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OpenAI Hits Back At Apple In Trade Secrets Lawsuit

Authored by Bill Pan via The Epoch Times,

OpenAI has pushed back against Apple's accusations that it stole the iPhone maker's hardware secrets, blaming the dispute on Apple's own handling of departing employees.

In a court filing on Monday, OpenAI asked a federal judge to deny Apple's request for a preliminary injunction, which would bar the ChatGPT maker and two former Apple employees from accessing, using, or disclosing alleged trade secrets while the case proceeds.

"This dispute is a mess of Apple's own making, and it is trying to blame everyone else," OpenAI said in the filing.

Apple sued OpenAI in July in the U.S. District Court for the Northern District of California.

The company accused OpenAI and former Apple employees Tang Tan and Chang Liu of misusing confidential information related to hardware design, manufacturing, and supply-chain operations.

Tan, who spent 24 years at Apple and previously served as vice president of product design for the iPhone and Apple Watch, is now OpenAI's chief hardware officer.

Liu, a former senior systems electrical engineer at Apple, now serves on OpenAI's technical staff.

In its complaint, Apple alleged that Tan used confidential project code names during interviews. It also claimed he asked at least one candidate to bring "actual parts" they had worked on at Apple for a "show and tell" session.

Apple further alleged that Liu continued to access company files after leaving by exploiting what it described as a "rare, previously unknown authentication bug."

OpenAI has denied those allegations.

In Tan's case, OpenAI said he returned Apple prototypes before leaving and kept only nonconfidential material.

It also said any components brought to interviews were either old or publicly available and were used only as "demonstration aids."

OpenAI also defended Liu, saying any Apple files he accessed after leaving were retrieved at the request of former colleagues.

According to OpenAI, those employees contacted him for help locating documents or answering questions about his previous work.

The Epoch Times has requested comment from Apple regarding OpenAI's latest filing.

Apple Cites New Evidence

Earlier on Monday, Apple submitted what it described as new evidence against Liu as it sought expedited discovery in the case.

Apple alleged that Liu accessed Apple's confidential "power-converter circuit" schematic while working at OpenAI, and that he used proprietary Apple information to train an AI agent in March.

Apple said the evidence emerged from a MacBook that OpenAI provided to the company on Aug. 21 as part of the legal proceedings. Much of the underlying evidence remains redacted from public view.

"The MacBook represents the very limited information Defendants provided so far (and only after weeks of delay), and shows Apple is not conducting 'fishing expeditions' but that its trade secrets are being used and evidence is being destroyed," the filing states.

OpenAI, however, said the episode only shows Apple's own shortcomings when it comes to offboarding.

According to OpenAI, Apple encourages employees to use personal iCloud accounts for work, making it more difficult to separate personal and company files when they leave.

The company also argued that Apple's practice of immediately escorting some departing employees from its offices can leave little time to return devices, transfer files, or hand over responsibilities.

"Apple blames employees who left the company for taking their personal accounts with them - even though Apple encouraged them to use personal accounts for work," OpenAI said.

The competing filings mark the latest escalation in a lawsuit that could provide an unusual look inside the two tech giants.

As the case moves deeper into the discovery phase, both sides could be required to disclose more details about how they recruit talent, develop hardware, and control who has access to what level of secrets.

From AI Partners to Hardware Rivals

There have been days when Apple and OpenAI enjoyed a less contentious relationship.

The two announced a partnership in June 2024 that brought ChatGPT into Apple products, allowing Siri and other Apple Intelligence features to tap into OpenAI's chatbot for some requests.

But OpenAI has since expanded aggressively into consumer hardware.

In May 2025, OpenAI acquired io Products, a hardware startup founded by former Apple design chief Jony Ive.

The deal, valued at $6.5 billion, brought Ive and his team into a close partnership with OpenAI as the company sought to develop a new generation of AI-powered devices.

Tan left Apple before joining io and later became OpenAI's chief hardware officer. Apple's lawsuit does not name Ive individually as a defendant.

Apple, meanwhile, has broadened its own AI partnerships.

In January, the company struck a multiyear deal to use Google's Gemini models as the foundation for future Apple Intelligence features, including its revamped Siri.

The legal fight erupted in July, when Apple accused OpenAI of using former Apple employees to obtain confidential information that could help it develop competing consumer hardware.

Apple has also alleged that OpenAI approached some of Apple's business partners using confidential information.

OpenAI has denied wrongdoing and portrayed the lawsuit as Apple's attempt to slow a potential competitor and discourage employees from leaving.

It said in Monday's filing that roughly 400 former Apple employees have joined its hardware efforts.

The ChatGPT maker argued that California law allows workers to move freely between competing companies, and that Apple cannot characterize ordinary employee departures as unlawful just because they join a rival.

"Apple cannot stop the next 400 employees from leaving by filing baseless lawsuits," OpenAI said.

"They can leave a company like Apple that has struggled to adopt AI and move to an exciting startup that builds innovative products," it continued.

"Apple may not like those choices. But it cannot claim those choices are unlawful."

Tyler Durden Wed, 09/02/2026 - 20:05

Russia Accused Of Helping Iran Develop Carrier-Killing Supersonic Cruise Missiles

Yet another major allegation against Russia has emerged this week in the pages of the London-based Financial Times, which says that Moscow has been helping Iran develop supersonic cruise missiles, in a clandestine program that has been ongoing throughout the war with the US and Israel.

Early in the conflict, it was widely reported that advanced and ultra-fast weapons were used against Israel, which might help explain why the small Mediterranean country suffered so much damage.

The FT cited as part of its journalistic investigation internal Russian evidence it has uncovered including correspondence, travel records and military patents.

The secretive program is being described as "one of the most significant known transfers of strategic military technology from Moscow to Tehran."

At the center of the new reporting is Russia’s state arms exporter Rosoboronexport, overseeing a project codenamed "C430L" - and also involving the US-sanctioned NPO Mashinostroyenia, a rocket design company.

Officials from both entities reportedly started frequently traveling to Iran in 2023, with the program having continued into June 2026 - though it's unclear whether the war with the United States has paused or halted it.

The missile reportedly under development would fly at multiple times the speed of sound, and could be an 'aircraft killer'. It should be noted there are entire Reddit threads focused on questions like: Is there any realistic way for a carrier to destroy a super-sonic “carrier killer” cruise missile?

Jim Lamson, a former CIA military analyst focused on Iran, issued a statement to FT explaining, "For the Iranians, this would give them a qualitatively new strategic weapon system that could threaten US Navy vessels."

Another interesting insight is from Fabian Hinz, a senior analyst with Conflict Armament Research. "This is the transfer of a highly strategically sensitive military technology from Russia that the Iranians have wanted to acquire for decades," he told the FT.

"A program like this would require political clearance from the very top in Russia," he added.

There of course remains the looming question of whether this is all propaganda, designed to put even more Western pressure on so-called 'rogue' actors Moscow and Tehran. It could be, but sharing such technology would also be consistent with recent defense and economic pacts the two sides have inked. This part has been no secret. They are also already deeply involved in drone transfers.

Bessent on Iran:

Iran gets some supplies from Russia, but if we shut down the Iranian airlines, which we will, then much less coming in.

They don't really get direct financial support from Russia. pic.twitter.com/yFssQLF71Y

— Clash Report (@clashreport) September 2, 2026

Already Russia witnessed a many years-long push to topple the Assad government in Syria, leading to a broad Russian troop withdrawal from the Levant, and certainly the Kremlin doesn't want to see US-imposed regime change in Tehran as well.

Tyler Durden Wed, 09/02/2026 - 19:40

Dallas Police To Shut Down Hundreds Of Flock Cameras

Authored by Jack Phillips via The Epoch Times,

The police department in Dallas has announced it will shut down hundreds of Flock cameras due to a funding pause, making it another U.S. city to remove the controversial camera system.

Two Flock Safety cameras in a neighborhood in Jessup, Md., on Aug. 26, 2026. Madalina Kilroy/The Epoch Times

The department said in a social media post on Sept. 1 that it received a notice that Texas Gov. Greg Abbott issued a directive ending funding for Flock camera use.

Flock cameras are artificial intelligence (AI)-driven, automated license plate reader systems that capture vehicle details and license plates, with more than 120,000 cameras found throughout the United States. They have drawn online controversy over concerns regarding data privacy, surveillance overreach, and their potential misuse.

"These cameras remain an important investigative tool and are used daily by detectives and officers to develop leads, identify vehicles associated with criminal activity, and assist in solving crimes," the Dallas Police Department said on X.

It added that it will "continue evaluating available resources and technology to ensure our officers and detectives have effective tools to support investigations and enhance public safety."

Dallas Police officials said that 321 Flock cameras supported by grant funding will no longer be eligible, meaning they will be canceled effective Sept. 15. After the move, the department "will continue to have more than 300 Flock cameras operating throughout Dallas," according to its X post.

Last week, Abbott's office ordered all state agencies to pause funding to Flock camera systems, his spokesperson confirmed to the Texas Tribune.

"To the extent that cities get any funding for those cameras, most of it comes from the federal government. To the extent any funding comes from Texas agencies, those agencies are clarifying that those funds cannot be used for Flock cameras," Abbott spokesperson Andrew Mahaleris told the outlet.

Aside from Texas, Florida said on Monday that it would stop allowing Flock cameras on state highways. Meanwhile, two Arizona cities, Tempe and Cave Creek, said days before that they were canceling their Flock contracts.

Will Watts, chief operating officer of the Florida Department of Transportation, sent a memo on Aug. 31 stating that the state agency would revoke approvals for license plate readers, including Flock cameras.

Watts noted there was a "recent exponential increase" in deployments of law enforcement cameras and "concerning reports of misuse, data privacy concerns, and surveillance schemes" associated with those systems, according to the one-page memo.

Regarding the decision in Tempe, a Flock spokesperson told The Epoch Times in a statement last week that the company respects "the City's decision, even though Tempe has acknowledged that Flock helped officers do their jobs and found no improper use by its own police department."

