More stories

  • in

    The making of Elon Musk: how did his childhood in apartheid South Africa shape him?

    With an imposing double-winged redbrick main building, and school songs lifted directly from Harrow’s songbook, Pretoria boys high school is every inch the South African mirror of the English private schools it was founded in 1901 to imitate.Elon Musk, who has rapidly become one of the most powerful people in US politics, spent his final school years in the 1980s as a day pupil on the lush, tree-filled campus in South Africa’s capital, close to his father’s large detached home in Waterkloof, a wealthy Pretoria suburb shaded by purple jacaranda blossoms in spring.View image in fullscreenSouth Africa was rocked by uprisings as apartheid entered its dying years. In 1984, black townships across the country revolted. By 1986, the white minority government had imposed a state of emergency. But in the segregated white enclaves, life was affluent and peaceful.“While the country as a whole was very much in flames and in turmoil, we were blissfully very safe in our little leafy suburbs, going about our very normal life,” said Jonathan Stewart, who was a year above Musk at Pretoria boys, which also counts the Labour politician Peter Hain, the Booker prize-winning novelist Damon Galgut and the murderer and Paralympian Oscar Pistorius among its former pupils.“You had this wealthy set, in relative terms, and everybody else was excluded.”View image in fullscreenMusk, who was born in Pretoria in 1971, railed on his social media platform X last month against the “openly racist laws” of the country of his birth and responded “yes” to the statement: “White South Africans are being persecuted for their race in their home country.”After the posts by the man now at the helm of Donald Trump’s “department of government efficiency” (Doge), a special group Trump has created, the US president signed an executive order accusing South Africa’s government of “unjust racial discrimination” against white Afrikaners, citing a law allowing land to be expropriated in certain circumstances. The order cut aid to South Africa, which receives 17% of its HIV/Aids budget from the US, and offered asylum to Afrikaners.It was not clear the extent to which Musk, who left South Africa in 1989 for his mother’s country, Canada, and then went to the US, had a direct hand in encouraging Trump to issue the order.Trump has taken an interest in the alleged persecution of white South Africans since his first presidency, when an Afrikaner rights group travelled to the US to claim, falsely, that white farmers were being murdered for their land with the complicity of the government. Trump saw one of the group’s leaders interviewed on Fox News and tweeted his support.Trump has also been influenced by other interests, including US groups critical of South Africa’s case against Israel at the international court of justice (ICJ) over the war in Gaza, which he referred to in his executive order.View image in fullscreenBut with Musk now among Trump’s closest advisers, it is unlikely he has not made his views known to the president, given they are also tied up with his business interests in South Africa.Musk has claimed that land reform laws, in a country where the white minority, who make up just 7% of South Africa’s population, still own more than 70% of agricultural land, are racist and amount to theft. He has endorsed claims that the killings of white farmers amount to genocide; research suggests the crimes are financially motivated.Musk’s attacks have ratcheted up at a time when he is in a dispute with the South African government about affirmative action laws, as he tries to sell his Starlink satellite network in the country. The world’s richest man objects to a law requiring that foreign investors in the telecoms sector provide 30% of the equity in the South African part of the enterprise to Black-owned businesses.Trump’s executive order will add to the pressure on South Africa’s government to exempt Musk from the Black empowerment laws.X’s press team and Musk’s lawyer did not respond to interview requests or emailed questions.To what extent Musk’s years growing up under the collapsing apartheid regime influenced his positions today, from making what looked like a Nazi salute – a characterisation he rejects – at Trump’s inauguration celebrations last month to his embrace of far-right political parties such as Germany’s Alternative für Deutschland, remains an open debate.View image in fullscreenWhite, English-speaking South Africans such as Musk’s family benefited from apartheid’s racial hierarchy but lived mostly separate lives from the ruling Afrikaners.Musk spent the first two years of South Africa’s five high school years at the all-white Bryanston high school in Johannesburg’s leafy northern suburbs. Founded in 1968, it is a mixed-sex, English-language, fee-paying state school, made up of rectangular mid-century buildings.Like South Africa then and now, Bryanston high was sports mad. “It was a little bit like when you think of American society,” said Lesley Burns, who finished at the school in 1984, Musk’s first year. “There were all the jocks and the popular guys in the football team.”Musk, who was on the school’s chess team in 1985, was viciously bullied. The hounding culminated with him being thrown down a set of stairs, beaten so badly that he was hospitalised. The school declined an interview.View image in fullscreenMusk’s father moved him and his brother, Kimbal, to Pretoria boys, where he was well liked, according to Gideon Fourie, who had computer science classes with Musk.“He was a very average personality,” Fourie said. “He wasn’t in any way like a super jock, or a super nerd, or a super punk … He had a group of friends.”South African media were subjected to strict government censorship. Newspapers would appear with censored sections blacked out, particularly reports of the growing unrest in the townships and mass arrests, until those were also banned.In contrast, the fee-paying Pretoria boys was liberal, for its time. In 1981 it became the first government school to admit a Black pupil. The then headteacher, Malcolm Armstrong, used a loophole that allowed it to let in the sons of diplomats from the “homelands” within South Africa that the apartheid system claimed were independent states.“Armstrong even defied the authorities by meeting with the ANC [African National Congress] in Dakar while it was still banned,” said Patrick Conroy, who was in Kimbal’s year, two years below Musk. “He frequently addressed our school assemblies, emphasising the importance of democracy, human rights and social justice.”The school’s current headteacher, Gregary Hassenkamp, was also in Kimbal’s year and has similar memories of his predecessor, although he noted that not all teachers shared Armstrong’s liberal views.View image in fullscreen“I remember him forcing boys to think about the country in which we lived and the attitudes we had,” Hassenkamp said in an interview in his wood-panelled office, wearing a flowing black gown and a tie and socks in the school’s red, white and green colours.Musk has previously described himself as “not a conservative” and backed the Democratic candidate in every presidential election going back to Barack Obama’s victory in 2008, until he moved to the right. But Musk is clearly suspicious of democracy and the leaders it produces.In the 1930s, his grandfather headed an anti-democratic fringe political movement in Canada with fascist overtones, which campaigned for government by elite technocrats. He then moved to apartheid South Africa because the racist system appealed to him.Musk now appears happy to embrace the US version of the “strongman” ruler by backing Trump’s claim that the will of the president is paramount.Some of Musk’s school peers speculated that his current views of South Africa may be influenced by his missing out on the ups and downs of the negotiations to end apartheid and the “miracle” of Nelson Mandela becoming the country’s first Black president in 1994.Since then, the governments led by Mandela’s ANC party have failed to address the world’s worst economic inequality. While its Black economic empowerment policies offer tax breaks and state contracts to Black-owned companies, Black people are five times likelier than white people to be unemployed. South Africa also has one of the world’s highest murder rates.It is not uncommon to hear white South Africans say they are being discriminated against, often citing affirmative action laws. In mid-February, hundreds gathered outside the US embassy in Pretoria carrying signs with slogans such as “Thank God for President Trump” and “Make South Africa Great Again”.View image in fullscreenWhile it is rare to hear white South Africans say they want a return to apartheid, it is also not uncommon to hear older people express nostalgia for that time.“It was a good time, because we had no crime. There were no problems. People, Blacks and whites, got on very well with each other,” Errol Musk said in a video interview from his spacious Cape Town home, when asked about his son Elon’s childhood. “Everything worked. That’s the reality. Of course people don’t want to hear that, but that’s the truth.”Musk and his two younger full siblings, Kimbal and Tosca, have had a tumultuous relationship with their father. Kimbal told Musk’s biographer Walter Isaacson that their father would scream at them for two to three hours, calling them worthless and pathetic. Their mother, Maye, has accused him of physical abuse.“It’s rubbish,” Errol said when asked about the allegations, which he has repeatedly denied.The brothers became estranged from their father in 2017, not for the first time, when he had a child with his 30-year-old stepdaughter, Jana Bezuidenhout, according to Isaacson. In Errol’s telling, they got angry with him when he expressed his support for Trump in 2016, at a party in Cape Town they threw for his 70th and Musk’s 45th birthdays.“Things changed when Biden came in and Elon realised they’re trying to destroy America,” Errol said. “Now we exchange messages about every day. Of course, he’s not always able to answer, so his PA will answer me.”Additional reporting by Chris McGreal More

