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<v Speaker 1>Hello, everyone, and good morning. Now, we've noticed a significant

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<v Speaker 1>Forward Observer produces an intelligence briefing for decision makers, and

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<v Speaker 2>Now, let's get started.

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<v Speaker 1>With the morning briefing for Friday, the 4th of September, 2026.

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<v Speaker 1>First up is our executive summary. Inside the Beltway News,

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<v Speaker 1>President Donald Trump said the U.S. is preparing and stockpiling

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<v Speaker 1>munitions for any contingency. The Department of Justice ended its

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<v Speaker 1>37-year monitoring program of the Teamsters Union. Domestically, the Young

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<v Speaker 1>Democratic Socialists of America said its membership has expanded by

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<v Speaker 1>50% in 2026. The Trump administration announced the launch of

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<v Speaker 1>Foundry School, a training program for engineers, technicians, and industrial leaders.

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<v Speaker 1>In homeland operations, ICE announced a new record for enforcement arrests,

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<v Speaker 1>almost 51,000 arrests in August. Globally, German police announced the

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<v Speaker 1>fourth attack on their power grid this week, utilizing improvised

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<v Speaker 1>rockets designed to short out high-voltage power lines. Also, Treasury

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<v Speaker 1>Secretary Besant reported that the European Union has joined Operation

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<v Speaker 1>Economic Outcast to isolate Iran.

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<v Speaker 2>Also, the U.S.

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<v Speaker 1>And Taiwan announced that Taiwan would be investing another $ 20

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<v Speaker 1>billion into U.S. chip fabrication. Let's move into the meat

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<v Speaker 1>of the report. I'd like to bring on Robert. Good morning, Robert.

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<v Speaker 3>Good morning, Matt. Good morning, everyone.

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<v Speaker 1>All right, Robert, the Trump administration, excuse me, the Federal

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<v Speaker 1>Southern District of New York approved an agreement between the

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<v Speaker 1>Department of Justice and the International Brotherhood of Teamsters Union

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<v Speaker 1>to end the 37-year federal monitoring of the union. What

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<v Speaker 1>is the federal monitorship and why is it ending now?

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<v Speaker 1>And does this signal the end of the Italian mafia?

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<v Speaker 3>Well, so federal monitorship, they were imposed on In this case,

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<v Speaker 3>the Teamsters Union back in the 80s, and this was

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<v Speaker 3>to counter organized crime influence in the union. Some of

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<v Speaker 3>the moves made to end this federal monitorship began at

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<v Speaker 3>the very tail end of the Obama administration. But I

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<v Speaker 3>think this is being sped up by the Trump administration

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<v Speaker 3>because I think Trump is trying to court the Teamsters

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<v Speaker 3>rank and file ahead of the 2026 midterm election, just

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<v Speaker 3>like he did ahead of 2024. So in the 2024 election,

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<v Speaker 3>about 60% of the membership voted to endorse Trump ahead

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<v Speaker 3>of the election. But Sean O'Brien, the Teamsters president, decided

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<v Speaker 3>not to endorse either candidate, which was in effect an

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<v Speaker 3>endorsement for Trump because mostly the other union leadership of

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<v Speaker 3>other unions endorsed Kamala Harris. And traditionally, there is a

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<v Speaker 3>break between the rank and file and union management on politics.

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<v Speaker 3>But in this case, I think this break we're seeing

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<v Speaker 3>like the teamsters especially the rank and file but even

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<v Speaker 3>sean o'brien is getting closer to the administration the republican

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<v Speaker 3>party is between white blue-collar union workers and white-collar and

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<v Speaker 3>service industry union workers because other unions like the united

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<v Speaker 3>auto workers have been expanding into uh universities and service

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<v Speaker 3>industries to bolster their numbers so i think what we're

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<v Speaker 3>seeing here is really uh this blue red bifurcation by

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<v Speaker 3>economic stat by job status basically where the blue america

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<v Speaker 3>is the information economy, white-collar services economy, and red America

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<v Speaker 3>is the blue-collar labor economy. And I think this is

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<v Speaker 3>another one of those kind of symptoms of the red-blue bifurcation. Okay.