"Flock has built the most accountable tool in police technology, and our technology gives communities control over how their systems are used, including the ability to adopt shorter data retention periods, strong access and auditing policies, and safeguards specifically designed to catch potential misuse," the spokesperson added.

More than 100 jurisdictions have canceled contracts with Flock and other automated license plate reader providers, according to a database from the Institute for Justice, a nonprofit law firm that says it aims to end government abuse of power.

The Epoch Times contacted Flock Safety for further comment but did not receive a response by publication time.

Zachary Stieber contributed to this report.

Tyler Durden Wed, 09/02/2026 - 19:15

US Mint Starts Selling $1 Trump Coins

Authored by Jack Phillips via The Epoch Times,

The U.S. Mint has started selling a $1 coin bearing President Donald Trump's image to commemorate the 250th anniversary of the founding of the United States.

A new $1 coin features President Donald Trump's image. Treasury Department/AP Graphic

The U.S. Mint stated in an X post on Sept. 2 that the Trump coins would be available for purchase starting at 12 p.m. ET on Sept. 2.

"These coins are also in circulation, so check your pocket change. Collect them today," the agency said in an X post.

On one side is an image of Trump with the text, "LIBERTY," "1776-2026," and "IN GOD WE TRUST." The other side has a seal with the writing, "UNITED STATES OF AMERICA," "250," and "E PLURIBUS UNUM," which is Latin for "out of many, one."

The U.S. Mint website initially had a message saying, "due to extraordinarily high traffic, we are using a virtual waiting room" with an estimated waiting time listed. It took an Epoch Times reporter more than 20 minutes to access the website initially, but the waiting time declined to two minutes later in the day.

A 25-coin roll is listed at $61, and a 100-coin bag, "currently unavailable" on Wednesday, costs $154.40.

"Whether you collect modern dollars, commemorative issues, or milestone coinage, the Semi-Quincentennial $1 coin represents an important chapter in United States numismatic history," the Mint's website said. "Own a piece of American history."

The coins are composed of 5 percent zinc, 3.5 percent manganese, 2 percent nickel, and the rest is copper, according to the web page.

Last October, Treasury officials announced plans to include Trump's image on a $1 coin.

The new coin is intended "to honor the enduring legacy of liberty and a lasting symbol of patriotism," wrote Treasury Secretary Scott Bessent in a post on X earlier this year. "Featuring President Trump, it celebrates the strength of American values, and the promise of a nation dedicated to preserving freedom for all."

The Treasury Department also announced in March that it would be putting Trump's signature on all new U.S. paper currency.

"Printing his signature on the American currency is not only appropriate, but also well deserved," said U.S. Treasurer Brandon Breach in a statement.

Meanwhile, the Treasury stopped producing pennies for general circulation last November after 230 years of coinage. Officials said that it costs around 4 cents to manufacture a single penny and that stopping production would save taxpayer dollars.

Although new pennies won't be made anymore, the Federal Reserve will continue to recirculate about 114 billion pennies for as long as possible, the Treasury said on its website.

"How long existing pennies remain in circulation depends largely on consumer behavior," the department stated last December.

The Associated Press contributed to this report.

Tyler Durden Wed, 09/02/2026 - 18:25

Brazil's Socialist President Sees Lead Evaporating, New Poll Shows

Brazilian socialist President Luiz Inácio Lula da Silva's lead over right-wing Sen. Flávio Bolsonaro continues to narrow, according to new polling data released early Wednesday. The latest polling extends the trend we highlighted last week, showing that the narrowing margin between the two candidates has transformed October’s presidential election a coin toss.

Lula (Left); Bolsonaro (Right)

According to a Quaest poll commissioned by TV Globo, Lula leads Bolsonaro 42% to 41% in a potential runoff. The one-point gap is within the survey’s two-point margin of error and marks a decline from Lula’s three-point advantage in the previous poll released in mid-August.

Quaest, 2º turno: Lula, 42%; Flávio Bolsonaro, 41% https://t.co/CVLptTwmiq #g1 pic.twitter.com/oSBLd27Big

— g1 (@g1) September 2, 2026

Pesquisa Quaest divulgada hoje vs 2022 mesma janela temporal

Lula vs Bolsonaro 1º e 2º turno

No 2º turno diferença que era de 12 pontos em 2022 é de apenas 1 ponto em 2026 pic.twitter.com/MfyMW2Ifos

— Pedro Albuquerque F (@albuquerque_af) September 2, 2026

A separate BTG Pactual/Nexus poll published at the start of the week also placed Lula ahead by only one point. An AtlasIntel survey conducted for Bloomberg showed the president leading by 4.5 points, although that advantage narrowed slightly from July.

The shrinking gap comes as federal authorities investigate allegations of corruption and influence peddling involving Lula’s son, Fábio Luís Lula da Silva, known as Lulinha. The probe focuses on cannabis programs linked to Brazil’s Health Ministry.

Lulinha has denied wrongdoing. Lula has not been implicated and has said he will not shield his son from investigators, although he believes Lulinha is innocent.

AtlasIntel’s findings show that the corruption probe has inflicted political damage on the socialist president, threatening to turn the election into a coin toss.

Last Friday, Alexandre de Ázara, a managing director and chief economist for Brazil at UBS, told clients that “the gap is closing” in Brazil’s presidential race as Bolsonaro pulls within striking distance of President Lula.

Polymarket odds show that Bolsonaro is closing in on Lula.

A Flávio Bolsonaro win in October would not start a right turn in South America. It would effectively close it.

By mid-2026, South America had already flipped. Argentina (Milei), Chile (Kast), Colombia (de la Espriella), Peru (Keiko Fujimori), Ecuador (Noboa), Bolivia (Paz), and Paraguay (Peña) sit on the right.

The remaining large left-wing governments are Brazil and Uruguay. Brazil accounts for about half of South America’s GDP and population. If Brazil goes right, the region would be entirely aligned with the Trump administration and would be on track to rid itself of nation-killing socialism and other failed progressive experiments.

Tyler Durden Wed, 09/02/2026 - 18:00

Another ActBlue Official Pleads Fifth In House Probe of Alleged Foreign Donations

Authored by AG News Staff via American Greatness,

Another senior figure at Democratic fundraising platform ActBlue invoked the Fifth Amendment during congressional testimony Tuesday as House Republicans investigate allegations of fraudulent and foreign political donations.

Kimberly Peeler-Allen, a member of ActBlue's board of directors, invoked her constitutional right against self-incrimination while appearing before the House Administration, Judiciary and Oversight committees, according to sources familiar with her testimony.

Kimberly Peeler-Allen, pictured second from the left, attending the 35th Annual Celebrating Women® Breakfast at New York Marriott Marquis Hotel on May 11, 2022, in New York City. Peeler-Allen pleaded the Fifth Amendment on Sept. 1, 2026, during a probe into Democratic fundraising platform ActBlue, for which she is a member of the board of directors. (Monica Schipper/Getty Images for The New York Women's Foundation)

Her decision follows similar moves by other ActBlue officials.

ActBlue co-founder Matt DeBergalis invoked the Fifth during a closed-door deposition Aug. 20, while CEO Regina Wallace-Jones asserted the same right during congressional questioning in June.

The House Administration Committee began investigating ActBlue in 2023 following concerns that the fundraising platform's fraud-prevention procedures were inadequate to prevent illegal foreign donations.

Committee Chairman Bryan Steil, R-Wis., has focused in part on ActBlue's previous practice of not requiring donors to provide credit card CVV security codes.

"We have an entity here with ActBlue, that has raised roughly $20 billion since its creation," Steil told Fox News.

"We want to make sure that they have the fraud prevention protocols in place to make sure that foreign funds are not coming into U.S. elections."

Steil acknowledged that witnesses have a constitutional right to invoke the Fifth Amendment but said their refusal to answer questions has frustrated lawmakers seeking information about ActBlue's operations.

The investigation intensified after The New York Times reported in April that ActBlue's attorneys had warned internally that Wallace-Jones may have provided Congress with a misleading description of the organization's procedures for detecting foreign donations.

Wallace-Jones had described ActBlue's screening system as "multilayered." According to the Times, however, the organization's attorneys warned that ActBlue did not always follow the procedures she described, creating what they characterized as "a substantial risk for ActBlue."

Republicans have denied accusations that the investigation is politically motivated, arguing that foreign money entering American elections would present a serious threat regardless of which party benefits.

ActBlue has denied wrongdoing and has previously said it maintains safeguards against fraudulent and foreign contributions.

Tyler Durden Wed, 09/02/2026 - 17:40

Apple Maps Changes Name Of Lake Ontario To Lake America

Update (1700ET): President Trump has voiced his approval of this change as "complete, ratified, and binding"...

As Kimberly Hayek detailed earlier for The Epoch Times, Apple has changed the name of Lake Ontario to "Lake America" on the web version of its Apple Maps service, following an executive order from U.S. President Donald Trump that renamed the body of water located on the U.S. - Canada border.

The update appeared Sept. 1 for users in the United States. It came days after Alphabet's Google Maps made a similar switch for U.S. users late Aug. 29.

Interior Secretary Doug Burgum said Aug. 31 that Trump had contacted Apple directly about the change.

"I know that the president reached out to Apple directly," Burgum said on Fox Business. "So I'm sure that we may be seeing that change coming up soon to Lake America."

Apple updated Apple Maps so that people in the United States now see the Great Lake labeled Lake America, after the U.S. Geographic Names Information System recorded the new official name.

Users in Canada still see Lake Ontario. Everyone else sees both names. Apple used the same country-based labeling after the Gulf of Mexico was renamed the Gulf of America.

Trump signed the executive order on Aug. 27, directing the Interior Department to update the U.S. Geographic Names Information System. The move came amid collapsed trade talks with Canada and new tariffs on both sides.

