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  • Trump’s Midterm Strategy Harks Back to Agnew’s

    Trump’s Midterm Strategy Harks Back to Agnew’s


    People watching U.S. television last month may have seen a rehashed television advertisement from the 2024 campaign featuring President Donald Trump. In the so-called public service announcement, which has been especially controversial because it was funded by the U.S. government, the president walks down a hallway as audio plays of him declaring that “this is the final battle” against communists, Marxists, fascists, and the “fake news media.” He promises to “throw off the sick political class that hates our country” and “liberate America from these villains, once and for all.”

    The spot is classic Trump.

    At Republicans’ midterm convention in Dallas, Vice President JD Vance delivered a blistering keynote speech in which he attacked Democrats as the “party of hatred” and extremism. “This fall, the Democrats are running candidates who will tell your children what they’re allowed to say, how they’re allowed to live, and importantly, who they ought to hate,” he said on Sept. 10. “The Democrats are the party of hatred. They are the party that despises America and the people who built it. They are the party that can find sympathy for the terrorists who perpetrated 9/11.”

    Both the advertisement and the speech grow out of the basic strategy that Republicans have embraced in the final weeks leading up the midterm elections. Given that Trump is facing historically low approval ratings, including on the economy, and that Republicans are struggling in states that are usually considered safe for the GOP (like Kansas), they can’t focus on a positive vision for the future.

    Instead, they are clinging to Trump’s playbook from his first campaign: When you can’t persuade the public to like who you are or what you’re doing, concentrate on shaping how voters see your opponent. Through fear and smear, make the electorate hate the other team more than it hates you. There is no reason to appeal to hearts and minds. Rather, the path to power revolves around appealing to hate and anger. Doing this requires candidates to capitalize on and exacerbate partisan division rather than trying to appeal to the center.

    The strategy is essentially the foundation of MAGA Republicanism, but it did not start with Trump. Beginning in 1969 and continuing through the 1970 midterms, Vice President Spiro Agnew promoted a politics that he defended as “positive polarization.” The GOP drew sharp lines of division heading into that November, portraying Democrats as radical, anti-war, elitist, and immoral people in contrast to a Republican Party depicted as serving law-abiding, patriotic Americans.


    President Richard Nixon had been involved in politics long enough to know that the 1970 midterms would not be easy. His victory in 1968 over Vice President Hubert Humphrey and the independent candidate and former Alabama Gov. George Wallace had been extraordinarily narrow, making it difficult to claim much of a mandate. Though Nixon’s approval ratings remained above 50 percent, they had been slipping amid the revelation of the U.S. incursion into Cambodia and the deaths of four student protesters at Kent State University. Moreover, with the exception of 1934, midterm elections had consistently gone poorly for the president’s party, while Democrats had controlled both chambers of Congress since 1955.

    But Nixon was eager to expand his power on Capitol Hill, recognizing that significantly shifting public policy would require weakening the liberal Democratic majorities that controlled the House and Senate.

    Agnew emerged as the point man for the strategy that the White House and the Republican Party would pursue. It was a logical choice. A former Maryland governor once known as a moderate Republican, Agnew had changed his tune in 1968, responding to Black urban unrest in Baltimore with fiery denunciations about law and order meant to appeal to working class, white ethnic voters who had traditionally been Democrats. His emerging style caught Nixon’s attention and landed him a place on the national ticket. “The selection of Spiro Agnew revealed Nixon at his worst,” wrote Nixon biographer John Farell. “It was a cynical nod, a race-baiting wink.” What was most appealing to Nixon, noted columnist Robert Novak, “was Agnew at his public worst—administering a demagogic public tongue-lashing to black leaders in Baltimore after the riots following the death of Martin Luther King.”

