. Kestan stated the names of drug dealers and described the drug transactions she saw at the hotels and other locations.
Kestan’s testimony and the images allowed Wise to establish that Hunter was smoking crack in September 2018, following his late August rehab stint in Malibu, Calif. She said Biden smoked crack every 20 minutes at a Malibu house he rented, and she did not remember Biden discussing his rehab stint during her time at the house in September 2018.
Wise closed the direct examination by introducing a lengthy text message Biden sent her in December 2018 lamenting how he would always be a drug addict and his attempts to get sober failed.
And this is “the smartest guy” Joe Biden knows…
Also from Hunter’s weapons case, he was caught on tape bragging about how he could score crack in Timbuktu. Which is a neat trick, since it’s an Islamic majority city in Mali, Africa, and is currently under siege by Jama’at Nasr al-Islam wal Muslimin, a jihadist organization which has incorporated elements formally loyal to both al Qaeda and the Islamic State. To be fair to the crackhead, he apparently said this before the siege was imposed last year…
Also, I would like to apologize to readers for not knowing about the siege and doing at least a LinkSwarm post to it. So much news, so little time..
On Friday, Mayor John Whitmire and outgoing Harris County District Attorney Kim Ogg announced seven people have been indicted for 14 public corruption felonies ranging from abuse of official capacity to tampering with evidence. The charges are related to a scheme surrounding the City of Houston’s water repair contracts.
Patrece Lee, the lead defendant, and a former city employee, had access to $80 million of city funds for emergency waterline repair.
In the Summer and Fall of 2022, Lee was in a position to recommend vendors for contracts with the City of Houston public works department to repair the water lines. Lee allegedly made agreements with companies to have them hire her as a “consultant” to receive a kickback in exchange for expedited payments and bigger contracts. She also targeted less experienced companies and offered her services to help them “get paid faster, or to get bigger and better contracts in the future” as well.
Lee allegedly received roughly $320,000 in payments from that scheme and then steered contracts to a company owned by her brother, allowing them to be paid more than $400,000 of which she immediately transferred $380,000 to her own company. The total amount she stole from the city was $700,000.
“The cooperation that we’ve received from this administration stands in stark contrast to the last seven years,” said Ogg.
The issue was uncovered during Mayor Sylvester Turner’s administration. However, he planned to have it handled as an internal civil or administrative matter rather than refer it to the district attorney for criminal prosecution.
If Kim Ogg would actually go after government corruption (and real criminals) while she’s a lame duck DA, that would be a nice silver lining to the clouds of Houston/Harris County’s soft on crime Democratic leadership.
The Houston conman who pretended to be a rabbi. “The man accused of spending $15,000 on a dead woman’s credit card has a long history of fraud, according to police, court records and his family. Police say Dustin Mitchell, who goes by Dustin Cohen, posed as a Rabbi, lawyer and possibly a cop to defraud people. They also say they think he spray-painted anti-semitic vandalism on his own truck.” (Hat tip: Ace of Spades HQ.)
…and the 20th anniversary of Killdozer. The event, not the great Theodore Sturgeon short story or the medicore TV movie made from it.
Speaking of D-Day, Biden just plagiarized Reagan’s speech.
Joe Biden essentially plagiarized Ronald Reagan’s famous 1984 speech at Pointe du Hoc today in Normandy. Watch these clips side by side. Wow: pic.twitter.com/jeGgTS2Nnm
There’s an idiomatic express that seems to have fallen out of common usage: “What does that have to do with the price of Tea in China?” The phrase indicates that they speaker has no interest or use in the information you’re conveying. This video has me curious as to what the price of one packet of dried ramen noodles goes for in China.
China seems to be having an unenviable bout of stagflation, with both unemployment and inflation rising at the same time. (So, for that matter, are we, though not as severe, and one which our elites controlling economic data seem determined to hide as much as possible.) In the video, people are complaining that packaged ramen noodles are going up from 2.8 to 3 yuan. (An online Chinese retail price tool puts it at a statistically indistinguishable 2.98 yuan.) At official exchange rates, 3 yuan is about 41¢.
Back in the days of being a poor college student, I could generally eat on 20 dollars a week. Rice, spaghetti, luncheon meat sandwiches, hot dogs and ramen were regular staples. Good ramen (Maruchan or Top Ramen) could readily be found five for $1, and the generic brand (back then they had literal generic brands with plain white packaging) could even be had for 15¢ a pop.
Those days, of course, are long gone. An individual pack of Maruchan Ramen is now 30¢ at Walmart, or 31¢ at HEB.
I had always had the vague impression that China exported ramen to the U.S., but Maruchan is actually packaged just south of San Antonio in Von Ormy.
It’s surprising to me that ramen, the college student survival staple, is actually more expensive in China than here, despite average Americans being much wealthier than average Chinese.
It must really, really suck to be poor in China right now…
China has launched a massive $47 billion fund, the largest in its history, to bolster its semiconductor industry and establish a local supply chain. This fund, equivalent to 344 billion yuan, is the third phase initiated by the China Integrated Circuit Industry Investment Fund [also known as the National Integrated Circuit Industry investment Fund Company (ICF), or just “Big Fund.”-LP]. It’s worth noting that this amount is twice the total funds raised in the previous phases in 2014 and 2019.
Do you remember the last time I covered where the money went to in those previous phases? The money went to companies like Wuhan Hongxin Semiconductor Manufacturing Co. Result? “Hongxin’s unfinished plant in the port city of Wuhan now stands abandoned. Its founders have vanished, despite owing contractors and investors billions of yuan.”
Or maybe Tsinghua Unigroup. Result? The arrested a whole lot of executives, a lot of money disappeared into various pockets, and “Tsinghua Unigroup abandoned its plan to build DRAM memory chip manufacturing plants in Chongqing and Chengdu in southwest China earlier this year.”
