ICE arrests Abrego Garcia, plans to deport him to Uganda

ICE arrests Abrego Garcia, plans to deport him to Uganda.

WH advisor says US may buy stock in other companies after taking 10% stake in Intel.

Kilmar Abrego Garcia, the Venezuelan man who was illegally deported to El Salvador earlier this year, was arrested by Immigration and Customs Enforcement after going to a mandatory ICE check in. Abrego Garcia’s case made headlines after an attorney for the Department of Justice admitted that he had been deported in error despite a protective order. He spent several weeks in El Salvador’s notorious CECOT prison where he claims to have been tortured. The US later brought him back after charging him with human trafficking in connection with a 2022 traffic stop in Tennessee.

ICE reportedly intends to deport Abrego Garcia to the East African nation of Uganda. Along with several other African nations, Uganda recently signed an agreement with the Trump administration to accept unwanted migrants from other countries. The US District Judge overseeing his immigration case, Paula Xinis, has issued an order barring Abrego Garcia’s deportation pending an evidentiary hearing.

In a court filing, Abrego Garcia said he feared he would face torture and other ill-treatment in Uganda because of his race and nationality. He has said he would prefer to be sent to Costa Rica, where he has been offered some sort of legal status. Abrego Garcia’s attorneys say the US government offered to deport Abrego Garcia to Costa Rica in exchange for him pleading guilty to trafficking charges, and said the offer expired on Monday. His attorneys say the plan to send him to Uganda is to “punish” him for fighting the criminal charges against him, which he denies.

White House advisor says US government may buy stock in other companies after taking 10% stake in Intel

Last week, the Trump administration took the unusual step of moving to convert billions in US grants to chipmaker intel into an equity stake in the company, amounting to about 9.9%. This now makes the United States Intel’s single largest shareholder. National Economic Council Director Kevin Hassett said today that the administration may look to acquire equity in other major US firms, calling it a “down payment on a sovereign wealth fund”.

Sovereign wealth funds are formal institutions used by many countries to invest in state assets. Most countries with SWFs are net energy exporters and have little or no international debt. The US only recently became a net energy exporter as of 2019, but it currently leads the world in international debt with a total burden of $37 trillion. The next highest international debtor is the UK with about $10 trillion.

The United States has not generally assumed an ownership stake in private companies except in times of crisis, such as the aftermath of the 2008 crash. Intel is far from being in crisis but it is struggling to build its market share against international competitors. In a securities filing by Intel, the company warned that a US stake in the company could hamper its ability to do business in other countries.

Potential benefits and risks

In March, Trump ordered the creation of a sovereign wealth fund which would allow the US to profit from the potential sale of TikTok. Since then, the Trump administration has taken on stakes in American rare earth companies, as well as in US Steel which was recently bought out by Japan’s Nippon Steel. US chipmakers NVIDIA and AMP will also now turn over 15% of their profits for sales to China which were previously prohibited.

Sovereign wealth funds help nations to secure strategic assets and ensure that the government reaps financial benefit from its investments in various companies. These investments can take the form of government grants (as was the case with Intel), tax breaks or other trade policies which favor them. A government stake can help underwrite policies where the business case is weak but which in the long-term benefit the US economy, such as the push to move more manufacturing capacity within the US.

However, Trump’s strategy also increases government exposure to the inherent volatility of the markets. Many business leaders have expressed trepidation over Trump’s plans in part because it will mean they will now be directly answerable to the US government. Republican have also criticized these policies. For example, Sen. Rand Paul (R-KY) has called it a step towards socialism, in which the government owns the means of production.

Ultimately, the benefits of a sovereign wealth fund are determined by the institutions that govern it. Despite Trump’s March executive order, no formal sovereign wealth fund has been created. While he continues to build the US portfolio, little is known about how these funds and investments will be administered or who will benefit from them.

Other news of note:

Israel kills 20 in strike on Gaza hospital, including 5 journalists.

FBI shuts down part of national park to investigate area where Washington father allegedly murdered his 3 young daughters nearly 3 months ago. Father is still on the run and there have been no confirmed sightings for over 2 months.

Search for California 7-month-old continues after parents arrested for his murder.

Trump moves to ban flag burning despite Supreme Court decision that it is constitutionally-protected speech.

Stepfather, mother arrested after 11-year old gives birth to stepfather’s child in Oklahoma.