It's Thursday, the 23rd of April. Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. All right, let's get briefed. First up, Iran's posture is hardening fast, refusing talks, escalating actions in the Strait of Hormuz, And new analysis suggests there's a serious divide inside the regime's hardline leadership. I'll have the details. Later in the show, Moscow releases a list of European firms tied to Ukraine's drone program, hinting that they could be in the crosshairs. Plus, Japan continues its break from post-war pacifism, opening the door to expanded arms sales amid rising threats from China. And in today's Back of the Brief, the Pentagon unveils a record-breaking, get this, $1.5 trillion with a T dollar budget request. With a heavy focus on missile defense, drones, and artificial intelligence. How much intelligence can you buy with $1.5 trillion? A lot is the answer. But first, today's PDB Spotlight. Over the past few days, we've been tracking signs of a power struggle inside Iran's leadership. We've talked about the mixed signals, shifting positions and actions on the ground that don't always line up with what's being said publicly. But new reporting suggests something more complex may be happening. Consider how Iran's posture has shifted over just the past several days. At first, you had an Iranian delegation that appeared possibly open to compromise, signaling, sometimes publicly, that a deal might be within reach. Now, you're seeing a far more assertive stance, Tehran refusing to even come to the table in Islamabad, while tightening its grip on the Strait of Hormuz by firing on and seizing commercial vessels. At first glance, it appeared to point to competing centers of power, civilian leaders on one side, military hardliners on the other. But that may not be the full picture. New analysis in Time magazine suggests this isn't simply a split between civilians and the military. The real divide may actually be inside the hardline camp itself. On one side are more pragmatic figures, and I use that word loosely, the leaders like Mohammed Bakr Galibov, who appear willing, possibly, to use diplomacy as a tool to get what they want, not as a concession, but as one part of a broader strategy that includes pressure and negotiation. Now, to keep things in context, Galibov is not a moderate or a reformer. He's part of the existing regime that slaughtered thousands of Iranians during the January protests. So when we call him pragmatic, we're not implying that somehow he is, I don't know, reasonable. On the other side are more ideological hardliners. Now, these figures and networks are closely tied to the IRGC, including elements of what's known as the Stability Front, who view any compromise as a form of weakness and who are far more skeptical of negotiations with the U.S. These factions are not necessarily arguing about the end goal. They're arguing about how to get there. Now, the biggest structural change that's occurred since the launch of the war is the role of the supreme leader. Under Ali Khamenei, the system had a clear final decider, someone who could step in, settle disputes, and impose a decision across the entire structure. But today, under his son Mushtaba Khamenei, that role appears to be different. As that Time magazine analysis notes, the system no longer seems to revolve around a single dominant figure. Instead, power is being shaped by a broader, security-focused coalition, one that includes the IRGC, the National Security Establishment, and political figures tied to that network. In that kind of system, decisions aren't simply handed down. They're shaped through internal pressure, competing priorities, and the need to maintain consensus among the powerful factions. Now, it's worth noting that this may not be the system's final form. As the analysis points out, Iran appears to be in the middle of a transition. The old model, where the supreme leader acted as the undisputed final authority, is still there, albeit not working. The new structure, centered around a security-driven coalition, isn't fully consolidated yet. For now, that leaves a system that looks less like a clear hierarchy and more like a group of hardline factions trying to manage war, diplomacy, and internal pressure all at the same time. And that helps explain what we're seeing play out in real time. It's not necessarily chaos, it's pressure inside the system, and that creates a real challenge for any negotiations. Because even if some push for a deal, those positions still have to survive inside a system where ideological hardliners can raise the political cost of compromise or block it altogether. At the same time, external pressure from Washington only tightens those constraints making any sign of flexibility harder to sustain domestically The result is a system with less room to maneuver and fewer ways to de without appearing to give ground So while talks may or may not move forward the bigger question remains not just who speaks for Iran, but whether anyone inside that system has both the authority and