At lot of times, loans and investments are siphoned through four or five different entities from the purposes for which they were originally obtained. Everyone’s trying to get rich, and they hope to survive on smoke and mirrors long enough to get profitable. Imagine if Kleiner Perkins invested $25 million in a software startup, only to find that money was spent on a noodle shop, a used car dealership and a golf club manufacturer.
Sometimes it works. You can build a company on margin, get profitable quickly, and be paying off investors and contractors before anyone realizes how shaky the entire enterprise is.
But you can’t do that with semiconductor manufacturing. The startup costs are simply too high, easily in the billions. Very, very few companies can afford to be in a game that expensive. China’s two biggest semiconductor manufacturing success stories, SMIC and Tsinghua Unigroup, all have have CCP direct government investment.
And bunches of Tsinghua Unigroup executive still got pinched for sticking their snouts into the trough.
My assumption is that, yet again, the funds earmarked for semiconductor companies will be siphoned off into a thousands unrelated pockets. (Though the rest of China’s business climate is sucking so badly that maybe some money will actually fund real semiconductor startups, if only through lack of other money-making opportunities to siphon funds off for.) Sanctions will continue to leak. A few years from now, China will announce the arrests of more executives using the Big Fund to play more investment shell games. And five years from now China will announce an even bigger set of subsidies…
More Biden corruption unearthed, the Biden Recession has canaries dying left and right, yet another Katy ISD teacher involved in child sex crimes, and Phoebe Waller-Bridge is being given another tomb raider to destroy. It’s the Friday LinkSwarm!
Missouri Attorney General Andrew Bailey filed a Freedom of Information Act (FOIA) request on Thursday as part of a probe into whether the Biden DOJ coordinated with Trump prosecutors.
Missouri Attorney General Andrew Bailey filed a Freedom of Information Act (FOIA) request on Thursday as part of a probe into whether the Biden DOJ coordinated with Trump prosecutors.
House Oversight Committee Chairman James Comer dropped a bombshell on Thursday, revealing that his panel had unearthed new financial accounts tied to the Biden family investigation. Adding to the drama, Comer announced a fresh subpoena aimed at an undisclosed bank, ramping up the pressure in this ongoing probe.
“This morning, I issued a subpoena for targeted financial information from a certain financial institution related to Jim Biden, Sarah Biden and Hunter Biden. This is a result of many of the documents that Devon Archer turned over,” Comer told Maria Bartiromo on Fox Business.
The Oversight Committee began investigating the Biden family’s alleged shady business dealings over two years ago. In March, they called for Biden to testify before Congress, stating that “the committee has accounted for over $24 million that has flowed from foreign sources to you, your family, and their business associates.”
“It is unbelievable,” Comer continued. “I don’t think you would find very many people that have a billion-dollar net worth that have as many different bank accounts as this Biden family had. Many of these were shell companies.”
Those were “companies [whose] sole purpose was to launder the money that the Bidens were receiving from China, from Romania, from Russia,” Comer added. “And never one time through the course of this entire investigation, even during the depositions with Hunter Biden and the transcribed interview with Jim Biden, were they able to answer exactly what the family did to receive this money.”
Gov. Greg Abbott has pardoned U.S. Army Sergeant Daniel Perry following a recommendation of pardon and restoration of his firearm rights by the Texas Board of Pardons and Paroles.
The board voted unanimously on the recommendation.
Shortly after the recommendation was made, Abbott officially pardoned Perry.
“The Texas Board of Pardons and Paroles conducted an exhaustive review of U.S. Army Sergeant Daniel Perry’s personal history and the facts surrounding the July 2020 incident and recommended a Full Pardon and Restoration of Full Civil Rights of Citizenship,” Abbott wrote in a press release.
“Among the voluminous files reviewed by the Board, they considered information provided by the Travis County District Attorney, the full investigative report on Daniel Perry, plus a review of all the testimony provided at trial. Texas has one of the strongest ‘Stand Your Ground’ laws on self-defense that cannot be nullified by a jury or a progressive District Attorney. I thank the Board for its thorough investigation, and I approve their pardon recommendation.”
Perry was convicted of murdering Air Force veteran and Black Lives Matter protester Garrett Foster in 2023. A Travis County jury deliberated for 17 hours before finding Perry guilty of murder but not aggravated assault of Foster at the intersection of 4th Street and Congress Avenue in downtown Austin, as well as threatening a crowd with his car during the 2020 protest.
Perry, who was working as an Uber driver, shot and killed Foster with a .357 Magnum revolver after Foster approached the driver door of his Hyundai Ioniq.
This dispassionate description hides the fact that Perry’s car was surrounded by a crowd of rioters, including the one who aimed a gun at Perry. This was a clear case of self defense that never would have gone to trial if Travis County’s far left Soros backed DA Jose Garza weren’t so in favor of radical left wing rioters and hostile the right of self defense.
The Department of Justice recently argued that a whistleblower lawsuit against Pfizer, filed by Brook Jackson, should be dismissed.
Jackson, a 20-year veteran in clinical trial administration employed by a third-party vendor (Ventavia Research Group), worked on Pfizer’s COVID-19 vaccine trials in 2020. Alarmed by what she witnessed, Jackson raised concerns to her superiors, Pfizer, and the Food and Drug Administration (FDA) in September 2020.
She claimed the trial was being run, documented, and reported in a manner that violated Federal law and was potentially dangerous.
Hours after contacting the FDA on September 25, 2020, Jackson was fired. Her sealed whistleblower complaint seemed to stall, with the FDA not investigating her claims. Faced with inaction, Jackson filed a lawsuit.
As the case progressed towards discovery, the DOJ intervened, asking the judge to dismiss the case. Jackson argues that the government failed to articulate a legitimate reason for dismissal and did not demonstrate why the burdens of continued litigation outweigh its benefits.
Disturbingly, a former FDA lawyer who worked at the agency when Jackson’s complaint was filed has moved to the DOJ and is now representing the government in its attempt to shut down the suit, raising concerns about regulatory capture and the use of government to shield companies from accountability.