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<v Speaker 1>Now, Robert, I'd like to bring Jared in here, our

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<v Speaker 1>China expert. President Donald Trump said the U.S. is preparing

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<v Speaker 1>and stockpiling munitions to for any contingency, President Trump added

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<v Speaker 1>that the U.S. is producing munitions, quote, at levels never

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<v Speaker 1>seen before, and, quote, we are taking them for ourselves. Now,

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<v Speaker 1>these comments from Trump follow a statement this week from

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<v Speaker 1>Secretary of State Rubio that there is high demand for U.S.

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<v Speaker 1>missile interceptors from around the world, but that the U.S.

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<v Speaker 1>has its own defense needs. Now, what are these two statements,

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<v Speaker 1>both from Trump and Secretary Rubio? What does this indicate

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<v Speaker 1>for the Trump administration? Is this a further indication that

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<v Speaker 1>the U.S. Patriot missile inventory specifically is lower than is

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<v Speaker 1>obviously wished for by the Pentagon and the White House?

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<v Speaker 3>Well, I think this is an indicator of two possibilities,

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<v Speaker 3>two potential courses of action. The Trump administration... One of

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<v Speaker 3>those being the Trump administration is preparing for this anticipated

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<v Speaker 3>2027 U.S.-China crisis or conflict over Taiwan. And the second

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<v Speaker 3>being that this could be an indicator that the U.S.

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<v Speaker 3>stocks of these interceptors are significantly drawn down, not just

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<v Speaker 3>from Iran operations over the last six months, but from

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<v Speaker 3>years of transfers to Ukraine. And the Trump administration is–

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<v Speaker 3>this is an indicator the Trump administration is at least

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<v Speaker 3>talking about suspending foreign military sales of those weapon systems

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<v Speaker 3>to rearm, to refill those stocks.

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<v Speaker 1>Now, Jared, I know that you were doing some research

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<v Speaker 1>here on U.S. military equipment sales. What do you have

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<v Speaker 1>on that?

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<v Speaker 4>Yeah, so I actually monitor this every day, and the

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<v Speaker 4>State Department is– one of the first agencies to really say.

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<v Speaker 2>Hey, here's what we intend to approve. Congress, can you

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<v Speaker 2>go ahead and get this done?

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<v Speaker 4>I believe it was just the 21st of August that

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<v Speaker 4>they had just approved another set of missile sales. These

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<v Speaker 4>were sidewinders, but the point is they are still selling munitions.

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<v Speaker 4>In the official reporting, they are it's been pretty routine

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<v Speaker 4>all throughout summer that they're still selling munitions.

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<v Speaker 2>Okay.

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<v Speaker 1>Well, we'll definitely keep an eye on this. We have

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<v Speaker 1>a little bit of conflicting information here. The congressional, the

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<v Speaker 1>congressional reporting is that we are still selling munitions and

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<v Speaker 1>president Trump.

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<v Speaker 4>They're asking for congressional approval to sell it. So the

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<v Speaker 4>state department is still trying to sell it.

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<v Speaker 3>Oh, okay.

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<v Speaker 1>Okay. Well, thank you for that clarification. And Jared, we'll

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<v Speaker 1>bring you back for global a little bit later. Now, Robert,

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<v Speaker 1>the Young Democratic Socialists of America said its membership has

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<v Speaker 1>expanded by 50% and it's started more than 50 new

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<v Speaker 1>chapters so far in 2026. Now, the YDSA said it

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<v Speaker 1>now has more than 3,000 members across 160 chapters and

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<v Speaker 1>the highest membership in the YDSA's 60-year history. Now, the

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<v Speaker 1>YDSA said its ultimate goal is to, quote, build power

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<v Speaker 1>at the campus and to fight the transfiguration of the U.S.

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<v Speaker 1>university system. Robert, why is the DSA and the young

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<v Speaker 1>DSA expanding so much in 2026? What's driving this expansion?

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<v Speaker 3>Well, I think, well, first off, like the DSA, likewise,

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<v Speaker 3>has grown the membership and expanded significantly this year. I

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<v Speaker 3>think this is likely we're seeing this increased support for

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<v Speaker 3>the DSA and the young DSA. The young DSA on

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<v Speaker 3>a smaller scale, obviously, because the DSA is now has,

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<v Speaker 3>I think they said when we last reported on it, 120,000

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<v Speaker 3>dues-paying members now. I think this is likely due to

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<v Speaker 3>the younger Democrat voter base and their frustration with establishment

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<v Speaker 3>Democrats and that they are more open, according to opinion polling,

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<v Speaker 3>more open to progressive and democratic socialist policies, especially economic policies.

