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The US Army and Texan Bandidos in Ukraine

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Confirming the presence of the US troops in Ukraine, the Pentagon has drawn up a three-stage action plan on blocking the illegal arms trafficking in Eastern Europe. The US inspection network does not only include Ukraine, but also other countries neighboring Ukraine or its neighbors across the sea. While the names of the countries included in this network to be established not mentioned, the reality that an illegal arms market similar to that in the Middle East and the Balkans, are being implicitly admitted.

According to an official statement by the US Department of Defense (Pentagon) regarding the activities of the deployed US troops in Ukraine, military advisors from the US military will conduct arms inspections in Ukraine. And the main subject of the inspection is summarized as; the final destination of the US/Western arms supplies. It will be inspected whether these high-tech conventional weapons are properly used at the front. And the most important part would be to ensure that these arms would not fall into the hands of the Russians, and to “prevent” the rise of an illegal arms market.

The Pentagon held a press conference with journalists on the issue on October 31st but refrained to share any information on the number of specialists deployed in Ukraine or the locations they will serve. These inspectors “are not to be deployed in close combat zones” the officials said.

Thus, this statement officially confirmed the presence and the activities of the US military in Ukraine, apart from the military personnel protecting the US diplomats in Kiev. The Pentagon had evacuated all US troops from the country on February 14th, exactly 10 days before the conflict began.

Pentagon: There is suspicion, but no evidence

The Pentagon officials also said they did not see “any solid evidence” of illicit diversion of the US arms supplies sent to Ukraine, while adding, “Nevertheless, we are aware of the possibility of an illicit arms diversion. We are actively taking all available actions to prevent such a thing from happening.”

And the Republican criticisms on the destination of arms sent to Ukraine, also had a major impact, while the case was upon an investigation process. The Minority (Republican) leader in the House of Representatives Kevin McCarty, said in a speech he made in October that Republicans would not hand a “blank check” to Ukraine.

The Tweet McCarty has pinned on his Twitter account on October 8th, is about the Biden family’s relationship with the Ukrainian government:

“Fact: Joe Biden’s family members profited in foreign regions where he had influence as vice president. Hunter Biden sat on the board of a Ukrainian company in an industry in which he had no experience. His only qualification was that his father ran point on US-Ukraine policy.”

Admitting the existence of an arms black market

It is very possible to say that the arms sent to Ukraine could be sold on the black market, and that more “black markets” could emerge where terror groups can acquire advanced weapons, based on some similar experiences in the Middle East. Some of these risks are clearly explained in the “US Plan to Counter Illicit Diversion of Certain Advanced Conventional Weapons in Eastern Europe” issued by the US Department of Defense on October 27th:

“Wars can provide opportunities for weapons to fall into private hands via theft or illicit sales, sometimes creating black markets for arms that endure for decades.  A variety of criminal and non-state actors may attempt to acquire weapons from sources in Ukraine during or following the conflict, as occurred after the Balkans Wars in the 1990s.”

According to the Pentagon plan, some special precautions must be taken especially on small arms, MANPADs and anti-tank missiles. It is quite possible that such weapons could be used in terrorist attacks targeting civilian aircrafts.

 The Pentagon’s preventive “capacity building” plan for Eastern Europe

Reading the Biden administration’s deployment of military advisors and inspectors to Ukraine only as a response to the criticisms from the Republicans and from Russia, is not sufficient enough to fully explain the overall approach of the US government. The Pentagon considers that if the arms thatare described in the plan document fall into the hands of the Russian military, Moscow may use it to “develop countermeasures, spread propaganda or conduct false flag operations.”

The plan to prevent arms diversion is not only limited to Ukraine, according to the Pentagon’s program.  The “action plan” covers three phases: short, medium and long-term, and the construction of a wide network of inspection all across Eastern Europe:

  • “Bolstering the ability of security forces in Ukraine and its neighboring states to account for and safeguard their arms and ammunition during transfer, in storage, and when deployed;
  • Strengthening border management and security in Ukraine and its neighboring states; and
  • Building the capacity of security forces, law enforcement officials, and border control agencies in Ukraine and its neighboring states to deter, detect, and interdict illicit trafficking of certain advanced conventional weapons.”