In 2021, the British Medical Journal published an article investigating Jackson’s claims and found them credible. The journal’s investigation concluded that Jackson’s account was supported by documentation and raised serious questions about the integrity of Pfizer’s vaccine trials and the FDA’s oversight.
Other former Ventavia employees vouched for Jackson’s complaint, describing a “helter-skelter” work environment and lack of oversight.
Despite evidence and corroboration, the FDA did not inspect Ventavia after Jackson’s complaint, and Pfizer did not mention any problems at Ventavia in its FDA submission for emergency use authorization.
BMJ’s findings lend significant credibility to Jackson’s claims and raise serious questions about the integrity of Pfizer’s vaccine trial data, the adequacy of regulatory oversight, and, ultimately, the approved emergency use authorization.
Follow the money…
Court throws DEI amendment to NY constitution, off November’s ballot. “The NY State Supreme Court (trial court) in Livingston County (near Rochester), granted summary judgment throwing the ERA off the November ballot, on the ground that the proponents of the legislation did not follow the constitutionally required procedure for advancing a ballot initiative for a constitutional amendment.”
A Tompkins High School teacher has been arrested on nine counts of possession of child pornography.
James Paul Stone was booked into the Fort Bend County Jail Monday.
According to the Montgomery County Precinct 3 Constable’s office, thousands of images of child pornography were recovered from Stone’s residence, including several images that Stone admitted to producing himself.
Ah, not this crap again. “Venezuela Moves ‘Substantial Quantities’ Of Troops To Guyana Border.”
How bad does housing suck if you’re poor and live in Shanghai, China? This much:
“Shanghai’s landlords are quite ingenious, managing to convert even the smallest spaces into rentable rooms at high prices.”
Bathroom with a ladder to a crude loft above it? 600 yuan. (Exchange rate is currently running just above 7 yuan to the dollar.)
At least that had air-conditioning. For 300 yuan, you can get a room barely big enough for a small bed with two holes punched in the wall for ventilation.
For the same price, you can get a bathroom with a bed in the crawlspace right behind the toilet. “After using the toilet, the smell lingers in the room. Also don’t turn the shower head [over the tiny sink] on too high or it’ll soak the bed.”
One room is a twice-coffin size crawlspace off a balcony for 1,500 yuan.
But wait! For a mere 50 yuan, a guy rented a 0.3 square meter crawlspace he can’t fully lie down in. “Some local netizens from Shanghai commented that a closet could not be rented for 50 yuan, the price being at least 120 yuan.”
“This design is really thoughtful! Knowing you’d have to squat to cook noodles, they smartly place a toilet right here, complete with a door!”
“Here’s another place for 500 yuan rent combining living room, bedroom, kitchen and bathroom all in one!” Complete with cardboard box bed in the entry. “There’s a simple induction cooker for cooking, but it’s a tight squeeze for anyone a bit larger, though there is an exhaust fan. This stove is too far from the toilet. It’s inconvenient to cook while you are using a toilet, but when you shower you can easily stir fry at the same time.” No AC, but the landlord said they could add it for 200 extra yuan rent…
Of course, those exciting bed-in-toilet apartments are only available to people who can afford to pay any money for rent. Many can’t. “There are also groups known as Knights of the Bridge Underpass. In big cities, you can deliver food without renting a place. We found a bridge where several delivery guys and girls live.”
We’ve covered problems with youth despair in China before, including both the “lie flat” and “let it rot” movements.
“How do you deal with water and electricity?…First you can use water from public toilets, but this water is only for washing and laundry, not drinking.” To be fair, they show sinks in public toilets, so I imagine that’s where they’re getting their water, but it’s China, so who knows?
“Drinking water is bought from villagers nearby.”
“Electricity can be sourced from the batteries of delivery ebikes, which are rented for 300 to 400 a month. You can swap many each day, then connect an inverter to the battery you get 220 volt household electricity, and that solves that problem.” (220 volts was evidently standardized by the nationalist government in 1930.)
There’s a video blogger who lives in his solar equipped van, and he seems much better off than any other housing option covered in this video.
“It’s not just Shanghai. Nearly all major Chinese cities host these workers, often labeled as a low-end population. These include delivery workers, ride share drivers, factory or construction site laborers, or college students from out of town.” During America’s industrial boom, working in a factory allowed you to buy a house. Thanks to China’s factory boom, factory workers can enjoy living under a bridge.
“Working odd jobs, they hustle in every corner of the city, typically working over 10 hours a day without a single day off. The city’s prosperity doesn’t touch them. Their daily focus is simply on earning more money.”
The situation is slightly better in Beijing, which has 3 square meter apartments for 2000 yuan, and Shenzhen offers “urban villages” (I think we’d call them apartment complexes) with 1 bedroom apartments for 700 yuan a month.
In Guangdong, the so-called “Shango Gods” have completely given up on life and just live under bridges.
“The unemployed crowd together both men and women in an area filled with unbearable odors.”
“They work one day and rest for a week. A day’s pay can be 200 yuan, enough to sit in an Internet cafe for a week. They eat steamed buns, buy three or four to last the day.”
“In many cities, there are many of these so-called Shango Gods who have completely given up on life. ‘Already seeing no hope. This kind of life is actually pretty good. Wherever you go, just find a place to lie down and don’t think about anything, because no matter how hard you try, without connections it won’t work.'”
America is hardly free of homelessness or tiny apartments. But America’s homeless population is overwhelmingly mentally ill alcoholics and drug addicts living off handouts whose plight is catered to by a Homeless Industrial Complex that rakes off graft pretending to help them, not able-bodied young people willing to work but unable to afford even the meanest accommodations. And the smallest New York City apartments you can find on YouTube all look lightyears better than the horrors seen in Shanghai.
Communists have long bragged about working for the proletariat, but in Communist China, the actual proletarians have been reduced to living under bridges.
Details on the people and organizations dedicated to burning America down, more Biden corruption, more of his censorship regime, a few Russo-Ukrainian War updates, and a pedophile gets ventilated. It’s the Friday LinkSwarm!