"Canada has been ripping us off for a long time on trade, very sadly," Trump told reporters in the Oval Office after signing the order. "Even the military ... You know, we defend Canada for nothing. We don't get anything."

He added that Canada doesn't "pay for anything" but wants to be treated like a state, though "it's not a state."

The lake, one of the five Great Lakes, sits halfway along the border of New York state and Canada's province of Ontario. Its name dates to the 1640s, long before either nation formed, and inspired the province's name in 1867.

Canadian Prime Minister Mark Carney rejected the renaming the same day Trump signed the order.

The lake's historic name is Lake Ontario and will remain the same "then, now and always," Carney said in a statement. He noted it comes from the Wendat word "Ontari'io," meaning "the lake is beautiful, the lake is big."

"The name is more than 400 years old, predating both the Confederation of Canada and the Declaration of Independence of the United States of America," Carney said. "We know that America is changing. Their trading relationships, their foreign policies, their national monuments, their hydronyms."

Ontario Premier Doug Ford holds a similar view. He unveiled a lakeside sign in Winona, Ontario, reading "Lake Ontario, Now and Always" in English and French.

"President Trump can call it whatever he wants, but I can tell you, the rest of the world will always call it Lake Ontario," Ford told reporters.

New York Gov. Kathy Hochul also declined to adopt the new name on state maps.

"New York won't be calling it that," she posted on X.

Google explained its update in a weekend statement, saying it follows official government sources such as the Geographic Names Information System. U.S. users now see "Lake America." Canadian users continue to see "Lake Ontario." Users elsewhere see both, it also explained.

Apple did not immediately respond to requests for comment when the request was first reported. The company previously updated Apple Maps for the Gulf of America after Trump's 2025 order renaming the Gulf of Mexico.

MapQuest, a free online mapping service owned by California-based System1, an AI-powered customer-acquisition company, has refused the change. "We're not changing it," the company posted to X. It surged to the top download on the U.S. Apple App Store charts upon its announcement.

Some Ontario government websites briefly displayed "Lake America" after Google's update because they pulled map data from the service. Hydro One, Metrolinx, Infrastructure Ontario, and the Liquor Control Board of Ontario sites showed the new label.

Officials corrected them quickly. Ontario minister of public and business service delivery and procurement Stephen Crawford said the province was reviewing all sites "to make sure they all identify Lake Ontario by its correct name: Lake Ontario."

The trade talks between the countries collapsed on Aug. 21. The United States imposed 50 percent tariffs on nearly $20 billion of Canadian goods. Canada announced matching retaliatory tariffs set to take effect Sept. 8. Trump also announced plans for 50 percent tariffs on Canadian vehicles and auto parts beginning in 2027.

Burgum ordered the Interior Department to implement the name change for the lake on Aug. 27 and posted, "Make the Great Lakes Great Again!"

Tyler Durden Wed, 09/02/2026 - 17:00

Pennsylvania Data Center Project Offers Residents $10,000 "Benefits Package" For Community Rebuilding

With half of all proposed data centers unlikely to materialize amid mounting local resistance, potentially amplified in some cases by foreign influence operations, and intensifying power-grid constraints, developers are adopting more creative strategies to secure community support.

In Pennsylvania, one proposed data center campus is offering $10,000 payments to residents, alongside broader investments to rebuild local communities, strengthen public services, and reduce household costs.

Local outlet PennLive recently reported that NorthPoint Development is offering $10,000 to every eligible Hazle Township household to help revive the 1,300-acre data center project, which was rejected last November.

The $10,000 grants are part of a $165 million offer made by NorthPoint Development to establish a township police department, lower garbage-collection bills, fund community programs, and pay residents directly, the local outlet reported.

Residents would receive the money after the first data center building secures an occupancy certificate, potentially by late 2027.

"The $165 million community-benefits commitment represents an unprecedented level of direct financial investment in a Pennsylvania municipality," Missouri-based NorthPoint said in a recent press release.

This data center is

- Creating a police department
- Lowering garbage bills
- Funding community programs
- AND ALSO giving out $10,000 checks

When can I get a data center in my backyard? https://t.co/KWfCoCqQh7

— Crémieux (@cremieuxrecueil) September 2, 2026

Our latest note on the data center revolt from earlier this year showed that nearly half of the nation's planned 16 gigawatts of capacity is at risk of cancellation or delay, while only 5 gigawatts are currently under construction. This comes amid surging negative sentiment toward these facilities.

The latest Economist/YouGov poll finds that nearly half of all Americans think data centers are bad for communities...

... prompting developers to adopt community-benefits packages to appease nearby residents:

The gold standard for data centers moving forward will most certainly be direct payments to residents and investments in rebuilding communities.

Tyler Durden Wed, 09/02/2026 - 16:40

The Texas Trotsky? Talarico Declares Capitalism An "Oppressive System" That Must Be "Dismantled"

Authored by Jonathan Turley via Jonathan Turley,

Senate Democrat nominee James Talarico appears ready to bring a touch of Trotsky to Texas.

In a video from a climate forum, Talarico is shown declaring capitalism an "oppressive system" linked with white supremacy and that it must be "dismantled" to achieve a better world. It is reminiscent of Leon Trotsky, who denounced the "fundamental evil of the capitalist system" and called on citizens to free themselves from its oppression. The Democratic Socialists of America and radical sites have long called "to dismantle the capitalist state."

As a state representative, Talarico addressed the 2020 climate conference by the Austin chapter of the Sierra Club with other Texas House candidates. However, it was Talarico that roused the crowd with an attack on capitalism:

"I'm so thankful that you asked this question and also thankful that young activists have really drawn the link between climate change and White supremacy and capitalism in our country ... And I think only ending the ways that all three of those oppressive systems work together are we gonna be able to begin the process of dismantling them."

Talarico added criticism of Texas's oil and gas industry, which he mocked as a dying industry "like being the leader in cassette tapes in the 1980s." He predicted with obvious satisfaction, "That industry is not gonna last."

Ironically, given his earlier promise of running a meatless, Vegan campaign, opposing both beef and energy markets in Texas could well achieve the dismantling of the economy by default in Texas.

Talarico's views closely parallel socialist and communist talking points online. Democratic Socialists of America has challenged people to "Imagine the end of capitalism." Those words in the Democratic Socialists of America manifesto offer Americans a world without landlords, debt, mandatory work hours, and "food, education, energy, medicine, and transportation... are common goods and utilities."

The DSA is premised on the same stated objective of Talarico, declaring that there has to be "a revolutionary transformation to replace the capitalist social order based on exploitation and oppression."

Other candidates have sought to pander to this radical mob. Recently, California Gov. Gavin Newsom thrilled the mob by declaring that "nostalgia is not working," adding that "capitalism as we know it doesn't work either."

In "Rage and the Republic," I discuss the rise of socialism and the coalition of politicians, pundits, and professors in attacking capitalism as well as core institutions such as the Supreme Court. It is a crisis of faith on the 250th anniversary of the oldest and most successful republic in history.

It is the 250th anniversary not only of the Declaration of Independence but of Adam Smith's Wealth of Nations. Smith's free market theories were immediately embraced by the founders as the perfect economic theory to match their political theory. They had declared the first Enlightenment Revolution based on a belief in natural rights that came from God, not governments.

However, those rights mean little without economic freedom. Capitalism offered citizens the ability to transcend class and social barriers, to advance as far as their skills and labor would take them.

Together, those political and economic theories created the most prosperous and stable democratic system in the world. That system is now under attack on both sides. Radicals are calling for the trashing of the U.S. Constitution and the discarding of our core constitutional values.

Even establishment figures from former Vice President Kamala Harris to California Governor Gavin Newsom now dismiss faith in core institutions as mere "nostalgia." Those of us who support the Madisonian democracy are derisively called "institutionalists" and constitutional "cultists."

The New York Times ran a column, "The Constitution Is Broken and Should Not Be Reclaimed," by Ryan D. Doerfler of Harvard and Samuel Moyn of Yale, calling upon citizens to "reclaim America from constitutionalism."

As these attacks on our constitutional system mount, a similar attack on capitalism is unfolding. In New York, Zohran Mamdani promised to show citizens the "warmth of collectivism" from free child care to free buses to state-run grocery stores. Across the country, Mamdani allies are joining him in calling for the de-commodification of private property and the seizing of the means of production.

Polls show that these candidates are being propelled not by the working class, but by young, college-educated voters fresh out of the ideological echo chamber of higher education. They are armchair revolutionaries like Talarico, repeating socialist slogans with the same robotic rote delivery of a Young Pioneer camp.

As these videos surface, radical candidates from Abdul El-Sayed to Talarico brush off their earlier comments as media allies attack any reporting on prior statements. Socialist Democrat Alexandria Ocasio-Cortez, who is considering a run for president, recently called her own extremist statements as "Woke 1."

The transparent insincerity does not matter to their base. These figures have already shown their bona fides with extremist statements in the past. Talarico's desire to dismantle capitalism was not some slip of the tongue but a planned speech to fellow activists. To pivot now is considered to be mere packaging for uneducated and malleable dupes.

Accordingly, when asked about past radical positions, these figures immediately deny or dismiss them. If you want to dismantle the constitutional or economic systems of the United States, a few white lies hardly seem of much consequence. After all, as Trotsky explained, "The end may justify the means as long as there is something that justifies the end." For these radicals, there is no greater justification than their own election.

Jonathan Turley is a law professor and the best-selling author of "Rage and the Republic: The Unfinished Story of the American Revolution."

Tyler Durden Wed, 09/02/2026 - 16:20

Trump Proclaims War Won't Last 'Too Long' After Yesterday 'Love-Tap' On US Bases By Iran Summary

• Trump warns of more strikes, but failed to mention tonight: Says US can hit Iran “at any time” but expects the war to end soon.
• Iran retaliation: Missile and drone strikes hit U.S.-linked sites across Jordan, Iraq, Kuwait and Bahrain.
• Civilian toll rises: Iran reports a wedding was targeted.
• Hormuz escalates: Two tankers reportedly hit mines, killing two crew members.
• No regime collapse, despite Trump urging 'rebellion': Despite US claims, Iran shows no clear signs of imminent collapse and says negotiations remain possible.

