Put this in the ‘beyond ridiculous’ file that explains the current situation of a contracting European economy; specifically, in the auto sector.

Europe has fines associated with the production of gasoline powered engines if the auto company doesn’t hit targets for sales of electric vehicles.  The fines triggered this year.  In order to avoid paying the European fines the auto makers are forming alliances with Chinese EV makers to purchase carbon credit offsets.

In essence, EU car companies buy Chinese car company carbon credits, to avoid the EU fines.  The Chinese car companies can then use the carbon credit revenue to subsidize lower priced Chinese EVs to the European car market, thereby undercutting the European EV car companies.  BRILLIANT!

MILAN, Oct 21 (Reuters) – Automakers have formed alliances to help them avoid hefty European Union fines on carbon emissions by purchasing credits from electric vehicle companies. Several legacy automakers face potential fines as the transition to EVs in Europe has proved slower than expected in recent years.

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When President Trump says, “I’m not sure”, it’s an honest answer. The remarkable aspect is that this type of honesty is not common among politicians.

Maria Bartiromo previews her broadcast of an interview with President Trump, which will air on Sunday. In this segment, Ms. Bartiromo asks President Trump about the future of U.S-China trade relations. While noting that in a few weeks President Trump and Chairman Xi are likely to meet in ¹Seoul S-Korea, as President Trump travels to both the ASEAN and APEC meetings.

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¹I’m not sure if this will happen, but it appears that President Trump might actually travel East to get to Malaysia (Oct 26-28) and South Korea at the end of October (31st).  Why fly East?  Well, if the information aligns correctly, en route to Asia, President Trump appears to have a stop in Budapest, Hungary (Oct 24/25?) on the same timeline.  Fly to Europe, then onward in a southeasterly direction to Asia.  The alternative would be to meet Putin in Budapest in the first few days of November (2nd or 3rd).

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During a flight to the Middle East, President Trump noted, before he would give authorization for NATO to sell Tomahawk missiles to Ukraine, he would discuss the matter with President Putin. Earlier today, President Trump said he and Putin held a productive phone call:

President Trump via Truth Social – “I have just concluded my telephone conversation with President Vladimir Putin, of Russia, and it was a very productive one. President Putin congratulated me and the United States on the Great Accomplishment of Peace in the Middle East, something that, he said, has been dreamed of for centuries. I actually believe that the Success in the Middle East will help in our negotiation in attaining an end to the War with Russia/Ukraine.

President Putin thanked the First Lady, Melania, for her involvement with children. He was very appreciative and said that this will continue. We also spent a great deal of time talking about Trade between Russia and the United States when the War with Ukraine is over.

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China holds a monopolistic level of control on the industrial processing of rare earth minerals.  The minerals themselves are not rare; it’s the processing of them into refined elements used in industrial electronic component manufacturing that gives China power.

The U.S. and China hold a current trade agreement saying, essentially, we will remain steady with the baseline tariffs in exchange for Beijing maintaining a consistent policy on the export of processed rare earth magnets and minerals.  The announcement of export controls by Beijing violated the terms of that trade agreement, and President Trump responded by announcing an additional retaliatory tariff of 100%, effective November 1st.

China then sent a clarification statement saying current licensing and trade agreements would be honored.  On his flight to Israel, President Trump said, “I think I know what happened, I know what happened” and downplayed the trade action.  U.S Trade Representative Jamieson Greer gives some background.  WATCH:

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Vice President JD Vance appears on Fox News with Maria Bartiromo to discuss the Israel/Hamas peace agreement over Gaza and other regional issues.

As noted by Vance, the Gulf Arab states are willing to provide boots on the ground to establish the security parameters for the Gaza area, as well as the vast majority of the funding to rebuild Gaza and monitor the stability therein.  Additionally, Vice President Vance discussed the government shutdown and the ways President Trump and OMB Director Russ Vought are working through the process of funding priority.  Tariff revenue will be a significant offset.

The conversation then goes to the Chinese trade actions and the new tariffs against Beijing.  WATCH:

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In a significant response to a direct Chinese trade action, President Trump has announced a 100% retaliatory tariff against China effective November 1st.