    Once in office, Agnew turned up the volume. In several speeches during 1969, the vice president laid out a framework for Republicans to tarnish the image of Democrats. He dismissed liberal intellectuals and the anti-war movement as an “effete corps of impudent snobs.” Speaking on national television, Agnew turned his attention those covering the administration, particularly the television networks, whom he attacked for their alleged liberal bias and skewed coverage. “The upshot of all this controversy is that a narrow and distorted picture of America often emerges from the televised news,” he said. “A single, dramatic piece of the mosaic becomes in the minds of millions the entire picture.” Most famously, Agnew would later attack his critics, particularly members of the news media, as “nattering nabobs of negativism.” According to Time magazine, the directives to Agnew were coming from the president himself. One top aide said, “The President has felt that the time has come when he could no longer try to hold everybody in the tent.”

    When his opponents charged that Agnew was recklessly polarizing the nation, the vice president did not back down. In fact, he embraced the charge, eventually defending what he called “positive polarization.” He argued that the “silent majority,” as Nixon famously called his supporters, needed to understand who they were up against. He was essentially reviving a style of Red Scare politics, identifying radical leftism with a threat to U.S. institutions.

    The vice president traveled across the country campaigning for Republican candidates around these themes. In speeches written by aides like Pat Buchanan, Agnew lashed out against “pusillanimous pussyfooters” and “radiclibs,” whom he portrayed as threats to the basic fabric of the nation. “Division can be constructive,” Agnew explained, and partisanship “must be pursued zealously, vigorously, without hesitation.”

    In November, the benefits of Agnew’s strategy proved limited. While Republicans had a net gain of one seat in the Senate, they lost a dozen seats in the House as well as several key gubernatorial races. For all the talk about left-wing radicals, voters still seemed more concerned with inflation, climbing unemployment, and the continuing war in Southeast Asia.

    Though the short-term effects were less than Nixon hoped for, Agnew’s strategy became an enduring political playbook. In a 1971 New York Times interview, he said that, according to the media, “dividing the American people has been my main contribution to the national political scene since assuming the office of Vice President over two and one half years ago.”

    He went on: “I not only plead guilty to this charge, but I am somewhat flattered by it.”

    The attacks were woven into Nixon’s extraordinarily successful 1972 reelection campaign against Democratic Sen. George McGovern, which produced a presidential landslide comparable to Franklin Roosevelt’s victory in 1936 and Lyndon Johnson’s in 1964.

    In October 1973, Agnew resigned and pleaded no contest to one count of federal income-tax evasion as part of an agreement under which he avoided prosecution on allegations of bribery, extortion, and other corruption. In August 1974, Nixon was pressured into resigning after Senate Republicans suggested a trial in the upper chamber over whether to remove him from office—should the House approve articles of impeachment stemming from the Watergate scandal—would not go well.

    In the decades that followed, Republicans would come to champion Agnew’s vision. In the 1980s and 1990s, Rep. Newt Gingrich, who was elected speaker of the House in 1995, rallied Republicans by calling on them to be tougher and fiercer against Democrats by abandoning traditional norms of bipartisanship and civility in favor of a blistering, smashmouth style of partisanship. When Barack Obama was president, Tea Party Republicans entered Washington and took Gingrich’s methods to a new level, culminating in the triumph of MAGA Republicans who are even more extreme.

    Agnew’s so-called positive polarization has been an increasingly important part of the Republican playbook during the past 10 years under Trump. Seeing an electorate that was deeply divided between red and blue, Trump abandoned conventional aspirations to break through the divide—which Obama had called for in his keynote speech at the 2004 Democratic National Convention—and instead concentrated almost exclusively on playing to the base and vilifying his opponents at every turn. He has used all of his political muscle to keep Republicans in line, understanding that partisan discipline on Capitol Hill and in the electorate has been essential to his power.


    Positive polarization is a strategy that has destructive effects. In a deeply polarized nation where voters are naturally divided into different camps on key issues, political leaders have a responsibility to push back against the worst of these divisions. Partisanship is a natural, indeed healthy, element of democratic politics, allowing important differences to manifest themselves and work their way through the established political process. But guardrails must remain in place to keep partisan conflict within responsible bounds, and political leaders must be willing to tell supporters when to pull back.

