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WINNING: Billionaire Mexican Carlos Slim Plans to Cut NYT Stake

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(Via Bloomberg)

Billionaire Carlos Slim is planning to sell more than half of his 17 percent stake in the New York Times Co. to U.S. hedge fund investors, reducing his sway over one of the world’s most influential publishers.

Slim’s businesses earlier this month sold $250 million of mandatory exchangeable trust securities in a private offering that gives the buyers a claim on a 9 percent stake in the New York Times, according to a person with knowledge of the matter. The newspaper’s shares have surged more than 50 percent since Slim boosted his stake in 2015 and became the biggest shareholder.

The deal, which was referenced in a Dec. 6 statement but has gone largely unnoticed, means that when the securities mature three years from now and they automatically convert into Class A shares of New York Times, Slim and his companies will be left with about 8 percent of the publisher’s shares, said the person, who asked not to be identified because the information is private. In essence, the billionaire created a trust, pledged New York Times shares to it, locked the shares up for three years, then sold rights to that stock to investors.

Slim built his stake in the New York Times after lending the company $250 million in 2009 to help it get through the financial crisis. In 2015, he exercised stock options to become the Times’s biggest single investor in a display of confidence in the company even as readers and marketers flocked to the Internet where content is often free and ad rates are cheaper.

With the smaller stake, he’ll lose some of the power he had to vote for Class A directors, a group that can include no more than a third of board members. The Ochs-Sulzberger family — the paper’s controlling owners — hold Class B shares that give them a firm grip on the company. Publisher Arthur O. Sulzberger Jr. will retire at the end of this year after a quarter-century of overseeing the newspaper. His 37-year-old son, A.G., will take over.

Transferring the shares through the hybrid instruments allows Slim to take advantage of deferred tax payments until the transaction is completed, the person said.

Arturo Elias Ayub, a spokesman for Slim, confirmed the transaction. A New York Times spokesperson said the paper is “grateful for Mr. Slim’s confidence and support of the company” after he became a shareholder at a “critical” time in its history.

Technical investors such as hedge funds bought most of the securities Slim offered, perhaps seeking to take advantage of the arbitrage opportunity opened up by the deal, the person said.

In July, Slim’s family holding company Inversora Carso sold 521,500 Times shares — a fraction of its ownership and an amount representing 0.3 percent of the company, according to an SEC filing and data compiled by Bloomberg. Slim had said at the beginning of this year that the U.S. daily had been a good investment and that he wasn’t planning to sell his stake.

When Slim made his loan to the Times, the publisher was reeling from the global financial crisis and needed a cash infusion to buy time for asset sales and new strategic initiatives. The company agreed to pay 14 percent interest and granted Slim stock warrants to acquire his stake at a discount. The terms seemed onerous at the time but that ultimately let the Times dig itself out of a bad situation. The company paid back the loan in 2011, ahead of schedule.

Slim exercised the warrants in 2015 and has held on to most of the shares, benefiting from a 51 percent rally as the election of President Donald Trump drove demand for digital subscriptions from news-hungry readers.

Shares closed Monday at $18.60, still far off their high of more than $52 in 2002, back in the early days of the internet. Slim has said his bet on the Times was always about the value of the newspaper’s brand, which he figured would survive the upheaval of the digital age.

Before he was elected, Trump accused Slim of using his ownership stake in the Times to influence the paper’s coverage of him. The Times said Slim never affected coverage and a representative for the billionaire said Slim wasn’t interested in influencing the election.

— With assistance by Gerry Smith, Andrea Navarro, Crayton Harrison, and Nacha Cattan

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Enjoy Your Tasty Wheat: How AI Corporate Greed is Killing Humanity

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Why the elite have decided it’s better to feed machines than humans.

We have a lower class of CEOs. And AI is making it worse.

In the past, these titans of industry would invest in their communities: libraries, public works projects, parks, or actual philanthropy.

Today’s C-suite “geniuses” engage in fake activism, bribery disguised as donations, and a complete nihilism from the communities they proclaim to serve at the safety of their gated communities.

It used to be a source of great pride for an owner to discuss how many employees they have. They would boast about how they put food on the table for families. They would talks about benefits, and how well they take care of their workers. Hell, they used to even describe them as “family.”

Now, they can’t wait to tell shareholders how they automate everything themselves, outsource to foreign countries for pennies on the dollar, and utilize AI to cut their entire labor force (we will get to this soon.)

The common thread is that those at the top are completely divorced from their workforce, the very people that happen to also be their consumers.

This was the situation largely even before AI. It’s gotten worse. They are absolutely foaming at the mouth to displace workers.

The only way to describe it is a race to the bottom. Investing millions into replacing humans with AI. This is already happening, and the reward has been big short-term gains from cutting jobs that look like more profitability to investors.

What’s more is that these AI data centers need billions of gallons of water, insane amounts of electricity, and tons of facilities to expand growth. It’s so astronomical they’re talking about moving it into space.

Think about it for a minute: companies would rather provide “drinking” water, “feed” electricity, and pay to “house” MACHINES instead of paying a living wage to people.

In fact, it might even be cheaper to pay a living wage. That isn’t stopping industry leaders from chasing their human-less dreams, despite it taking less energy and resources for humans. Yet they’re still choosing machines.

They are even willing to operate at a loss simply for the idea that they can save the cost of paying a wage.

There are a few outcomes that are possible:

Best case: AI hype is exposed as overblown and companies understand that it’s simply a tool and they need actual operators behind the steering wheel. AI starts creating more jobs. It seems unlikely, but given that AI in actuality produces more slop than creative, it’s possible.