//--> //--> //--> Will the Iranian regime fall before 2027?
Yes 7% · No 94%
View full market & trade on Polymarket Trump Wide-ranging Comments from Oval

Trump again reiterated in afternoon comments to reporters that the military campaign against Iran won't last too long. Of course, we've heard this many times before, also amid reports that White House aides are urging 'quiet' related to the Iran conflict until at least after November midterm elections, after which operations could ramp up again.

"We blew up much more than their radar last night, it was a very heavy attack last night. And we’re prepared to do another one any time we want," he stated.

"We hit them last night because they took a shot at our base in Jordan," he continued, confirming the Iranian retaliation. "We hit them hard last night. They gave a little love-tap, but we hit them hard."

He also described that "some defensive, some offensive" Iranian radars and capabilities along the Strait of Hormuz were taken out.

Trump says that while the US is ready to strike Iran “at any time”, he doesn’t expect the renewed fighting to last “too long”.

Another interesting moment below... these numbers keep getting inflated, despite there not being any evidence of large-scale protests and violent suppression on the ground in recent months:

Trump on Iran:

As of three months ago, they had 52,000 protesters that were killed.

Now I hear the number is 20 to 25,000 more.

They have close to 65,000 protesters killed. pic.twitter.com/w5aRbQ5VLd

— Clash Report (@clashreport) September 2, 2026

And there's this via CBS:

Trump in Oval described Iranian actions against protesters. They use "machine guns and sometimes the snipers. They like the snipers better because all they do is have a crowd of 200,000 people, and a person goes down here right between the eyes, and they'll have three snipers doing it, and it's a horrible thing to watch."

What's the timeline on this? What is he talking about?

Netanyahu has also joined in from Israel, on Wednesday saying that Mossad continues to be active in Iran, and that the goal is regime collapse.

Iran on Deadly Wedding Attack

Iran is assessing the aftermath in terms of casualties and damage in the wake of the new flare-up in fighting, after the US launched a series of deadly attacks on the Islamic Republic Tuesday, focused in the south and Hormuz Strait area, and Tehran in expected fashion retaliated with drone-and-missile strikes against Gulf nations and Jordan.

Iran says the total death toll from the new American assault has risen to 18, especially following a an alleged mass casualty strike at a wedding celebration. It reportedly happened in happened Hormozgan province Tuesday night, with authorities having announced five were killed, including a child, and with at least 50 more wounded.

Aftermath of alleged American strike on a wedding in Sirik, Iran.

Regional media reports, "Six-year-old Amir Mohammad Karimi was among those killed, it said, adding that those wounded had been transferred to hospital in the nearby city of Minab."

"Earlier, Reza Shahidiyan, the governor of Sirik county, told the IRIB state broadcaster that 63 people had been injured, including 50 women and children," the report continues. "Other Iranian reporting has cited as many as 68 wounded."

Tehran officials, as well as Iran's Red Crescent Society, have made formal requests to global bodies, including the International Criminal Court, to take legal action for the civilian deaths and alleged war crimes.

BBC has cited the Pentagon as saying it is aware of reports about the strike but that US forces never targeted civilians.

🚨 🇮🇷 A U.S. attack on a wedding ceremony in Sirik, in southern Iran’s Hormozgan province, killed four people, including a child, the provincial Red Crescent’s managing director said, according to Tasnim. The province’s deputy governor for security earlier reported 50 wounded.… pic.twitter.com/eoHMkD2jJA

— Drop Site (@DropSiteNews) September 1, 2026 US Sites Attacked by Iran

As for known targets from the Iranian response, which saw an initial ballistic missile wave target US bases in Jordan, some of the following has emerged:

• Camp Titin & Prince Hassan Base (Jordan): ballistic strikes.
• Erbil Bases (Iraq): Combined missile/drone.
• Ali Al Salem (Kuwait): HQs & drone ramps hit.
• US Naval Base (Bahrain): Casualties & destroyed aircraft reported.

Videos which purport to show some of these strikes, particularly against NSA Bahrain (certainly not for the first time, as it's already suffered significant damage), have been widely circulating but remain unconfirmed.

In the Strait of Hormuz, the Revolutionary Guard has announced that two foreign ⁠oil ⁠tankers hit sea mines and are on fire after attempting to transit the waterway earlier in the day Wednesday. The IRGC said it occurred while the vessels used an "illegal route" through the the strait, state TV reports. Simultaneously Al Jazeera issued the following:

Bahri, a shipping company in Saudi Arabia, says two Filipino crew members were killed on board the SIDR vessel in an “incident” while transiting Hormuz.

Trump Latest Bravado 

As for the broader US naval blockade on Iranian ports, Reuters outlines that "Iran has gone about seven weeks without shipping meaningful crude exports through the Strait of Hormuz, as a U.S. naval blockade succeeds where years of sanctions failed by cutting off one of Tehran's main sources of foreign-currency earnings."

Meanwhile, this is real...

The commentary adds: "Unlike ‌previous sanctions campaigns, when Iranian crude continued reaching buyers despite restrictions, the current blockade has stopped fresh crude cargoes reaching China, Tehran's only major remaining oil customer, increasing pressure on government finances and foreign-currency reserves."

The world is now witnessing the seventh month of a "3-4 week" war, and the White House is still pushing this 'the Iranian people will rise up' narrative. According to a late Tuesday Trump Truth Social Post:

I’m not trying to force Iran to the bargaining table, as ABC Fake News reported. I couldn’t care less if they sign a worthless, to them, agreement. I like our position now much better, with almost total control of the Hormuz Strait, and their economy totally collapsing. They are just playing out the inevitable. When are the Iranian people going to rise up and fight? President DJT

In the opening days of Operation Epic Fury it must be recalled that Trump claimed "help is on the way!" - and yet now amid a stalemated situation US bases across the region have been degraded and destroyed.

Where is Secretary of State Marco Rubio these days?...

I think Bessent is talking about the Trump administration here…

Things are getting rough behind the scenes clearly. 🇺🇸 https://t.co/Z5j40klgEG

— Philip Pilkington (@philippilk) September 2, 2026 Bessent: 'Snake'

US Treasury Secretary Scott Bessent is meanwhile touting that the US is 'cutting off the head of the snake.'

"When I was a kid in South Carolina, we lived near a swamp, and as a result, we’d end up with a lot of poison snakes in our yard. And you would take either a rake or a machete, or a paddle from a boat, and you cut the head off," he said Tuesday.

"But the snake, the tail kept wiggling, and you had to bury the head of the snake because the head of the snake was still poisonous, and there was venom there. So we are burying the head of the Iranian snake," he continued. "The snake doesn't know it’s dead yet, but it will stop wiggling when the sun goes down." But as yet, there are no signs of a rapidly collapsing state system, and there are no masses rising up in the streets.

Iranian leadership is vowing not to back down, but to continue inflicting pain on Washington, on the military, economic, and political fronts.

Parliament speaker goes off...

Minab school: children massacred.
Lamerd sports hall: kids slaughtered.
Kouhestak wedding: children killed with families.

If a power acts like Satan, picks targets like Satan, and kills like Satan, it’s Satan.

Shields a junior Satan that does the same? It’s THE Great Satan.

— محمدباقر قالیباف | MB Ghalibaf (@mb_ghalibaf) September 2, 2026

Iranian Parliament Speaker Ghalibaf on Wednesday has declared Iran does not reject negotiations but views them as a tool in its broader confrontation with the US and Israel, Tasnim reports. He is reiterating US must fulfill its commitments before Iran "takes steps" to reopen Hormuz - which suggests Tehran has not altogether abandoned the possibility of getting back to the negotiating table.

More Latest Developments

• US President Trump posted "I’m not trying to force Iran to the bargaining table, as ABC Fake News reported. I couldn’t care less if they sign a worthless, to them, agreement. I like our position now much better, with almost total control of the Hormuz Strait, and their economy totally collapsing. They are just playing out the inevitable."
• US Treasury Secretary Bessent said Iran doesn't control the Strait of Hormuz and the US took out Iranian radar along the strait, as well as got 17mln bbls of crude out on Monday. Bessent said that China pays Iran in yuan and when yuan cannot be converted to dollars, Iran starves, while he said they are in an acceleration phase of Iran bankruptcy and maybe Iran will lash out more kinetically.
• US Central Command said forces successfully completed a wave of strikes against Iranian military targets on September 1st in which they struck targets including air defence sites, radar systems, maritime assets and facilities, mine laying capabilities, and communications sites.
• US strikes on Iranian targets on Tuesday included two Iranian government tankers under a new 'tanker for tanker' approved by US President Trump to deter Iranian attacks on tankers, according to Axios. Furthermore, US officials said around 100 targets were attacked during the strikes, while it was separately reported that the US assessed Iran was planning to expand attacks against commercial ships.
• Pakistan's foreign ministry said Army Chief Munir visited Tehran and generated substantial momentum on the Strait of Hormuz issue and that Pakistan is positive about all parties returning to the negotiating table.
• Iran's IRGC said two tankers were blown up and stopped a few hours ago after striking mines in the Strait of Hormuz. IRGC also warns of additional penalties for shipping companies.
• IRGC said it targeted US bases in Erbil, Iraq with missiles and drones. Iran's army also launched drone attacks on the US base in Bahrain, while Kuwaiti air defences confronted attacks by hostile drones. Additionally, the IRGC said it attacked a US Marines base in Jordan known as Camp Tibtain with missiles and claimed that a large number of US forces were killed in the attack. However, US and Jordan officials reported no casualties.
• Russia has been secretly helping Iran develop advanced supersonic cruise missiles, according to FT.