  • in

    The left needs its own version of techno-optimism | Amana Fontanella-Khan

    Today we live in an era defined by crisis. Indeed, we are facing multiple overlapping threats at once: from accelerating climate breakdown to the rise of authoritarianism across the world, we are in a situation that the historian Adam Tooze calls “polycrisis”. It is no wonder that hope is scarce, pessimism is high and despair is pervasive. As one meme that captures the grim, morbid mood of our age reads: “My retirement plan is civilisational collapse.”But not everyone shares this gloomy outlook. On the extreme other end of public sentiment sit Silicon Valley billionaires: they are some of the most optimistic people on earth. Of course, it’s easy to be optimistic when you are sitting on enough money to sway national politics. And yet, the source of their optimism isn’t simply money. It is also a deep-seated faith in unfettered technological advances.The left is rightly skeptical of the rosy “techno-optimism” advanced by the likes of Elon Musk, far-right mega-donor Peter Thiel and hedge fund billionaire Marc Andreessen. To tech oligarchs, technological advancement is best delivered by unfettered free market capitalism. The democratic state is a hindrance to be opposed, dismantled and destroyed – a set of goals that they now enjoy the power to achieve. Their ideology ignores inequality and glosses over the material harms their companies wreak on workers and the environment. Silicon Valley’s billionaire techno-optimism is clearly incompatible with leftwing values and should be rejected.But can and should the left advance its own techno-optimism? Can it put forward a vision of a brighter future that can compete with the grand visions of space exploration presented by Musk? Can it make the case that science and technology ought to be harnessed to deliver breakthroughs, abundance, sustainability and flourishing of human potential? And what would a progressive, leftwing techno-optimism look like? A techno-optimism that the 99% could get on board with, especially communities of color, and Black people who have historically been excluded, or even harmed, by scientific and technological breakthroughs? These are some of the questions that this new series, Breakthrough, launched by the Guardian examines.The left used to embrace technology. Indeed, the most leftwing prophet of all, Karl Marx, was so pro-technology that he is often described as “Promethean”, a reference to the Greek god who stole fire to give to humans. And it was feminist Shulamith Firestone who in the 1970s envisioned a day where we might have artificial wombs and be liberated from housework, thanks to automation: a feminist utopia delivered by technology.Some of the most groundbreaking sci-fi imagery that we encounter in books and movies like the Matrix, such as people living virtual lives entirely untethered from their bodies, were first popularized by JD Bernal, the Marxist scientist and futurist who designed the so-called Bernal spheres, for permanent space settlement, in 1929. Writing of Bernal’s influential book, The World, the Flesh and the Devil: An Enquiry into the Future of the Three Enemies of the Rational Soul, Arthur C Clarke, considered one of the fathers of sci-fi, wrote that it was “perhaps the most remarkable attempt to predict the future of scientific possibility ever made, and certainly the most stimulating”. And it was all rooted in a firmly leftwing – and specifically, socialist – world view. And, of course, Star Trek, one of the most successful sci-fi series of all time, is widely considered to be depicting a socialist post-scarcity utopia.Today, however, the left is either fearful, agnostic or hostile towards technology. The green “degrowth” movement, for example, views industry and technology as the root of our climate crisis. For them, the solution to the climate crisis is not more technological growth and innovation, but less. As Kohei Saito, the author of the bestseller Slow Down: The Degrowth Manifesto, said in an interview: “I was initially more optimistic about the development of technology” but, after reading degrowth theories, “[I] abandoned the possibility of green growth.”Saito goes on to say: “If we want to have more, in today’s sense, it will simply bring about ecological catastrophe.” Reducing consumption and production – austerity and retreat, in other words – is the only path forward for the degrowth movement. But this ignores the fact that technology can help us replace fossil fuels with other sources of clean, affordable and scalable energy that would allow for continued growth and advancement, without harming the environment.Meanwhile, leftwing leaders such as Bernie Sanders and Alexandria Ocasio-Cortez are very good at the necessary and essential task of confronting tech monopolies and billionaires, who concentrate economic and political power in their hands. But what is often lacking is a positive, bold vision for what a science and technology agenda for the 99% would look like – how technology in the right hands might help provide abundance for all.This is a lost opportunity. For all the pessimism and decline that we are witnessing – declining rates of graduation, declining birth rates, declining rates of homeownership and a rise in deaths of despair and skyrocketing rents – we also may well be on the brink of unprecedented breakthroughs and advances that could create record levels of wealth to be enjoyed by all, if these breakthroughs are accompanied by a political system that favors the wellbeing of all over billionaires. It may be hard to imagine such a system at the moment, given that corporate interests have seized nearly all levers of power, but it is nonetheless critical to do so. Do we have a political vision of how tech and science might work for us all?In 2024, artificial intelligence (AI) was recognised with not one, but two, Nobel prizes. Google’s DeepMind discovered 2.2m entirely new materials – 800 years worth of science in a few months. Last year saw the first time that sickle cell disease, a disease that was hitherto incurable and predominantly affects people of African descent, was reversed in a novel Crispr gene-editing therapy. Cancer and heart disease vaccines could be ready within the next five years. And now, for the first time, AI is solving the intractable protein-folding problem – one of biology’s greatest challenges – and designing new proteins, which is essential for discovering new drugs and understanding why certain diseases occur.View image in fullscreenSo why is it that technology is almost never invoked by the left as a solution to polycrisis in general, or the climate crisis in particular? Why is it that the only people who offer bold, inspiring visions for the transformative role of technology are the likes of reactionaries like Musk?There are, of course, reasons for this. Technology alone is no panacea. Nor does technology guarantee progress. In fact, periods of technological advancement have almost always been accompanied by violence, dispossession and war. Many leftwing philosophers in the post-war period, having witnessed the ravages of fascism and Nazism, equated technology – and even the very idea of progress itself, with violence.As the Frankfurt school philosophers Theodor Adorno and Max Horkheimer – both of whom were Jewish intellectuals forced to flee Nazi Germany – argued in Dialectic of Enlightenment: “Technology … aims to produce neither concepts nor images, nor the joy of understanding, but method, exploitation of the labor of others, capital.”And Black artists such as Gil Scott-Heron, witnessing the advances of the space age, asked what benefit the Apollo mission might have for those struggling to make ends meet back on Earth. In Whitey on the Moon, Scott-Heron writes:“A rat done bit my sister Nell.(with Whitey on the Moon)Her face and arms began to swell.(and Whitey’s on the Moon)I can’t pay no doctor bill.(but Whitey’s on the Moon)Ten years from now I’ll be paying still.(while Whitey’s on the Moon)”Those critiques continue to resonate with many today. Especially as we witness one billionaire after another fly into space, as life on Earth grows more perilous by the day. And as billionaires push not simply the frontiers of space, but of the human body itself, it is right to remind ourselves of the legacy and history of eugenics. We can only benefit from warnings – such as those made by Timnit Gebru and Émile Torres – that the pursuit of longevity and eternal life, as well as transhumanist projects such as Neuralink, risk perpetuating eugenicist ideals in the 21st century.Perhaps, though, we would do well to adopt the position of the Frankfurt school philosopher, Herbert Marcuse, who accepted many of the critiques that his colleagues made of the Enlightenment, but who also left space for the possibility that it could go either way. In a 1941 essay on technology, he wrote: “[Technology] can promote authoritarianism as well as liberty, scarcity as well as abundance, the extension as well as the abolition of toil.”He envisioned a world in which technological progress might allow human flourishing and self-realization. In a world that is technologically advanced enough, “everyone could think and act by himself, speak his own language, have his own emotions and follow his own passions” once we are “no longer chained to competitive efficiency”.Perhaps the most important condition for us to flourish is to address our climate crisis. Today, to warm our homes and cook our meals, we still set fire to things. Those who cook on gas stoves heat their food over literal flames, as cavemen once did. If we are to move out of the fossil fuel era into a new, cleaner and sustainable era – while still maintaining our freedom to travel and fly and enjoy the material comforts that we do today – this will require a combination of political will and technology. Whether fusion energy, fission or a host of renewables, the path to a new era of energy production requires new technologies and breakthroughs. Right now, for example, Silicon Valley billionaires are investing billions in chasing the holy grail of limitless, clean fusion energy to power AI. Can and will the state match those efforts? And should the left make the case that it should?There is no inherent value in technology. It is neither good nor bad. It is up to us how machines are used. And indeed, who makes those machines, how, and to what ends are all political questions. While we push to change our political system and direct it towards a more equitable, inclusive and liberatory path, let us also, at the same time, push for technology to move in that direction, too.We live in dark, depressing and – frankly – terrifying times. Our planet’s fragile ecosystem is fast spiraling out of control. Our democracies are fracturing. And billionaires are seizing for themselves all of the spoils of the digital era. Technology might well be the thing that pushes us over the edge. But it could also, if we play our cards right, allow us to exit our era of polycrisis. But that won’t happen on its own. The path towards better technology – tech for the 99% – can only be achieved through a politics of the 99%. And it must start with a vision.It is time that the left deploy all of our energies and powers towards a political vision of abundance. Abundance that is delivered by a movement for the 99% that pushes for technological growth and development for the benefit of all.We hope this series might be a place for that political vision to be discussed, debated and laid out so that optimism about the future – in particular, techno-optimism – is no longer just something that the very rich in this world can have.