According to the plan put up in the document, the coordination mechanisms are defined as “Building the capacity of law enforcement officials and analysts in Ukraine and neighboring states to process and share information regarding interdicted or captured weapons”.

“Azov battalions could get out of control”

The Europol agency also warned last summer about the illegal diversion of arms in Ukraine across Europe. On October 27th the EU Commission tasked on the issue, also drafted a new law on the increasing allegations of arms trafficking over the Ukrainian war. The commission noted that the Ukrainian war constitutes a new source for illicit arms trafficking in Europe.

The figures also show the extent of this threat. Since last February, the Pentagon has sent around 10 thousand weapons including missile launchers, and around 64 million ammunitions for small arms to Ukraine.

According to a 2020 Pentagon report, the US has increased its military aid to Kiev to 400 million USD in 2019, from 30 million USD back in 2013. And the total amount of the military supply the Pentagon has sent to Kiev in the last eight months alone has reached 18 billion USD.

Experts consider a military aid of this magnitude to fall into the black market and into the hands of dangerous organizations, as within possibilities.

The US think-tank Responsible Statcraft, points out to the possibility of the course of the war in Ukraine to turn towards strengthening the radical groups, which can form independent paramilitaries with the help of these weapons. According to Jordan Cohen from the Cato Institute, it may get much more difficult for Volodymyr Zelensky to control organizations such as the Azov battalions in the future. Cohen describes the danger by saying, “If he loses control of those groups, then I think you are going to start seeing those groups kind of creating their own military units, and that is dangerous”.

The arms market of Bandidos in Ukraine

Founded in 1966 in Saint Leon TX, the Bandidos Motorcycle Club has a wide network of organizations around the world. This criminal organization is among the leading actors in the transportation of commodities of the arms black market into European heartland. At the end of October, Finnish National Bureau of Investigation announced that weapons of Western origin sent to Ukraine, may have reached the black markets in Finland, through criminal organizations such as the Bandidos. Speaking to Finnish publication Yle, Chief Inspector Christer Ahlgren stated: “Weapons delivered to Ukraine from various countries have also been found in Sweden, Denmark and the Netherlands”. According to Inspector Ahlgren, there are strong indications that these weapons are on their way to Finland.

Inspector Ahlgren says this black market is run by bike gangs:

“The three largest bike gangs in the world, which are all part of a wider international network, are all active in Finland. One of them is the Bandidos Motorcycle Club, which has cells in all major cities of Ukraine”.

Here, a huge gap is opening between Russia and the European Union, as Texan Bandidos and similar criminal organizations and US military inspectors play cat and mouse over Ukrainian soil.

AMERICA

Trump’s tariffs drive Nvidia to invest heavily in US manufacturing

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Nvidia’s CEO said that the company, which is trying to withdraw its supply chain from Asia in the face of tariff threats from US President Donald Trump, will spend hundreds of billions of dollars for chips and other electronic products manufactured in the US in the next four years.

The massive spending forecast of the world’s most valuable semiconductor group follows billions of dollars of US investment plans announced by other technology companies, including Apple, as the impact of Trump’s “America First” trade policies ripple through the global economy.

Nvidia’s CEO and co-founder Jensen Huang told the Financial Times (FT), “Overall, we will likely supply a total of half a trillion dollars worth of electronic products over the next four years, and I think we can easily see ourselves producing a few hundred billion of that here in the US.”

Huang said that the leading artificial intelligence chip manufacturer can now produce its latest systems in the US through suppliers such as Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn, and that it sees an increasing threat of competition from Huawei in China.

At Nvidia’s annual developers conference this week, Huang introduced the new generation of artificial intelligence chip, Vera Rubin, and outlined plans to create clusters of millions of interconnected chips that will require a large power supply in huge data centers.

Huang said he believes the Trump administration can accelerate the development of the US artificial intelligence industry. The CEO said, “Having the support of an administration that cares about the success of this industry and does not allow energy to be an obstacle is an extraordinary result for artificial intelligence in the US.”