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<v Speaker 3>I think that's why we're seeing this record growth by

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<v Speaker 3>both the DSA and the young DSA. Okay.

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<v Speaker 1>Now, Robert, have you noticed any significant differences of the

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<v Speaker 1>extremism between the young DSA and the mainline DSA?

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<v Speaker 3>I think the white DSA is probably a little bit

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<v Speaker 3>more extreme on their public opinions because the DSA is

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<v Speaker 3>not just an act like a far progressive, sort of

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<v Speaker 3>on the far left progressive line group. They're also a

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<v Speaker 3>political group, and they're running candidates in office. They're backing

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<v Speaker 3>candidates in office. So there's also a struggle going on

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<v Speaker 3>within the DSA as well over some DSA factions that

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<v Speaker 3>want to be more pragmatic with electoral politics and some

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<v Speaker 3>that are trying to maintain the more radical character of

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<v Speaker 3>DSA politics.

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<v Speaker 1>Okay.

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<v Speaker 2>Okay.

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<v Speaker 1>Now, moving over to a quick update on ICE agent

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<v Speaker 1>Castro that we've been covering here. Federal grand jury returned

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<v Speaker 1>an indictment against ICE agent Christian Castro for making false

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<v Speaker 1>statements after an ICE officer involved shooting in January. The

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<v Speaker 1>Department of Justice said Castro is still under investigation and

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<v Speaker 1>more charges are may be coming. Robert, what do you

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<v Speaker 1>think that this indicates? Is the Trump administration, is this

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<v Speaker 1>an effort by the Trump administration potentially to shield Agent

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<v Speaker 1>Castro from state charges in Minnesota?

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<v Speaker 3>It's possible. So what happened here is federal prosecutors in

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<v Speaker 3>Minnesota wanted to charge Castro with civil rights violations and

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<v Speaker 3>that was apparently put on hold by DOJ headquarters and

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<v Speaker 3>now they're charging him with lying during the investigation of

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<v Speaker 3>the shooting. I think it's possible that this is a

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<v Speaker 3>way for the Trump administration to kind of control the

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<v Speaker 3>news cycle on this and say, hey, look, we are

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<v Speaker 3>conducting oversight over ICE agents because they're There have been

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<v Speaker 3>a couple incidents like this where we've seen ICE agents

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<v Speaker 3>exaggerated the events happening around arrests. There was one earlier

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<v Speaker 3>this year that I talked about where there was a man,

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<v Speaker 3>an illegal alien arrested in Texas who resisted arrest with violence.

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<v Speaker 3>But the ICE agents reporting basically made him out to, like,

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<v Speaker 3>be a terrorist, a domestic terrorist, you know. At the time,

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<v Speaker 3>I said, I think this is undermining the credibility of

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<v Speaker 3>ICE when they're conducting these operations. This might be a

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<v Speaker 3>response to that by the Trump administration to try to

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<v Speaker 3>mitigate that happening by charging Castro and also avoid the

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<v Speaker 3>civil rights charges.

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<v Speaker 1>Well, I think it's also an important signal from the

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<v Speaker 1>Trump administration to ICE, to CBP, which is that there

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<v Speaker 1>are absolutely limits. You can't just You can't just break

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<v Speaker 1>the law. Even if you're an ICE agent and you're

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<v Speaker 1>on duty and you're pursuing a fleeing felon, you still

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<v Speaker 1>have to follow the law. And it certainly appears that

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<v Speaker 1>Agent Castro, it appears that he's misrepresented the actions that

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<v Speaker 1>led to his officer-involved shooting. Now, moving forward here, the

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<v Speaker 1>Trump administration announced the launch of Foundry School, a training

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<v Speaker 1>program for engineers, technicians, and industrial leaders to build an

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<v Speaker 1>American manufacturing workforce. The Foundry School program will be hosted

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<v Speaker 1>by Stanford University beginning in January 2027 and host U.S.

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<v Speaker 1>and foreign students from the Trump administration's Pax Silica Partnership program. Robert,

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<v Speaker 1>I'm actually not familiar with the Pax Silica program. I

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<v Speaker 1>know that our listeners probably think that we know everything here,

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<v Speaker 1>but I don't know what Pax Silica is. Remind me,

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<v Speaker 1>what is that and how does it fit into the

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<v Speaker 1>grand strategy of the Trump administration?