    Amana Fontanella-Khan is the Guardian US opinion editor More

  • in

    Sycophancy and toadying are de rigueur in Trump’s court of self-aggrandizement | Sydney Blumenthal

    Sycophancy is the coin of the realm. In Donald Trump’s court, flattery is the only spoken language. He does not need an executive order to enforce it. Fear is the other side of the coin. Loyalty must be blind. Obedience is safety. Cronyism secures status. His whim is dogma. Criticism is heresy. Debate is apostasy. Expertise is bias. Objectivity is a hoax. Truth is just your opinion. Lies are defended to the death as articles of faith. New ones are manufactured on an industrial scale by his press office for social influencers to spread. Denying facts proves fealty. The rule of law is partisan. Russia is our trusted ally. Britain and France are “random counties”. Retribution is policy.The deeper the submission to madness, the greater his supremacy. The subjugation is more thorough if the things people are forced to accept are irrational or, better, the reverse of what they had believed. When previously held beliefs are abandoned to conform to their opposite, like the secretary of state Marco Rubio’s formerly adamant support of Ukraine, which went to his core as the son of refugees from Castro’s Cuba, the more Trump’s dominance is demonstrated. Rubio has gone full circle, from his family fleeing one kind of tyranny to Trump sneering at him as “Little Marco” to ambitious embrace of his tormentor. He finds himself as a supplicant to Trump complaining about Elon Musk’s mindless wreckage of the state department. Formally the ranking constitutional officer of the cabinet, Rubio is below Musk in Trump’s hierarchy.Each of the concentric rings of Trump’s court require different nuances of servility. At mid-level, the ethos is to mimic the irrational impulses of the ruler in order to be seen as his willing helper. In 1934, a middle-rank German minister explained that “it is the duty of everybody to try to work towards the Führer along the lines he would wish.” “Working toward the Fuhrer” – auf den Führer hinarbeiten – became the governing style, or else.At the cabinet level, Rubio’s renunciation is an essential conversion to prove subservient allegiance to the Fuhrerprinzip. “The higher one rose in the hierarchy, the more servile one became,” wrote Albert Speer, Hitler’s war manufacturing minister, in his memoir. At the height of power, in the innermost circle, at the leader’s right hand, sits JD Vance, who taunts and threatens on the leader’s behalf, demanding obsequious “respect” while slyly deploying his sycophancy to goad the leader.Upon passing through the gates of Trump’s White House, Ukraine’s president, Volodymyr Zelenskyy, entered into a domain that would have been intimately familiar to him. It would have been reminiscent of the claustrophobic despotism in Ukraine under communism. It would have been a reminder of what was called “the Family” of kleptocratic oligarchs, lackeys and political operatives surrounding the Putin-backed Ukrainian ruler Viktor Yanukovych before he fled the country during the popular uprising of 2014 – a gangster culture that included the US consultant Paul Manafort, also Trump’s 2016 campaign manager, whom he would pardon for a host of criminal felonies.A western world shocked at Trump’s orchestrated humiliation of Zelenskyy should have seen the staged event as the culmination of hundreds of similar transgressions since he became president again. The difference between the rest of his rampage and his denigration of Zelensky was only in its momentousness. But not even Elon Musk systematically shredding the federal government approached the historic scale of Trump’s crime against Ukraine, which reduced the United States through a few insults to the lowest ebb of its international power and prestige since a century ago, when, in a spasm of partisan isolationism, the Senate rejected joining the League of Nations after the first world war. But, for the appalled and disoriented Europeans who must pick up the pieces as they adjust to the reality of an American president discarding them in order to forge a grand alliance with Russia, the revealing signs of Trump’s malignancy have been present in a never-ending series of less than world historical but dramatically squalid scandals.“I wouldn’t believe Donald Trump if his tongue were notarized,” New York mayor Ed Koch once quipped. Now, Trump tried to erase the infamy of being a figure of ridicule in New York by planting his hooks into the current mayor, Eric Adams. A predator recognizes vulnerability. After ordering the Department of Justice to drop its corruption charges against Adams, Trump’s precipitate action prompted the resignation of the acting US attorney for the southern district of New York, Danielle Sassoon, who stated that it was “a quid pro quo” in exchange for supporting the Trump administration’s “enforcement priorities only if the indictment were dismissed”, and which was followed by the resignations of seven prosecutors from the justice department’s public integrity unit, who refused to participate in the deal.With Adams under his heel, Trump next crushed the Republican Senate through the confirmation process of his unqualified collection of quacks for his cabinet. Intimidation and smears did the work of cowing the august senators. Then, through his installation of his largest donor, Elon Musk, as his self-advertised “Dark Maga” overlord, Trump launched the massacre of the entire federal government. Off with their heads everywhere. The purges have no trials. Tick off the execution list of Project 2025. Let the courts slowly try to catch up to the devastation.Trump’s repetitive compulsion to create disorder allows him to present himself as its would-be master. He can’t temper his impulses. His bedlam provides his only arena for self-validation. He must always fabricate scenes for the exaltation of himself through the humiliation of others to confirm that he is strong. Musk magnifies his abuse.In two speeches, one by the secretary of defense, Pete Hegseth, and the other by the vice-president, JD Vance, the Trump administration shifted the ground under Ukraine and the western allies to Russian advantage. On 12 February, at the Ukraine Contact Group in Brussels, Hegseth conceded conditions to Russia before any negotiations had begun. He stated the return of occupied territory “unrealistic”, opposed Nato membership and rejected US participation in a security force. Two days later, on 14 February, Vance delivered a second shock, reciting the talking points of the far-right parties in Europe in a virtual endorsement a week before the German election of the neo-Nazi Alternative for Germany Party.Some Republicans appear to have a good idea about the agents of influence floating around the Trump administration. Senator Roger Wicker, Republican of Mississippi, said after Hegseth’s speech, “I don’t know who wrote the speech – it is the kind of thing Tucker Carlson could have written, and Carlson is a fool.” The former Fox News talkshow host, now with his own podcast, has deep ties to the regimes of Putin and Orbán of Hungary. A fount of Russian disinformation, he is at the center of a circle that includes Donald Trump Jr and JD Vance, bonded as lost boys, abandoned in childhood, and who persuaded Trump to name Vance as his running mate. Hegseth and Tulsi Gabbard, a pro-Russian echo chamber, now the national director of intelligence, were brought into their orbit.Tucker Carlson’s son, Buckley Carlson, is Vance’s deputy press director. Jack Posobiec, a far-right conspiracy monger of Pizzagate and white supremacist, was invited to travel with Hegseth, to whom he is close, and has traveled with the secretary of the treasury, Scott Bessent, on his trip in February to Ukraine to meet with Zelensky.In 2017, according to a report of the Atlantic Council, Posobiec was a key player in aiding the Russian “coordinated attempt to undermine Emmanuel Macron’s candidacy, with a disinformation campaign consisting of rumors, fake news, and even forged documents; a hack targeting the computers of his campaign staff; and, finally, a leak – 15 gigabytes of stolen data, including 21,075 emails, released on Friday, May 5, 2017 – just two days before the second and final round of the presidential election”.In 2024, Posobiec addressed the Conservative Political Action Committee: “Welcome to the end of democracy. We are here to overthrow it completely. We didn’t get all the way there on January 6, but we will endeavor to get rid of it.”Making nice with Trump has never proved to be a winning strategy. If Zelensky had bent to shine Trump’s shoes under his desk, he would still have been in a trap. Obsequious gestures to neutralize Trump have been repeatedly tried and failed. If anyone could cajole Trump, it would have been David Rubenstein, the billionaire founder of the Carlyle Group who built his firm with a bipartisan board. Rubenstein has been a pillar of the Washington community, who cherishes the constitution and has lent the National Archives his copy of the original Bill of Rights, personally paid for the restoration of the Washington Monument, and is a patron of the arts, the longtime chair of the Kennedy Center. He recently bought the Baltimore Orioles. Rubenstein wined and dined Donald and Melania Trump, attempted to ingratiate himself and bring them into his charmed circle. Rubenstein’s civilizing mission ran aground.Rubenstein presented Trump with a golden opportunity to gain the kind of acceptance he had sought for a lifetime. He has nursed his injury over rejection by the great and the good in New York, where his crudity, vulgarity and narrow greed constantly undermined his social ambitions. He was also a spectacular failure in the New York real estate market. But Trump still harbored resentment from the 2017 Kennedy Center Honors, when two of the recipients, choreographer Carmen de Lavallade and legendary TV producer Norman Lear, declined to attend a reception at the White House. Trump never appeared at any of the Kennedy Center Honors during his first term. He never came to a single of the thousands of the wide variety of cultural events there, not one. He was not boycotting; he had no interest in theater, music, dance, anything. He is a void.On 12 February, Trump unceremoniously fired its entire board, claimed that the national centerpiece of the performing arts in the capital was “woke” and a “disgrace,” denounced Rubenstein, who does “not share our Vision for a Golden Age in Arts and Culture”, and announced as his replacement “an amazing Chairman, DONALD J. TRUMP!” Rubenstein was privately stunned and surprised at his shabby treatment. But Trump cared less for Rubenstein’s diplomatic approach than for acting out his endless drama of victimization and self-promotion.Trump’s interim director inserted at the Kennedy Center, Ric Grenell, a rightwing activist who was universally despised in Germany when he was ambassador there in the first Trump term, declared that to “make the arts great again” the Kennedy Center would stage a biblical pageant about the birth of Jesus. Trump named Melania’s former modeling agent, Paolo Zampolli, to the board. He held forth to an