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Taiwan Won’t Agree to 50-50 Chip Split
“Taiwan has sought to ease public fears that its prized chip industry could be hollowed out following US Commerce Secretary Howard Lutnick’s call for semiconductor manufacturing to be evenly divided between the island and the United States,” the South China Morning Post reports.
“Taiwanese Vice-Premier Cheng Li-chun said on Thursday that Taiwan’s negotiating team had never promised Washington to evenly split chip production.”
Beshear Says Trump Using Federal Workers as a Prop
Kentucky Gov. Andy Beshear (D) took note in an NPR interview of President Trump’s threat to permanently fire federal employees as a way to pressure Democrats to end the government shutdown.
Said Beshear: “If he fires a bunch of people, it’s not because Democrats wouldn’t reach a deal. It’s because the president decides and actually fires people.”
He added: “People aren’t a negotiating tool. They are not a prop. And that’s how he’s treating these families.”
Bessent Sees a ‘Big Breakthrough’ Coming on China
Treasury Secretary Scott Bessent predicted a “pretty big breakthrough” in the next round of trade talks with China, even as the Trump administration takes steps to marshal support for American farmers hurt by a decline in Chinese purchases, Bloomberg reports.
Kamala Harris Hits #1
107 Days by Kamala Harris has debuted at the top of the New York Times best seller list.
Extra Bonus Quote of the Day
“Evidently, ‘The Late Show’ has outlasted the United States federal government, because we’re still open, and they done shut down.”
— Stephen Colbert, on his show last night.
Jane Fonda Relaunches McCarthy-Era Committee
“Actor and activist Jane Fonda has relaunched the Committee for the First Amendment first backed by her father Henry Fonda in 1947, to fight against what the group calls a ‘coordinated campaign’ from the Trump administration to curb freedom of expression,” the Washington Post reports.
Leavitt Defends Trump’s Endorsement of ‘MedBed’ Hoax
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How the AI Bubble Will Pop
Derek Thompson: “Some people think artificial intelligence will be the most important technology of the 21st century. Others insist that it is an obvious economic bubble. I believe both sides are right. Like the 19th century railroads and the 20th century broadband Internet build-out, AI will rise first, crash second, and eventually change the world.”
“The numbers just don’t make sense. Tech companies are projected to spend about $400 billion this year on infrastructure to train and operate AI models. By nominal dollar sums, that is more than any group of firms has ever spent to do just about anything.”
“The Apollo program allocated about $300 billion in inflation-adjusted dollars to get America to the moon between the early 1960s and the early 1970s. The AI buildout requires companies to collectively fund a new Apollo program, not every 10 years, but every 10 months.“
Bessent Warns Shutdown Could Hurt the Economy
Treasury Secretary Scott Bessent told CNBC that U.S. economic growth could be hurt by the government shutdown.
Said Bessent: “This isn’t the way to have a discussion, shutting down the government and lowering the GDP. We could see a hit to the GDP, a hit to growth and a hit to working America.”
Trump Meeting to Discuss Cuts to ‘Democrat Agencies’
President Trump said on Truth Social that he would meet today with budget director Russell Vought — “he of Project 2025 fame” — “to determine which of the many Democrat Agencies, most of which are a political SCAM, he recommends to be cut.”
He added: “I can’t believe the Radical Left Democrats gave me this unprecedented opportunity.”
Bloomberg: “The president’s comments escalate a threat from Republicans to use the shutdown to slash the federal bureaucracy. The White House had threatened to announce job cuts as soon as Thursday.”
Wall Street Journal: “Russell Vought has been planning for this moment for years.”
More Blame Trump and Republicans for Shutdown
A new Washington Post poll found significantly more Americans blame President Trump and congressional Republicans for the shutdown than Democrats, though many say they are not sure.
Important takeaway: A large majority support Democrats’ call to extend federal health insurance subsidies in general — though just under half support the party demanding this if it extends the government shutdown.
Trump’s ‘Free’ Plane Apparently Had Strings Attached
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Bonus Quote of the Day
“We, as Republicans, have never had so much moral high ground on a government funding bill in our lives… I just don’t see why we would squander it.”
— Sen. Kevin Cramer (R-ND), quoted by Semafor, opposing plans by the Trump administration to permanently lay off workers.
Trust in Media at New Low
Gallup: “Americans’ confidence in the mass media has edged down to a new low, with just 28% expressing a ‘great deal’ or ‘fair amount’ of trust in newspapers, television and radio to report the news fully, accurately and fairly.”
“This is down from 31% last year and 40% five years ago.”
An Autocracy of Dunces
Paul Krugman: “If America still had a fully functioning democracy, Donald Trump’s speech Tuesday to the assembled generals would have ended his presidency.”
“Trump treated the event like a political rally and was clearly taken aback by the refusal of the audience to applaud or laugh at his jokes. Delivering a nakedly partisan speech to a mandated assembly of military officers was a gross violation of the Hatch Act. The content —telling the officers to be ready to use force against U.S. citizens — was clearly an impeachable offense. In an earlier era, Trump’s incoherent ranting would have paved the way for his immediate removal from office under the 25th Amendment.”
Grocery Price Pain Rises
Americans say it’s harder to afford their groceries now than it was a year ago, a warning sign for President Trump and Republicans, in the latest Axios Vibes survey.
Exchange of the Day
Rep. Madeleine Dean (D-PA) cornered Speaker Mike Johnson (R-LA) in a hot mic moment:
DEAN: The president is unhinged. He is unwell.
JOHNSON: A lot of folks on your side are too.
DEAN: Oh my god, please. That performance in front of the generals?
JOHNSON: I didn’t see it.
DEAN: It’s so dangerous! Our allies are looking elsewhere. Our enemies are laughing. You have a president who is unwell.