Have America’s college students suddenly converted en masse to anarcho-communist-jihadism? Not quite. Many are far left and anti-Israel. Some are foreigners, or the children of foreigners, who have imported the conspiracies and hatreds of their homelands. More, admitted under relaxed pandemic-era admissions standards and proudly ignorant of both American and world history, are taking the “decolonial” half-knowledge pushed by their elders to its logical conclusion.
But students are not the only, and perhaps not even the most important, faction active in the campus protests. As in the “mostly peaceful” Black Lives Matter protests of the summer of 2020, “outside agitators”—professional radicals and organizers, black bloc antifa thugs, Marxist-Leninist revolutionaries, and Palestinian and Islamist radicals—have played a central role in organizing and escalating the campus protests, just as they have organized and escalated the wider anti-Israel protest campaign that began almost immediately after Oct. 7. This largely decentralized network of agitators is, in turn, politically and financially supported by a vast web of progressive nonprofits, NGOs, foundations, and dark-money groups ultimately backed by big-money donors aligned with the Democratic Party.
The first hint that the protests are not entirely organic is their striking resemblance to previous rounds of organized far-left agitation, from the “uprising” of summer 2020 to the rolling antifa vs. Proud Boys brawls of 2016-17. The creation of “liberated” or “autonomous” zones on campus, for instance, is a hallmark of anarchist organizing familiar from Seattle’s Capitol Hill Autonomous Zone and New York’s City Hall Autonomous Zone four summers ago. Familiar, too, is the governance of these zones, with masked security details prohibiting filming from outsiders and directing reporters to trained media representatives. During clashes with police or with counterprotesters, students and their allies have deployed classic “bloc” tactics, covering their faces and dressing in matching outfits to promote anonymity, linking arms to interfere with police attempts to conduct arrests, and attempting “de-arrests”—i.e., the coordinated swarming of police officers—to rescue apprehended comrades. At Yale, student activists doxxed the police officers sent to clear them out of the encampment—another harassment tactic frequently deployed by antifa.
These resemblances are no accident. All of these tactics require a degree of instruction and training. Footage from Columbia showed the professional “protest consultant” Lisa Fithian, a veteran of Occupy, BLM, Standing Rock, and Stop Cop City, teaching students at Columbia how to barricade themselves into Hamilton Hall. Recent video from inside the protest encampment at UCLA, meanwhile, showed masked men leading a hand-to-hand combat training. When police cleared out encampments at the University of Texas-Austin and Columbia and the City University of New York last week, roughly half of those arrested—45 of the 79 in Texas, 134 of the 282 in New York—had no connection with the university at which they were arrested. Some, like the 40-year-old anarchist heir James Carlson, arrested at Columbia’s Hamilton Hall, had protest related rap sheets going back two decades.
“What you’re seeing is a real witches’ brew of revolutionary content interacting on campuses,” says Kyle Shideler, the director for homeland security and counterterrorism at the Center for Security Policy in Washington, D.C., and an expert on far-left domestic extremism. “On the left-wing side, you have a broad variety of revolutionary leftists, who serve as rent-a-mobs, providing the warm bodies for whatever the leftist cause of the day is. And on the other side you have the Islamist and Palestinian networks: American Muslims for Palestine and their subsidiary Students for Justice in Palestine, CAIR, the Palestinian Youth Movement. We’re seeing a real mixture of different kinds of radical foment, and it’s all being activated at the same time.”
The far-left groups active in the protests include antifa and other anarchists: Anarchist literature has been distributed in the encampments, and antifa websites have published dispatches from “comrades” on the inside. They also include various communist and Marxist-Leninist groups, including the Maoist Revolutionary Communist Party, the Party for Socialism and Liberation (PSL), and the International ANSWER coalition, a PSL front group that worked with several Muslim groups to organize the Jan. 13 March on Washington for Gaza, at which protesters flew the black jihadist flag. On April 29, for instance, shortly before masked assailants stormed Columbia’s Hamilton Hall and barricaded themselves inside, The People’s Forum—a Manhattan event space affiliated with the PSL and funded by Neville Roy Singham, a wealthy businessman who “works closely with the Chinese government media machine and is financing its propaganda worldwide,” according to an August profile in The New York Times—urged its activists to rush up to Columbia to “support our students.” Similar calls for an “emergency action” were distributed throughout radical networks in New York City.
Snip.
The “movement,” in turn, while it recruits from among students and other self-motivated radicals willing to put their bodies on the line, relies heavily on the funding of progressive donors and nonprofits connected to the upper reaches of the Democratic Party. Take the epicenter of the nationwide protest movement, Columbia University. According to reporting in the New York Post, the Columbia encampment was principally organized by three groups: Students for Justice in Palestine (SJP), Jewish Voice for Peace (JVP), and Within Our Lifetime (WOL). Let’s take each in turn.
JVP is, in essence, the “Jewish”-branch of the Boycott, Divestment and Sanctions movement, backed by the usual big-money progressive donors—including some, like the Rockefeller Brothers Fund, that were instrumental in selling Obama’s Iran Deal to the public. JVP and its affiliated political action arm, JVP Action, have received at least $650,000 from various branches of George Soros’ philanthropic empire since 2017, $441,510 from the Kaphan Foundation (founded by early Amazon employee Sheldon Kaphan), $340,000 from the Rockefeller Brothers Fund, and smaller amounts from progressive donors such as the Quitiplas Foundation, according to reporting from the New York Post and NGO Monitor, a pro-Israel research institute. JVP has also received nearly $1.5 million from various donor-advised funds—which allow wealthy clients to give anonymously through their financial institutions—run through the charitable giving arms of Fidelity Investments, Charles Schwab, Morgan Stanley, Vanguard, and TIAA, according to NGO Monitor’s review of those institutions’ tax documents.