    Under Agnew’s strategy, political leaders do the opposite. They intentionally fuel, deepen, and harden the worst feelings that members of one party feel toward another. Jettisoning efforts to persuade voters with a vision of U.S. society and public policy, they instead concentrate on poisoning how parts of the country see the opposition. Over time, those images stick, making it much harder, if not impossible, to pull back from the dangerous precipice separating total hyperpartisan destruction from healthy partisan competition.



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  • U.K. Sanctions Cryptomus for RU Money Laundering – Krebs on Security

    U.K. Sanctions Cryptomus for RU Money Laundering – Krebs on Security


    The United Kingdom has issued economic sanctions against Cryptomus, a chameleonic cryptocurrency platform that experts say serves as a major conduit for payments related to ransomware, narcotics, darknet markets, fraud and cybercrime services that are helping Russia circumvent existing financial restrictions.

    Heleket’s support agent on Telegram claims, despite all evidence to the contrary, that it is not affiliated with Cryptomus. Image: Richard Sanders.

    On October 8, the U.K. issued sanctions (PDF) against Cryptomus — previously known as Certa Payments and Xeltox Enterprises — for processing payments that benefit the Russian government and its financial institutions. The sanctions freeze any Cryptomus assets at U.K. banks, and bar British companies from offering it any business, virtual or otherwise. Also targeted in these sanctions were the virtual payment platforms VexPay, TokenSpot, and the Tsunami Payments service.

    As explained in our December 2024 investigation, “How Cryptocurrency Turns to Cash in Russian Banks,” Cryptomus has been a key payment processor for dozens of Russian cryptocurrency exchanges and websites hawking cybercrime services. The company has changed its name several times since emerging in 2022, most recently to “Heleket” last year after Canada levied a record CAD $176 million fine against the platform for anti-money laundering violations.

    The blockchain data-crunching firm Chainalysis said the U.K. sanctions target the broader infrastructure supporting Russia’s wartime economy.

    “Cryptomus and Heleket have emerged as major payment hubs for illicit activity,” Chainalysis wrote in an October 8 blog post. “Together, these services received more illicit funds across tracked categories than the mixers in our dataset and the number of illicit counterparties surged to more than 900 in a single month in late 2025.”

    The Cryptomus support bot on Telegram, responding on Oct. 8 to an inquiry by saying the platform was suddenly unable to process transactions.

    In April 2026, the blockchain analysis firm TRM Labs found Cryptomus had processed more than $7 billion in transactions since its inception in 2022, including transactions associated with child sexual abuse material vendors, terrorist financing networks, and human trafficking operations.

    TRM noted that Cryptomus’s transaction volume cratered after the platform instituted new “know your customer” or KYC rules, and that the cryptocurrency platform responded to the Canadian fines by launching Heleket as a parallel service that continued to offer no-KYC payment processing.

    Richard Sanders is a blockchain analyst and investigator who spent months mapping out Cryptomus’s payment infrastructure and transacting with its customers. Sanders said the U.K. sanctions on Cryptomus are important because Canada’s sanctions against the platform were ultimately unenforceable and uncollectible.

    “A fine doesn’t stop a cryptocurrency payment processor from processing payments,” Sanders wrote on LinkedIn. “Sanctions kill the operation. The distinction matters.”

    As our 2024 investigation noted, Cryptomus shared a Vancouver address with dozens of other foreign currency dealers and money transfer businesses — none of which appeared to be physically located there. Following the CAD $176 million fine for alleged money laundering violations, Cryptomus appealed the penalty, launched Heleket as a parallel service, and kept on processing large volumes of sketchy transactions, Sanders said.

    Sanders said the sanctions also are notable because they are the first known instance of a “Five Eyes” country (referring to the Australia, Canada, New Zealand, the U.K. and the U.S.) sanctioning a cryptocurrency operation incorporated in another Five Eyes jurisdiction.

    Where do entities like Cryptomus and Heleket derive their authority to offer international financial services? The answer appears to involve fake financial institutions overseen by a phony regulatory body positioned in a country that is not widely recognized as a sovereign nation.