Italian newspaper, Il Foglio, about Zelenskyy: “He should rebuild Gaza with all the money he stole.”Trump’s meeting with Zelenskyy was preceded two days, earlier on 26 February, by his first cabinet meeting that rehearsed scenes of belittlement, disparagement and deprecation. It was a sham cabinet meeting without any proper presentations by the secretaries of their departmental work, a scene of collective submission. (I had been present in many cabinet meetings during the Clinton administration, where informative review and discussion were the regular order.) Trump’s meeting was a made-for-TV more-than-hour-long reality show with the cabinet as props, two among the 21 Fox News personalities appointed to administration posts.At his cabinet meeting, Trump began by calling on Scott Turner, the secretary of housing and urban development, the only Black person in his cabinet, a former journeyman professional football player, briefly a far-right Texas state legislator and a motivational speaker. “Thank you God for President Trump,” prayed Turner. “So Scott Turner’s a terrific young guy,” said Trump. Turner is 53 years old. “He is heading up HUD and he’s going to make us all very proud, right?” Turner did not speak again in the meeting.Trump introduced Musk, who took control of the meeting, declaring the country would “go bankrupt” if he were not allowed to destroy the government untrammeled. He stood above the cabinet secretaries, wearing all black, a T-shirt reading “Tech Support”, a black Maga cap, and condescended: “And President Trump has put together, I think, the best cabinet ever, literally.” The questions came from the reporters in the room. The nervous cabinet members sat silently, worried about not one but two overlords. Musk was asked questions about his demand that federal employees justify their work every week and wondered how many “you’re looking to cut, total”. Musk gave no answer. Trump intervened: “We’re bloated, we’re sloppy. We have a lot of people that aren’t doing their job. We have a lot of people that don’t exist. You look at social security as an example. You have so many people in social security where if you believe it, they’re 200 years old.”skip past newsletter promotionafter newsletter promotionAt the end of the meeting, as the press was led out, Trump jeered, “Thank you. Thank you very much. Pulitzer prize.” JD Vance mocked them with a sarcastic rhetorical question: “Sir, how many peacekeepers are you going to send … ” Trump joined in: “What will you do? How will it be?” Vance continued his mocking merriment. “How will you dress them?” The cabinet members nervously tittered. Vance was the king’s goad and jester. Trump called to one reporter, “Lawrence. Look at Lawrence. This guy’s making a fortune. He never had it so good. He never had it so good. Lawrence, say we did a great job, please. OK? Say it was unbelievable.” The tone for the meeting for Zelenskyy was already on display.That day, Trump banned the traditional press pool chosen by the correspondents that cover the White House. From then on, the pool covering him would be selected by Trump’s press office. The Associated Press and Reuters would continue to be banished altogether for refusing to call the Gulf of Mexico the Gulf of America, following Trump’s order. Those news organizations had failed to meet the threshold of submission.Both Emmanuel Macron and Keir Starmer, one after another, arrived in advance of Zelenskyy to butter up Trump without losing their dignity. They treated him with delicacy as a borderline personality. Yet both corrected Trump’s central falsehood that the US had given $350bn to Ukraine while the Europeans gave loans of $100bn for which they were repaid, when in fact the US expended $120bn, most of which went to US weapons manufacturers, and Europe spent $250bn and had not been repaid a euro. Macron touched Trump’s sleeve as he corrected him. Starmer gestured in that direction but never made the physical contact. Trump was undeterred in lying about it afterward.Starmer presented the coup de grace, a handwritten invitation for a state visit from King Charles III to Donald I, royalty to faux royalty. Trump carefully opened the envelope and held up the letter. “Beautiful man, wonderful man,” he said. But there was trouble brewing in paradise when the vision of another man, Vladimir Putin, crossed his mind. His attitude passed from the ecstasy of Charles’s letter to the agony of “the Russia hoax”. “We had to go through the Russian hoax together,” Trump said. “That was not a good thing. It’s not fair. That was a rigged deal and had nothing to do with Russia. It was a rigged deal with inside the country and they had to put up with that too. They put up with a lot. It wasn’t just us. They had to put up with it with a phoney story that was made up. I’ve known him for a long time now.”Trump’s blurted non sequitur after non sequitur was the beginning of his self-revelatory statements about his relationship with Putin, whose actual nature he has devoted decades to covering up. Trump said he had known Putin for “a long time”. How long he did not say. The “phoney story”, which was a true one about Russia’s extensive efforts to interfere in the US election on Trump’s behalf involving hundreds of contacts between Russian agents and the Trump campaign, was stressful not only for Trump but, according to Trump, also for Putin. They went through the “hoax”, the incomplete investigations, “together”. The Mueller report concluded with a referral of 10 obstructions of justice committed by Trump to block its inquiry, but they were never prosecuted. The Senate intelligence committee report contained a lengthy section on Trump’s sexual escapades in Russia creating “compromising information” that could be used by the Russians and “posing a potential counterintelligence threat”. Babbling away about his sympathy for Putin, Trump did not understand that he was engaging in an oblique confession. “Russia, if you’re listening … ”After Trump was shut out of the New York banks, Donald Trump Jr remarked, in 2008, “Russians make up a pretty disproportionate cross-section of a lot of our assets. We see a lot of money pouring in from Russia.” Trump’s architect Alan Lapidus stated in 2018: “He could not get anybody in the United States to lend him anything. It was all coming out of Russia. His involvement with Russia was deeper than he’s acknowledged.”Trump turned to Deutsche Bank, the only financial institution willing to do business with him. The bank served as a conduit for Russian money-laundering operations and in 2017 was fined $630m by American and British financial regulators for a $10bn scheme. In 2008, the bank sued Trump for non-payment for $40m on a $640m loan, and Trump counter-sued. Contrary to all normal practices, they settled and continued to do business. But after the January 6 insurrection even Deutsche Bank cut ties with him. His debt to the bank was more than $300m.Trump’s plot to switch sides, punish Zelenskyy, ditch the allies and partner with Putin was hatched before Zelenskyy flew to the US grudgingly to sign a deal for raw earth mineral rights in his country. Trump’s initial exorbitant insistence on $500bn may have been a ploy to get Zelenskyy to reject the deal out of hand. No rational leader could agree to such terms. Though the details of the next contract are not publicly known, Zelenskyy’s acceptance and willingness to negotiate might have come as a surprise. Terminating military and intelligence support for Ukraine required a different pretext. If one pretext doesn’t work, another could be contrived, even a flimsy one.After Putin invaded Ukraine, Trump called him a “genius”. He has always admired the Russian strongman as a model. He has been hostile to Zelenskyy personally since Trump’s “perfect phone call” to him in July 2019 to blackmail him into providing false dirt about Joe Biden in exchange for releasing already congressionally authorized missiles: “I would like you to do us a favor, though.” Trump’s attempt at coercion led to his first impeachment.On 18 February, Trump launched into a tirade of old Russian talking points, that Zelenskyy was a “dictator”. You never should have started it,” Trump said about the war. And, he added, “I don’t think he’s very important to be at meetings.” Zelenskyy’s response that Trump’s remarks were “disinformation” helped set the stage for the meeting on 28 February.The meeting was a wide lens on Trump’s small mind, incapable of grasping any ideas and their practical applications, like alliances, coalitions, national sovereignty or the western world. His ignorance of history is fairly complete. He sees the world like a map of Manhattan real estate that his apologists project as the revival of Great Power politics. He’ll take the West Side Highway development. Putin can get an East River stake. Trump is insistent that Ukraine owes the US money. He sees the country is a vulnerable debtor – “you don’t have the cards.” He may be influenced by his losses and liability stemming from the E Jean Carroll sexual assault and New York state financial fraud cases, where he accrued enormous penalties.Trump once again voiced his identification with Putin. “Let me tell you, Putin went through a hell of a lot with me. He went through a phoney witch-hunt where they used him and Russia, Russia, Russia, Russia … You ever hear of that deal?”JD Vance triggered the implosion with his charge that Zelenskyy was “disrespectful”. He scolded Zelenskyy for not “thanking the president”. He accused him of bringing observers to Ukraine for “a propaganda tour”. Vance’s demand for “respect” was a knowing self-abasement to awaken Trump to Zelenskyy’s absence of sycophancy. Vance’s ultimatum that Zelenskyy degrade himself revealed his own posture. But Vance is the corrective to Mike Pence, who failed at the critical moment on January 6 (“Hang Mike Pence!”). Vance ingratiated using Zelenskyy to manipulate Trump.Zelenskyy fell into the trap, trying to explain the rudiments of 20th-century history, that the geographic isolation of the US could not protect it. “Don’t tell us what we’re going to feel,” Trump snapped. “You don’t have the cards right now.” Zelenskyy replied, “I’m not playing cards right now.” Trump repeated a common Russian talking point: “You’re gambling with world war three.” Vance jumped in: “Have you said thank you once?” “A lot of times. Even today,” said Zelenskyy. In fact, he offered thanks six times in the conversation, with a “God bless you”.Trump kept talking about “the cards”. He brought up how he had given Zelenskyy missiles. He clearly wanted Zelenskyy to exonerate him for the high crime of his first impeachment. “You got to be more thankful because let me tell you, you don’t have the cards with us.” And the confrontation wound down. “This is going to be great television. I will say that,” said Trump.So the fate of Ukraine and the western alliance turned on the issue of flattery. Despite Trump’s obliviousness to history, the scene recalled Edward Gibbon’s comment in The History of the Decline and Fall of the Roman Empire: “The emperors, secure from contradiction, were abandoned to the intoxication of unlimited power, which their flatterers encouraged with the vilest servility.”