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<v Speaker 3>So Pax Silica is basically an international strategic initiative. The

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<v Speaker 3>idea is to secure supply chain, global supply chains, specifically

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<v Speaker 3>for the advancement of AI. And so that means like industry, semiconductors,

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<v Speaker 3>electrical equipment. And as far as how this fits into

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<v Speaker 3>the Trump grant strategy, if we look at the list

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<v Speaker 3>of countries here that are provided in the report at

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<v Speaker 3>the State Department announcement, This includes South Korea, Japan, Taiwan,

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<v Speaker 3>and India. And those are all countries, I think, as

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<v Speaker 3>we were discussing before the show, Jared pointed out, they

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<v Speaker 3>all have beefs with China. And I think this is,

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<v Speaker 3>to me, this looks likely to be part of the

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<v Speaker 3>larger Trump administration grand strategy to economically isolate China. And

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<v Speaker 3>when we talked about this the other day, I pointed

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<v Speaker 3>out that really you can't extricate supply chains and geography.

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<v Speaker 3>In this case, they're doing the same thing here. They're

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<v Speaker 3>What this program sounds like to me is there are

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<v Speaker 3>going to be U.S. students there, and this is more

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<v Speaker 3>like a professional program. This isn't really like a college

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<v Speaker 3>degree program. And they're bringing guys to build up U.S.

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<v Speaker 3>supply chains domestically, but also foreign partners to then return

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<v Speaker 3>those students back to those countries to build up their

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<v Speaker 3>own supply chains, secure their own supply chains, and build

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<v Speaker 3>up their own reindustrialization with the idea that this is,

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<v Speaker 3>I think, the intent to bolster this strategy to isolate China.

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<v Speaker 1>Now, didn't TSMC have some sort of partnership program here

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<v Speaker 1>in the United States where they sent over various high-level,

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<v Speaker 1>highly skilled technicians and engineers to train the U.S. workforce

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<v Speaker 1>to operate the semiconductor fabrication here in the United States?

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<v Speaker 1>Does this foundry school sound like it's a similar, perhaps

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<v Speaker 1>an expansion? of the arrangement that the United States had

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<v Speaker 1>with TSMC on chip manufacturing.

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<v Speaker 3>Yeah, because this goes beyond, this seems to be, to

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<v Speaker 3>go beyond just semiconductors. Like, this is much more broad.

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<v Speaker 2>Okay, now, excellent.

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<v Speaker 1>Now, let's move over to Homeland Operations. The Department of

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<v Speaker 1>Homeland Security said ICE conducted 50,915 immigration arrests throughout the

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<v Speaker 1>United States in August, setting a new record. Now, DHS

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<v Speaker 1>said this is the second time consecutive month of more

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<v Speaker 1>than 50,000 arrests by ICE. Robert, is this the result

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<v Speaker 1>of the 287G agreements coming into effect?

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<v Speaker 3>Not quite, I don't think. And so we've seen this

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<v Speaker 3>massive expansion of the 287G program, but they still account

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<v Speaker 3>for a small number of the arrests every month. And

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<v Speaker 3>I think that's because there's going to be a time

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<v Speaker 3>lag between when the agreements are signed between DHS and

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<v Speaker 3>And the local and state law enforcement agencies, because they've

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<v Speaker 3>expanded from they've expanded like almost 200 percent, I think,

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<v Speaker 3>since January. They're up to over 2200 agreements now. And

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<v Speaker 3>I think there's a time like that because when they

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<v Speaker 3>when they're putting in these agreements, eventually, like after the

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<v Speaker 3>agreement is signed, then then those local or state officers

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<v Speaker 3>have to be sent off to a training program, sometimes

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<v Speaker 3>at FLETC. And then they can begin enforcing federal immigration

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<v Speaker 3>law under these different models of 287G. I think as

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<v Speaker 3>we see that happening over the next few months, we're

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<v Speaker 3>going to see the number of arrests coming out of

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<v Speaker 3>287G increasing, which means overall the arrest numbers are going

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<v Speaker 3>to increase because there's still only a small portion of

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<v Speaker 3>the total monthly immigration arrests. So the two data points

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<v Speaker 3>are not a trend, obviously, as far as setting a

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<v Speaker 3>new floor. But so far, above 50,000 for two months

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<v Speaker 3>in a row. And I think they could be setting

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<v Speaker 3>a new floor for immigration arrest numbers, especially as those

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<v Speaker 3>287G partnership programs become operational.