President Trump Via Truth Social – “It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1st, 2025, impose large scale Export Controls on virtually every product they make, and some not even made by them. This affects ALL Countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations.

Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying. Also on November 1st, we will impose Export Controls on any and all critical software.

It is impossible to believe that China would have taken such an action, but they have, and the rest is History. Thank you for your attention to this matter!”

DONALD J. TRUMP
PRESIDENT OF THE UNITED STATES OF AMERICA

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When it comes to presidential candidates, it’s worth remembering: The Kentucky Derby is won by horses, but it’s the owners who get the prize money.

In my opinion, Larry Ellison (Oracle) is the most strategic billionaire influencer, a long-term thinker, in the modern era.  Larry Ellison is about to take control of TikTok, while his son David Ellison gains CBS and will likely move Bari Weiss into content control. Next up, CNN.  Funnily enough, while Elon was the shiny thing, Larry smiled. Keep watching.

The framework of the U.S. TikTok deal is becoming clear. The New York Times has the best write up.

(NEW YORK TIMES) – The software giant Oracle will oversee the security of Americans’ data and monitor changes and updates to TikTok’s powerful recommendation technology under a new deal to avert a ban of the service, according to a senior White House official.

A copy of the algorithm, the recommendation engine that powers the app’s addictive feed of short videos, will be licensed from China to an American investor group that will oversee the app in the United States, the official said.

Oracle will also invest in the new American TikTok, as will the private equity firm Silver Lake, another senior official said.

It will be “secured” in the United States outside the control of TikTok’s Chinese owner, ByteDance, one of the officials said. The U.S.-run TikTok will work to retrain the copy on users’ data in the United States, and China will not have access to the data, the officials added.

The deal is an effort to meet the requirements of a law that would have banned TikTok in the United States unless ByteDance relinquished control of the app. It was intended to address national security concerns that the app’s ownership could give Beijing a channel to spread propaganda or to collect sensitive data about Americans.

[…] Under the terms of the deal, American companies will own around 80 percent of the American version of the app. ByteDance and other Chinese investors will own less than 20 percent.

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U.S. Solicitor General D. John Sauer has asked the Supreme Court to accept the case by next week, hear arguments in early November and “expedite” its ultimate ruling “to the maximum extent feasible.” [Appeal Here] with [Expedited Review Request Here]

[SOURCE]

From the request for expedited consideration, “The en banc Federal Circuit’s erroneous decision has disrupted highly impactful, sensitive, ongoing diplomatic trade negotiations, and cast a pall of legal uncertainty over the President’s efforts to protect our country by preventing an unprecedented economic and foreign-policy crisis,” Sauer notes.

Adding comments from Treasury Secretary Scott Bessent, “The recent decision by the Federal Circuit is already adversely affecting ongoing negotiations. World leaders are questioning the Presi-dent’s authority to impose tariffs, walking away from or delaying negotiations, and/or imposing a different calculus on their negotiating positions.”

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U.S. Attorney Jeanine Pirro joined multiple members of local, state and federal law enforcement agencies to announce what they’re calling “the largest law enforcement bust of precursor chemicals bound for a foreign terrorist organization.”

The press conference is below, and this is the underpinning of the IEEPA. WATCH:

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India is now facing a 50% import tariff against the majority of their goods (electronics and pharmaceuticals exempted). However, Indian Prime Minister Narendra Modi has vowed not to yield to the pressure. Modi said the world was witnessing a “politics of economic selfishness.”

For approximately a decade many western countries including the U.S. have heaped effusive praise on India as corporations viewed the massive Indian population, the world’s largest democracy, as both workers and consumers.  However, after the western sanctions against Russia were delivered, India -a BRICS nation- began pulling back from western alignment and influence.

Western sanctions map against Russia (yellow = agree with USA).

What we are witnessing now is one of the ramifications of the U.S. forcefully putting an “us or them” aspect into the strategic economic relationship, where “them” is Russia.  Currently, India is not flinching.

One could make the argument that undeveloped regions in Brazil, Russia, India, China and South Africa (BRICS) contain the majority of the valuable rare earth minerals and magnets the ‘western’ nations need for manufacturing.  BRICS has a pressure point to apply leverage, but no global trade currency, if the trade conflict escalates.

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