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In the early hours of trading on Friday, August 8, 2025, global markets were shaken by the announcement of a 39 percent tariff on imported gold bars weighing 100 ounces or more by the Trump administration. US December gold futures reached an all-time high price of $3,534.10 per ounce shortly after the declaration was made. This sudden move injected uncertainty into the bullion market, unsettling dealers, refiners, and institutional investors trading in larger “exchange delivery” formats. While gold is rarely targeted by protectionist measures — unlike base metals, agriculture, or manufactured goods — this decision warrants close attention, both for its immediate market impact and potential implications for future monetary policy.

Likely Purposes

From an economic perspective, there are several plausible motivations (several of which may hold true simultaneously) for such a steep and sudden measure.

  1. Raising Revenue

    The simplest explanation is fiscal. A 39 percent levy on high-value imports is a substantial revenue generator, particularly if the target is a commodity with significant daily transaction volume.
  2. Targeting Switzerland

    The tariff could also be intended to primarily target Switzerland, a key player in global gold refining and bar creation. Switzerland is central to the gold supply chain, as it refines and standardizes much of the world’s gold before it’s distributed. By imposing a tariff on large gold imports, the US could limit Switzerland’s ability to sell refined gold at favorable prices, disrupting its dominance. This move would reduce reliance on Swiss refining and could be a response to recent tensions between Switzerland and the US over trade and tariff disputes. It signals the US aiming to punish Switzerland for its perceived intransigence in tariff discussions, as well attempting to wrest some control away from foreign gold pricing.
  1. Restricting Supply and Controlling Markets

    A more strategic interpretation is that the administration may be attempting to restrict the flow of foreign gold into the US market. By making imports of 100-ounce bars prohibitively expensive, policymakers could reduce inflows, tightening domestic supply and potentially influencing prices. This approach mirrors past episodes where governments have sought to control the domestic availability of gold ahead of significant policy changes.
  2. Countering Money Laundering and Imposing Compliance Costs

    Gold is often used in international transactions, particularly among institutional investors or high-net-worth individuals, as a way to move value across borders with fewer restrictions. By imposing a tariff, the US could be making it more expensive for these large transactions to occur within its borders, thereby reducing the attractiveness of using gold for these purposes. While it wouldn’t directly address outflow-related money laundering, the tariff could serve to discourage the use of gold bars in cross-border wealth transfers into the US, which could be seen as a measure to limit some money-laundering opportunities.
  3. Positioning Ahead of a Major Policy Shift

    A 39 percent tariff on gold bars over 100 ounces could be a preparatory measure for the US to revalue its gold reserves, which are currently undervalued at $42 per ounce. The tariff could prevent arbitrage by limiting the ability of speculators to buy gold at lower international prices and sell it domestically at a higher future price, particularly if the US plans to revalue its gold to market prices around $3,200 per ounce. It would also help accumulate gold within the US, ensuring that domestic supply is maintained for a potential gold-backed or partially gold-backed dollar. Additionally, the tariff could stabilize domestic gold prices, mitigate speculation, and prepare the market for revaluation, signaling an intention to shift away from the dollar’s exclusive backing. This would reduce external manipulation and maintain US control over its gold supply, easing the transition to a new monetary framework while strengthening the dollar’s global position.

The Arbitrage Dimension

Ironically, if the tariff leads to a sustained domestic price premium for 100-ounce bars — either because of higher import costs or restricted supply — it could create exactly the kind of large-scale arbitrage the measure may have been intended to suppress.

Arbitrage occurs when price discrepancies for the same asset exist in different markets, allowing traders to buy low in one venue and sell high in another. In this case, if US gold prices rise sharply relative to London, Zurich, or Hong Kong due to the tariff, there will be a strong incentive for market participants to find ways to bypass the tariff or repackage gold into non-tariffed forms (such as smaller bars or coins) to import at lower cost.

At the institutional level, this could take the form of shipping gold to jurisdictions without the tariff, refining it into untaxed units, and then legally reintroducing it into the US market. On the futures side, arbitrageurs might use COMEX delivery mechanisms, swaps, or other derivative structures to capture the spread between the artificially elevated domestic price and the world market price. While such activity would eventually narrow the gap, it could generate windfall profits in the interim — ironically undermining the tariff’s supply-restriction intent and adding volatility to the very market it seeks to control.

Historical Precedents

Although the United States today operates under a fiat monetary system, the federal government has a long history of direct and indirect intervention in the gold market — often under the banner of “monetary stability” or “national interest.”

The most famous episode came in 1933–34, when the Roosevelt administration, facing a banking crisis and deep deflation, first prohibited the private ownership of most gold coins and bullion, then revalued gold from $20.67 per ounce to $35 per ounce. This represented a devaluation of the dollar’s gold content by nearly 41 percent and transferred substantial wealth from private holders to the government’s balance sheet. Importantly, the sequence began with restrictions on ownership and movement of gold — control first, revaluation second.

In the early 1970s, as the Bretton Woods system frayed, President Nixon “closed the gold window,” ending the dollar’s convertibility into gold for foreign central banks. While framed as a temporary suspension, it effectively severed the last formal link between the dollar and gold, freeing the Federal Reserve to pursue more accommodative monetary policies without the discipline of a fixed parity.

Even after the dollar floated freely, interventions persisted. In the late 1970s, as inflation accelerated and gold prices surged, the Treasury engaged in large-scale gold sales and swaps — sometimes in coordination with other central banks — to temper upward price movements. These efforts were often more symbolic than decisive, but they reinforced the notion that US authorities considered gold prices a matter of policy concern.