    Sidney Blumenthal, former senior adviser to President Bill Clinton and Hillary Clinton, has published three books of a projected five-volume political life of Abraham Lincoln: A Self-Made Man, Wrestling With His Angel and All the Powers of Earth More

  • in

    ‘Major brand worries’: Just how toxic is Elon Musk for Tesla?

    Globally renowned brands would not, ordinarily, want to be associated with Germany’s far-right opposition. But Tesla, one of the world’s biggest corporate names, does not have a conventional chief executive.After Elon Musk backed Alternative für Deutschland (AfD) – calling the party Germany’s “only hope” – voters are considering an alternative to Tesla. Data released on Thursday showed that registrations of the company’s electric cars in Germany fell 76% to 1,429 last month. Overall, electric vehicle registrations rose by 31%.Tesla’s biggest shareholder, who has voiced support for rightwing leaders around the world, is now a de facto US cabinet member under Donald Trump’s administration.Tesla’s valuation has become inextricably tied to Musk’s politics. After he spent $288m backing Trump’s 2024 election victory, Tesla’s valuation passed $1tn. Yet Musk’s political involvements – unprecedented for the head of a company that size – could also be having a negative effect.On Friday, a group of Extinction Rebellion activists occupied a Tesla store in central Milan. Activists chained themselves to the cars’ tyres, and others glued themselves to the windows along with the slogans “Make millionaires pay again” and “Ecology for all, no ecofascism”.Analysts are openly wondering if Musk is causing lasting damage to a brand he has made synonymous with electric cars and, by extension, liberal aspirations to tackle climate change.Tesla was approached for comment.Tesla was the world’s biggest producer of battery electric cars in 2024, but sales dropped to 1.79m, the first time the company has endured a sales decline since 2011 after years of rapid growth that made it the world’s most valuable carmaker.The manufacturer said in January that global sales would grow during 2025, and Wall Street analysts expect Tesla to sell more than 2m cars this year. But even those forecasts would hardly represent a blazing return to form. As recently as October, Musk said he expected 20% to 30% annual sales growth, implying as many as 2.3m cars sold.“Customer retention will be key in 2025 as customers may begin to look for an ‘Alternative for Tesla’,” said Matthias Schmidt, a Berlin-based electric car analyst.View image in fullscreenOther analysts are more optimistic. Dan Ives, of Wedbush Securities, a US financial firm, is a longstanding Tesla supporter. Ives believes the company’s share price could rise from its current level of about $280 to hit $550. However, he acknowledged the negative perception created by Musk’s partnership with Trump and his work on the so-called department of government efficiency (Doge) – an issue he described as the “elephant in the room” for the brand.Calling them “major brand worries for Tesla”, he added in a note to investors that the direct impact on sales should be relatively small. “We estimate less than 5% of Tesla sales globally are at risk from these issues despite the global draconian narrative for Musk.”Ives said that Tesla was on the verge of making a new, cheaper vehicle – costing less than $35,000 – and would “own” the autonomous vehicle market, factors that would help push Tesla to a valuation of more than $2tn.Nonetheless there are clear signs in the US, Tesla’s biggest market, that would-be buyers are wavering, according to Strategic Vision, a market research company. Its new vehicle experience study tracks the buying preferences of up to 250,000 car buyers in the US, and it shows a sharp decline in regard for Tesla since Musk bought Twitter (now X) in 2022.Shortly before the multibillionaire bought the social media platform, 22% of new vehicle buyers would have “definitely” considered buying a Tesla. By the end of 2024 it was just under 8%. The proportion who would not consider buying a Tesla has risen from 39% over the same period to 63%.According to Strategic Vision, approximately half of non-Tesla EV buyers identify as Democrat or liberal, compared with about 20% identifying as Republican or conservative. Among Tesla owners, the Democrat owner group has fallen from 40% during the Biden administration to 29% now, with the Republican group averaging about 30% since 2021.“Democrats, the majority party of EV owners, are now actively rejecting Tesla and choosing other options,” said Alexander Edwards, president of Strategic Vision.Meanwhile, global protests against Musk and Tesla are intensifying. In America, there have been demonstrations outside dozens of Tesla showrooms, while in the UK a guerrilla poster campaign – “0 to 1939 in 3 seconds” – has emphasised Musk’s fascist-style salute at an inauguration rally. In Germany, he was recently caricatured on a carnival float as “Napo-Elon”.Ross Gerber, chief executive of the US investment management firm Gerber Kawasaki, which holds shares in Tesla, said Musk had given people an outlet to express their disdain for his politics.skip past newsletter promotionafter newsletter promotionHe said: “He has left himself open to a direct way for people to attack him if they don’t like his politics. It’s ironic because the vehicles were made for liberals who care about the environment and it has become a symbol of the conservative movement.”Tesla is valued at about $847bn – still more than the next 10 carmakers combined. Few investment banks have included any effect from Musk in their work trying to accurately value Tesla. Still, there are further reports of falling sales. In Australia, February sales were down about 72% compared with the same month in 2024, according to data released this week.View image in fullscreenSeveral analysts have raised concerns that the current valuation is much too high. JP Morgan is among the most pessimistic of the investment banks, suggesting that Tesla’s share price could fall as low as $135 – or a valuation closer to $400bn. Musk is the largest shareholder in Tesla, a key contributor to his status as the world’s wealthiest person.“Tesla shares continue to strike us as having become completely divorced from the fundamentals,” wrote JP Morgan in January, pointing out that 2025 profit expectations were down 70% since 2022. The share price has more than doubled since then – something that would not usually happen when investors expect lower profits.Analysts at UBS, a Swiss investment bank, concur, saying that Tesla’s valuation “continues to confound us”, with big risks in its efforts to make money from self-driving cars or humanoid robots.While sales declined steeply in January in several markets, several analysts have warned against relying on numbers for a single month. Schmidt said: “Some consumers are likely holding back purchase decisions and waiting for the updated Model Y which arrives this month. The big question though is, are these just the die-hard Tesla enthusiasts which remain in line while other potential consumers jump ship?”There have also been positive signs elsewhere. UK Tesla sales fell in January, but bounced back by a fifth in February to leave sales up year-on-year for 2025 so far. In the US there were also signs of a recovery after a fall in January, with preliminary data for February indicating rebound sales of about 42,000 cars, up 14% year-on-year, according to Wards Intelligence.But the UK sales figures also highlight another concern for investors: that Tesla’s lead on rivals could be narrowing as a flood of new models arrive. Tesla’s electric market share for the first two months of 2025 was 11%, down from 14% in 2024, according to New Automotive, a research group.Ben Nelmes, New Automotive’s chief executive, said: “The impact of Elon Musk’s political views on Tesla’s sales may have been overstated, but Tesla is gradually losing its position as the dominant EV seller in the UK as other carmakers bring more up-to-date and cheaper models to market.”In China Tesla is under big pressure from a slew of cheaper competitors, most notably BYD. In Tesla’s second-biggest market, sales of its China-made EVs dropped 49% year-on-year in February, to the lowest level since August 2022.Edward Niedermeyer, author of Ludicrous – a 2019 book about Tesla which focuses on Musk’s habit of making bold claims about the business that don’t stack up – argues that the prospect for new business like robotaxis and robots are distant. “The unique moment that we’re in now is the business has peaked,” he said.The worry for Tesla investors is whether Musk has turned that peak into a cliff-edge.Additional reporting Lorenzo Tondo More