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<v Speaker 1>I don't want to beat a dead horse here, Robert.

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<v Speaker 1>But just to be clear, you're saying that you believe

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<v Speaker 1>your analysis is that How many– first of all, how

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<v Speaker 1>many 287G agreements does the United States have right now?

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<v Speaker 3>I think it's over 2,200. I'd have to double-check the

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<v Speaker 3>website again.

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<v Speaker 1>Effectively they haven't begun full operations yet because of just

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<v Speaker 1>plumbing problems in that the local law enforcement agencies, they

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<v Speaker 1>haven't conducted all the paperwork, all the training that they

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<v Speaker 1>need to begin law enforcement immigration enforcement at the local level.

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<v Speaker 1>So you're saying that this $ 50, 000 could easily be exceeded

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<v Speaker 1>once all the 287G agreements are in effect?

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<v Speaker 3>I think so. Because when we published the numbers last

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<v Speaker 3>month on Florida, for example, almost half of the agencies

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<v Speaker 3>with 287G agreements had conducted zero arrests yet. So some

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<v Speaker 3>of these programs have had officers go off to the

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<v Speaker 3>training and they are currently active. But I think that

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<v Speaker 3>points to that some of the programs, possibly a lot

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<v Speaker 3>of the new ones that have been signed this year,

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<v Speaker 3>have not yet become operational. And then that's also not–

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<v Speaker 3>there's also the potential that they're undercounting those arrests because

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<v Speaker 3>I know that's happened here in Florida with individual agencies

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<v Speaker 3>with these 287G programs where the arrests were initially undercounted. Okay.

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<v Speaker 1>Now, Robert, that will actually wrap up domestic reporting for today.

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<v Speaker 1>I'd like to ask you to stay on for global.

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<v Speaker 1>Bring Jared in here. Good morning again, Jared. Now, let's

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<v Speaker 1>talk about Germany. We talked about it earlier this week.

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<v Speaker 1>Police are investigating a new series of improvised rocket devices

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<v Speaker 1>near Dusseldorf, Germany. The devices were designed to short out

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<v Speaker 1>high-voltage power transmission lines. Here in the United States, we

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<v Speaker 1>call them high-tension power lines. This is the third incident

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<v Speaker 1>this week. Now, the rocket is designed to overfly the

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<v Speaker 1>power lines here. with a trailing wire that when it

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<v Speaker 1>comes into contact with various electrical lines, it short-circuits the system. Robert,

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<v Speaker 1>as a GWAT veteran, where have we seen this type

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<v Speaker 1>of TTP before?

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<v Speaker 3>Well, this tactic, technique, and procedure was very common during GWAT,

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<v Speaker 3>during the Global War on Terror, in that insurgents would

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<v Speaker 3>set timed launch devices for basically improvised indirect fire, and

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<v Speaker 3>that would allow them to set a weapon system, whatever

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<v Speaker 3>type of improvised rocket or mortar or non-improvised military rocket

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<v Speaker 3>or mortar, and leave the area ahead of the launch.

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<v Speaker 3>And then so when they did launch, whenever counter-battery fire

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<v Speaker 3>came in or there was some type of response, like

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<v Speaker 3>quick reaction force response, they wouldn't be there to be killed.

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<v Speaker 1>Absolutely. Now, for our listeners, I actually came across this

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<v Speaker 1>tactic technique procedure in Afghanistan myself. Where Afghan insurgents had

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<v Speaker 1>set up rockets on a hillside targeting the camp I

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<v Speaker 1>was at out in the sticks. And it was exactly

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<v Speaker 1>what you just talked about. It was rockets with these

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<v Speaker 1>improvised tripods, a car battery and rockets. an egg timer,

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<v Speaker 1>a kitchen timer. All of this was wired together, and fortunately,

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<v Speaker 1>some of our Afghan partner security forces were able to

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<v Speaker 1>find this before it went off. We sent out EOD guys,

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<v Speaker 1>and that's how they disarmed them, and that's how I

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<v Speaker 1>was able to actually really see the nuts and bolts

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<v Speaker 1>of this so it's it's pretty interesting that you know

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<v Speaker 1>this ttp has traveled from the global war on terror

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<v Speaker 1>to domestically in germany and i just want to be

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<v Speaker 1>clear here for the listeners that while the improvised rockets

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<v Speaker 1>have been something that we've seen before i am not

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<v Speaker 1>aware of this specific ttp with the utilization of the

