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If You Think You Have Budget Problems, Consider the Nation’s Central Bank — Broke!

The Federal Reserve, the nation’s central bank that prints and distributes money while making investments to earn dollars, is reporting a loss of $18.7 billion for 2025. The Fed simply uses an accounting trick to wipe away deficits by putting its losses into something called deferred assets. Deferred assets — Fed debts, in other words — now total $243.5 billion. Deferred assets are a category of debts that are deferred until the Fed makes profits again and can pay the debt down.. The loss in 2025 actually pales in comparison to previous years.  The Fed had losses of $77.6 billion in 2024 and $114.5 billion in 2023. Note how losses are higher in years when interest rates, set by the Fed, are higher. President Trump may indeed have a point when he keeps arguing for much lower interest rates, but Trump-hating Fed Chairman Jerome Powell will have nothing of doing what Sir Donald wants.

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Vance
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Iran Views JD Vance as Its Trump Card in Negotiations

The negotiations with the U.S. to end the seige on its homeland, talks which Iran claims are not taking place, now focus on the potential participation of Vice President JD Vance, whom the Iranians view as their Trump Card — the one who will cave, so to speak. This perception of Vance no doubt springs from his reluctance to commit to the war, but it could also be something deeper, something that I have always sensed about the VEEP. Specifically, I get the impression that Vance’s convictions don’t run very deep. He seems forever the PR man for the Marine Corps, except that now he’s transported his skills to the national political stage. When I hear Vance speak, I don’t hear much genuine conviction. He’s more like a PR specialist, as opposed to Secretary of State Marco Rubio, who oozes with conviction when he speaks. Iran already knows that Steve Witkoff and Jared Kushner are Trumpistas through and through and won’t cave for a few false promises. Thus the choice of Vance could give the Iranian negotiators a gateway to another con job, reminiscent of the one they pulled on Barack Obama and crew. At any rate, the good news

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Iran’s ‘Tet’ Moment(s) Drive Trump to the Bargaining Table

I for one will be anxious to see how President Trump spins his decision to halt energy infrastructure bombing on Iran while a “productive” dialogue takes place that Iran says isn’t happening. Spin city here we come, and both Trump and Iran are great at that game. The U.S. and Iran are having “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump announced in all caps on a social media post this morning. After the post, the U.S. stock market skyrocketed. Yesterday I wrote in an opinion piece that Trump was facing his “Tet Offensive” equivalent to what President Lyndon Johnson faced in 1968, when an onslaught by North Vietnam put the lie to the positive spin the U.S. was putting on its effort in the Vietnam War. For Trump, two potential “Tet” events have already taken place. First was the closing by Iran of the Strait of Hormuz. The second was sending missiles 2,400 miles toward the military complex on the island of Diego Garcia in the Indian Ocean. “Europe, here we come!” was the underlying message. These two wake-up calls were followed by Iranian missiles piercing Israel’s Iron Dome

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Vietnam
My Take

The Westmoreland Legacy in Official Iranian War Statistics

The ghost of William Westmoreland, the U.S. general in charge of operations in the Vietnam War, lives on in Pete Hegseth, current U.S. Secretary of Defense/War. Every time I watch Hegseth give a press conference updating us on how things are going in our attack on Iran, I hear statistics that don’t seem to be borne out by coverage on the evening news. Specifically, Hegseth continuously maintains that Iran’s missile and drone attacks on U.S. assets and our allies are down 87 percent, oops, or was it 93 percent? Westmoreland, if you were around in those days, was famous for his “body counts” of dead Viet Cong and North Vietnamese Army soldiers. The underlying assumption was that North Vietnam would eventually reach a point where it could no longer mount a large enough offensive because it would run out of men, women, and children (ugly, but true) to fight its war. Problem was, these body counts were either substantially inflated or totally fabricated, take your pick. The North’s massive Tet Offensive of 1968, though its forces lost, put the lie to U.S. assertions that the North’s forces had been decimated, and public opinion shifted totally against the war, bringing about

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WNBA — Après Caitlin Clark — On Verge of Lucrative New Players’ Deal

In boxing there was once a fighter known as the Great White Hope. Now, were I to label Caitlin Clark as the WNBA’s “Great White Hope,” I would be labeled in various ways, certainly as a racist, a white supremacist, a far-right extremist, a Nazi, a Fascist, Herman Goering, you name it. All that aside, you can’t ignore the fact that once women’s basketball phenom Caitlin Clark — she being white — left college and joined the Women’s National Basketball Association (WNBA), the league’s viewership and game attendance both skyrocketed. In fact, ESPN telecasts of the NBA — the all-male version of professional basketball — and the WNBA are now neck and neck. The WNBA was pretty much a sideshow to the “real deal” in the men’s version since its inception under then-Commissioner David Stern. NBA teams would field WNBA counterparts, and then write them off on their taxes. Salaries rarely went above $50,000 a year. Players would have to take commercial flights, not chartered jets like their male counterparts. Now, post-Clark, WNBA players are not only flying on private jets, but are now eyeing a proposed players’ contract that amps up salaries and benefits big time. “This Collective Bargaining

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China Cleans U.S. Clocks on EV Technology

Not only does the People’s Republic of China (PRC) produce two-thirds of the lithium batteries needed for EVs worldwide, but it has also developed technology that can recharge an EV in 15 minutes. I’m not sure what the fastest charging time is in the U.S., but whenever I drive by a charging station near my home, the Teslas are parked there for hours recharging. This, of course, says nothing about how far ahead China is in producing sexy, drivable EVs, such as the Xiaomi EV illustrated above. The CEO of Ford ventured over there to drive some Chinese EVs and came bcck extolling their superiority to U.S. EVs. “It’s the most humbling thing I’ve ever seen,” said Ford CEO Jim Farley after touring Chinese car factories and driving their vehicles. “They have far superior in-vehicle technology.” He described Chinese EVs as “smatphones on wheels.” While we fight wars, China builds its economic superiority over the U.S. Can’t go on like this forever.

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HormuzMap
My Take

Boots on the Ground to Solve a Problem ‘Strait’ Out of the IRGC Playbook?

The Israeli-U.S. bombardment of Iran and its military and naval assets is now stuck in the Strait of Hormuz. One-fifth of the world’s energy supplies flow through this narrow passageway, whose waters are territorially controlled by various countries, but whose ability to function is controlled by Iran and its Islamic Revolutionary Guard Corps (IRGC). I’ve argued here before that the first objective of the campaign should have been the neutralization, if not downright elimination, of the IRGC. If you want the country to “surrender,” the only hope is the castration of the IRGC and its power. Taking out mullahs and government officials is important, but the IRGC won’t give up without a fight — which probably means ground troops. Otherwise, a diplomatic solution that basically leaves Iran in the hands of its current leadership is the only solution. Everything is now contingent upon opening the Strait of Hormuz. Of course, matters were further complicated yesterday when Israel struck Iran’s largest natural gas facility. Now, missiles and drones from Iran are being aimed at neighboring energy centers. The IRGC is also making sure that oil-laden vessels are too risk-averse to traverse the Strait of Hormuz, where drones, missiles, and mines can

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