  • in

    ‘Musk? He’s horrendous’: Martha Lane Fox on diversity, tech bros and International Women’s Day

    As Elon Musk grinned in the Oval Office, one of Britain’s most influential tech investors looked on in horror. “He is absolutely horrendous. I have said it multiple times: I think it is horrifying what is happening,” says Martha Lane Fox.For the British peer and ex-Twitter board member, the sight of Musk holding forth from the bully pulpit of Donald Trump’s White House shows the Silicon Valley dream has gone sour.“The richest man in the world, who can stand there alongside the president, and kind of carte blanche make jokes about how he’s carving up people’s jobs in the government. Then he can be there with a chainsaw laughing on stage…“It is really, really alarming, and I find it extremely unpleasant at a values-based level – but also, just how can we be watching this in plain sight? It makes me feel very anxious. I think it is gross.”In an interview with the Observer to mark International Women’s Day, the president of the British Chambers of Commerce (BCC) warned the diversity pushback orchestrated by Trump and his tech bro acolytes will not only damage society, but also the economy at large.Since his return to the White House, the US president has shut down all federal diversity, equity and inclusion (DEI) initiatives, while Musk’s “department of government efficiency” (Doge) is ripping up funding schemes.Some of the world’s biggest companies are following suit. Amid a wider pushback against everything from environmental targets to sustainable development, among the most prominent taking part are US finance and tech companies, including Goldman Sachs, Accenture and Amazon, while UK businesses such as GSK have also fallen in line.“He needs to be contained,” Lady Lane Fox says of Musk’s role in the rollback. “I find it extraordinary that the richest man in the world is trampling all over these things and that we still have kind of fanboying from the tech sector. It’s already been corrosive for society, and I would argue it is going to continue to be.”For businesses, she says the bottom line is that companies that take diversity seriously appeal to the widest possible employee talent pool and are better placed to target a broad range of customers. This, she adds, is about profit as much as social justice. However, she has a broader concern about the future.“The first thing, it’s financial. But the second thing, it’s about power and money – like everything, right?“If you’re looking at a sector like the digital sector, where there’s the growth in jobs, growth in opportunity – it is the growth sector in the economy. Yet you are not including a whole bunch of people in that. Then you are going to be creating inequality. Full stop. So it’s financial and it’s a question of social justice.”Given the close ties between Britain and the US, there is a view that where corporate America treads, the UK naturally follows. But there are signs that some UK businesses – and even the British operations of some US companies – are prepared to stand apart.The accountancy firm Deloitte instructed staff working on contracts for the US government to remove pronouns from their emails, while also announcing the end of its DEI programme. But its UK boss told staff its British operations remained “committed to [its] diversity goals”.“It feels as though global companies rooted in the US are making a politically motivated slight shift in emphasis and tilt, through to rowing back everything. And it does feel a bit more tempered here,” says Lane Fox.UK businesses have an opportunity to do something different, she says, which could bring financial benefits. “I think we’ll build more robust companies, attract talent and have a much better shot at building the most resilient companies of the future.”For almost three decades, Lane Fox has built a career – and multimillion-pound fortune – in tech. She made her first big money floating Lastminute.com, the online travel site co-founded alongside fellow Oxford graduate Brent Hoberman in 1998.View image in fullscreenShe joined the board of Twitter – now X – in 2016, landing herself a huge payday in Musk’s $44bn hostile takeover in 2022, before he dissolved the board and appointed himself the sole director.Seeing Musk in the Oval Office, parading his son X on his shoulders, made her question the gender divide. “Can you imagine if that was a woman? Can you imagine what that would look like? I mean, I just think the whole thing is really gross.”But while railing against Musk in a personal capacity, the BCC president does not suggest this approach is for everyone. “It is really tricky to navigate. You have a responsibility to your customers and your employees that might be different to our personal view sometimes.”Government regulation to enshrine diversity targets is also a bad idea, she says, preferring instead that companies report their progress. “Keeping it in the light, keeping up the reporting, is important – keeping up good investors, looking at the right metrics and investing in the right companies all helps.”However, not enough progress is being made. Analysis this week showed that worsening unemployment and workforce participation for women has pushed the UK behind Canada to its lowest global ranking for workplace equality among large economies in a decade.The gender pay gap has been declining slowly over time, but average pay is still 7% less for women than for men. It is a challenge Lane Fox is all too aware of. “Look at the data and it is really freaking depressing – and it is not moving,” she says.“What worries me is that it’s far too easy to find numbers that I thought we were moving on from.“In this week of International Women’s Day, we see representation at the executive level has gone back. I see progress on boards is still good at the FTSE 100 level, but bad at FTSE 250 and 350 level.“I know there will be people in the sector thinking: ‘Oh, here she goes again.’ That’s true of many women [that people think that]. But it is so important to keep making these arguments.” More

  • in

    Trump to sign order barring student loan forgiveness for public servants engaged in ‘improper activities’ – as it happened

    Donald Trump plans to today sign an executive order barring government and non-profit employees from a student loan forgiveness program if they engage in “improper activities”.The order affects the Public Service Loan Forgiveness program, under which employees of those organizations can have their federal student debt forgiven if they meet certain criteria. White House staff secretary Will Scharf said that the order will target employees of non-governmental organizations “that engage in illegal, or what we would consider to be improper activities, supporting, for example, illegal immigration or foreign terrorist organizations or otherwise law-breaking activities”.The order will direct the treasury and education departments to ensure that people involved in those activities are not eligible for the forgiveness.We will be wrapping the live blog for the 46th day of Trump’s second term.Here is a look at some of the day’s developments:

    The Trump administration announced that it had canceled $400m in federal grants and contracts to Columbia University in New York because of what it alleges is the college’s repeated failure to protect students from antisemitic harassment.