SJP, by contrast, is an outgrowth of the Islamist networks dissolved during the U.S. government’s prosecution of the Holy Land Foundation (HLF) and related charities for fundraising for Hamas. SJP is a subsidiary of an organization called American Muslims for Palestine (AMP); SJP in fact has no “formal corporate structure of its own but operates as AMP’s campus brand,” according to a lawsuit filed last week against AJP Educational Fund, the parent nonprofit of AMP. Both AMP and SJP were founded by the same man, Hatem Bazian, a Palestinian academic who formerly fundraised for KindHearts, an Islamic charity dissolved in 2012 pursuant to a settlement with the U.S. Treasury, which froze the group’s assets for fundraising for Hamas (KindHearts did not admit wrongdoing in the settlement). And several of AMP’s senior leaders are former fundraisers for HLF and related charities, according to November congressional testimony from former U.S. Treasury official Jonathan Schanzer. An ongoing federal lawsuit by the family of David Boim, an American teenager killed in a Hamas terrorist attack in 1996, goes so far as to allege that AMP is a “disguised continuance” and “legal alter-ego” of the Islamic Association for Palestine, was founded with startup money from current Hamas official Musa Abu Marzook and dissolved alongside HLF. AMP has denied it is a continuation of IAP.
Today, however, National SJP is legally a “fiscal sponsorship” of another nonprofit: a White Plains, New York, 501(c)(3) called the WESPAC Foundation. A fiscal sponsorship is a legal arrangement in which a larger nonprofit “sponsors” a smaller group, essentially lending it the sponsor’s tax-exempt status and providing back-office support in exchange for fees and influence over the sponsorship’s operations. For legal and tax purposes, the sponsor and the sponsorship are the same entity, meaning that the sponsorship is relieved of the requirement to independently disclose its donors or file a Form 990 with the IRS. This makes fiscal sponsorships a “convenient way to mask links between donors and controversial causes,” according to the Capital Research Center. Donors, in other words, can effectively use nonprofits such as WESPAC to obscure their direct connections to controversial causes.
Something of the sort appears to be happening with WESPAC. Run by the market researcher Howard Horowitz, WESPAC reveals very little about its donors, although scattered reporting and public disclosures suggest that the group is used as a pass-through between larger institutions and pro-Palestinian radicals. Since 2006, for instance, WESPAC has received more than half a million in donations from the Elias Foundation, a family foundation run by the private equity investor James Mann and his wife. WESPAC has also received smaller amounts from Grassroots International (an “environmental” group heavily funded by Thousand Currents), the Sparkplug Foundation (a far-left group funded by the Wall Street fortune of Felice and Yoram Gelman), and the Bafrayung Fund, run by Rachel Gelman, an heir to the Levi Strauss fortune. (A self-described “abolitionist,” Gelman was featured in a 2020 New York Times feature on “The Rich Kids Who Want to Tear Down Capitalism.”) In 2022, WESPAC also received $97,000 from the Tides Foundation, the grant-making arm of the Tides Nexus.
WESPAC, however, is not merely the fiscal sponsor of the Hamas-linked SJP but also the fiscal sponsor of the third group involved in organizing the Columbia protests, Within Our Lifetime (WOL), formerly known as New York City SJP. Founded by the Palestinian American lawyer Nerdeen Kiswani, a former activist with the Hunter College and CUNY chapters of SJP, WOL has emerged over the past seven months as perhaps the most notorious antisemitic group in the country, and has been banned from Facebook and Instagram for glorifying Hamas. A full list of the group’s provocations would take thousands of words, but it has been the central organizing force in the series of “Flood”-themed protests in New York City since Oct. 7, including multiple bridge and highway blockades, a November riot at Grand Central Station, the vandalism of the New York Public Library, and protests at the Rockefeller Center Christmas-tree lighting.
More info on the people backing the Stop Cop City protestors:
Where did the money come from? From donations solicited through left-wing fundraising and organizing networks. One of those networks was the Climate Justice Alliance (CJA), an umbrella group for more than 80 “community organizations,” including the Grassroots Global Justice Alliance, which organized an illegal anti-Israel protest in the Capitol Rotunda in December at which more than 50 activists were arrested. CJA’s website promotes a grab bag of far-left causes, and includes a “Free Palestine” page proclaiming that “the path to climate justice travels through a free Palestine.” To this day—eight months after the Georgia RICO indictment alleged that the Forest Justice Defense Fund was a fraudulent charity paying for ammunition purchases in furtherance of a criminal conspiracy—CJA maintains a Stop Cop City page urging readers to donate to the Forest Justice Defense Fund and the Atlanta Solidarity Fund. CJA also endorsed a “statement of solidarity” with Stop Cop City, which claimed, by the inexorable logic of intersectionality, the fight against “gentrification and police violence” in Atlanta as part of the fight against climate change.
CJA is a subsidiary of the Movement Strategy Center, a California-based 501(c)(3) that has received funding from the Ford Foundation, the Rockefeller Foundation, the Tides Foundation, and various branches of the Open Society network. But it has another financial supporter, one that may come as a surprise: You, the American taxpayer. In November, the Environmental Protection Agency announced that it was entrusting $50 million in federal grant money under the Inflation Reduction Act to the CJA, to be distributed in sub-grants to fund “environmental justice” projects by “community-based nonprofit organizations.”
Read the whole thing.
More on the same subject: “Pro-Palestinian protesters are backed by a surprising source: Biden’s biggest donors.” Surprising to people who haven’t been paying attention, maybe.
The donors include some of the biggest names in Democratic circles: Soros, Rockefeller and Pritzker, according to a POLITICO analysis.
Two of the organizers supporting the protests at Columbia University and on other campuses are Jewish Voice for Peace and IfNotNow. Both are supported by the Tides Foundation, which is seeded by Democratic megadonor George Soros and was previously supported by the Bill and Melinda Gates Foundation. It in turn supports numerous small nonprofits that work for social change.