    Our 2024 investigation found the sole shareholder of Cryptomus’s parent company Certa Payments was a 25-year-old Ukrainian woman who also headed several other firms, including the WS Management and Advisory Corporation, which bills itself as the regulatory body that exclusively oversees licenses for cryptocurrency, foreign exchange and online gaming businesses incorporated in the disputed region in northwest Africa known as the Western Sahara.

    That entity’s website — crasadr.com — says it assists applicants with bank setup and formation, online gaming licenses, and the creation and licensing of foreign exchange brokers. One of Certa Payments’ former sites — certa[.]website — also shared a server with 12 other domains, including rasd-state[.]ws, a website for the Central Reserve Authority of the Western Sahara.

    The website crasadr dot com, the official website of the Central Reserve Authority of Western Sahara, which lists the entities awarded licenses for cryptocurrencies, gaming and foreign exchange services.



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  • Environmentalists Are Wrong to Oppose the U.S. Senate’s Energy Infrastructure Permitting Deal

    Environmentalists Are Wrong to Oppose the U.S. Senate’s Energy Infrastructure Permitting Deal


    From soaring diesel prices to Europe’s devastating summer heat waves, threats to energy security and the climate are intensifying. The introduction of U.S. permitting reform legislation on Sept. 30 brought a rare opportunity to address both. Leaders of the Senate’s two main energy and environment committees reached a bipartisan agreement on the most significant infrastructure overhaul in decades. The compromise is a major achievement, among the most important policy measures in decades to advance clean energy, meet rising energy needs, and rein in soaring energy prices. Rejecting it purely because it may ease construction of fossil fuel projects, as many in the environmental movement are advocating, would be an error.

    Energy policy requires balancing the often-competing needs of security, affordability, and sustainability. Today, achieving each of these ambitions depends on the United States’ ability to build. The reality is that while the bill may lead to some additional fossil fuel projects and related emissions in the United States, those will be offset by lower production elsewhere and outweighed by longer-term gains from the expansion of clean energy. And in that sense, the bill is very likely to be a net positive for the environment.

    From soaring diesel prices to Europe’s devastating summer heat waves, threats to energy security and the climate are intensifying. The introduction of U.S. permitting reform legislation on Sept. 30 brought a rare opportunity to address both. Leaders of the Senate’s two main energy and environment committees reached a bipartisan agreement on the most significant infrastructure overhaul in decades. The compromise is a major achievement, among the most important policy measures in decades to advance clean energy, meet rising energy needs, and rein in soaring energy prices. Rejecting it purely because it may ease construction of fossil fuel projects, as many in the environmental movement are advocating, would be an error.

    Energy policy requires balancing the often-competing needs of security, affordability, and sustainability. Today, achieving each of these ambitions depends on the United States’ ability to build. The reality is that while the bill may lead to some additional fossil fuel projects and related emissions in the United States, those will be offset by lower production elsewhere and outweighed by longer-term gains from the expansion of clean energy. And in that sense, the bill is very likely to be a net positive for the environment.

    But its benefits go way beyond that. Electricity demand is accelerating after nearly two decades of little growth, straining an aging grid. Renewables and batteries are often among the cheapest and fastest options for meeting that demand, but lengthy approvals and inadequate transmission impede deployment. Researchers from Princeton University estimated when the Inflation Reduction Act was passed in 2022 that more than 80 percent of the law’s projected 2030 emissions reductions could be lost if transmission remained at its rate of expanding only 1 percent annually—a rate that has actually been slowing since then.

    Infrastructure constraints also strain today’s U.S. energy system, which remains roughly 80 percent supplied by fossil fuels. Disruptions in the Middle East and Russia have hit a refining system with little spare capacity outside China, causing diesel prices to spike, yet the United States has lost roughly 800,000 barrels a day of refining capacity since early 2020. Limited gas pipeline capacity contributes to high winter energy costs in New York and New England.

    And this year’s oil shock underscores that in a global oil market, the most durable protection against disruptions abroad is to reduce oil use, such as by electrifying more vehicles. Yet that requires new electricity infrastructure. Energy security and climate progress both demand that the United States build more, faster.