Tyler Durden Wed, 09/02/2026 - 15:59

Rival Ukrainian Agencies In Lengthy Street Shootout, Officers Wounded

A bizarre mini civil war of sorts has erupted among rival Ukrainian security agencies, complete with a wild street shootout and police standoff which has threatened to create more political scandal for President Zelensky - whose office has issued a statement - in an unprecedented saga which seems straight from the plot of a Lioness episode.

Details of the fresh incident, aspects of which may still be unfolding, are murky but widespread videos and local reports say the overnight firefight left wounded in the streets of Kiev. It appears to have started when authorities were investigating an alleged Russian Federal Security Service (FSB) plot against a Russian opposition figure fighting alongside Ukraine forces. But the investigators came upon uncooperative Ukrainian agents among Ukraine's military intelligence (HUR).

Ukraine's Prosecutor General's Office indicates that SBU officers (Security Service of Ukraine, which is also sometimes referred to as SSU) came under armed attack by "one of the units of the Defense Forces of Ukraine" while carrying out investigative actions at 10 Shumskoho Street. Some pundits have suggested that a "Russian terror cell" was involved, but so far Ukrainian official statements and media have described what appears a Ukrainian on Ukrainian assault.

Officials said a search at the location turned chaotic when "a group of individuals launched an armed attack on an SSU investigative and operational team."

Another regional media source further details that the "SBU said its officers were conducting urgent investigative measures to collect and document evidence in a pre-trial investigation into a terrorist attack allegedly being prepared by Russian intelligence services." 

Were they looking for a Russian 'double agent'? It seems that's what is being described in the emerging media accounts.

Some sources say a standoff ensued for many hours in the capital's Dniprovskyi district, during which time the SBU dispatched its elite " Special Operations Center Alpha". The situation appears to have resolved only once all armed entities jointly agreed to lay down their weapons.

Reports that Officers from the Security Bureau of Ukraine (SBU) opened fire against officers from Ukraine's military intelligence agency (GUR). Some sources say that possibly at least 10 officers are receiving treatment for bullet wounds...

IN UKRAINE 🇺🇦 a shootout occurred between 2 law enforcement agencies.

Officers from the Security Bureau of Ukraine (SBU) opened fire against officers from Ukraine's military intelligence agency (GUR). At least 10 officers are receiving treatment for bullet wounds.

The conflict… pic.twitter.com/Me6vZetSlv

— Joel The Dane 🇩🇰🇺🇦 Данський Козак #NAFO (@JoelTheDane) September 2, 2026

It seems that the SBU has taken control of the situation, and has the upper hand over the military intelligence side at this time:

Some of those who resisted were injured in the incident. The attackers have been detained.

Initial investigative actions have established that the detainees belong to a unit from Ukraine's defence forces. Weapons and documents have been seized from them.

Thus far, Western mainstream media has paid scant attention to it, and typically ignores or at least under-reports such internal scandals in Ukraine.

Local Ukrayinska Pravda has issued the following timeline and outline of events, via Yahoo News:

•  On 1 September, the Russian Volunteer Corps said that its deputy commander for combat operations, Stepan Kaplunov, had been abducted by unknown individuals in the courtyard of a residential building. [The Russian Volunteer Corps is a military and political organisation established in 2022 that consists of Russian volunteers who have been fighting for Ukraine since 2014] 

•  On 2 September, the SSU said that, jointly with DIU, it had foiled a terrorist attack against a leader of a Russian opposition political nationalist movement who had arrived in Ukraine. DIU released a similar statement, but it was later deleted. 

•  Police cordoned off Shumskoho Street in Kyiv's Dniprovskyi district, where the standoff between the SSU and DIU took place. 

•  Ukrainska Pravda learned that representatives of the State Bureau of Investigation and the head of the SSU's Special Group Alpha had arrived at the scene. 

•  The SSU said that its officers came under armed attack while conducting investigative actions in a case concerning a terrorist attack being plotted by Russia's Federal Security Service (FSB). 

•  The Prosecutor General's Office has launched a pre-trial investigation. 

Unconfirmed reports of a fatality...

It's 10 hours later and the standoff in Kiev between SBU (Ukrainian secret police, internal security agency) and GUR (military intelligence/JSOC) is still hot. There have been multiple firefights throughout the night and morning. At least one dead and two injured are being… https://t.co/GzlFY8bEcZ pic.twitter.com/I58XM0vleP

— Russians With Attitude (@RWApodcast) September 2, 2026

Meanwhile, Zelensky's office has directly acknowledged and addressed the episode. Kyrylo Budanov, Head of the President's Office and former head of Defense Intelligence of Ukraine, vowed that a transparent investigation is urgently taking place.

"The State Bureau of Investigation will now deal with the situation. It is important to ensure a thorough and impartial investigation, but no one has the right to abduct servicemen with impunity, open fire in the streets of our cities, or issue or carry out criminal orders," he stated.

//--> //--> Ukraine coup attempt by December 31?
Yes 5% · No 95%
View full market & trade on Polymarket Tyler Durden Wed, 09/02/2026 - 15:40

Market Valuation: Expensive CAPE Or Cheap PEG?

Authored by Michael Lebowitz via RealInvestmentAdvice.com,

The S&P 500’s Shiller CAPE ratio just hit 41. Since 1881, the market valuation has been more expensive under CAPE only once. That was during the final months of the dot-com bubble. At the same time the CAPE is ringing warning bells, the PEG ratio, which measures price relative to expected earnings growth, is at its lowest level in at least three decades, possibly its cheapest reading ever.

One market valuation says run for cover while another says bargain. Both market valuation tools use data from the same 500 S&P companies but interpret the market completely differently.

Confusing, yes, but the disagreement between the two charts comes down to one question: Is the past a better predictor of the future than the wisdom of Wall Street?

To answer our question, we’ll first summarize what each ratio measures, then dig into expected growth versus historical growth, the culprit behind the big difference in the two graphs.  

CAPE Isn’t Perfect

The P/E ratio is one of the most quoted market valuation gauges for stocks and stock indexes. While valuable, it rests on one bold and often wrong assumption: future earnings will match past earnings. In other words, it doesn’t capture how earnings may change.

For the CAPE valuation, the assumption is similar, but instead of using the most recent one year of earnings to assess value, it uses ten years of earnings. This better smooths earnings, reducing the impact of short periods of economic volatility.  But it has the same vulnerability, assuming the future will be just like the past.

P/E tends to be most useful for comparing companies with similar earnings growth, but it is less useful when analyzing high-growth companies or those with the potential to change their growth trajectory.

Despite its flaws, the CAPE valuation strongly correlates with future market returns, as shown in the graph below comparing CAPE valuations and forward ten-year S&P 500 returns. While the CAPE provides a good indicator of expected returns over the full next ten years, it doesn’t provide a roadmap for the monthly and annual returns that make up the period.

The PEG Ratio

The PEG ratio builds on the P/E ratio framework but uses future earnings growth estimates instead of prior realized earnings. Because it uses estimates, it can change rapidly.  

The PEG ratio calculation is the forward P/E divided by the expected 3–5-year earnings growth.

To better appreciate today’s PEG ratio, we break down the numerator, forward P/E, and the denominator, G (3-5-year growth estimates).

Forward P/E

The numerator in the PEG ratio is the forward P/E. Instead of using the trailing twelve months of earnings as in the traditional P/E ratio, the forward P/E uses earnings estimates for the coming twelve months. Thus, its value depends heavily on how well Wall Street can predict earnings for the coming 12 months.  

We can analyze the effectiveness of one-year earnings forecasts in a couple of different ways.

First, we can compare the trailing 12-month P/E to the forward P/E and imply expected earnings for the next year. We can then compare the implied earnings with actual earnings. Using this method, the top two charts below show that Wall Street almost always overestimates earnings and by a wide margin at times.

The second way to grade Wall Street’s forecasting ability is to compare final one-year forecasts with those made at the start of the period. The graph below reinforces the graphs above: Wall Street tends to overestimate earnings.  EPS estimates were reduced in nine of the ten years spanning 2016 through 2025.  However, the trend has changed with 2026 and 2027 estimates trending higher than original forecasts.

G: 3- 5 Year Expected Earnings Growth

Forecasting earnings for just 12 months forward is extremely difficult for Wall Street professionals. Accordingly, forecasting three- to five-years of earnings growth (G in the PEG ratio) is much trickier and more error-prone.

(Note: for this article, we use four-year expected earnings growth to balance out the three-to-five-year range of estimates.)

To assess the effectiveness of longer term forecasts, we can use historical PEG and forward P/E ratios to back out an implied four-year growth rate. As we did with one-year estimates, we then compare that to the actual four-year growth that ensued.

The graph below shows there is very little correlation between four-year earnings growth estimates and actual growth. As we saw with one-year estimates, the market overestimated earnings far more often than it underestimated them.

Deciphering Today’s PEG Ratio

The graph below shows the market PEG valuation and its two components- forward P/E and 3-5 year earnings estimates.

The middle graph shows the forward P/E (the numerator) is stretched, indicating a relatively expensive valuation. Despite the forward P/E, the PEG ratio in the top graph is cheap because the longer-term earnings growth estimate shown in the bottom graph is at its highest level since at least 1995. The takeaway is that the PEG ratio is cheap entirely because of strong earnings-growth forecasts.

The G Is Concentrated

The hardest part of analyzing the “G” in the PEG ratio is the abnormal divergence in recent earnings trends and earnings expectations between a few large tech companies and the large majority of other S&P 500 companies.

Second-quarter earnings results exemplify this problem. In a mid-July summary of the quarter, with roughly a third of the stocks in the index still to report, FactSet reported the Magnificent 7 was growing earnings 31.1% year over year versus a blended rate near 25% for the index. Only a few weeks later, on August 7, the quarter’s growth rate more than doubled to 50.4%.