the political space to make a deal that actually holds. All right, coming up next, Russia publicly identifies European firms linked to Ukraine's drone program, as Japan moves further from post-war pacifism. I'll be right back. Hey, Mike Baker here. Now, many of you may know me as the host of the President's Daily Brief. In fact, I hope you do know me as the host of the PDB. But I'm also a business owner, have been for years, and I want to take just a moment to talk with all of you business owners out there. Now, you probably already know that small businesses face an uphill battle with big banks, where getting a loan means endless paperwork and delays. You know what I'm talking about. But let me tell you about a business out there working to make life easier for small businesses. I'm talking about Cardiff. Now, for bank rates without the wait, go to cardiff.co slash pdb for up to $500,000 in funding. Their application takes less than five minutes, has no impact on personal credit, and approvals can happen in minutes with same-day funding. It's the fastest way to get the capital you need to keep your business moving forward. Look, banks try to lock out small businesses, but Cardiff, Cardiff has the key. Big banks may not want to approve your business loans, but Cardiff does. If you've been in business for at least a year and are pulling in $20,000 a month in revenue, apply now for up to $500,000 in same-day business funding at cardiff.co.pdb. Again, that's cardiff.co.pdb. Real growth, fast funding. That's Cardiff. Hey, Bill O'Reilly here. Please check out my new interview series, We'll Do It Live. Each Thursday, I sit down with the most influential people in America for a no-spin chat, no script, anything could happen. You can find We'll Do It Live on BillOReilly.com, YouTube, or wherever you download your podcasts. Welcome back to the PDB. There's a new move out of Russia that's getting Europe's attention. This time, Moscow is putting names and locations behind a threat, publishing a list of companies that it claims are helping Ukraine build drones, suggesting those facilities could be military targets. Since the beginning of Russia's full-scale invasion of Ukraine, European countries have been heavily involved in providing Kiev with financial and military aid, supplying weapons, systems, and ammunition, and increasingly helping expand drone production. The Russian Defense Ministry went ahead and published a detailed list on Telegram of 21 companies in total that it claims are tied to Ukraine's drone production. And here's the critical detail. It's not limited to Ukrainian firms. According to Moscow, these operations stretch across Europe, Germany, Spain, Italy, the UK, Denmark, and Latvia. In some cases, Moscow even published specific coordinates of facilities. including at least three firms in Germany. Now, the Kremlin is justifying this publicizing of European companies by arguing that Europe is crossing a line, not just supplying Ukraine, but actively participating in the production of weapons being used in strikes on Russian territory. In their words, this is a, quote, step towards escalation. Well, frankly, so is the invasion of Ukraine, one that risks, quote, increasingly dragging European countries into war, end quote. In a more formal statement, the Russian Defense Ministry goes further, calling this, quote, a deliberate step leading to a sharp escalation and the creeping transformation of these countries into Ukraine's strategic rear, end quote. Now, the ministry went on to warn that strikes carried out with European-produced drones could bring what they describe as, quote, unpredictable consequences. The Kremlin, of course, is all about saber-rattling. It's actually surprising that the chief saber-rattler, Dmitry Medvedev, hasn't issued his usual warnings about going nuclear. Now, stand by. That'll probably happen. Germany, as one of the countries named in this list, moved quickly to respond. Berlin summoned the Russian ambassador over what it called direct threats against targets inside the country. The German foreign ministry described Russia's move as an attempt to undermine support for Ukraine and to test Europe's unity, making it clear that they're not backing down, and that they will not be intimidated. So where does that leave things? Well, at a minimum, this is a war of messaging that's becoming more pointed and personal. Russia is naming names, identifying locations, and trying to redraw the boundaries of the conflict. But there's also a bigger risk sitting underneath all of this. Because once you start putting specific sites across Europe on the map, and suggesting they could be treated as targets, we're inching closer to a scenario where the lines between Ukraine and NATO really start to blur. OK I want to turn to Japan because what unfolding there is a pretty clear shift away from decades of post pacifism as Tokyo is opening the door to expanded weapons sales abroad Now on the surface this might sound like a technical policy change but it is something bigger. Just