    The Trump administration fired the head of the US justice department office that handles presidential pardon requests, the official said in a social media post. Liz Oyer, who was appointed by Biden in 2022, said: “I’m sad to share that I was fired today from the job I have poured my heart and soul into for the last three years.”

    The Department of Homeland Security is ending the collective bargaining agreement covering tens of thousands of airport transportation security officers. The agency, led by secretary Kristi Noem, also said it will stop deducting union dues from employees’ paychecks, a major setback for the American Federation of Government Employees, which represents TSA screeners and relies on $15m in annual payments.

    The US Department of Agriculture has eliminated two committees that advise it on food safety. The USDA eliminated the national advisory committee on microbiological criteria for foods and the national advisory committee on meat and poultry inspection, a spokesperson told Reuters.

    About 4,000 defense department personnel received termination notices this week from their employers, a US official told ABC News. Last week, the department said that up to 5,400 employees could be affected in an initial round of job cuts.

    After the New York Times reported that Elon Musk and Marco Rubio had argued in front of Trump on Thursday, the president said “no clash” had happened. “No clash, I was there. You’re just a troublemaker and you’re not supposed to be asking that question, because we’re talking about the World Cup,” Trump said to a reporter.

    The Office of the Comptroller of the Currency is removing a previous requirement that banks had to get special approval before engaging in a range of cryptocurrency services. The government agency overseeing banks reaffirmed that US banks can legally offer certain cryptocurrency activities, like crypto-asset custody, certain stablecoin activities, and participation in independent node verification networks.

    Donald Trump held court in the Oval Office, where he again expressed sympathy for Russia, saying he found it “easier” to negotiate with them on achieving a ceasefire in Ukraine. Trump also threatened Russia with sanctions and tariffs if it did not sign on to a ceasefire.

    Trump cheered the latest employment numbers as proving the wisdom of his economic policies, and said he may soon target Canada with more tariffs to settle long-running disputes over their dairy and lumber industries.
    The so-called “department of government efficiency” is reviewing $1.6tn in social security payments, which includes data on individuals’ names, birthdates, and earnings, in an anti-fraud initiative that has raised concerns among advocates, ABC News reports. They fear that the Trump administration may begin denying benefits to vulnerable older Americans.Details of this initiative were confirmed in a recent letter to Congress by the acting social security administrator, Lee Dudek, and others officials.Along with reviewing sensitive data, Doge staff have been looking into the Social Security Administration’s telephone service, which many beneficiaries use to file initial claims.Trump administration to drop case against plant polluting Louisiana’s ‘Cancer Alley’Donald Trump’s administration has formally agreed to drop a landmark environmental justice case in Louisiana’s “Cancer Alley” region, marking a blow to clean-air advocates in the region and a win for the Japanese petrochemical giant at the centre of the litigation.Legal filings made public on Friday morning reveal that Trump’s Department of Justice agreed to dismiss a long-running lawsuit against the operators of a synthetic rubber plant in Reserve, Louisiana, which is allegedly largely responsible for some of the highest cancer risk rates in the US for the surrounding, majority-Black neighborhoods.The litigation was filed under the Biden administration in February 2023 in a bid to substantially curb the plant’s emissions of a pollutant named chloroprene, a likely human carcinogen. It had targeted both the current operator, the Japanese firm Denka, and its previous owner, the American chemical giant DuPont, and formed a central piece of the former administration’s Environmental Protection Agency (EPA) efforts to address environmental justice issues in disadvantaged communities. A trial had been due to start in April 2025 following lengthy delays.Community leaders in Reserve had expressed grave concerns about the case’s future following Trump’s return to the White House after the president moved to gut offices within the EPA and justice department responsible for civil rights and environmental justice.Read Oliver Laughland’s full report from New Orleans here:The US state department is conducting a review of all visa programs, a department spokesperson told CNN, following reports of a potential new travel ban. A US official told the news outlet that Afghanistan might be among the countries affected.The ban could take effect as early as next week, though the final decisions regarding the included countries and the timing remain uncertain, according to the official.On 20 January, Donald Trump issued an executive order directing cabinet members, including the secretary of state, to identify countries where vetting and screening processes are inadequate enough to justify a partial or full suspension of admissions.A former campaign fundraiser for the ex-US representative George Santos was sentenced Friday to one year and one day in prison for impersonating a high-ranking congressional aide while raising cash for the disgraced New York Republican.Sam Miele, speaking briefly in federal court on Long Island, apologized to everyone he had “let down”, including family and friends, the Associated Press reports.“What I did was wrong. Plain and simple,” Miele said, vowing he would never be involved with the criminal justice system again.Protesters demanding an in-person town hall from their western Michigan GOP representative chanted loudly Friday as honking drivers signaled support, the Associated Press reports.Hours later, the representative Bill Huizenga held a town hall – by phone. The disruption seen outside his Holland office earlier in the day was absent, as the controlled setting allowed for questions from people who wrote and called in.“I know this may not be satisfactory to some who would like to just create a scene and be, you know, be disruptive,” Huizenga said on the call. “But we know that this is extremely effective for reaching people.”Some Republicans have opted to hold telephone town halls after GOP leaders in recent days advised lawmakers to skip town halls, which have been filled with protesters decrying Donald Trump’s administration’s slashing of the federal government.The US Department of Labor has reinstated about 120 employees who had been facing termination as part of the Trump administration’s mass firings of recently hired workers, a union said on Friday.The American Federation of Government Employees, the largest federal employee union, told Reuters that the probationary employees had been reinstated immediately and that the department was issuing letters telling them to report back to duty on Monday.The New York representative Elise Stefanik praised Donald Trump’s decision to cancel $400m in federal grants and contracts to Columbia University because of what the administration alleges is the college’s repeated failure to protect students from antisemitic harassment. In a statement, Stefanik said:
    President Trump is delivering on his promise to hold universities like Columbia accountable by defunding them for failing to protect their Jewish communities,” said Stefanik in a statement sent over email. “I’m proud of my efforts on the Education Committee which led to the FORMER Columbia University President’s resignation and I applaud President Trump for ensuring that hardworking taxpayer dollars do not fund these cesspools of antisemitism.
    Here’s more context on the grant cancellations:The Trump administration fired the head of the US Justice Department office that handles presidential pardon requests, the official said in a social media post.Liz Oyer, who was appointed by Biden in 2022, posted on LinkedIn:
    I’m sad to share that I was fired today from the job I have poured my heart and soul into for the last three years. I am so proud of the team we built in the Office of the Pardon Attorney, who will carry on our important work. I’m very grateful for the many extraordinary people I’ve had the opportunity to connect with on this journey. Thank you for your partnership, your support, and your belief in second chances.
    A pardon attorney runs the process by which people apply for and receive clemency.Oyer’s termination comes two weeks after Donald Trump appointed Alice Marie Johnson as “pardon czar”, a role in which she will recommend people for presidential commutations.The Department of Homeland Security (DHS) announced Friday that it is ending the collective bargaining agreement covering tens of thousands of airport transportation security officers.The agency, led by secretary Kristi Noem, also said it will stop deducting union dues from employees’ paychecks, a major setback for the American Federation of Government Employees, which represents TSA screeners and relies on $15m in annual payments.“Thanks to Secretary Noem’s action, Transportation Security Officers will no longer lose their hard-earned dollars to a union that does not represent them,” reads a statement by a DHS spokesperson. “The Trump Administration is committed [to] returning to merit-based hiring and firing policies.”The US Department of Agriculture has eliminated two committees that advise it on food safety, the agency said on Friday.The USDA eliminated the national advisory committee on microbiological criteria for foods and the national advisory committee on meat and poultry inspection, a spokesperson told Reuters.These cuts raise concerns about government oversight of the food supply as the Trump administration seeks to downsize the federal bureaucracy and slash costs.The committees provided scientific advice to the USDA and other federal agencies on public health issues related to food safety, said the non-profit consumer advocacy group Consumer Reports.The Department of Veterans Affairs will allow crisis hotline responders to work remotely instead of in offices because of the lack of privacy, CNN reports.The VA granted a full exemption for the Veterans Crisis Line from Donald Trump’s executive order requiring federal employees to return to the office.The hotline staff no longer have their own office space because the buildings that housed the call center’s three national hubs – in Georgia, Kansas and New York – were all closed during the Covid pandemic. More