Most of that acceleration traced back to two companies. Alphabet and Amazon, both large earnings contributors, reported significant non-operating gains. Alphabet reported a $98 billion mark-up in its equity portfolio primarily due to SpaceX, and Amazon added a $53 billion gain largely from Anthropic. Strip out those gains, and FactSet’s blended growth rate for the S&P 500 falls from 50.4% to 32.0%. Two companies, out of five hundred, are worth eighteen full percentage points of index earnings growth.

This leads to a big question. Can ten or so large-cap technology companies carry earnings growth for a 500-company index? Hyperscalers are on pace to spend roughly $700 billion on AI infrastructure in 2026 and are projected to top $1 trillion in 2027. That spending shows up today as reported capex and, eventually, as revenue for a small number of companies selling the chips, the cloud capacity, and the construction and power systems supporting it. It does not contribute much to the earnings growth for the other companies in the index.

Is The Market Rich Or Cheap?

Think of this market valuation conundrum between PEG and CAPE like your favorite sports team that’s been mediocre for a decade. Ten years of results argue that your expectations for next season should be minimal.  But during the offseason, the team signed a few all-stars, and a reasonable fan would bump up their expectations regardless of the last ten years.

The historical losing record is real, and so is the upgraded roster. The substantial growth estimates are making a big bet that the new players will significantly help the team. The question investors need to ask is whether they will help generate more wins than the market expects.

So, how should investors think about today’s stock market valuations? The answer likely sits between rich and cheap. If earnings keep growing rapidly alongside AI spending, the market, in aggregate, may be fairly priced despite CAPE’s warning. But a recession, or a slowdown in planned AI spending, is a real risk to that outcome.

That said, while the optimism embedded in the PEG ratio carries downside risks, we must also consider that AI’s productivity gains will eventually spread to other S&P 500 companies. The open questions are when, how much, and most importantly for pricing today’s market, how that eventual payoff compares to what’s already priced in.

Summary

CAPE uses historical realized data to value stocks.  You can debate whether the past decade is a fair guide for valuing stocks, but you can’t debate whether the earnings in CAPE’s denominator are real; they are.

PEG asks you to rely on one-year and three-to-five-year earnings estimates.  This leaves the obvious question of how much current forecasts deserve to be trusted. The historical answer, as we showed, is not very much.

Nine of the last ten annual EPS estimates were revised lower before they were finished. Thirty years’ worth of four-year growth estimates show no statistical relationship to the growth that followed.

However, today’s outlook is trickier than in the past, as the expected growth making today’s PEG ratio look so cheap is disproportionately concentrated in a small handful of companies. That earnings growth concentration hinges on AI, a powerful innovation that could be an economic game changer.

PEG says market valuations are cheap while CAPE says they are expensive. CAPE is a report card on what already happened. PEG is a bet on what happens next. Keep that distinction in mind, and the two market valuation charts stop contradicting each other.

Tyler Durden Wed, 09/02/2026 - 15:05

Thousands Of Dropbox Accounts Breached In 'Verification' Hack

Hackers were able to gain access to approximately 5,000 Dropbox accounts last month after exploiting a flaw in Lenovo's email verification process to register fraudulent Lenovo IDs. 

Clouds are seen in front of the Dropbox logo in this illustration taken February 27, 2022. REUTERS/Dado Ruvic/Illustration

According to a notification sent to the affected users, "an issue with Lenovo's email verification process allowed an unauthorized party to register a Lenovo ID using your email address" - in some cases, users didn't even have Lenovo accounts. The hackers then used the fraudulent Lenovo ID to access the Dropbox account associated with the same email address without needing the login password, BleepingComputer notes. 

The accounts were accessed August 4th through the 21st. 

so dropbox got hacked (never had a Lenovo account, haven't been to UK) pic.twitter.com/UoYRaJFuEC

— yoni | parser.eth (@yonilevy) August 31, 2026

Users reported receiving strange notifications "about two weeks ago," urging them to change their password and activate two-factor authentication (2FA). 

"One odd thing at the time: the Dropbox login page had started offering 'Continue with SSO' for my email even though I never created a Lenovo ID," according to one person. 

Lenovo told BleepingComputer that the issue was connected to a legacy integration between Lenovo ID and Dropbox, which was used "to improperly authenticate certain Dropbox accounts."

"Upon identifying the issue, Dropbox and Lenovo worked collaboratively to promptly mitigate the risk," the spokesperson continued. 

Dropbox forced all sessions authenticated via Lenovo ID to expire, and added a new login requirement forcing users to use their Dropbox account password instead. 

Tyler Durden Wed, 09/02/2026 - 14:00

US Diesel At Pump Nears April War High As Global Refining Crisis Deepens

A diesel-price shock may be approaching Western economies.

That's because the industrial fuel sits at the epicenter of freight, agriculture, construction, and heavy industry; soaring prices ripple quickly through supply chains, raising transportation and construction costs, reigniting food inflation, weakening consumer sentiment, and intensifying margin pressure on small and medium-sized businesses.

The latest AAA data show that the nationwide average retail price reached $5.69 per gallon. That leaves diesel just below its April peak, which marked the highest price since mid-2022.

The renewed surge comes as the US-Iran conflict has deepened so far this week with tit-for-tat attacks, further disrupting any full near-term normalization of the Strait of Hormuz. The US is currently operating the Oman shipping corridor. Beyond the Gulf disruptions, Ukrainian attacks on Russian refineries are constraining exports from one of the world's largest fuel suppliers. The simultaneous shocks are rippling through the global refining complex, which was already plagued by limited spare capacity.

Earlier this week, President Trump summoned top US refining executives for a closed-door meeting and leaned on them to increase diesel and gasoline production, with diesel creeping toward $6 per gallon nationally and gasoline rising above the politically sensitive level of $4 ahead of November's midterm elections.

Bloomberg's NYMEX one-month heating-oil/crude spread, tracked on the BBG Terminal as the HOCL1 Index, breached $100 per barrel early Tuesday before surging to $108 overnight. It was trading at $104 early Wednesday morning.

"A choppy start to the month so far, with oil and yields continuing to rise, while volatility is also gradually picking up. This comes after President Trump downplayed hopes of a new deal with Iran. Brent is off its overnight highs of approximately $97," UBS analyst Justinus Steinhorst wrote in an earlier note to clients.

At the start of the week, Goldman commodity expert Daan Struyven warned that global refinery runs are down 7 million barrels per day from last year and have averaged nearly 6 million barrels per day below seasonal norms since March.

Kelly Chen, a senior economist at DNB Carnegie, wrote in a note on Tuesday that China is one of the few countries with enough spare refining capacity to provide meaningful relief to the increasingly strained global market.

However, Chen pointed out that Beijing appears to have little economic or strategic incentive to rescue Western fuel markets (read that note here).

Tyler Durden Wed, 09/02/2026 - 13:20

Hunter Biden, Who Slept With Late Brother's Widow, 'Comes Out As 48.6% Gay'

Authored by Luis Cornelio via Headline USA,

Former first son Hunter Biden is now claiming that he is "48.6 percent gay," despite his long record of sexual activities with women, including allegations that he hired prostitutes and had a sexual relationship with the widow of his late brother, Beau Biden.

Appearing on The Luke Beasley Show on Aug. 16, Hunter affirmed that he is "a little" gay.

In response to Beasley's opening declaration, "Let's get serious. I am gay," Biden said, "Uh, really? Wow! Seriously? I'm so amazed you're gay."

Asked if he was gay, Hunter added, "Um, only a little bit."

"More or less than 50 percent?" Beasley asked.

"48.6," Biden replied. "Is this fucking serious?"

The two briefly quipped about whether Beasley would be Hunter's type, to which the former first son replied, "No."

The gay comments appeared to be part of Hunter's media campaign to quip about and counter some of the criticism that he has faced in recent years. He is married to a woman, Melissa Cohen. The couple has a 6-year-old child named Beau.

Hunter also has three daughters from his previous marriage to Kathleen Buhle. Hunter is also the father of 8-year-old Navy, whom he had with former girlfriend Lunden Roberts.

Hunter was also in a brief relationship with the widow of his late brother, Beau Biden.

Hunter was also spotted in several alleged sex tapes uncovered from his laptop. He has spoken candidly about his nudes being shared on social media and on the internet after the contents of his infamous laptop were released.

Some of the videos allegedly showed Hunter using what appeared to be drugs while engaging in sexual conduct with women, some of whom were believed to be prostitutes he allegedly hired.

Hunter has never faced any charges for prostitution-related offenses.

Instead, he was criminally indicted for failing to pay millions of dollars in taxes and for making false statements on a federal gun purchase form, in which he claimed he was not an active drug user.

He later affirmed in his book that he was consuming drugs during that period.

Tyler Durden Wed, 09/02/2026 - 13:00

The West's Answer To Break China's Tungsten Stranglehold Before Historic Rearmament Cycle Ramps

New reports emerged late Tuesday during the US cash session that the US military had struck targets inside Iran. If confirmed, the operation would mark a rare instance of US strikes occurring during regular market hours. Market(ing) tactics aside, the now six-month military campaign against Iran has also exposed a critical operational vulnerability: the US military is facing an alarming shortage of advanced missiles and interceptors.

However, the crisis extends well beyond procuring replacement missiles from major defense firms. The deeper vulnerability lies farther upstream, where the rare earths and critical materials required for guidance systems, seekers, propulsion components, warheads, and interceptors remain scarce and heavily concentrated in China, even as Beijing increasingly weaponizes export controls of metals against the West. 

On Monday, the Department of War said it had secured seven-year agreements with General Dynamics Ordnance and Tactical Systems and Lockheed Martin to rapidly expand US missile-production capacity and replenish depleted inventories.

The agreements are intended to increase output and accelerate deliveries of critical missile subcomponents supporting the Terminal High Altitude Area Defense (THAAD) system and the Patriot Advanced Capability-3 Missile Segment Enhancement interceptor.

A separate report from AP News highlighted another driver of defense demand: the US Army's new Precision Strike Missile, or PrSM, is intended to replace the Army Tactical Missile System, or ATACMS, which has served as the service's primary deep-strike weapon for decades. The PrSM's fragmentation warhead requires large quantities of tungsten pellets.