The 39 percent tariff on gold imports highlights the core concern that led EC Harwood to found the American Institute for Economic Research’s — the ongoing threat posed by governmental interventions in personal freedom and sound money. While the gold market should reflect private demand, mining supply, and global investment flows, it is often distorted by policies that serve short-term political goals. This tariff, with its abrupt implementation and targeted impact, risks distorting market pricing and suppressing economic freedom. It underscores the truth that, in times of fiscal strain or geopolitical risk, governments often turn to gold as a convenient target for intervention.

The immediate effects will likely be felt most by large bullion traders and institutional investors, with wider price differentials and reduced liquidity in the US market. History shows such measures rarely occur in isolation, and this could signal a broader shift in US monetary policy — whether revenue-driven or something more substantial. What’s clear is that AIER’s mission, focusing on defending financial freedom and sound money, remains as relevant as ever. The risks to market integrity that inspired our founding persist, and defending open markets and sound money continues to be an urgent, vital necessity.

The U.S. Court of Appeals for the D.C. Circuit ruled 2-1 Friday that U.S. District Judge James Boasberg cannot move forward with possible contempt proceedings against the Trump administration.

The case involves the administration’s alleged violation of an emergency court order blocking the administration from using a 1798 law to summarily deport hundreds of Venezuelan migrants to El Salvador — the latest in an evolving, high-stakes court clash that has played out for months in various courts. 

Judges Gregory Katsas and Neomi Rao, two Trump appointees on the majority-Democrat bench, sided with the Trump administration Friday in blocking Boasberg’s contempt motion from moving forward. 

Judge Nina Pillard, an Obama appointee, dissented. 

The 2-1 ruling is all but certain to be appealed to the full court to be heard en banc, where the Democrat-majority bench is seen as more favorable to the plaintiffs, or directly to the Supreme Court for review.

‘The district court here was placed in an enormously difficult position,’ Katsas said Friday, writing for the majority.

‘Faced with an emergency situation, it had to digest and rule upon novel and complex issues within a matter of hours. In that context, the court quite understandably issued a written order that contained some ambiguity.’

Katsas noted that the appellate court ruling does not center on the lawfulness of Trump’s Alien Enemies Act removals in March, when administration officials invoked the 1798 immigration law to send more than 250 Venezuelan nationals to CECOT, the maximum-security prison in El Salvador.

‘Nor may we decide whether the government’s aggressive implementation of the presidential proclamation warrants praise or criticism as a policy matter,’ he added. ‘Perhaps it should warrant more careful judicial scrutiny in the future. Perhaps it already has.’

‘Regardless, the government’s initial implementation of the proclamation clearly and indisputably was not criminal.’

The ruling comes months after Boasberg originally found grounds to move on potential contempt proceedings in the case.

It comes as Boasberg has also ordered ongoing status updates on the location and custodial status of the 252 CECOT class migrants, after they were deported last month from El Salvador to Venezuela as part of a prisoner exchange between the U.S. and Venezuela.

It is unclear how many of those migrants had pending asylum applications in the U.S. or had been granted a ‘withholding of removal’ order blocking their return to their country of origin. 

The long-awaited ruling comes months after Boasberg ruled that the court had found probable cause to move on criminal contempt proceedings after he issued a late-night temporary restraining order on March 15 blocking the Trump administration’s use of the Alien Enemies Act to summarily deport certain migrants to El Salvador.

Boasberg had also ordered all migrants to be ‘immediately returned’ to U.S. soil, which did not happen. 

Despite the order, hundreds of migrants were deported to the Salvadorian prison, CECOT, in March, where they remained until late last month, when they were sent from the prison in El Salvador to Venezuela, as part of the prisoner exchange. 

Boasbeg ruled in April that there was ‘probable cause’ to move on criminal contempt proceedings against the Trump administration for failing to return the planes to U.S. soil and said the court had determined that the Trump administration demonstrated a ‘willful disregard’ for his order.

The appeals court granted the Trump administration’s request for an emergency stay of the ruling months earlier, prompting questions as to why they did not move more quickly on the motion.


 

Still, the decision is almost certain to be appealed either to the full circuit court to be heard en banc, or directly to the Supreme Court for review. 

The Trump administration for months has sparred with judges who have blocked the president’s executive orders from taking force.

Boasberg, in particular, has emerged as one of Trump’s biggest public foes. Last month, the court attempted to have him removed from overseeing the case and have it reassigned to another case — a long-shot effort that legal experts and former judges suggested is unlikely to go far.

This is a breaking news story. Check back for updates.


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Virtual Investor Conferences, the leading proprietary investor conference series, today announced the presentations from the OTCQB Venture Virtual Investor Conference, held August 7 th are now available for online viewing.

REGISTER AND VIEW PRESENTATIONS HERE

The company presentations will be available 24/7 for 90 days. Investors, advisors, and analysts may download investor materials from the company’s resource section.

Select companies are accepting 1×1 management meeting requests through August 13 th .

August 7 th

Presentation Ticker(s)
Surge Copper. Corp (OTCQB: SRGXF | TSXV: SURG)
ReGen III Corp. (OTCQB: ISRJF | TSXV: GIII)
Silver47 Exploration Corp. (OTCQB: AAGAF | TSXV: AGA,OTC:AAGAF)
Nature’s Miracle Holding Inc. (OTCQB: NMHI)
Zero Candida Technologies Inc. (OTCQB: ZCTFF | TSXV: ZCT)
NextGen Digital Platforms Inc. (OTCQB: NXTDF | CSE:  NXT)
Telo Genomics Corp. (OTCQB: TDSGF | TSXV: TELO)
Zomedica Corp. (OTCQB: ZOMDF)
Metaguest.AI Incorporated (OTCQB: MGSTF | CSE: METG)
Waste Energy Corp. (OTCQB: WAST)
CleanGo Innovations Inc. (OTCQB: CLGOF | CSE: CGII)
Sekur Private Data Ltd. (OTCQB: SWISF | CSE: SKUR)
CyberCatch Holdings, Inc. (OTCQB: CYBHF | TSXV: CYBE)

To facilitate investor relations scheduling and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com .

