Several key economic reports were released today highlighting a broad and strong U.S. economy with a very strong labor market.

♦ The first quarter Gross Domestic Product (GDP) was released by the Bureau of Economic Analysis (BEA) [DATA HERE] The first estimate is for growth at 2.0 percent.  At first glance that is lower than we expected; however, a deeper look shows a large increase in imported goods that are deductions to the equation.  The imported goods increased 25.8% more than the fourth quarter of 2025 [Table 1.1], that led to a net -1.30 percent deduction [Table 1.5].

The jump in imports is a result of massive capital expenditures on tools and equipment for the ongoing manufacturing boom.  All the manufacturing machines and industrial tools that are not made in the USA become imported goods deducted from our economic valuation.

Exports were very strong rising 12.9 percent over the prior quarter.  However, the 25.8% increase in imports created a net deduction from GDP (-1.30%).  The last time we imported this much was just before the tariffs went into place and companies were rushing advanced orders, in the first quarter of 2025; this created a rebound effect in the second quarter.

I estimate the second quarter rebound will be even greater this year because we are exporting massive amounts of oil and LNG right now.  Simultaneously, the capital expenditure imports will likely soften.

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Oh boy, this indictment puts Mexican President Claudia Sheinbaum in a really precarious position.  If President Sheinbaum gives up the Governor of Sinaloa, Mexico, Ruben Rocha Moya to extradition the Sinaloa cartel will go ultra-violent against Sheinbaum and Moya will likely take down the entire government apparatus with him.

[Read Indictment Here]

[Ancillary to this, it now makes sense why all the various Mexican federal officials were publicly criticizing the Trump administration and CIA in recent days.  They knew this in advance.]

The DOJ (SDNY) has indicted Mexican Governor Ruben Rocha Moya along with nine current and former Mexican officials for participating “in a corrupt and violent drug trafficking conspiracy with the Cartel to import massive amounts of fentanyl, heroin, cocaine, and methamphetamine from Mexico into the United States. 

“The defendants have played a variety of essential roles for the Cartel:  among other things, the defendants have allegedly shielded Cartel leaders from investigation, arrest, and prosecution; caused sensitive law enforcement and military information to be provided to members of the Cartel and allied drug traffickers to assist the Cartel’s criminal activities; directed members of state and local law enforcement agencies, such as the Sinaloa State Police, the Investigative Police for the Sinaloa State Attorney General’s Office, and the Culiacan Municipal Police, to protect drug loads stored in and transiting through Mexico to the United States; and allowed brutal drug-related violence to be committed by members of the Cartel without consequence.  In exchange, the defendants have collectively received millions of dollars in drug money from the Cartel.” (link)

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U.S. Treasury Secretary Scott Bessent outlines Operation Economic Fury and the financial pressure campaign against the Iranian regime with Larry Kudlow.

KEY POINTS:

0:00 Introduction: Operation Economic Fury
0:39 Max Pressure: The Strategy to Freeze Iran’s Economy
2:04 Tracking the Money: Seizing IRGC Assets and Crypto
3:14 The Oil Blockade: Kharg Island at a Standstill
4:10 US Economic Resilience: Why Critics Are Wrong
6:04 IRS Modernization and Signature Tax Policies
7:33 Global Reshoring and the Manufacturing Boom
8:10 Geopolitical Chess: The UAE’s Break from OPEC
10:27 Federal Reserve Friction: Jay Powell vs. Kevin Warsh

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As you are aware, CTH is watching the small details closely on the U.S-Russia alignment against the backdrop of friction with the European Union, the U.K and NATO on issues surrounding Iran.  In the past several days there have been several smaller moments lost amid media chatter of bigger news items, this is one such example today in the Oval Office.

During a press availability with the Artemis II astronauts, President Trump was asked for an update on the Ukraine conflict and seemingly stalled negotiations between U.S. intermediaries and Russia.  At 04:12 of the video below, President Trump notes he spoke at length with Russian Federation President Vladimir Putin today on issues related to the Ukraine conflict, and {{{thoughtful-pause}}} Iran.  WATCH:

President Vladimir Putin is in no hurry to ceasefire in Ukraine, and the U.S. military operation in Iran is not against his interests.

On April 12, 2026, Treasury Secretary Scott Bessent quietly extended the sanction relief for Russia, permitting oil/gas sales loaded on vessels by 4/17/26 for transit and sale through 5/16/26.  This permits Russia to push oil to Asia, specifically China, India and ASEAN countries where it is needed, while simultaneously the UAE and Saudi Arabia increase oil pumping avoiding the issues with the Strait of Hormuz.

This is happening while the U.S. is providing large oil and LNG supply increases to South/Central America, Europe and Japan to offset any global shortages.