Tungsten is extremely effective as a penetrator because it combines one of the highest densities of any metal with the highest melting point. When a PrSM warhead detonates above its target, thousands of small, lethal tungsten pellets are dispersed at extreme speeds. The metal's density and ability to retain its shape enable those fragments to penetrate building walls, vehicle panels, equipment housings, and many forms of advanced armor after the initial blast wave has dissipated like a shotgun blast. 

This is where the DoW's historic weapons rearmament cycle collides with a critical materials supply crisis spreading across the Western world.

The State Department and DoW already understand the vulnerability. Tungsten, one of the most strategically important metals used across the defense-industrial base, is entering what investment research firm The Oregon Group has described as a major structural supply crisis.

A frantic effort is now underway across the West to secure non-Chinese tungsten. China accounted for about 79% of global mined tungsten production in 2025 and controls roughly 85% of refining capacity. Meanwhile, Chinese mine output has dropped 10% year over year, even as Beijing restricted tungsten exports to Western markets since early 2025.

The Oregon Group highlighted one of the clearest warnings yet: Even if every announced tungsten project ex-China reaches production by 2030, the global market could still face a massive structural deficit.

"Eleven announced mine projects are forecast to add nearly 20,000 tonnes of annual capacity by 2030, lifting accessible ex-China supply to an estimated 34,000 tonnes WO₃, against projected primary demand of roughly 50,000 tonnes after recycling, which would leave the market facing a deficit of 16,000 tonnes WO₃," the research firm stated in a new report.

#Tungsten prices surged 310% from Jan-July as China export controls squeezed supply.

And, by 2030, ex-China primary mine supply still projected to be in deficit by 16,000 tonnes.

📣 Tungsten price shock signals deeper supply crisishttps://t.co/enxErVsINb #mining #invest pic.twitter.com/ooovQTqibw

— The Oregon Group (@TheOregonGroup) August 31, 2026

That tightening physical market picture brings us to Almonty Industries, which controls the Sangdong mine in South Korea, one of the largest and highest-grade tungsten deposits outside China, as well as Panasqueira Mine in central Portugal, which is considered one of Europe's largest and oldest continuously operating tungsten and tin mines. 

With Sangdong ramping toward full production, Almonty has transitioned from a junior mining company into an increasingly important supplier to the Western defense-industrial base, one which is on the radar of the Trump administration. 

At planned Phase II capacity, Sangdong could produce roughly 4,000 tons of tungsten annually. That would represent about 4% to 5% of global mine production and around 20% of current tungsten output outside China.

In its latest investor deck, Almonty said it is "targeting to become the leading Western producer of tungsten by reaching expected full-scale production after completion of Sangdong Phase II and the Panasqueira L4 extension" by mid-2027.

Almonty CEO Lewis Black has previously said, "Almonty controls one of the largest and highest-grade tungsten deposits outside of China at precisely the moment Western governments and defense manufacturers are rebuilding their critical-minerals supply chains around non-Chinese sources."

The timing of Sangdong's planned move toward full-scale production by mid-2027 is significant because the DoW's supply clock is already ticking. The West's effort to break China's stranglehold over critical materials is colliding with a historic military rearmament cycle.

Tungsten demand extends well beyond defense, including as a critical building block in AI chips (read here). 

That convergence places Almonty at the center of the emerging conflict-free tungsten supply chain and could transform Sangdong and Panasqueira mines into one of the world's most important sources of non-Chinese tungsten.

Almonty is one of the handful of pure-play publicly traded miners positioned for the accelerating decoupling from Chinese critical materials . Among all publicly traded global tungsten miners, it's the only US-listed producer. 

Any post-Trump-Xi summit escalation next month, including potential sanctions against Chinese banks (Politico warns), could trigger further metal restrictions and sharply increase the value of tungsten currently priced above $3,000 a ton. 

That makes Almonty more than a tungsten trade.

Almonty is a pure-play bet on the West's first real shot at breaking China's 79% grip on mined tungsten before the rearmament cycle ramps up and before further possible export controls turn an already tight market into a severe shortage. Sangdong is already producing, Phase II begins next year, and the balance sheet is funded. This is a concentrated bet that one producer can help break Beijing's grip and become the swing supplier the US and its allies can rely on.

And in a preview of what is to come, Jefferies just initiated coverage (full report available to pro subscribers) on Almonty today with a Buy rating and a $26.25 price target, more than 50% upside from today's price. 

Tyler Durden Wed, 09/02/2026 - 12:40

'Operation Rotten Apple': Nearly 2,200 Illegal Immigrants Arrested In New York

Authored by Jill McLaughlin via The Epoch Times,

The Department of Homeland Security (DHS) arrested nearly 2,200 illegal immigrants during an enforcement sweep in New York dubbed "Operation Rotten Apple," officials announced Sept. 1.

Immigration and Customs Enforcement (ICE) officers participated in the operation from from July 27 to Aug. 29, arresting 2,197 illegal aliens across the state, including murderers, rapists, pedophiles, drug traffickers, and violent assailants, according to DHS.

"Thanks to the hard work of the men and women of ICE and our federal partners, Operation Rotten Apple did what sanctuary politicians in New York City and the state of New York refuse to do: made the Empire State safer," said Secretary Markwayne Mullin said in a statement.

New York Field Office Director Kenneth Genalo said federal immigration officers were harassed, threatened, targeted, and terrorized during the operation by local residents and community members.

The state's sanctuary policies allow criminals to be released back into the community instead of being handed over to federal immigration agencies, Genalo said during a press conference on Sept. 1. This forces federal immigration officers to locate the immigrants in their neighborhoods, at work, or in public spaces, he said.

"Local and state politicians continue to stand at podiums like this one and mislead the public about what these policies do," Genalo said. "And when elected officials excuse, minimize, or even celebrate the behavior, as they did in this case, they place a target on the back of the officers doing their jobs. ICE officers will not be intimidated by political rhetoric, sanctuary policies or street-level threats. Public safety is not optional. It is our duty."

New York's sanctuary policies have resulted in the release of 13,621 criminal illegal immigrants back onto the streets of New York, according to DHS.

Gov. Kathy Hochul rejected the accusations made by federal officials.

"New York works with federal law enforcement every day to take dangerous criminals off the streets," Hochul posted on X. "So spare us the theatrics."

Hochul also accused the federal government of not fully funding law enforcement in the state.

The illegal immigrants arrested included Bogdan Detrovich Gren from Ukraine. Gren was convicted of kidnapping, abduction resulting in death, criminal possession of a weapon, and murder.

Columbia national Andreas Bernal Chiquito was also arrested. His criminal history includes arrests for sexual conduct against a child and injury to a child less than 17.

Noel Celestino Lopez Martinez, an illegal alien from Mexico, was arrested. Martinez's history includes an arrest for first-degree rape and forcible compulsion.

Palvinder Singh, an illegal immigrant from India, was arrested during the operation as well. His criminal past includes a rape conviction in Germany.

Carlos Mendez-Acosta, an illegal alien from Venezuela, was arrested. His has been convicted of rape in the past.

Also arrested was Chhun Kim Pril, a Cambodia national who has a past conviction for drug trafficking.

Tyler Durden Wed, 09/02/2026 - 12:20

Dersh V Dave: Lawyer And Libertarian To Face Off Tonight On Iran War

LIVE NOW: 

https://t.co/nhqee1gb6k

— zerohedge (@zerohedge) September 2, 2026

*****************************

Tonight at 7pm ET, two prominent voices on opposite ends of the Iran debate will face off as constitutional lawyer and professor Alan Dershowitz debates  the world’s most famous libertarian, Dave Smith, over the U.S.-Israeli war with Iran.

Just days ago was the six month-mark for the conflict that has become considerably larger than the initial strikes on Iran's nuclear program in June of last year during “Midnight Hammer”.

I’m debating Alan Dershowitz tonight on the Iran war at 7pm ET hosted by Zerohedge moderated by @MarioNawfal

— Dave Smith (@ComicDaveSmith) September 2, 2026

After Israel and the United States launched their offensive in February, with major reporting (including in Israel) suggesting that it was Israel who killed Iran's Supreme Leader, the conflict has expanded into a prolonged war that has severely disrupted shipping out of the Strait of Hormuz for now over half a year. While actual bombing intensity has fluctuated as several peace attempts lapsed, it has picked up in recent days.

Dershowitz: "Bomb Iran"

Dershowitz had been making the case for military action against Iran’s nuclear facilities well before the current war began.

He argued on his podcast “Dershow” in April 2025 (before Midnight Hammer) that bombing Iran’s nuclear facilities was "absolutely essential to saving lives and to promoting peace in the Middle East and around the world."

Dershowitz argued that allowing Iran to acquire nuclear weapons would trigger a regional arms race and that Israel could not safely rely on deterrence. While he preferred a negotiated agreement, he ultimately concluded that military action was the only realistic alternative if Iran would not accept a deal permanently eliminating its nuclear capabilities.

"Bomb, bomb Iran. Not the people of Iran, not the people of Tehran, just the military targets, just the areas where they're developing nuclear weapons."

Months later, that debate is no longer hypothetical, so we look forward to hearing from Dershowitz specifically what Trump should do now?

Dave Smith And Anti-war Crowd Break With Trump

Smith backed Trump in 2024, in significant part because he believed Trump represented a better alternative to the interventionist foreign policy establishment (exemplified by Liz Cheney campaigning with Kamala Harris). But the Iran war fractured the coalition of anti-war voters who supported Trump.

By March, Smith was publicly arguing alongside Joe Rogan and Tucker Carlson that Trump had betrayed his base by taking the country into another Middle Eastern war.

For Smith, Iran was the final break. For Dershowitz, it was not only justified but something he had explicitly advocated before the first bombs fell.