Soros declined to comment, but a spokesperson with the Open Society Foundations, of which Soros is the founder and chairman, said in a statement that it “has funded a broad spectrum of US groups that have advocated for the rights of Palestinians and Israelis and for peaceful resolution to the conflict in Israel.” The Bill and Melinda Gates Foundation, which has previously funded the Tides Foundation and other groups, said it no longer has active grants to Tides. It also does not support Jewish Voice for Peace or IfNotNow.
Covers some of the same ground as the Tablet piece, but still worth reading the whole thing. (Hat tip: Ed Driscoll at Instapundit.)
Former president Donald Trump’s criminal trial in Florida for allegedly mishandling classified documents is being postponed indefinitely.
Trump-appointed judge Aileen Cannon ordered a new pretrial schedule for motions and discovery Tuesday afternoon after the classified documents case was originally scheduled to go to trial later this month.
“The Court also determines that finalization of a trial date at this juncture — before resolution of the myriad and interconnected pre-trial and CIPA issues remaining and forthcoming — would be imprudent and inconsistent with the Court’s duty to fully and fairly consider the various pending pre-trial motions before the Court, critical CIPA issues, and additional pretrial and trial preparations necessary to present this case to a jury,” Cannon said in her order.
The trial will likely be pushed until after the 2024 presidential election this November.
It’s hard to exaggerate how abysmal Biden’s polling has been lately.
No incumbent president should ever want to be near 43 percent in a head-to-head ballot test. Yet here is Joe Biden at 43 percent in the latest CNN poll, 43 percent in the latest Morning Consult poll, 43 percent in the latest Economist/YouGov poll, and 43 percent in the latest Harvard/Harris poll. (NB: Biden ticked up to 48 when Harvard/Harris pushed respondents to choose between Trump and Biden, and the Economist/YouGov poll had RFK Jr. in the mix.)
Detect a trend? (There are other polls that have Biden a little higher.)
It’s no mystery why Biden’s polling is at crisis levels.
An incumbent president’s level of support in a reelection bid is typically tethered closely to his job approval. It’s hard to get much more than a couple of points above it. Biden’s job approval is at 40 percent in the RealClearPolitics polling average and at 39.3 in the 538 polling average.
Desperate for cash, James Biden traveled to Qatar with the aim of personally presenting to Qatari Finance Minister Ali Sharif Al Emadi who was later arrested and charged with bribery and laundering over $5 billion and sentenced to 20 years in prison. While little is known about the details behind the internal power struggle in the corrupt terror state, Al Emadi had been accused of “channeling Qatari support to various Islamist groups over the years” as well as subverting American and European institutions with sizable infusions of Qatari money.
As the American end of the deal fell apart in recriminations and lawsuits, one of the litigants received “blood-stained currency” and a “torture ticket” after suing James Biden and his partners. The blood money came from a Middle Eastern country known to be associated with terrorists. But the FBI refused to name the country and insisted the media also hide its identity.
Rep. Jim Jordan’s (R-Ohio) Select Subcommittee on the Weaponization of the Federal Government released an 800-page report that reads like Ayn Rand’s “Atlas Shrugged.”
Take a look:
In March 2021, an Amazon employee emailed others within the company about the reason for the Amazon bookstore’s new content moderation policy change: “[T]he impetus for this request is criticism from the Biden Administration about sensitive books we’re giving prominent placement to.”
In March 2021, just one day prior to a scheduled call with the White House, an Amazon employee explained how changes to Amazon’s bookstore policies were being applied “due to criticism from the Biden people.”
In July 2021, when Facebook executive Nick Clegg asked a Facebook employee why the company censored the man-made theory of the SARS-CoV-2 virus, the employee responded: “Because we were under pressure from the [Biden] administration and others to do more. . . . We shouldn’t have done it.”
There’s chutzpah, and then there’s chutzpah: “Denver Illegals Make Demands, Include ‘Culturally Appropriate’ Food, Lawyers, Unlimited Showers And Warnings Before Evictions.”
It was fun seeing Ukraine’s Bradley’s take out Russian tanks with their Bushmaster, but they just took out a T-80 from a mile away with their TOW missile, which is the recommended method of a Bradley killing a Russian tank.
In addition to using high tech weapons against Russia, Ukraine is also using caltrops to shred their tires, a weapon first deployed by the Roman empire.
So the City of Pasadena, Texas was hassling Azael Sepulveda’s Oz Mechanics car repair shop over parking for no apparent reason, came to an agreement to settle his lawsuit, and now says, get this, they don’t have to follow the agreement because they claim the city enjoys “immunity” from lawsuits. “The property he purchased had housed another auto mechanic shop for more than 30 years and included five parking spaces, but under revised ordinances, the city demanded that Sepulveda provide 28 parking spots.” Somebody in the Pasadena city government deserves a dick punching…
More corruption from the Biden family (plus a Texas Democratic congressman), more bad news from the Biden Recession, more pedophile sex offenders, more college madness, and virtue signaling, Third Reich style. It’s the Friday LinkSwarm!
And remember: If you’re in a large Texas county, there’s a tax appraisal district election tomorrow, so be sure to get out and vote if you haven’t already voted early.
Another week, another corrupt Biden family scheme exposed. “Joe Biden’s Brother Embroiled In High-Ranking Qatari Scheme To ‘Provide Wealth Of Introductions’ Through ‘My Family.'”
Qatar has had a lot of fingers in a lot of pies. While we knew about the EU’s ‘Qatargate,’ investments with the Kushner family, and of course Sen. Bob Menendez advancing Qatar’s interests, Politico reports that the Biden family’s ties to Qatar “would constitute some of the closest known financial links between a relative of President Joe Biden and a foreign government,” if courtroom testimony about Jim Biden’s foreign fundraising efforts is substantiated.
In June 2017, Qatar’s neighbors – led by Saudi Arabia, banded together and cut diplomatic ties with the country, citing its alleged support for terrorism. As a result, the country was thrown into a sustained crisis.
To dig themselves out, Qatari rulers began showering well-connected Westerners with gifts and financial benefits, according to Politico, “sometimes in the form of investment funding.”