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Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly traded companies to seamlessly present directly to investors.

Providing a real-time investor engagement solution, VIC is specifically designed to offer companies more efficient investor access. Replicating the components of an on-site investor conference, VIC offers companies enhanced capabilities to connect with investors, schedule targeted one-on-one meetings and enhance their presentations with dynamic video content. Accelerating the next level of investor engagement, Virtual Investor Conferences delivers leading investor communications to a global network of retail and institutional investors.

Media Contact:
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Virtual Investor Conferences Contact:
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OTC Markets Group
(212) 220-2221
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The 4,000m drilling campaign aims to unlock district-scale potential by testing a possible extension of Aris’ producing vein system in Colombia’s premier high-grade gold corridor

Quimbaya Gold Inc. (CSE: QIM,OTC:QIMGF) (OTCQB: QIMGF) (FSE: K05) (‘Quimbaya’ or the ‘Company’) is pleased to announce the commencement of its inaugural diamond drill campaign at the 100%-owned Tahami South Project in Antioquia, Colombia. The fully permitted 4,000-meter program marks Quimbaya’s transition from surface exploration to drill-testing in one of the country’s most prolific gold-producing districts.

Highlights

  • Tahami South is located adjacent to Aris Mining’s Segovia Mine, one of Colombia’s highest-grade and most productive gold operations.

  • The project covers a series of mapped epithermal gold-silver veins that trend through both the Segovia Mine and onto Quimbaya’s ground.

  • Despite extensive artisanal activity and positive surface sampling, the property has never seen diamond drilling.

  • Quimbaya’s 2025 fieldwork outlined multiple drill-ready targets with strong geochemistry, hydrothermal alteration, and structural control.

  • Drilling began in early August 2025, with initial results anticipated in Q4.

A Strategic First Drill Test in Colombia’s Premier Gold District

Tahami South lies within the Colombia’s premier high-grade corridor, a region known for high-grade quartz epithermal gold systems. Recent work by Quimbaya has confirmed widespread alteration, stockwork veins, and placer-style artisanal mining, all indicators of a potentially fertile gold system.

‘The old adage in exploration holds true: the best place to find a mine is next to a mine,’ said Alexandre P. Boivin, CEO of Quimbaya Gold. ‘We’re the first company to deploy modern exploration on this part of the Segovia trend. Our systematic work, including soil geochemistry, channel and rock sampling, stream sediments sampling and structural modelling, has built a robust case for drill testing. We’re now turning that data into action.’

Drill Targets and Geological Context

The initial program will test multiple zones across a structural corridor interpreted to be a continuation of the Segovia vein system. Planned holes will target:

  • Structural intersections mapped across sections A-A’, B-B’, C-C’, E-E’ and H-H’

  • Zones with strong sericitic alteration, quartz veins, hydrothermal breccias, and gold-bearing stockworks

  • Areas proximal to active artisanal workings, suggesting near-surface mineralisation

Surface sampling has returned:

  • Rock chip assays up to 11.21 g/t Au

  • Panel rock assays up to 23.3 g/t Ag

  • Auger soils up to 59 ppb Au and MMI soils up to 37.1 ppb Au

  • Multi-element pathfinder anomalies (As, Cu, Pb, Zn) coincident with structural targets

‘This program is the culmination of months of disciplined geoscience,’ said Ricardo Sierra, VP Exploration. ‘We’ve mapped out structural trends, alteration zones, and artisanal footprints that all suggest a large-scale epithermal system. Now, we’re finally testing it below surface.’

Cannot view this image? Visit: https://images.newsfilecorp.com/files/11347/261779_f9d44764a4c268ae_001.jpg

Figure 1. Planned drill platforms (TDH -001 to TDH-007) overlaid on gold-in-auger soil anomalies (Au g/t) and rock sample assay values (Au g/t) at the Tahami South Project.

To view an enhanced version of this graphic, please visit:
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Next Steps:

Drilling will continue through Q3 2025 with initial assay results expected in Q4. Follow-up drilling is being planned in parallel to expand on any intercepts and test new targets defined through ongoing mapping and geological exploration.

Qualified Person
The technical information in this news release has been reviewed and approved by Ricardo Sierra, a Qualified Person as defined by National Instrument 43-101.

About Quimbaya

Quimbaya aims to discover gold resources through exploration and acquisition of mining properties in the prolific gold mining districts of Colombia. Managed by an experienced team in the mining sector, Quimbaya is focused on three projects in the regions of Segovia (Tahami Project), Puerto Berrio (Berrio Project), and Abejorral (Maitamac Project), all located in Antioquia Province, Colombia.