Worst Case: The arms race of displacing workers continues. Their greed hasn’t ever really showed signs of waning. To supplement the slop it creates, they will use freelance labor from countries like India to extinguish the fires it creates and justify not needing a full time employee. They will stop at nothing to chase their goal of a technocracy to increase profits. (Note: They think they don’t need you to even buy their products with the top 1% buying 50% of the goods.)

They trained AI on your work, fired you to save money, flooded the world with soulless garbage, empty warehouses, and call it innovation.

To them I say: enjoy your tasty wheat.

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MAGA: From Shopping Mall to Manufacturing Hub 2.0

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Title: America’s Transition: From Shopping Mall to Manufacturing Hub 2.0

In the past few decades, America has often been described metaphorically as a giant shopping mall or auction house, where consumption and commercialism have dominated the landscape. However, with the rise of the Trump administration and the ambition to “Make America Great Again,” a new vision is emerging—one that aims to transform the nation into the world’s greatest manufacturing hub ever seen, leveraging AI, blue-collar labor, and a combination of innovative technologies.

The shift from a consumer-driven economy to a production powerhouse signifies a strategic move towards self-sufficiency, economic resilience, and global competitiveness. This transformation is not merely about revitalizing industries of the past but embracing cutting-edge technologies and sustainable practices to redefine the future of manufacturing.

At the heart of this evolution lies the integration of artificial intelligence (AI) into manufacturing processes. AI-driven automation streamlines production, enhances efficiency, and reduces costs, enabling American manufacturers to compete on a global scale. By harnessing the power of machine learning and predictive analytics, businesses can optimize supply chains, minimize waste, and customize products to meet diverse consumer demands.

However, the vision for America’s manufacturing renaissance extends beyond technological innovation. It embraces a diverse workforce, blending the traditional blue-collar skillset with the expertise of engineers, data scientists, and software developers. This fusion of talent creates a dynamic ecosystem where creativity, problem-solving, and collaboration drive continuous improvement and sustainable growth.

Moreover, the resurgence of American manufacturing is not confined to a single sector but encompasses a broad spectrum of industries, from automotive and aerospace to electronics and renewable energy. By leveraging cross-disciplinary expertise and fostering strategic partnerships, the United States can position itself as a global leader in advanced manufacturing, setting new standards for quality, innovation, and sustainability.

One of the key strengths of this manufacturing transformation is its adaptability and resilience. In contrast to the volatility of global markets and supply chains, a robust domestic manufacturing base provides stability and security, mitigating risks associated with geopolitical tensions, trade disputes, and natural disasters. By decentralizing production and embracing local sourcing, America can reduce its dependence on foreign imports and safeguard its economic sovereignty.

Furthermore, the transition towards a manufacturing-centric economy aligns with broader societal goals, such as job creation, workforce development, and regional revitalization. By investing in vocational training programs, apprenticeships, and re-skilling initiatives, the United States can empower individuals from diverse backgrounds to thrive in the digital age and secure meaningful employment opportunities in the manufacturing sector.

As America embarks on this journey towards manufacturing excellence, it must also prioritize sustainability and environmental stewardship. By embracing eco-friendly practices, renewable energy sources, and circular economy principles, manufacturers can minimize their carbon footprint, reduce waste generation, and preserve natural resources for future generations.

In essence, the vision of America as the world’s greatest manufacturing hub represents a paradigm shift—one that transcends partisan politics and embraces a collective aspiration for progress, prosperity, and shared prosperity. By harnessing the transformative power of AI, blue-collar ingenuity, and interdisciplinary collaboration, the United States can reclaim its status as an industrial powerhouse and pioneer a new era of manufacturing innovation on the global stage.

As the nation embarks on this ambitious journey, it must remain steadfast in its commitment to inclusivity, sustainability, and technological leadership, ensuring that the benefits of the manufacturing renaissance are felt by all Americans and resonate across borders, shaping a brighter and more prosperous future for generations to come.

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Outrage As Robinhood CEO Confesses To Elon Musk: DTCC Shut Down Stocks In Gamestop; AMC Surge

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Did Congressional authority allow DTCC to help defraud middle-class investors buying Gamestop and AMC?

The CEO of Robinhood admitted to Elon Musk that the DTCC – The Depository Trust & Clearing Corporation – halted trading during a call Monday morning on the Clubhouse app.

Proof: https://youtu.be/K2CEImKce6s

This is not the first time this has happened…

2008 case: https://casetext.com/case/pet-quarters-v-depository-trust-clearing

Sound familiar?

This appears to be Pet Quarters having the same issue Robinhood has today.  When Pet Quarters took it to court, the courts said something along the lines of: f*** you, don’t ever come back here (citing technicalities).

Why did they win? Well, DTCC is given the authority by Congress to regulate despite technically being a private organization

There’s more – “To date, except for one case where DTCC’s dismissal motion is pending, all of the cases either have been dismissed by the courts or withdrawn by the plaintiffs.”

Proof: https://boards.fool.com/federal-court-dismisses-lawsuit-against-dtcc-24179123.aspx

Every AG in the country should be made aware of these facts and open investigations into the matter.

Why does Congress get to deputise a private organization as eco-hitmen for the market?

UPDATE (2/3/20 5:09 AM):

(Reuters) – Robinhood Chief Executive Vlad Tenev is expected to testify before a U.S. House committee on Feb. 18, Politico reported on Monday, citing people familiar with the matter.

The hearing before the House Financial Services Committee has not been formally announced, the report added

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