Around this time, Jim Biden was trying to raise $30 million for embattled hospital chain Americore – teaming up with Florida businessman Amer Rustom, CEO of the Platinum Group, who boasted of his ties to officials in the Middle East, as well as fund manager Michael Lewitt. Together, the three sought investment funding from various Middle Eastern sources for Americore and other ventures – “which came to focus largely on Qatar,” according to a former Americore executive who spoke on condition of anonymity.
According to public records obtained by the outlet, Jim Biden leveraged ties to his older brother and “sought workarounds to restrictions on international money movements,” including one discussion about trying to move money across a Middle Eastern border in the form of gold bars that may or may not have happened.
Let ye who has never smuggled gold across the border of an Arab country cast the first stone.
“My family could provide a wealth of introductions and business opportunities at the highest levels that I believe would be worthy of the interest of His Excellency,” Jim Biden and Rustom wrote in a draft letter to an official at the Qatari sovereign wealth fund, the Qatar Investment Authority. “On behalf of the Biden family, I welcome your interest here,” the draft continues.
Corrupt to the core.
More evidence from the Biden recession: “Job Openings Tumble, Quits Plunge, Hires Unexpectedly Crater To January 2018 Levels.”
After several months of relatively boring JOLTS prints, this morning Janet Yellen’s favorite labor market indicator once again got exciting, and not in a good way.
Starting at the top, according to the March JOLTS reported, job openings unexpectedly tumbled by 325K – the biggest drop since October 2023 – from an upward revised 8.813 million in February to just 8.488 million, far below the 8.690 million expected – and the lowest number since February 2021 when it last printed below 8 million.
The Department of Justice has arrested two Chinese nationals who allegedly plotted to export U.S. technology to advance the People’s Republic of China’s military operations.
Han Li, 44, and Lin Chen, 64, have been charged with several counts of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), in addition to the Export Administration Regulations (EAR), for attempting to export a machine used to process silicon microchips….
“Specifically, the defendants sought to illegally obtain for CGTC a DTX-150 Automatic Diamond Scriber Breaker machine from Dynatex International, a Santa Rosa, California company.”
That’s a backend semiconductor machine for slicing finished individual computer chips off a processed wafer.
Representative Henry Cuellar and his wife were indicted by a federal grand jury on bribery, foreign influence, and money-laundering charges, the U.S. Department of Justice announced on Friday afternoon.
The Texas Democrat and his wife are accused of accepting roughly $600,000 in bribes from two foreign entities starting in December 2014 and continuing through 2021. The foreign entities are a Mexican bank and an oil and gas company linked to the government of Azerbaijan, according to the Justice Department.
In exchange for the bribes, Cuellar agreed to use his office for promoting favorable U.S. foreign policy towards Azarbaijan and pushing legislative and executive branch officials to adopt policy measures beneficial to the bank, authorities said.
In 2022, Cuellar’s home and office were searched during a federal investigation into Azerbaijan and American businessmen linked to the Middle Eastern nation. Cuellar formerly co-chaired the congressional Azerbaijan caucus.
Cuellar represents TX28. Republicans Jay Furman and Lazaro Garza Jr. are competing in the runoff to challenge Cuellar this fall.
Columbia shows some semblance of a spine, threatens to expel students occupying administrative buildings.
Related: “Columbia Student Who Said ‘Zionists Don’t Deserve To Live’ Reportedly ‘Thrown Out Of School.'”
Also: “Police Begin Detaining UCLA Protesters Occupying Campus.”
“Tucked away in the $95 billion military aid package for Ukraine, Israel and Taiwan is a $3.5 billion slush fund to open new processing centers for Muslim migrants, in what Sen. Eric Schmitt described as a bid to “supercharge mass migration from the Middle East.” Republicans in congress asleep at the switch again.
It’s not just China that the CCP’s crazy policies are ruining. There are over 500 abandoned, unfinished buildings in Cambodia. A crackdown on online gambling also hastened the demise of many real estate ventures there.
Tranny sex offender tries to snatch a child from an elementary playground in broad daylight. “Trans-identifying male Solomon Galligan [simply] walked on campus last Friday afternoon during recess at Black Forest Hills Elementary School in Aurora, Colorado, and straight-up tried to steal a kid.”
The suspect, who is identified as male in the arrest affidavit, shared news of his transition on Facebook back in 2011.
‘So im starting my hormone shots and i relly cant wait im on my hormone pills ive been on them for almost 4 months i wake up all depressed and crying but in the end its gonna be totally worth it you know what io mean im really excited my measurements are already changing and im super thrilled,’ he wrote.
Galligan was put on the sex offender registry and was convicted that same year of non-consent sexual contact, according to his latest arrest affidavit.
Ernest Herrera, 56, was arrested Monday after he admitted to sexual contact with a 13-year-old student, claiming they had “developed a relationship.”
Herrera taught social studies at Southside Independent School District’s Losoya Middle School in San Antonio.
He was charged with improper relationship between educator and student, a second-degree felony punishable by 2 to 20 years in prison.
Herrera was booked into Bexar County Jail and held on a $75,000 bond.
The district superintendent stated that Herrera was fired “effective immediately.”
Andrew McCown, 27, was arrested Wednesday and charged with having an “improper relationship” with a 17-year-old female student.
McCown is a math teacher and football coach at Roosevelt High School in San Antonio’s North East ISD.
He was reportedly placed on leave in March and will be terminated.
McCown, who is related to former NFL quarterbacks Josh and Luke McCown, was arrested in 2022 for drunk driving while he was a teacher and coach at Robinson ISD.
According to a statement to MySA, the district “conducted a background check on April 25, 2023, and at that time, it was clear and McCown was hired.”
Another football coach, Perryton ISD athletic director Cole Underwood, was arrested Wednesday and charged with sexual assault of a child, a second-degree felony.
The alleged victim is a Perryton High School student, reportedly a 14-year-old girl.