Contact Information

Alexandre P. Boivin, President and CEO apboivin@quimbayagold.com

Sebastian Wahl, VP Corporate Development swahl@quimbayagold.com

Quimbaya Gold Inc.
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Cautionary Statements

Certain statements contained in this press release constitute ‘forward-looking information’ as that term is defined in applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, but not always, forward-looking statements and information can be identified by the use of forward-looking terminology such as ‘intends’, ‘expects’ or ‘anticipates’, or variations of such words and phrases or statements that certain actions, events or results ‘may’, ‘could’, ‘should’, ‘would’ or ‘occur’. Forward-looking statements herein include statements and information regarding the Offering’s intended use of proceeds, any exercise of Warrants, the future plans for the Company, including any expectations of growth or market momentum, future expectations for the gold sector generally, the Colombian gold sector more particularly, or how global or local market trends may affect the Company, intended exploration on any of the Company’s properties and any results thereof, the strength of the Company’s mineral property portfolio, the potential discovery and potential size of the discovery of minerals on any property of the Company’s, including Tahami South, the aims and goals of the Company, and other forward-looking information. Forward-looking information by its nature is based on assumptions and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Quimbaya to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These assumptions include, but are not limited to, that the Company’s exploration and other activities will proceed as expected. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: future planned development and other activities on the Company’s mineral properties; an inability to finance the Company; obtaining required permitting on the Company’s mineral properties in a timely manner; any adverse changes to the planned operations of the Company’s mineral properties; failure by the Company for any reason to undertake expected exploration programs; achieving and maintaining favourable relationships with local communities; mineral exploration results that are poorer or better than expected; prices for gold remaining as expected; currency exchange rates remaining as expected; availability of funds for the Company’s projects; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions; no unplanned delays or interruptions in scheduled construction and production; all necessary permits, licenses and regulatory approvals are received in a timely manner; the Offering proceeds being received as anticipated; all requisite regulatory and stock exchange approvals for the Offering are obtained in a timely fashion; investor participation in the Offering; and the Company’s ability to comply with environmental, health and safety laws. Although Quimbaya’s management believes that the assumptions made and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Readers are cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Forward-looking information contained in this news release is expressly qualified by this cautionary statement. The forward-looking information contained in this news release represents the expectations of Quimbaya as of the date of this news release and, accordingly, is subject to change after such date. Except as required by law, Quimbaya does not expect to update forward-looking statements and information continually as conditions change.

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While President Donald Trump previously refrained from speaking ill of Russian President Vladimir Putin, those days are over. 

The ongoing war between Russia and Ukraine has changed the nature of their dynamic. Although the two appeared to get along, at least publicly, during Trump’s first administration, their relationship has unraveled as the more recent conflict persists. 

In recent weeks, Trump has refused to mince his words when asked about Putin. Trump said during a Cabinet meeting July 8 he was fed up with Putin and said he was eyeing potentially imposing new sanctions on Russia. 

‘We get a lot of bulls— thrown at us by Putin, if you want to know the truth,’ Trump said. ‘He’s very nice all the time, but it turns out to be meaningless.’ 

John Hardie, Russia program deputy director at the Foundation for Defense of Democracies, said Russia started to attract ire from Trump dating back to March after Ukraine agreed to a 30-day ceasefire. But Russia has failed to get on board with a ceasefire. 

‘Really, since then, I think Trump has come to view the Russians as the main impediment to a deal,’ Hardie told Fox News Digital Thursday. 

Additionally, Hardie said that Trump has also grown frustrated that Russia will launch drone and missile attacks against Ukraine, even after directly speaking with Putin. 

‘What he’s sort of latched on to are these Russian drone and missile barrages,’ Hardie said. ‘That really seems to resonate with him.’  

Tensions only have continued to escalate between the U.S. and Russia since the July Cabinet meeting. 

Trump announced July 14 that he would sign off on ‘severe tariffs’ against Russia if Moscow failed to agree to a peace deal within 50 days. He then dramatically reduced the deadline to only 10–12 days — which ends Friday. 

The decision to reduce the timeline prompted former Russian President Dmitry Medvedev to caution that ‘each new ultimatum is a threat and a step towards war.’ 

In addition to economic sanctions, Trump responded to Medvedev and issued a rare statement disclosing that two U.S. Navy submarines would be moved in response to escalating threats from Russia. 

‘I have ordered two Nuclear Submarines to be positioned in the appropriate regions, just in case these foolish and inflammatory statements are more than just that,’ Trump said Aug. 1. 

Trump’s disclosure of the submarine presence puts additional pressure on Russia to come to the negotiating table, according to Bryan Clark, a retired submarine officer and director of the Hudson Institute think tank’s Center for Defense Concepts and Technology.

‘We have used very sparingly submarines to try to influence adversary behavior before, but this is pretty unusual, to do it against a nuclear-powered adversary like Russia in response to a nuclear threat by Russia,’ Clark told Fox News Digital Monday. ‘So I think this is trying to essentially push back on Russia’s frequent and long-standing threats to use nuclear weapons in part of the Ukraine conflict.’

Momentum is picking up on negotiations though, and U.S. Special Envoy Steve Witkoff met with Putin Wednesday. 

Trump said in a post on Truth Social afterward that ‘great progress’ was made during the meeting. And now, Trump and Putin are expected to meet face to face imminently in an attempt to finally advance negotiations to end the war between Russia and Ukraine. 

Still, Hardie said he is skeptical that the meeting between Putin and Trump will result in meaningful progress. 

‘I don’t expect a summit to produce much,’ Hardie said. ‘And I think Putin could try to use the summit to placate Trump and kind of buy more time continues assault on Ukraine, but I think his goal is he’d love to be able to enlist Trump in his effort to impose these harsh terms on Ukraine.’ 

Russia has pushed for concessions in a peace deal that include barring Ukraine from joining NATO, preventing foreign peacekeeper troops from deploying to Ukraine after the conflict, and adjusting some of the borders that previously were Ukraine’s.

It’s unclear if Trump plans to announce any additional economic burdens upon Russia Friday in accordance with the deadline that he imposed demanding that Russia signal willingness to end the conflict. But according to Trump, the ball is in Putin’s court. 

‘It’s going to be up to him,’ Trump told reporters Thursday. ‘We’re going to see what he has to say. It’s going to be up to him. Very disappointed.’

The White House did not disclose any details regarding potential Friday sanctions, but said that Trump wants to meet with Putin and Ukrainian President Volodymyr Putin to resolve the conflict. 