Russia supplies China, India and Southeast Asia; the U.S. supplies Europe and Japan; the UAE supplies India and Australia; while Saudi Arabia supplies Africa and Europe.  Global markets stable, Iran then faces operation financial fury led by Treasury Secretary Scott Bessent. {Go Deep}

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Today, in a very important 6-3 decision at the Supreme Court [Full pdf Ruling Here] the high court ruled in Louisiana -vs Callais that congressional districts drawn by considering race are an unconstitutional gerrymander.  Race should not be a consideration in the drawing of district boundaries.

Chief Justice John Roberts had previously described Louisiana’s 6th Congressional District as a “snake” that stretches more than 200 miles (320 kilometers) to link parts of Shreveport, Alexandria, Lafayette and Baton Rouge.  “That map is an unconstitutional gerrymander,” Justice Samuel Alito wrote in the majority opinion.

Justice Elena Kagan wrote the dissent for the three leftist, activist justices. “The consequences are likely to be far-reaching and grave. Today’s decision renders Section 2 all but a dead letter,” Kagan wrote, referencing Section 2 of the Voting Rights Act of 1965. 

(Via Politico) – […] Alito said a revised interpretation of Section 2 was needed in part because of the Supreme Court’s 2019 ruling that the Constitution does not prohibit gerrymandering for partisan purposes. As a result, he suggested, plaintiffs in voting discrimination lawsuits are now often “dressing their political-gerrymandering claims in racial garb.”

“Failing to account for political considerations in redistricting … can allow plaintiffs to undo a State’s legitimate, non-racial decisions under the banner of Section 2,” Alito wrote, appearing to express concern that Democrats could use voting rights lawsuits for partisan purposes rather than to target racial discrimination.

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Acting Attorney General Todd Blanche announced today a two-count indictment against former FBI Director James Comey from the Eastern District of North Carolina for threats against President Donald Trump. [Indictment Here]

According to the Press Release: […] “The Indictment includes two counts, first in violation of 18 U.S.C. § 871, alleging that James Comey, 65, knowingly and willfully made a threat to take the life of, and to inflict bodily harm upon the President of the United States. This charge alleges that on May 15, 2025, by publicly posting an image over the internet via Instagram depicting “86 47”, which a reasonable recipient who is familiar with the circumstances would interpret as a serious expression of an intent to do harm to the President of the United States.

The Indictment also charges Comey in violation of 18 U.S.C. § 875(c), that James Comey consciously disregarded a substantial risk that his communication would be viewed as threatening violence, and that he knowingly transmitted a communication in interstate commerce that contained a threat to injure the person of another, which a reasonable recipient who is familiar with the circumstances would interpret as a serious expression of an intent to do harm to a person.” (SOURCE)

James Comey is charged with Threatening the President in violation of 18 U.S.C. § 871(a) and Transmitting a Threat in Interstate Commerce in violation of 18 U.S.C. § 875(c). If convicted, he faces a maximum penalty of 10 years in prison.

Additionally, similar to the criminal referral connected to former ICIG Michael Atkinson, today’s grand jury indictment creates a pressure point for ongoing DOJ investigations into additional related matters concerning FBI Director James Comey.

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President Trump and the First Lady Participate in a Family Photo with the King and Queen of the United Kingdom. The short formal moment precedes the State Dinner this evening. WATCH:

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This afternoon, King Charles III will become the first British monarch to address the U.S. Congress since his mother, Queen Elizabeth II, in 1991. Livestream Links Below 

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President Donald Trump and First Lady Melania Trump participate in a formal welcome ceremony for King Charles III and Queen Camilla of the United Kingdom of Great Britain and Northern Ireland.  The entire event video is below with the prompt to the beginning of President Trump’s remarks.

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Things are quickening.  It would appear that accountability for the COVID-19 cover up is finally here.

David Morens, 78, was the senior advisor to Anthony Fauci at the National Institute of Allergy and Infectious Diseases (NIAID). Mr Morens was indicted today by the Dept of Justice for conspiracy against the United States; destruction, alteration, or falsification of records in federal investigations; concealment, removal, or mutilation of records; and aiding and abetting.  [Indictment pdf HERE]

In essence, Morens was indicted for manipulating science, facilitating the creation of the SARS-CoV-2 virus and then running a cover-up operation.  The evidence of the cover up is what busted him.  Morens is hopefully the first of many who could be taken down in this network.  Peter Danszak should be next.

NEW YORK – […] The indictment, unsealed Monday in Maryland federal court, also notes two unnamed co-conspirators who “concealed, removed, destroyed and caused the concealment, and removal of federal records to evade FOIA [Freedom of Information Act] and FRA [Federal Records Act].”

Information in the indictment indicates the co-conspirators are Dr. Peter Daszak, the president of Manhattan-based non-profit EcoHealth Alliance, and Dr. Gerald Keusch, an associate director of Boston University’s National Emerging Infectious Disease Laboratory Institute and National Institutes of Health (NIH) grantee.

Morens, who served as a senior advisor to Fauci from 2006 to 2022, made his initial appearance in court Monday, and a judge granted him conditional release pending trial so long as he surrenders his US passport by Wednesday.  He must also “avoid all contact” with the co-conspirators. (more)

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