    The Senate compromise would make it easier to build energy infrastructure across the board. It would shorten the window for legal challenges, tighten environmental review deadlines, and strengthen federal authority to approve interstate transmission lines. It would also limit administrations’ ability to revoke permits, giving investors confidence that projects, whether pipelines or offshore wind, can survive changes in political control. Large data centers would also cover the additional costs of serving them while paying their share of the existing transmission system. Modeling from the Center for Climate and Energy Solutions shows that the reforms would reduce power sector costs and emissions while lowering household electricity bills.

    Unfortunately, many environmental groups oppose the deal because it weakens tools used to block fossil fuel infrastructure. Challenges made under laws such as the National Environmental Policy Act and Clean Water Act have delayed pipelines, overturned approvals, and made projects economically unviable. Some opponents argue that curtailing those tools would undermine climate action.

    Concerns about expanding the production of more polluting fuels are valid. Yet history shows the limits of trying to reduce fossil fuel use by restricting supply. In a global market, blocking production in one place encourages production elsewhere so long as underlying demand remains. To the extent that production is curtailed, supply restrictions raise prices—which could curb consumption, but governments facing angry consumers rarely tolerate shortages and high prices.

    Indeed, few efforts have been more effective to block oil and gas supplies than U.S. President Donald Trump’s attack on Iran, which led to the closure of the Strait of Hormuz and, at the closure’s peak, disrupted roughly 15 percent of global oil supply. The shock spurred electric vehicle sales, but governments responded above all by subsidizing prices, releasing strategic stocks, and scrambling for alternative supplies. The economic and political costs of shortages were too high to tolerate.

    By contrast, when the COVID-19 pandemic crushed demand, global oil supply plunged by nearly 12 million barrels a day in May 2020 alone. A pandemic is no climate strategy. But the collapse demonstrates how falling demand forces production down, not the other way around. Climate policy must achieve that by making alternatives affordable and practical, alongside stronger emissions and efficiency standards.

    Making clean alternatives more available requires electric vehicles, nuclear power, renewables, battery storage, and transmission. Yet the same legal strategies used to derail pipelines have also obstructed clean energy projects. Permitting reform helps build the infrastructure that allows fossil fuel demand to fall, especially when paired with strong climate policy.

    Affordability and reliability problems also underpin public support for climate action. From European capitals to Albany, governments have been easing climate laws in response to voter angst about energy prices. After Russia triggered an energy crisis in Europe, European governments accelerated some renewable deployment, but they also committed hundreds of billions of euros to subsidize high fossil fuel prices and build new gas import terminals to cushion the blow. Maintaining reliable supplies during a multidecade transition through investments in the resilience of the oil and gas system protects consumers and helps sustain support for climate policies.

    As for oil and gas projects, this year’s crisis underscores the benefits of the United States’ emergence as the world’s largest producer. Global markets still determine prices at the pump, but greater domestic production, along with reduced oil use per unit of economic output, have made the economy more resilient.

    Economists at the Dallas Federal Reserve estimate that a disruption comparable to this year’s would have reduced U.S. real GDP growth by 5.6 percentage points in 1980 versus 0.3 percentage points today. Even if the United States accelerates its much-needed transition to clean energy, investment in the energy system on which it still depends remains necessary and strengthens the country both economically and geopolitically.

    Finally, landmark environmental laws were designed to assess and address projects’ effects on communities, water quality, wildlife, and other environmental resources, not as a blanket veto on fossil fuel development. That these laws have been repurposed to that end, creating obstacles that now also imperil clean energy, is a reason to reform them, not preserve the status quo.

    This compromise deserves scrutiny and improvement where necessary; undoubtedly, when a bill more than 400 pages is finally released, careful parsing of the language may find drafting errors or unintended consequences. But rejecting it solely because it may also benefit oil and gas projects would sacrifice a historic opportunity to advance Washington’s security, affordability, and clean energy goals simultaneously. Paired with strong climate policy, permitting reform is necessary to rapidly bring the United States’ use of fossil fuels and greenhouse gas emissions down.



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