‘The Russians expressed their desire to meet with President Trump, and the President is open to this meeting,’ White House press secretary Karoline Leavitt said in a statement to Fox News Digital. ‘President Trump would like to meet with both President Putin and President Zelensky because he wants this brutal war to end. The White House is working through the details of these potential meetings and details will be provided at the appropriate time.’


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Amid significant budget cuts, NASA is fast-tracking the development of nuclear reactors on the moon and next-generation space stations with one clear objective: beating U.S. adversaries in the new space race.

Two new memos signed by interim NASA chief and Transportation Secretary Sean Duffy outline a bold strategy to secure strategic ground on the moon. The centerpiece of this effort is a lunar nuclear reactor, a renewable and stable power source to support long-term exploration.

‘The goal is to power everything,’ a senior NASA official told Fox News Digital. ‘Our systems, habitats, rovers, robotic equipment, even future mining operations — everything we want to do on the moon depends on this.’

The moon’s environment makes this a necessity. Its month-long day cycle — two weeks of daylight followed by two weeks of darknessc — renders solar power unreliable. A reactor would allow missions to function around the clock.

China and Russia set sights on the moon

NASA officials warn that China and Russia have publicly announced plans for a joint lunar nuclear project by the mid-2030s. If they succeed first, they could establish exclusive control over the moon’s most valuable areas, locations with the most light and access to water and ice.

‘They could set up a ‘keep-out zone’ in the prime locations,’ the NASA official cautioned.

Despite financial constraints, Duffy’s leadership signals a renewed priority to lunar and Martian exploration. 

‘China has already landed on the far side of the moon. We never have,’ the official added. ‘They’re moving on a steady path to dominate this domain.’

New contract structure for nuclear reactor development

The new directive solicits proposals for a 100-kilowatt nuclear reactor — enough to power about 80 homes — with a target launch date of 2030. It also requires NASA to appoint a dedicated program leader.

Today, many robotic spacecraft operate at just a few watts, the equivalent of a couple of light bulbs, which severely limits scientific capabilities. While the ISS uses solar panels, that model doesn’t work on the moon or Mars, where sunlight is too weak or unreliable.

Replacing the ISS: Commercial stations on the horizon

The second memo shifts focus to replacing the aging and leaking International Space Station (ISS), which is scheduled to be retired in 2030. Without a successor, China would become the only country with a permanently crewed station in orbit.

NASA now plans to select two commercial partners within six months of issuing new requests for proposals. Under Duffy’s direction, the agency is moving away from traditional fixed-price contracts and will instead use flexible Space Act Agreements, which give companies more freedom in how they build stations while saving time and money.

‘We’re telling companies what we need,’ a senior NASA official said. ‘But we’re not prescribing how they must do it. That flexibility saves us both time and resources.’

NASA wants the new station to be cheaper and easier to maintain than the ISS. Originally, it envisioned a platform that could host two astronauts for six months. But, under the revised plan, the minimum requirement is four astronauts for just one month.

Background: The Commercial Low Earth Orbit Destination program

NASA’s Commercial Low Earth Orbit Destination (CLD) initiative, launched in 2021, was structured in two phases:

  • Phase 1: Fund companies — like Blue Origin and Northrop Grumman — to design private space stations.
  • Phase 2: Award contracts for building and certifying selected stations.

Duffy’s directive calls for skipping fixed-price contracts in Phase 2 and continuing with Space Act Agreements, in line with tightening budget constraints.

Budget cuts reshape NASA’s future

According to the Trump administration’s fiscal 2026 budget proposal, NASA’s overall budget would drop from $24.8 billion to $18.8 billion, a 25% cut. The Science Mission Directorate, which oversees research in planetary science, astrophysics, Earth observation and heliophysics, would face a nearly 50% reduction. However, human spaceflight programs are slated for increased funding.

NASA has also confirmed that nearly 4,000 employees — about 20% of its workforce — have taken voluntary buyouts in recent months.

Despite these setbacks, agency officials remain optimistic. 

‘Multiple companies tell us they can deliver a station within two years,’ one senior official said. ‘Timelines are always challenging, but we believe we can meet these goals — even on a leaner budget.’


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In November 1974, New York Times film critic Vincent Canby wrote that the city had become “a metaphor for what looks like the last days of American civilization.” 

“It is run by fools,” he wrote. “Its citizens are at the mercy of its criminals who, often as not, are protected by an unholy alliance of civil libertarians and crooked cops. The air is foul. The traffic is impossible. Services are diminishing and the morale is such that ordering a cup of coffee in a diner can turn into a request for a fat lip.”  

The following year, New York City ran out of money.

Spending 

New York’s descent occurred as city government spending surged.    

Since 1965, its operating budget had more than tripled, with expenditures rising at an average of 12 percent annually. Treasury Secretary William E. Simon reported that “From 1963 to 1973, per capita municipal expenses of other large US cities increased, on the average, 2.2 times. During the same period, New York’s expenses increased about 3.5 times — a 50 percent greater rate.” 

As a result, “New York was spending in excess of three times more per capita than any city with a population of more than 1 million.” New York’s “level of spending on welfare (public assistance and Medicaid), higher education, and hospitals was virtually unique,” author Charles R. Morris wrote. 

“On a per capita basis, only Washington DC, which doubles as a state government, exceeds New York City’s rate of spending in these areas, and no other government comes close to the New York City level,” Morris wrote, with spending of $584 per capita in New York compared to $105 in Detroit, $234 in Los Angeles, $89 in Chicago, and $76 in Philadelphia. The average grant paid to recipients of Aid to Dependent Children (ADC) — $351 a month — was the highest in the country, with the second-, third-, and fourth-ranked states paying $340, $295, and $289, respectively. 