Tonight at 7pm ET, they'll debate whether the war was necessary, what it has accomplished, and where President Trump should go from here. Watch live on the ZeroHedge homepage, X feed, and YouTube channel.

Tyler Durden Wed, 09/02/2026 - 12:00

House To Vote On Locking Supreme Court At 9 Justices As Democrats Float Expanding It

Authored by Chase Smith via The Epoch Times,

The House is expected to vote this week on a proposed constitutional amendment that would fix the size of the Supreme Court at nine justices. The number of justices is currently set by statute, which Congress can change by simple majority. If ratified, the amendment would place the figure in the Constitution, where changing it would require another amendment.

The measure, H.J. Res. 1, was introduced by Rep. Andy Biggs (R-Ariz.) and consists of a single sentence: "The Supreme Court of the United States shall be composed of nine justices consisting of one chief justice and eight associate justices."

Under Article V of the Constitution, a proposed amendment must pass both the House and the Senate by a two-thirds vote before going to the states. The resolution gives states seven years from the date of submission to ratify it, and ratification requires the legislatures of three-fourths of the states - 38 of 50.

Some Democrats have been pressing for a larger court. Rep. Al Green (D-Texas) introduced legislation on May 4 to increase the court from nine justices to 13, and other prominent Democrats such as former Transportation Secretary Pete Buttigieg, former Vice President Kamala Harris, and Rep. Jim Clyburn (D-S.C.) have all recently floated a larger court.

Green's bill has no cosponsors and has not moved out of the Judiciary Committee. Earlier versions of the Judiciary Act, sponsored by Rep. Hank Johnson (D-Ga.) in 2021 and 2023, also proposed a 13-justice court and did not receive a committee vote. The committee report on H.J. Res. 1 cites those bills as the reason for acting, saying a recent set of expansion proposals makes it necessary to fix the number in the Constitution.

House Majority Leader Steve Scalise (R-La.) listed the resolution among the week's floor items in his weekly schedule preview, alongside a separate resolution from Rep. Jeff Crank (R-Colo.) condemning socialism and the Democratic Socialists of America.

"Radical left Democrats and the [Democratic Socialists of America] want to politicize and restructure the Supreme Court, effectively destroying the constitutional safeguards our Founders put in place," Scalise's office wrote in the preview. "For years, Democrats have called for packing the Supreme Court with more left-wing judges and now the [Democratic Socialists of America] is going even further by calling to abolish the Supreme Court and replace it with a judicial system subordinate to Congress."

Biggs said in a June statement after the resolution cleared committee that the court had become a target.

"Our nation's founders built a system of checks and balances to protect citizens from concentrated power - a central part being the U.S. Supreme Court, whose duty is to defend the rights and freedoms of every American, not to serve as a political tool for any party," Biggs said. "The judiciary was designed to be the quiet guardian of liberty, insulated from the passions of the moment. Unfortunately, special interests have been increasing their attacks on the Court, threatening to pack this iconic American institution to ensure favorable outcomes for their causes."

House Democratic Caucus Chair Pete Aguilar (D-Calif.) told reporters on Tuesday that he would vote against the resolution and characterized it as a message vote timed to the midterm elections.

"This is such a fake issue that Republicans are putting on," Aguilar said. "The American public aren't asking about this. I went around the country, the vice chair did a bunch of travel, I did a bunch of travel. Nowhere, ever, are people saying, 'You know what we should do? We should cap the number of Supreme Court justices.'"

Aguilar said he expected the resolution to reach the floor on Wednesday and that he would oppose it.

"I understand that Republicans are gonna try to put up votes - socialism vote, Supreme Court justices," he said. "These are all just kind of show votes. Assuming that this passes a rule, I'll vote no, because this is just a complete show vote."

Asked whether Democrats who have called for adding seats put the party at odds with its own leadership, Aguilar said expansion is not what the caucus is pushing.

"The argument among folks in our party is we want to reform the court, but we've said very clearly that that should be a code of ethics that they actually follow," he said. "There needs to be real reform within the government side of what we do, and that's every branch of government. Democrats have been loud and clear about that, and we continue to advocate for that, and we will when we're in the majority."

Aguilar's framing tracks what House Democratic leaders said in May, when Minority Leader Hakeem Jeffries (D-N.Y.) and Caucus Vice Chair Ted Lieu (D-Calif.) each said judicial reform would be a priority if Democrats win the majority in November. Lieu said at the time that a Democratic majority would "usher in massive Supreme Court reform," and Jeffries listed "massive judicial reform" alongside electoral and campaign finance reform. Neither specified what changes they would seek.

Judiciary Committee Debate and History

The House Judiciary Committee approved the resolution on June 3 by a vote of 15-8. No Democrat on the committee voted to report the resolution to the floor.

In dissenting views filed with the committee report, Rep. Jamie Raskin (D-Md.), the committee's ranking Democrat, criticized the vote as being about giving up congressional power rather than the number of justices.

"The question H.J. Res. 1 presents is not really about whether nine should suddenly become a magic number of justices for the Supreme Court," Raskin wrote. "It's about whether this Republican-controlled Congress - which has already surrendered congressional war powers, congressional taxing and tariff powers, and congressional spending powers to a president desiring to be a king - should now permanently relinquish another constitutional power that the Framers gave to us in Article I."

Raskin also accused the Supreme Court of being "profoundly partisan and lopsided" and wrote that the measure is meant to freeze the current court in place, pointing to the handling of two vacancies during President Barack Obama's and President Donald Trump's first terms.

He said that the amendment has no realistic path to becoming part of the Constitution.

Congress has changed the court's size several times, according to a Congressional Research Service report cited by the Judiciary Committee.

The Judiciary Act of 1789 created a six-member court. Congress voted in 1801 to reduce it to five, but that change never took effect - the law applied only once a seat came open, and Congress repealed it before any vacancy occurred.

Several statutes over the following decades changed the number again, reaching 10 justices during the Civil War, the largest the court has ever been. Congress cut the number to seven in 1866, again through attrition rather than removing sitting justices, then set it at nine in 1869. That was the last time Congress changed the court's size.

The report, "'Court Packing': Legislative Control over the Size of the Supreme Court," says scholars disagree about why Congress made those changes, with some pointing to practical needs such as caseload and others arguing they were driven by political considerations.

The committee report says that during the period when the court's size moved with the number of circuits, justices were also responsible for hearing cases in the lower federal courts, and that once that practice ended, there was no longer a reason to change the court's size as new lower courts were created.

Tyler Durden Wed, 09/02/2026 - 11:40

Second Largest US Grid Operator Proposes Reliability Rules For Data Centers

By Ethan Howland of UtilityDive

The Midcontinent Independent System Operator - the second largest US grid operator after PJM Interconnection - on Friday proposed a set of requirements large loads must meet before they can connect to the grid, including ramping and ride-through specifications.

The “interconnection reliability requirements” framework aims to improve MISO’s visibility into large load “characteristics and behavior, support reliable planning and operational decision-making, and establish scalable and technically justified expectations proportional to demonstrated reliability risk,” the grid operator said in its filing with the Federal Energy Regulatory Commission.

The proposal is a part of MISO’s response to FERC’s mid-June “show cause” orders requiring major grid operators to set rules that meet certain criteria for adding data centers and other large loads to the grid. MISO said it plans to make additional proposals by a Nov. 16 deadline.

MISO’s proposal follows similar actions at the Electric Reliability Council of Texas and the PJM Interconnection aimed at setting reliability standards for large loads after several incidents where data centers suddenly tripped offline, raising concerns about grid stability.

On average, electric demand was relatively flat between 2009 and 2024, growing by about 0.5% a year, MISO told FERC. Now, the grid operator expects 1% to 2% annual growth through 2044, with higher growth rates in the near term, according to MISO, which runs the grid and wholesale power markets from Louisiana to Minnesota.

MISO’s proposal defines “large loads” as those larger than 50 MW, and “computational loads” as large loads that include at least 25 MW of demand from information technology equipment, such as servers, storage and networking hardware.

The separate computational load classification will allow MISO to target certain requirements just to data centers, the grid operator said.

“Computational loads may exhibit rapid and coordinated changes in demand, significant power-electronic behavior, and distinct responses to transmission system disturbances,” MISO said.

MISO’s proposed reliability framework sets requirements for its transmission customers that take service on behalf of large loads. It covers four main areas:

• Visibility requirements

To improve MISO’s visibility into large loads on its system, transmission customers must provide MISO with basic information and modeling data on large load facilities, according to the proposal. They must also provide real-time and day-ahead load forecasts for the facilities.

The information is needed “to support planning studies, operational assessments, and accurate representation of large loads behavior and system impacts,” MISO said.

• Phasor Measurement Unit requirements

The PMU requirements set monitoring expectations for computation loads through high-resolution, time-synchronized measurements, according to MISO.

“PMU data provides MISO with greater visibility into facility behavior during system disturbances and rapid operating changes, supporting model validation, performance verification, disturbance analysis, and identification of potential dynamic interactions with the transmission system,” MISO said. 

• Ramp requirements

MISO said its proposed ramp requirements address the rate at which computational loads may increase or decrease electric use during stable-state transitions. 

“Managing rapid changes in demand helps reduce real-time supply-demand imbalances, sudden change in transmission power flows, and associated operational impacts, while supporting more reliable system operation,” MISO said.

• Ride-through requirements

The proposed measures set minimum disturbance performance requirements for computational loads during voltage and frequency disturbances to reduce the risk of unnecessary disconnection or customer-initiated rapid reductions in demands during system events, MISO said. 

MISO’s proposal includes grandfathering provisions to provide certainty to existing and nearly complete commercial arrangements for large loads. MISO asked FERC to let its proposal take effect on Dec. 4.

MISO plans to file additional large load-related proposals, including for additional transmission products and associated study processes, protections against cost shifts and the treatment of generation service to “electrically proximate” large loads, MISO said.

Tyler Durden Wed, 09/02/2026 - 11:00