Underwood was released from Ochiltree County Jail on Thursday after posting a $125,000 bond.
According to a statement from Perryton ISD, Underwood resigned.
Chinese officials are asking villagers to take out fake business licenses. Is that for their own business scams, or to artificially pump up Chinese economic statistics?
Profiles in Cowardice: “PEN America, a leading nonprofit dedicated to free expression, canceled its 2024 World Voices Festival late last week under pressure from pro-Palestinian activists. Many writers affiliated with the organization either threatened to boycott the event unless PEN acceded to certain demands, including labeling Israel’s actions in Gaza ‘genocide,’ or distanced themselves from the free-speech group in response to online pressure from pro-Palestinian activists.”
Obviously, the ruble has lost value because of the extensive sanctions and cutoff from SWIFT following Russia’s launch of its illegal war of territorial aggression against Ukraine. For most of the last year, the exchange rate has bounced from a high of 75 rubles to the dollar to a low of just over 100 rubles to the dollar.
However, in the last month, the ruble-dollar exchange rate has traded within an extremely narrow band between just over 90 and just over 94 rubles to the dollar.
That’s a pretty unusual, and pretty narrow, band to be trading in. The question is who, or what, is maintaining that band. Russia could be intervening to make sure the ruble doesn’t go too much above 94, but it wouldn’t make sense for them (if they’re trying to defend the currency) to be sellers on the other side when the ruble appreciates to 90 or less per dollar. Could it be China, trying to move some of the rubles taken in bilateral trade, or some institutional investor somehow stuck with rubles for two two years, unloading them whenever it hits that peg?
But it’s not just the dollar! We see the same thing with the Pound:
And the Euro:
It even seems true of two of Russia’s remaining big trading partners. The Indian rupee:
The Chinese Renminbi/Yuan:
All seem to be trading within very narrow, oscillating bands.
Is it a data artifact? Other currency exchange sites don’t show quite as obvious oscillation, but all do show trading within that narrow band.
I don’t know what to make of it. I don’t know enough to hazard any more educated guesses than that. But someone seems to be manipulating ruble exchange rates, and I’m not sure why.
If you have any ideas, feel free to share them below.
It turns out that unleashing a deadly engineered plague on the world, bellicose posturing, currency manipulation, intellectual property theft, treaty breaking, and genocidal actions against ethnic minorities isn’t a recipe for winning friends and influencing people.
Who knew?
Evidently not Xi Jingping, as under his leadership, it looks like some 90% of Chinese factories will close due to lack of business.
“My factory closed down, ended up losing over 10 million.” I’m assuming that’s Yuan.
“China continues to face a harsh winter, with reportedly 90% of factories either closing down or falling into difficulties.”
Factories that has been in business and profitable for 15 years got walloped by Flu Manchu in 2020. “After the outbreak, the factory started and stopped production intermittently, basically losing money for a year. Unexpectedly, the following three years were worse.”
“At the start of the year, there were almost no new orders. The old customers who used to order every month also significantly reduced their orders. The entire industry had fewer orders than during the 3 years of the epidemic.”
This lead to “severe competition within the industry this year to get orders. Besides low profits, customers also demanded goods to be made before payment.”
“In the second half of 2023, he was basically just chasing payments. Many customers were withholding final payments, and his factory had long run out of operational funds. During this period, he had already mortgaged his house in Shinjin for business loans. For these three years, his factory had been barely surviving on loans, and he didn’t know when it would all end. Recently he’s been exhausted, so he decided to shut” everything down.
“Bosses like us in small manufacturing factories will soon become the bottom of society. Becoming a bad debtor is only a matter of time, My factory in Guangdong is quite typical of those in the industry. Most of my customers products are for export.”
Factory workers, of course, are losing jobs and hours left and right due to the shutdowns. Plus those few factories still hiring can afford to be picky. “Those over 33 can go back! Those under 33 stay! Not accepting anyone over 33!”
“China’s products such as petrochemical raw materials, fuel and electric vehicle power batteries and non-core chips are all facing overcapacity.”
“After the pandemic, China’s economic recovery has been weak. Traditional export orders are insufficient, and products manufactured by Chinese factories exceed the domestic markets absorption capacity causing almost every industry to face overcapacity as other countries strive to curb inflation.”
“China is experiencing rare deflation.”
China’s plan to combat this is exporting high tech goods to the rest of the world. The rest of the world doesn’t seem enthused.
I’m skipping over some Q1 growth statistics for China I don’t believe.
“Due to overcapacity in China, companies are squeezing each other’s profits by lowering export prices.”
“In the first quarter, China’s manufacturing capacity utilization rate plummeted to 73.8%, the weakest level since 2015.”
“The utilization rate of the automotive manufacturing industry has now dropped to below 65%.”
And the electric car bubble bursting has hit China hard. “For years the CCP has spared no effort, using high subsidies and various preferential policies to fully support the development of new energy vehicles.”
“It is estimated that from 2010 to the present, over 200 billion yuan, about $28 billion US, has been directly subsidized to new energy vehicle companies by the CCP.”
“The CCP’s irrational economic measures not only harmed the global economy, but also damaged China’s own economy. The subsidy policy has not only led to the emergence of numerous purported new players in the automotive manufacturing sector, but has also notably spawned a significant number of counterfeit car companies that rely solely on deceiving subsidies through presentations and mockup models.” In other words, the same smoke and mirrors companies seen throughout the rest of China economy.
“The Wall Street Journal reported that in 2018 there were already more than 487 Chinese electric car manufacturers, but now there are only over 40 remaining.” (Previously.)
Is the 90% factory closure estimate way too high? Probably. But if it’s even of factories, imagine the devastating economic and social dislocation effects this will have on China’s aging economy.
Much of China’s economic miracle was built on smoke and mirrors, and by one estimate China GDP was overstated by 60%. And thanks to Xi Jinping’s gross mismanagement of just about everything, the bill for all those illusions is now coming due.