The city’s wage bill was another strain. While city workers were not lavishly paid relative to other cities, there were many more of them. New York employed 49 people per 1,000 residents, Simon noted. Across other major cities, the figure was between 30 and 32 employees per 1,000 residents.    

Taxes and Revenues  

Aside from federal and state grants, the city government had only two sources of funding for these expenses: taxing and borrowing. Regarding the former, there was ever less to tax. 

Between 1966 and 1973, writes author Kim Phillips-Fein, “the city raised income taxes multiple times, while property taxes climbed, and business taxes were extended to cover a variety of small businesses and partnerships.”

As a result, Gotham’s taxes became much higher than other US cities. Rather than pay, many businesses and individuals simply left. Johnny Carson took The Tonight Show to California in 1972. Pepsi and Shell also departed.

“Parts of the garment industry, large bakeries, and food processors and breweries left the city,” Simon wrote, “and by 1969 they had taken about 140,000 jobs with them. The flight accelerated at a frightening pace…between December 1974 and December 1975 alone…143,000 jobs disappeared. A cautious estimate suggests that between 1970 and 1977, some 400,000 jobs vanished.”   

Between 1970 and 1980, the city’s population fell by 10 percent: it was literally decimated. It was easy to see why. As taxes climbed, so did the number of murders, by 248 percent between 1960 and 1973. “[B]y 1975,” Morris wrote, “the city had 41 percent of the state’s population, but 68 percent of its welfare recipients, and with 44 percent of the state’s personal income, the city had to pay 73 percent of the local welfare costs.” 

“A ‘city’ of businesses and taxpayers as large as San Francisco has packed its bags and left New York,” New York magazine reported in 1976. “We have conducted a noble experiment in local socialism and income redistribution,” Ken Auletta noted in October, “one clear result of which has been to redistribute much of our tax base and many jobs out of the city.”   

As a result of the disappearance of its tax base, the city’s revenues were rising at a rate of just 5 percent annually.  

Borrowing  

The city covered the shortfall by borrowing short-term to finance current spending.   

“[B]y the early 1970s, [New York] regularly accounted for about 25 percent of all outstanding short-term state and local paper in the country,” Morris wrote, and by the end of 1974, it was selling $600 million of bonds every month, many backed by anticipated revenues that didn’t materialize. In November, outstanding short-term debt totaled $5.3 billion, up $1.9 billion since June, a fourfold increase in four years. By the end of 1974, New York City accounted for over 40 percent of short-term tax-exempt borrowing in the United States.

“By 1974, per capita debt in New York City was $1,767,” Daniel Patrick Moynihan noted, “while in Chicago it was $427.”  

This avalanche of bonds drove prices down and yields up. In November, city notes, which went for 4 percent in the late 1960s, were going for 8.34 percent; In December, the rate rose to 9.48 percent. In February, it emerged that the city did not have the tax receipts legally required to secure a $260 million bond issue, and Bankers Trust and Chase Manhattan refused to underwrite it. On March 13 and 20, the city offered $912 million of short-term, tax-free notes at up to 8 percent, an effective yield three times greater, on a tax equivalent basis, than that available in a savings bank.

Weeks later, more than half remained unsold.   

The Crash  

New York City had reached the end of the fiscal road.  

With federal and state funds and via a Municipal Assistance Corporation, the city refinanced its debts and the state government took effective control of its finances. In effect, the city had defaulted.  

Many of the problems New York faced in the 1960s and 1970s were not unique. Cities across America struggled with suburbanization and cuts to federal aid, and those in the Northeast with a migration of businesses to the South and West. But only New York went bust. As Phillips-Fein writes in her Pulitzer Finalist book Fear City: New York’s Fiscal Crisis and the Rise of Austerity Politics, “the scope of the city’s public sector brought [those problems] to the fore.”  

New York’s bankruptcy might not seem to offer any lessons above the state level. The federal government can print whatever money is necessary to finance its operations: It need never default in the “hard” terms of failing to pay its bills because it has the option to default in “soft” terms by paying them with money that is worth less. Ultimately, however, default is default. 

New York’s bankruptcy stands as an example of what happens when a government persistently spends more than it collects and throws itself at the mercy of the bond markets to keep itself going.

As New Yorkers ponder a re-run of what Morris called “the liberal experiment” of 1960 to 1975, or what Auletta termed its “noble experiment in local socialism and income redistribution,” it is an example they would do well to remember. So would the rest of us.

Senate Republicans last month were able to advance President Donald Trump’s desire to clawback billions in federal spending, an effort carried to fruition for the first time in nearly three decades by a first-term senator.

While the effort to slash funding to NPR, PBS and foreign aid was born in the White House, it was executed thanks in large part to Sen. Eric Schmitt, R-Mo.

Schmitt, who was first elected to the Senate in 2022, has become an envoy of sorts for Trump’s agenda in the upper chamber. He has a strong relationship with the president that dates back to his first campaign, which has developed into a regular invite to join Trump for rounds of golf.

He’s launched probes against former President Joe Biden’s alleged mental decline, helped smooth over concerns during passage of Trump’s ‘big, beautiful bill’ and contends that ‘intuitively’ he understands the president’s America First message. 

And his role in bridging the gap between the White House and the Senate, along with negotiating among his conference to get the $9 billion package across the line, has seen his stock rise immensely within the Senate GOP.

But, in an interview with Fox News Digital, he said his entire goal is to just be helpful.

‘I think I approach it with that kind of humility,’ Schmitt said. ‘But I also, I want to be successful, and I want the agenda to move forward. I think it’s really important. Being on the golf course with President Trump is a great honor, and we have a lot of fun. He’s a very good golfer.’