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<v Speaker 1>wire the the conductive wire i assume it was they

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<v Speaker 1>don't say in the german reporting i'm assuming it's copper

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<v Speaker 1>the copper wire to short out the electrical high tension

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<v Speaker 1>power lines. Now, attacking the lines instead of the substation

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<v Speaker 1>defeats perimeter security. No amount of hardening the electrical substations,

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<v Speaker 1>the transformers, is going to prevent this type of attack

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<v Speaker 1>that we're seeing in Germany now several times this week. Now,

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<v Speaker 1>even if the groups doing the operation are motivated by

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<v Speaker 1>beliefs about climate change, which is what is being currently

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<v Speaker 1>reported in German media, it is a known technique for

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<v Speaker 1>foreign intelligence services to use cutouts and proxies for their

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<v Speaker 1>own goals. Now, Russian involvement is assessed with moderate confidence

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<v Speaker 1>as likely here due to German support for the Ukraine conflict. Now, Robert,

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<v Speaker 1>are you familiar with this type of cutout operation historically

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<v Speaker 1>by intelligence services? What's another example of this?

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<v Speaker 3>Well, in the United States, and this was pointed out

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<v Speaker 3>in the Cuba report from the State Department, is that

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<v Speaker 3>the Soviet Union was using, in Cuba, were using domestic

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<v Speaker 3>political movements here, like the Black Nationalist movements, in order

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<v Speaker 3>to affect their own political strategies to undermine the United

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<v Speaker 3>States foreign policy. There's one other thing to point out here.

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<v Speaker 3>If this could be a just a domestic German far-left

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<v Speaker 3>group doing their own thing. In Europe, the far-left groups

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<v Speaker 3>are much more militant than here in the United States.

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<v Speaker 3>Especially Greece is one big area where the far-left is

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<v Speaker 3>very aggressive. But historically, it's not unusual, especially during the

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<v Speaker 3>Cold War, for these far-left groups, like the Red Brigades

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<v Speaker 3>and the different movements in France, in Spain, in Germany,

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<v Speaker 3>in the U.K., to travel to the Middle East and

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<v Speaker 3>have some interaction with what we now consider Islamist groups,

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<v Speaker 3>which a lot of these, like the Palestinian Liberation Organization,

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<v Speaker 3>the PLFP Popular Front or PFLP Popular Front for the

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<v Speaker 3>Liberation of Palestine, they started out as explicitly leftist groups.

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<v Speaker 3>So there was, it is possible that this group may

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<v Speaker 3>have picked up this technique from some other type of training.

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<v Speaker 3>that they are using for their own domestic objectives. Historically,

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<v Speaker 3>that is not unusual for the far left groups in

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<v Speaker 3>Europe to travel to the Middle East for training.

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<v Speaker 1>Now, Robert, as impactful as it is what the motivation

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<v Speaker 1>of these attackers are and where they got their training,

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<v Speaker 1>I think another point of view here is the bigger picture.

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<v Speaker 1>which is because the method has now been publicized, security

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<v Speaker 1>professionals in the United States and around the world, but

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<v Speaker 1>since our audience is primarily in the United States, security

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<v Speaker 1>professionals here need to update their threat scenarios for the U.S.

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<v Speaker 1>power grid, which is something that we talk about here

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<v Speaker 1>quite a bit. Now, thank you, Robert. That'll actually wrap

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<v Speaker 1>your section up today. Jared, what news do we have

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<v Speaker 1>coming concerning Iran?

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<v Speaker 2>Almost got myself. All right, so a couple big pieces

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<v Speaker 2>out of Iran.

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<v Speaker 4>So last night, Treasury Secretary Besant reported that the European

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<v Speaker 4>Union has joined Operation Economic Outcast in order to economically

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<v Speaker 4>isolate Iran. Anonymous sources in South Korea report that South

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<v Speaker 4>Korea is preparing to send logistic ships and maritime patrol

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<v Speaker 4>aircraft to support the U.S. 's efforts in the start

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<v Speaker 4>of war moves. However, the South Korean presidential office did

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<v Speaker 4>say that they denied the claim, uh, but they are

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<v Speaker 4>in discussions to find out how they can contribute to

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<v Speaker 4>restoring peace and stability in the Middle East and inside

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<v Speaker 4>the street. That's a direct quote from their presidential office.