days after hosting more than 30 NATO envoys in Tokyo to deepen defense ties, Japan locked in a $6.5 billion deal to supply warships to Australia. Japanese officials say they're seeing a wave of interest from partners looking to buy equipment and to tap into Japan's growing defense capabilities. At the center of this push is Japan's Prime Minister, Sanae Takeuchi, whose government has moved to ease long-standing restrictions on arms exports. That opens the door for Japanese companies to sell lethal weapons systems to 17 countries, everything from advanced frigates to the Philippines to submarines for Indonesia. And when you look at those countries, the pattern becomes pretty clear. These are nations dealing directly with pressure from China's expanding military footprint. Now, Japan has been loosening these restrictions for more than a decade, carving out exceptions bit by bit. But what we're seeing currently is different. This is a broader shift, one that moves Japan from a largely self-contained defense posture into something much more outward-facing. So you ask yourself, why now? And that is a very reasonable question to ask. A big part of the answer comes down to how Tokyo sees the threat environment in its backyard changing in real time. As we've discussed here on the PDB, China's growing assertiveness across the Indo-Pacific is at the center of this. More naval activity, more pressure on Taiwan, and a steady push to reshape the regional balance of power. Layer on top of that, North Korea's continued missile development, Russia's sharing of technical expertise with Pyongyang, and the Kremlin's willingness to use force to achieve its objectives. So, from Japan's perspective, the direction of travel is clear. The old model, in which Japan focuses primarily on its own defense while relying heavily on the U.S., is becoming less certain. And that brings us to the American piece of this. Japan, of course, still views Washington as its cornerstone ally. That hasn't changed. But as the U.S. shifts military resources towards the war in Iran, pulling some assets out of Asia in the process, It's forcing a conversation in Tokyo about long-term reliability. Not abandonment, but bandwidth. How much, they ask, can the U.S. realistically cover at once? And Japan's answer, at least in part, is to start building more capacity of its own and to help its partners do the same. And that's where this policy shift really starts to scale. Because Japan isn't just entering the arms market, it's entering at a moment when the global system is under strain. Beyond those core allies of Australia, the Philippines, Britain, and Canada, Ukraine has expressed interest in working with Japan, particularly in drones and air defense systems. Now, even with all of this movement, there are still guardrails in place. Tokyo has made it clear it will not export lethal weapons to countries actively engaged in conflict, unless senior officials determine that doing so is necessary for Japan's national security. And Prime Minister Takeuchi has been explicit in pushing back on concerns that Japan is abandoning its identity, saying there is, quote, absolutely no change in its commitment to the peaceful principles that it has upheld for more than 80 years since World War II. But even with those assurances, as you might suspect, China is responding very differently. Beijing accuses Tokyo of reviving militarism and has spent roughly five months applying economic pressure on Japan. And that pressure is tied in part to Takeichi's warnings that Japan will intervene militarily if China were to move against Taiwan. Alright, coming up next in the back of the brief, the Pentagon goes big, requesting a record $1.5 trillion to ramp up drones, AI, and advanced missile defenses. More on that when we come back. Hey, Mike Baker here. Let me take a moment to talk about personal finances and the importance of diversifying your assets. So here's the question for you. Do you own physical gold? Well, in today's world, with its ups and downs and general instability, and yes, I think there is a little general instability out there, owning gold is something that everyone should consider. And here's a top tip. Acre Gold makes it simple. That's Acre, A-C-R-E. With Acre Gold, you pick a plan that fits your budget, you make monthly payments, and when you've accumulated enough, they ship you a beautifully designed 24-carat Swiss gold bar. Gold is up 70% year over year, and central banks, they're still buying it at record levels. The reality is, smart money has been moving into hard assets for a reason, and Acre Gold makes investing and owning gold easier than ever. And let me just say, once you hold a physical asset like gold in your hands, Well, you understand the difference between owning something real, something physical, as compared to investments that are just numbers on the screen. Right now, they're giving away over 18 grams of gold in their Acre Declassified sweepstakes. Enter for free and subscribe to gold at getacregold.com slash pdb. Once again