Schmitt, who previously served as Missouri’s attorney general before launching a bid for the Senate, regularly clashed with the Biden administration and said that his role of rebuking lockdowns, vaccine mandates, censorship and mass migration informed how he currently views legislating.

‘My job was to stand in the gap and fight back, with the hopes that President Trump would return,’ he said.

Trump endorsed Schmitt in 2022, and in return the lawmaker became one of the first senators to back his reelection campaign the following year. That turned into Schmitt becoming a mainstay on the campaign trail, jetting across the country in Trump Force One where ‘Big Macs and double cheeseburgers and quarter pounders with cheese’ flowed.

And when Trump won, Schmitt had the opportunity to leave the Senate and join the administration as attorney general, but he opted to stay in the upper chamber.

Had he jumped ship, Trump’s recissions package may not have been able to pass muster with the Senate GOP, where appropriators raised concerns about the impact that clawing back already agreed-upon spending would have on the government funding process and others raised issues with the funding that was targeted.

‘This wouldn’t have happened without Eric Schmitt,’ Sen. Katie Britt, R-Ala., told Fox News Digital. 

Britt was part of the same 2022 class of freshman senators as Schmitt, which included other notable Republicans, like Sen. Markwayne Mullin, R-Okla., and Vice President J.D. Vance.

She said Schmitt’s leadership on the rescissions package, like listening to lawmakers’ concerns and negotiations with Senate Appropriations Committee Chair Susan Collins, R-Maine, to take the lead on the package, led to a final product that could actually pass in the diverse Senate GOP.

Indeed, Schmitt agreed to allow as many amendments to the bill as lawmakers wanted and included his own change to the clawback that would save funding for global AIDS and HIV prevention — a key change that helped bring more Republicans on board.

‘When Eric speaks, people listen,’ Britt said. ‘And he is thoughtful about when he uses his voice, and when he does it most definitely makes an impact.’

Schmitt, however, is more humble in how he views his part in the process.

‘People can label,’ Schmitt said. ‘I don’t get too hung up on any of that. Like for me, honestly, I feel fortunate to be in the position that I’m in. There’s really not a lot of daylight between the President’s agenda and the things that I support.’

Still, he was hopeful that another recissions package would come, describing it as ‘a good exercise for us,’ but noted that the timing for the remaining fiscal year would be tricky given the GOP’s continued push to blast through Democrats’ blockade on nominees and the looming government funding deadline when lawmakers return after Labor Day.

But getting the first one done was key to opening the door for more.

‘I think that was also part of what was on the line,’ he said. ‘When we were, you know, in the middle of the night, trying to make sure we had the votes, was that we have to prove that we have the ability to do it. And once you do it, there’s muscle memory associated with that. There’s a cultural shift in how we view things.’

However, Senate Minority Leader Chuck Schumer, D-N.Y., has demanded that Republicans commit to a bipartisan appropriations process and eschew further rescissions packages.

Should another come from the White House in the waning days of this fiscal year, it could spell trouble in Congress’ bid to avert a partial government shutdown by Sept. 30.

‘I really think it would be a bad idea for Republicans to alter our course of action based on what Democrat threats are,’ Schmitt said. ‘At the end of the day, they’re an obstructionist party without a message, without a messenger.’ 


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President Donald Trump is preparing to announce new secondary tariffs Friday on nations who conduct trade with Russia amid its deadly war in Ukraine. 

The White House has remained tight-lipped on what those tariffs will look like after the president first said in July they would amount to ‘100%’ tariffs before causing confusion earlier this week when he told reporters he ‘never said a percentage.’

While the specifics of what tax rates nations that trade with Russia could face remain unclear, Trump’s change in posture toward Russian President Vladimir Putin has become increasingly evident. 

‘Trump’s frustrated that the Russians have not taken advantage of his patience and generous offers, but it’s very interesting that even after Trump announced he was moving submarines, and even after he announced the tough tariffs, the Russians still want to talk to him,’ Fred Fleitz, who served as a deputy assistant to Trump and chief of staff of the National Security Council during the president’s first term, told Fox News Digital.

‘Putin does not want to anger Trump,’ he added. ‘Putin never worried about angering Biden, and I think that this shows a degree of respect. 

‘It shows what Trump has achieved by exercising leadership on the global stage. And we’ll see what happens,’ Fleitz said, adding he hoped it was not merely a stalling tactic by Putin.

Trump’s return to the White House brought with it a sense of shock as he appeared to distance Washington from its top allies in Europe in favor of attempting to improve diplomatic relations with Putin, culminating in the infamous Oval Office showdown with Ukrainian President Volodymyr Zelenskyy in February. 

While the tussle brought renewed support from his top MAGA base, who favor ending U.S. involvement in foreign wars, it prompted concern among security experts. Ultimately, Trump’s patience with Putin began to shift, with the president consistently expressing his frustration at the Kremlin chief’s continued brutal attacks in Ukraine. 

In mid-July, while sitting next to NATO Secretary General Mark Rutte, Trump announced Putin had 50 days to enter into a ceasefire or face ‘very severe’ tariffs that would affect Moscow’s top commodity, oil. 

‘Tariffs at about 100%, you’d call them secondary tariffs,’ he had said, indicating that nations that trade with Russia will see 100% tariffs slapped on them when trading with the U.S. 

This would most greatly affect China and India, according to data released by the U.S. government Thursday, which showed both nations account for 46% of all Russian oil purchases in 2025.

But the U.S. is also the No. 1 export market for both China and India, which means higher price tags at the checkout line on their products will make Americans think twice before completing those purchases. 

After ongoing trade negotiations with both nations and Putin’s continued war effort in Ukraine, Trump last week pushed up his deadline to within 10 days of July 29, forcing a new deadline of Friday.