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<v Speaker 4>And additionally, Peru, rather low level, but it is important

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<v Speaker 4>to note that Peru severed relations with Iran. Now, I

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<v Speaker 4>think all this is pointing towards the ally, pointing towards

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<v Speaker 4>something significant here. The allies joining in against Iran is

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<v Speaker 4>an indicator that the U.S. 's international influence remains strong

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<v Speaker 4>despite the the unending reports that the U S allies

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<v Speaker 4>are going their own way or even joining China. Uh, additionally, uh,

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<v Speaker 4>vice president Vance held a press conference yesterday. And in it,

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<v Speaker 4>he stated that the Gulf Arab States have been quote,

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<v Speaker 4>begging the United States to continue operations in the Strait

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<v Speaker 4>of Hormuz, because if the U S were to leave,

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<v Speaker 4>it would lead to a worldwide energy crisis. And that

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<v Speaker 4>was basically anytime he touched on the Strait of Hormuz, which.

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<v Speaker 2>Uh, let me pull that back up for you guys.

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<v Speaker 2>Here we go.

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<v Speaker 4>Uh, He did bring on that if the U.S. had

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<v Speaker 4>done nothing, this would have led to a worldwide energy crisis.

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<v Speaker 4>Vance refused to commit to any timeline on when retaliatory

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<v Speaker 4>strikes and a naval escort would end because he said

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<v Speaker 4>that depends solely on when the Iranians stop shooting ships. Ultimately,

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<v Speaker 4>I do think that this is heading towards what I've

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<v Speaker 4>assessed here as will be the new normal where Basically,

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<v Speaker 4>along the Iranian coast, there are nuisance strikes against commercial shipping,

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<v Speaker 4>and that will result in a coalition anti-piracy effort.

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<v Speaker 3>Okay.

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<v Speaker 1>Now, Jared, moving over to South America for a moment,

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00:26:09.009 --> 00:26:11.529
<v Speaker 1>what news do we have coming out of Southern Command?

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<v Speaker 2>Yeah, so this is just a trend I've noticed coming

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<v Speaker 2>from South Com.

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<v Speaker 4>The last three reported boat strikes that they had, which–

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<v Speaker 4>They went on a bit of a lull, and then

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<v Speaker 4>all of a sudden we have a bunch of boat strikes.

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<v Speaker 4>They're taking out refueling ships for the cartels. Now, these

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<v Speaker 4>vessels are operating in support of Los Troneros, an Ecuadorian cartel,

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<v Speaker 4>which the Ecuadorians are also running a joint operation with

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<v Speaker 4>Colombia right now to counter that group. And these were

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<v Speaker 4>clear of personnel before South Com destroyed them. Now, we

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00:26:40.099 --> 00:26:46.029
<v Speaker 4>previously reported on South Com disrupting a regional narcotics distributor

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<v Speaker 4>on the water. So similar vessel, but they would distribute

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<v Speaker 4>drugs in order to get to the go fast boats

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<v Speaker 4>that would then carry on the rest of the supply chain.

416
00:26:54.490 --> 00:26:57.630
<v Speaker 4>And this is another midstream disruption to the narcotics supply

417
00:26:57.670 --> 00:26:59.619
<v Speaker 4>chain from South America to the United States.

418
00:27:00.539 --> 00:27:01.759
<v Speaker 2>Now you and I have.

419
00:27:01.720 --> 00:27:04.839
<v Speaker 4>Discussed previously, you've got a little bit more experience with

420
00:27:04.859 --> 00:27:06.960
<v Speaker 4>this than I do, but those go fast have a

421
00:27:06.980 --> 00:27:10.140
<v Speaker 4>pretty limited range. They're pretty high end speed boats, but

422
00:27:10.359 --> 00:27:13.140
<v Speaker 4>they're still just speed boats. And they would be heavily

423
00:27:13.160 --> 00:27:16.670
<v Speaker 4>dependent on these refueling boats to make the extended journeys.

424
00:27:17.250 --> 00:27:23.269
<v Speaker 4>So without these, this is likely intended to further drive

425
00:27:23.289 --> 00:27:27.380
<v Speaker 4>the narcotic supply chain toward territorial waters and onto aerial routes.

426
00:27:27.420 --> 00:27:30.700
<v Speaker 4>And that makes this generally easier to interdict and to

427
00:27:30.779 --> 00:27:35.269
<v Speaker 4>pressure countries that these groups are operating in to conduct

428
00:27:35.329 --> 00:27:36.410
<v Speaker 4>the interdictions as well.