This month, TSMC announced that it would invest $100 billion in its chip production facilities in Arizona, in addition to the $65 billion investment decided under the Biden administration.

Huang said that Nvidia’s latest Blackwell systems are now manufactured in the US, adding, “TSMC’s investment in the US allows us to take an important step in our supply chain flexibility.”

In recent years, America’s largest technology companies, including Nvidia and Apple, have become heavily dependent on TSMC’s state-of-the-art chip manufacturing facilities in Taiwan.

Huang said, “The most important thing is to be prepared. At this point, we know that we can manufacture in the US, we have a sufficiently diversified supply chain.”

The Nvidia executive argued that if any disaster threatens production in Taiwan, it would be “uncomfortable but not a problem.”

While Nvidia still generates billions of dollars in revenue from China, it faces renewed competition from Huawei, whose Ascend AI chips have recently made progress.

Huang said, “Huawei is the most challenging technology company in China. They have conquered every market they have entered.” According to Huang, US efforts to restrict the Chinese technology company “ended badly,” given Huawei’s continued success.

Saying that Huawei’s presence in the field of artificial intelligence is increasing every year, Huang said, “We cannot assume that they will not be a factor.”

Intel, the only US company that can theoretically produce pioneering chips similar to Nvidia’s, has faced serious difficulties in the casting business. The leadership gap at Intel was filled last week with the appointment of Lip-Bu Tan as CEO.

Huang denied reports that Nvidia was in talks to form a consortium with companies such as TSMC to invest in Intel, and avoided committing to using US chip manufacturing services as part of this ‘onshoring’.

“We regularly evaluate casting technologies and continue to do so,” said Nvidia’s CEO, adding that they are also reviewing Intel’s chip packaging services.

Referring to Intel’s ability to be competitive in advanced chip technologies, Huang said, “I am confident that Intel has the ability to do this.”

Huang also added that “Intel’s success and prosperity” is important, and “But it takes some time to convince yourself and each other that a new supply chain needs to be established.”

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US tariffs on steel and aluminum set to impact $150 billion market

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The 25% tariff on steel and aluminum products imposed by US President Donald Trump’s administration on Wednesday is expected to create upward pressure on prices for approximately $150 billion worth of imports, negatively impacting the profits of American automakers and other companies.

The US imports about one-fifth of the steel it consumes. More than 20% of this import by weight comes from Canada, followed by Brazil at 16%, and the European Union at 7%, with Japan ranking seventh at 4%. Canada is also the largest supplier of aluminum to the US.

Because the direct cost of tariffs falls on importers, this will mean higher costs, especially for manufacturers in the US auto industry.

US-based Wolfe Research anticipates the 25% tariff will drive the price of steel products up by as much as 16% above the 2024 average. Aluminum prices, which are already trending upward, are expected to nearly double.

Nomura Securities research analyst Anindya Das estimates the impact on automakers’ fiscal 2025 operating profits from a 10% increase in steel and aluminum prices compared to the 2024 average. According to this analysis, American players Ford Motor and General Motors will face a hit of approximately 3% to 4% if they cannot pass on their costs through higher prices.

Toyota Motor will experience a smaller decline of 0.5%, while the impact on Subaru, which conducts a large portion of its production in North America, will be around 2%.

Some parts manufacturers affiliated with Toyota bring steel from Japan for use in their US production facilities, and there have been calls for the company to cover the higher costs resulting from the tariffs.

A Toyota executive stated, “Tariffs are a factor outside their control, so we will respond appropriately.”

Japan has pushed to be exempted from the tariffs. “Steel and aluminum products from Japan do not harm the national security of the US,” Cabinet Chief Secretary Yoshimasa Hayashi told reporters on Wednesday. “On the contrary, high-quality Japanese products are difficult to substitute and are necessary to make the US manufacturing sector more competitive, and greatly contribute to US industry and employment,” he added.