that getacregold slash pdb Hey Mike Baker here with an important message for everyone who currently relies on or is preparing to sign up for medicare look if you dealt with medicare you know how complicated right the system can be deciding which plan is right for you it can be incredibly confusing and knowing even if you've signed up properly honestly for millions of seniors you might be paying for coverage that no longer fits your lifestyle and the truth is well those costs add up. That's why I've partnered with Chapter. They're the only national advisor that compares every Medicare plan available. A trusted advisor will analyze your doctors and prescriptions to see if your plan actually fits. If it does, well, they'll tell you. If it not, well, they'll help you fix it. On average, folks who work with Chapter save $1,100 a year just by finding a better fit. And get this, it's a free 20-minute call. That's it. It's as simple as that. So if you're If you're turning 65 or already on Medicare, just call CHAPTER at 915-671-5252. Again, that's 915-671-5252. And they may ask you where you heard about CHAPTER. Do me a favor, tell them the PDB sent you. In today's Back of the Brief, the Pentagon has unveiled a budget request that, even by Washington's freewheeling spending standards, is raising eyebrows. The Department of Defense, sometimes known as the Department of War, is proposing a massive $1.5 trillion defense budget for fiscal 2027. That's a roughly 40% increase year over year and the largest military spending request in U.S. history. Now, the justification for such a big budget from the DOD is straightforward. Well, they want more cash. No, that's not their justification. They're saying the threat environment is getting more complex, more dangerous, and more technologically advanced. and they're not wrong. In the U.S., they argue, needs to catch up fast. Again, not wrong. So, where's all that money going? Well, at the top of the list is the much-touted Golden Dome. That's the multi-layered missile defense system designed to protect the American homeland. Think space-based sensors, advanced radar, and ground interceptors, all working together to stop incoming ballistic or hypersonic missiles. Then there's a big push into drones and autonomous systems. The budget sets aside tens of billions of dollars for unmanned aircraft, naval drones, and counter-drone technology. This, in part, is based on what the Pentagon has been seeing in Ukraine and, of course, in the Iran conflict, where drones are now central to how wars are fought. There's also a heavy investment in artificial intelligence and data infrastructure, essentially the backbone of future warfare. Faster decision-making, better targeting, more integration across every domain, well, air, land, sea, space, and cyberspace all benefit from enhanced artificial intelligence. And then there's the basics, though basic might not be the right word. The Pentagon is asking for a major surge in munitions, missiles, interceptors, long-range strike weapons. And you know what, with $1.5 trillion, I mean, given the Pentagon's pricing structure, that's going to get you at least, what, a dozen missiles? In some cases, they're looking to buy 10 to 15 times more than in previous years. That's because stockpiles are running low after sustained support to Ukraine and, of course, ongoing operations in Iran. The Navy, meanwhile, is looking to expand in a big way, more than $60 billion for new ships, the largest shipbuilding push since the Cold War era. By the way, fast-breaking news, It looks like the U.S. Secretary of the Navy, John Phelan, has been pushed out from his position there at the Pentagon. Across the board, every branch is getting a bump, and service members are slated to see pay rises of between 5% and 7%. Now, it sounds nice on paper for the military, but in reality, this proposal is already running into political headwinds. No surprise there. Democrats are already calling it excessive and pointing to domestic spending trade-offs. Some Republicans also are uneasy about the sheer size of it and how it's being pushed through Congress. Look, in reality, this budget is probably more of a wish list from the Pentagon. They're essentially throwing in everything and the kitchen sink, knowing that their request will likely get pared down during the inevitable political haggling. And that, my friends, is the President's Daily Brief for Thursday, the 23rd of April. If you have any questions or comments, please reach out to me at pdb at thefirsttv.com. And for you premium subscribers, a new episode of our Ask Me Anything series will be hitting the internet in the next day or so. This is the show where we take very clever questions from our terrific PDB community, and I respond with semi or quasi clever answers. To take part in the next Ask Me Anything, well, it's simple. Just become a premium member by visiting pdbpremium.com. I'm Mike Baker, and I'll be back later today with the PDB Afternoon Bulletin. Until then, stay informed, stay safe, stay cool.