429
00:27:38.640 --> 00:27:38.960
<v Speaker 2>Okay.

430
00:27:39.019 --> 00:27:43.380
<v Speaker 1>Now, Jared, another Taiwan element here. The U.S. Commerce Secretary

431
00:27:43.400 --> 00:27:49.079
<v Speaker 1>Howard Lutnick and Taiwanese Minister of Economic Affairs each separately

432
00:27:49.140 --> 00:27:53.200
<v Speaker 1>announced that Taiwan would be investing another $ 20 billion into U.S.

433
00:27:53.259 --> 00:27:54.359
<v Speaker 2>Chip fabrication.

434
00:27:54.859 --> 00:27:58.079
<v Speaker 1>Now, Lutnick tied the investment to additional tariff relief on

435
00:27:58.119 --> 00:28:03.519
<v Speaker 1>more upcoming U.S. tariffs on semiconductors. Jared, you're our China guy.

436
00:28:03.660 --> 00:28:06.160
<v Speaker 1>What have we reported on this topic in the past? Like,

437
00:28:06.200 --> 00:28:06.809
<v Speaker 1>what does this mean?

438
00:28:07.650 --> 00:28:10.710
<v Speaker 4>So we've talked about TSMC moving out specifically to Arizona,

439
00:28:11.369 --> 00:28:12.670
<v Speaker 4>basically from the very beginning.

440
00:28:13.789 --> 00:28:14.829
<v Speaker 2>This, this is.

441
00:28:16.250 --> 00:28:20.230
<v Speaker 4>Largely been, it's largely been an effort to mitigate China,

442
00:28:21.190 --> 00:28:26.220
<v Speaker 4>China's ultimate economic effects. And it's, all of this is

443
00:28:26.279 --> 00:28:31.400
<v Speaker 4>about just preparing for that 2027 deadline. And just to

444
00:28:31.799 --> 00:28:33.799
<v Speaker 4>clarify that we mentioned that earlier in the show, but

445
00:28:33.819 --> 00:28:36.019
<v Speaker 4>I want to be perfectly clear. That is not to

446
00:28:36.059 --> 00:28:39.450
<v Speaker 4>say that, China is 100% moving on.

447
00:28:39.390 --> 00:28:40.730
<v Speaker 2>Taiwan in 2027.

448
00:28:40.730 --> 00:28:44.079
<v Speaker 4>And in fact, we previously assessed, I assessed the beginning

449
00:28:44.119 --> 00:28:49.859
<v Speaker 4>of 2025. No, I don't expect China to move in 2027,

450
00:28:49.859 --> 00:28:53.420
<v Speaker 4>but the United States government is treating it as a deadline.

451
00:28:54.539 --> 00:28:55.579
<v Speaker 4>That way they.

452
00:28:55.500 --> 00:29:00.170
<v Speaker 2>Are prepared in case China does. So I think this.

453
00:29:00.109 --> 00:29:05.250
<v Speaker 4>Is part of a broader effort to just generally dampen China.

454
00:29:06.000 --> 00:29:10.119
<v Speaker 4>And we have seen other efforts to do similar things.

455
00:29:10.460 --> 00:29:12.630
<v Speaker 2>I can get into that a fair bit later if

456
00:29:12.640 --> 00:29:13.960
<v Speaker 2>you want to. I know you've got a few things

457
00:29:13.980 --> 00:29:14.549
<v Speaker 2>to say as well.

458
00:29:15.730 --> 00:29:19.190
<v Speaker 1>Well, actually, Jared, I would like to wrap up the

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00:29:19.230 --> 00:29:22.410
<v Speaker 1>show right here and for the subscribers to look for

460
00:29:22.430 --> 00:29:26.230
<v Speaker 1>our full analysis in the written report. Now, due to

461
00:29:26.490 --> 00:29:29.529
<v Speaker 1>Labor Day being Monday, we'll be back with you Tuesday

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00:29:29.710 --> 00:29:33.029
<v Speaker 1>at 08 Central on the show and in your inbox.

463
00:29:33.029 --> 00:29:36.140
<v Speaker 1>And I'd like to thank all of our new listeners.

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00:29:36.140 --> 00:29:38.200
<v Speaker 1>have a good have a good rest of your day

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00:29:38.279 --> 00:29:40.190
<v Speaker 1>and have a great weekend and stay out front.