According to EU-based Global Trade Alert, the tariffs announced by the Trump administration last month cover a total of 289 categories, excluding overlaps between the steel and aluminum lists. These items, which also include kitchen and sporting goods, accounted for approximately 4.5% of the US total last year, with $151 billion in imports.

China was the largest importer at $35 billion, followed by Mexico at $30.6 billion, the EU at $20.3 billion, and Canada at $17.1 billion. Japan ranked seventh at $7 billion. When EU members were counted as separate countries instead of a single bloc, 27 economies had exposures exceeding $500 million.

To avoid tariffs, steel and aluminum exports previously destined for the US may be sold in other markets instead. Jakob Stausholm, CEO of Anglo-Australian iron ore miner Rio Tinto, said last month that selling aluminum in other markets such as Europe was an option.

Tadashi Imai, chairman of the Japan Iron and Steel Federation and president of Nippon Steel, recently stated that the biggest concern is that the tariffs “contribute to the market collapse caused by China’s excessive exports.”

With China’s economy declining, steelmakers are selling products at low prices elsewhere that cannot be absorbed by the domestic market. If they face higher barriers in the US, these goods could flow to other countries.

The US is also the world’s largest exporter of scrap iron and steel, and rising scrap prices leaving the country are likely to reverberate in the global market.

A representative from Japanese aluminum manufacturer UACJ said, “The short-term impact will be small, but it could be larger in the long term.”

Although the company generally produces products for the US domestically, it imports some products with special requirements from Japan in small quantities. According to UACJ, starting alternative production in the US could take three to four years.

Other companies are turning to completely different materials. Coca-Cola stated last month that it would switch some packaging from aluminum to plastic if the tariffs came into effect.

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Trump signs order for ‘strategic crypto reserve’

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US President Donald Trump, in a move aimed at revitalizing the digital assets sector, has signed an executive order authorizing the federal government to stockpile cryptocurrency assets seized through law enforcement agencies.

According to a post on X by David Sacks, the White House’s crypto and artificial intelligence czar, under the executive order, the federal government will retain bitcoin assets seized by federal law enforcement, which will enter a “strategic bitcoin reserve.”

Sacks added that the reserve “will not cost taxpayers a single penny,” further authorizing the Treasury and Commerce departments to “develop budget-neutral strategies to acquire additional bitcoin, provided these strategies do not incur any additional costs on American taxpayers.”

Sacks wrote about bitcoin, “The reserve is like a digital Fort Knox. The early sale of Bitcoin has already cost US taxpayers over $17 billion in lost value. Now, the federal government will have a strategy to maximize the value of its holdings.”

The order also established a separate “US Digital Asset Stockpile” to include other cryptocurrencies seized by the government. Earlier this week, Trump hinted at the possibility of including tokens such as Ripple’s XRP, Solana, and Cardano, alongside bitcoin and ether, in what he termed the “Crypto Strategic Reserve,” causing the prices of these tokens to rise with investors’ hopes that the US government would enter the market as a major buyer of digital assets.

However, crypto prices fell immediately after Sacks’s post and recovered shortly thereafter. According to CoinGecko data, as of 4:45 PM (presumably local time, though unspecified), bitcoin was trading at approximately $88,000, down 2.8% from the previous 24 hours.

The creation of the reserve and stockpile is part of a broad shift in Washington towards policies aimed at benefiting the crypto industry. It comes ahead of a crypto summit to be held at the White House on Friday, which will be attended by leading figures in the digital assets world.

For supporters, the bitcoin reserve is a chance for the US to participate in the growth of the original cryptocurrency, and many in the market believe that the market is poised to climb higher as Trump pursues a crypto-friendly regulatory agenda.

Yet, there are still many questions about how the reserve and stockpile will operate. For example, some critics doubt that the federal government can cash in its bitcoin holdings without spooking other investors and triggering a sell-off.

Trump first promised to create a crypto reserve during a speech at a major bitcoin conference in July.

Sacks said, “I want to thank the President for his leadership and vision in supporting this cutting-edge technology and for his swift action in supporting the digital asset industry. His administration is truly moving at ‘technology speed’.”

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