  • in

    EPA issues guidance that spending of $50,000 or more must gain approval of Doge

    The US Environmental Protection Agency (EPA) has issued new guidance directing that spending items greater than $50,000 now require approval from Elon Musk’s so-called “department of government efficiency” (Doge), even as Donald Trump began putting some distance between Musk’s reach and the power of government department heads – at least over job cuts.“Any assistance agreement, contract or interagency agreement transaction [valued at] $50,000 or greater must receive approval from an EPA DOGE team member,” the EPA guidance says, according to documents obtained by the Associated Press. The EPA did not respond to a request from the news agency on Friday for comment.Senator Sheldon Whitehouse of Rhode Island, the top Democrat on the Senate environment and public works committee, called the new directive “troubling”, adding that it means agency actions, including routine contracts and grant awards, “now face unnecessary bureaucratic delays”.Whitehouse added that the involvement of Musk’s “unvetted, inexperienced team raises serious concerns about improper external influence on specialized agency decision-making”.The latest development came after Donald Trump on Thursday gave a clear sign of admitting that drastic government cuts spearheaded by his ally Musk have gone too far. The US president’s views after an explosive, closed-door cabinet confrontation involving Marco Rubio, the US secretary of state, exposed simmering anger over the billionaire entrepreneur’s key role, which Musk attended even though he is not a cabinet member.After weeks of turmoil in the federal bureaucracy wreaked by the Doge team, Trump issued a call for a “scalpel” rather than a “hatchet” to be applied to the task of reducing the federal bureaucracy.The president’s comment in a social media post followed a volatile encounter that saw Musk, the SpaceX and Tesla owner who has assumed a central role in Trump’s fledgling administration, face off against Rubio, whom he accused of “firing nobody”, according to the New York Times. Rubio, who had been furious over Musk’s role in shutting down the main US foreign assistance body, USAid – over which the secretary of state supposedly has control – hit back vigorously, according to the report.Thursday’s cabinet meeting was scheduled abruptly after howls of protest about the effects of Doge’s slashing of government agencies by the constituents of Republican members of Congress, including former military veterans, many of whom have been fired in a wave of indiscriminate cuts.“As the secretaries learn about, and understand, the people working for the various departments, they can be very precise as to who will remain, and who will go,” Trump posted on his Truth Social platform.“We say the ‘scalpel’ rather than the ‘hatchet.’ The combination of them, Elon, Doge, and other great people will be able to do things at a historic level.”Trump’s public call for discretion came after he told cabinet secretaries that they rather than Musk had the final say over whom to hire and fire.Musk conveyed a similar message in a meeting with senators on Capitol Hill on Thursday, claiming he was not to blame for the mass layoffs and giving them his phone number if they wanted to relay concerns.It contrasted starkly with the image he projected at last month’s CPAC conference, when he paraded on stage with a chainsaw to symbolise his ruthless approach to downsizing government agencies. He has openly boasted of feeding the now-gutted USAid “into the wood chipper”, while laying off its estimated 10,000-employee workforce.“Elon doesn’t fire people,” Richard Hudson, a Republican member of Congress from North Carolina, told reporters after a pizza dinner with Musk in the basement of the US Capitol on Thursday.“He doesn’t have hiring and firing authority. The president’s empowered him to go uncover this information, that’s it.”The attempt to downplay a role Musk in which has consistently sought the limelight follows questions from judges in the multiple court cases filed against Doge’s activities about who is leading the staff-culling crusade – and whether Musk himself has a direct role.skip past newsletter promotionafter newsletter promotionThe administration has argued in legal filings that Musk, who has not been confirmed by Congress, is not the official head of Doge. But Trump undercut that in a prime-time address at the US Capitol on Tuesday by flatly suggesting that he is, a declaration that commentators said could directly affect pending court rulings.Numerous recently hired federal employees have been summarily fired before their probation period ended – when their posts would become harder to terminate because of legal protections.Carlos Gimenez, a Republican representative from Florida, said that the agencies rather than Musk had fired the probationers.“Some of the folks that were the probationary people, he didn’t fire them, they were actually supposedly fired by the agencies – and they messed up,” Gimenez said.The portrait of an impartial, hands-off Musk jarred with anecdotal on-the-ground evidence from agencies infiltrated by Doge operatives.On Thursday, federal marshals escorted members of Doge, along with Peter Marocco, director of the state department’s office of foreign assistance, into the Washington office of the US African Development Foundation (USADF), a day after staff had denied them access in what was seen as a David-versus-Goliath act of defiance by one of the smallest federal agencies.The entry resulted in a “traumatising scene”, employees told the Washington Post, and prompted a federal lawsuit by USADF’s president, Ward Brehm, challenging the authority of Trump, Marocco and Doge to close an agency that the president has deemed unnecessary.Further evidence of a de facto Doge takeover of government came in reports of its workers installing themselves in four separate rooms on the sixth floor of the General Service Administration’s building, “complete with beds from Ikea, lamps and dressers.”Politico said the agency was considering spending about $25,000 to install a washer and dryer on the premises, apparently to serve the resident Doge staff. Ethics experts warned that the arrangement could breach agency rules, the website reported.The Associated Press contributed reporting More

  • in

    I lost my job at USAid. It’s devastating – but I still have hope | Christian Smith

    When we rang in the New Year, I wasn’t remotely expecting politics to collide with my career, my family and me. In a matter of weeks, I had lost my job, my father and, I felt, my country.I spent a dozen years as a program officer for USAid, serving in countries in South America, Africa and Asia with my family. I loved my job working with governments and NGOs to improve the lives of those in need. Doing good and doing well, we said. I was helping to build an information system to improve aid transparency and efficiency when sudden news arrived.At 5pm on a Friday, we received an email saying our particular contract had been shut down. In all, 10,000 professionals were dismissed from their jobs, while Elon Musk called us a criminal organization and its staff – me included – a “ball of worms”. The wrecking had begun.At USAid headquarters, administrative assistants were ordered to take down all the pictures of the many people the agency helps around the world, as if it had been something shameful. Only clocks were left on the walls. More cravenly, the administration blocked access to the wall of names honoring those who had given their lives to the cause. Trump officials canceled USAid’s building contract and handed it over to US Customs and Border Protection.The same clocks on the walls that had once marked time over Americans helping people in need overseas may now mark time over Immigration and Customs Enforcement (Ice) agents deporting people to those countries and others.The Trump administration is abandoning millions of people around the world and cutting off life-saving services. We are losing goodwill and influence – diplomatic, economic and moral. A good sign that closing USAid was a mistake: China is already moving in to fill the void, and strongly rightwing leaders like Hungary’s Viktor Orbán are applauding.The destruction is also almost certainly unconstitutional in a number of ways, and aspects continue to be reviewed, blocked or upheld by courts lagging behind the speed at which laws are being broken. A showdown on the reach of executive power has begun.These changes hit me very close to home. A significant number of my family are conservatives who voted for Trump, fueled by two decades of misinformation promoting hate and anger. Despite this, in the interests of our family integrity, we have learned to talk to one another respectfully. We avoid topics related to politics and focus on our love for each other, jigsaw puzzles and American football (until even that became “woke”).Blindsided at work, I was next blindsided at home. Two days after USAid was lost, my father died unexpectedly. Thankfully, my dad and I had been able to say we loved each other before he died. The kids and I flew out and we spent a beautiful week together with the family grieving his loss.However, in a strange moment at the end of the week, my mother told me that I shouldn’t talk about USAid because I didn’t know what I was talking about (as if I had no idea about the organization where I had spent my career). Armed with details from her trusted websites, she informed me that USAid was performing sex changes on children and funding terrorist groups. We defused the moment, but it demonstrated how unchecked deception fomented by wealthy interests so gravely distorts people’s views.Obviously, all of these sudden losses have given me pause to reflect.Despite some people’s attempts to reshape the US and its place in the world, we have not seen the end of American generosity. Humans are successful because we cooperate. We have obligations to each other as living beings. We also know that we can’t make ideas go away, and the best ones – like kindness and caring for others – are actually what bind us.The dismantling of USAid as an institution does not mean that the US’s generosity of spirit has also been eradicated. USAid was a longstanding independent agency established by John F Kennedy, receiving consistent bipartisan support because it advanced America’s foreign policy objectives by helping others.Such values have not disappeared. We can be certain that, in one form or another, US aid will return.

    Christian Smith is an American citizen and former USAid officer who lives between Dublin and Spain More