But while his promised tariffs were met with applause by some in the GOP, including Sen. Lindsey Graham, R-S.C. — he, along with Sen. Richard Blumenthal, D-N.Y., is pushing the charge for 500% sanctions on Russia — other Republican members have not backed the move. 

Sen. Rand Paul, R-Ky., has been outspoken against not only Trump’s tariffs but the bipartisan sanction push and argued to Fox Business’ Larry Kudlow this week that Trump’s tariffs on allies and foes alike will amount to $2 trillion in taxes for the American consumer.

But Fleitz pushed back on this argument and said he is not convinced that the tariffs will hurt the U.S. or Chinese economy, though Russia and India are likely to feel the pain. 

‘I think they’re going to hurt the Russian and Indian economies,’ he said, noting that India could recover by buying oil elsewhere. Though some reporting has suggested that India may have saved over $30 billion by increasingly turning to Russian oil during 2022-2024 due to Moscow’s price cuts. 

‘It is going to be another factor that’s going to pressure Putin to agree to a ceasefire. I don’t know if that’s going to happen immediately or in a few months, but I think it is going to put real pressure, inflict real pain on Russia,’ Fleitz said. 

Once a staunch Trump ally, Rep. Marjorie Taylor Greene, R- Ga., took to X this week in response to a post by Trump that he would be enforcing tariffs on India for purchasing Russian oil and said, ‘End Indian H1-B visas replacing American jobs instead and stop funding and sending weapons to the Obama/Biden/Neocon Ukraine Russia war.’

Trump’s favorable transition toward Ukraine and European allies has also ruffled some MAGA feathers, though security experts have argued it has given the president better leverage to take on major adversaries like Putin, and by extension, China. 

‘Diplomacy and negotiations are a good thing,’ said Fleitz, who serves as vice chair of the America First Policy Institute’s Center for American Security. ‘Peacemaking takes time, and the U.S.-Russia relationship was in a very bad situation when Trump came to office.

‘I think these sanctions will hurt Russia very badly,’ Fleitz continued. ‘The fact that Trump knows that secondary sanctions on India has, at least temporarily, hurt our relationship is really a remarkable sign of how committed Trump is to these sanctions.

‘There’s not going to be exceptions. It’s not going to be some type of soft strategy with all kinds of loopholes,’ he added. ‘I think it shows to Putin how serious Trump is, and it gives Trump leverage to negotiate with Putin.’


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Japan eats a lot of rice. And it imposes tariffs on foreign rice to protect domestic producers — sometimes as high as 700 hundred percent. The result has been a disaster for Japan’s rice industry: the opposite of what tariffs are supposed to achieve.

In the early 1990s, Japan was forced to liberalize its rice market and did so reluctantly. But tariffs and subsidies designed to protect the domestic industry and keep prices high have instead corroded it by weakening incentives to be productive and innovative, among other problems. Because tariffs shield domestic producers and subsidies prop up prices while suppressing domestic output, Japan’s rice industry is inefficient and under-mechanized compared to Korea’s, which wasn’t as heavily protected and now thrives by comparison.

Consider now the political situation in the United States. Since January, the US and international markets have been subjected to ongoing tariff threats, many of which are later walked back. Admittedly, there are a few cases where tariffs might be justifiable, such as protecting nascent industries or those vital for national security. Trump and the MAGA crowd, however, generally appeal to four main justifications for tariffs:

  1. To boost American manufacturing and jobs.
  2. To address trade imbalances and promote trade reciprocity.
  3. To protect national security.
  4. To generate revenue and reduce taxes.

The difficulty — especially with rationales 1), 2), and 4) — is that tariffs tend to weaken the very industries they are supposed to protect. That is because they undercut the very forces that keep industries strong and competitive. Markets are antifragile systems: they require competitive stress and pressure to function properly, and they languish without it. A helpful analogy is the human immune system. Without regular stressors from infections and pathogens, it fails to flourish and develop. It is worth remembering that immune systems, like any system, can be overwhelmed. And they can also be under-stimulated. The immune system is trained and fine-tuned by challenge, and without that challenge, it atrophies.

The same lesson applies to industries insulated by tariffs. Protection from international competition weakens the incentive to innovate, discourages outside investment, and rewards rent-seeking and regulatory capture over genuine progress. Before reviewing the broader mechanisms, it’s worth considering a few concrete examples where tariffs backfired.

In the early 2000s, US steel received tariff protections. The results were dismal: more jobs were lost than saved, and US steel companies used the tariff shield to consolidate rather than to expand or innovate. Meanwhile, global competitors kept innovating and capturing market share at America’s expense.

With few exceptions, tariffs should be expected to weaken protected industries over time. The mechanisms are well understood. First, tariffs artificially raise prices, which dulls the incentive to innovate — to do more with less or to develop better products and services. Over time, these industries fall behind their international counterparts, unable to keep pace with firms exposed to real competition. The gap grows until the protected industry becomes fragile and inefficient.

Second, tariffs reduce incentives for long-term investment. Investors are less likely to back industries dependent on political protection rather than genuine performance. That means less capital for innovation, productivity gains, and market resilience.

Finally, protected industries often lobby to preserve those protections. The longer tariffs last, the stronger the signal that government will force consumers to pay higher prices and bail out weak firms through subsidies. Over time, these industries grow more dependent on political favors and less capable of competing on merit.

In the end, tariffs may sound patriotic, but they almost always dull the very industries they’re supposed to protect. By stifling competition, undercutting innovation, and rewarding political maneuvering over market success, tariffs leave industries brittle and taxpayers holding the bag. Competitive pressure is essential for efficiency and innovation. With a few rare exceptions, tariffs simply don’t deliver and mostly do harm.