National Economic Council Director, Kevin Hassett, appears on CNBC to discuss the 10% govt stake in Intel, the status on U.S. trade agreements and other economic matters of interest. WATCH:

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CTH noted several months ago, end the Marshall Plan for Europe and things will change quickly.

Germany is in a tight economic place as a result of: (1) former leftist Chancellor Olaf Scholz alignment with climate change policy, radically changing the German energy base and driving up costs; (2) the financial support for Ukraine; (3) the financial burden of mass African/ME migration, and (4) the new Trump-era EU tariffs that effectively end the Marshall Plan.

Put all four elements together and the German economic contraction is only forecast to worsen. This is the reality that current German Chanceller Fredrich Merz is facing. Thus, as a non-pretending former businessman, Merz recently told his party and the German electorate that current financial conditions no longer support the expansive entitlement state.

Pensions, benefits and even healthcare are potentially going to be impacted. Germans are not happy.

GERMANY – The German welfare state is no longer financially sustainable, Friedrich Merz said on Saturday. The chancellor argued for a fundamental reassessment of the benefits system as spending continues to soar past last year’s record of €47bn (£40bn).

In a state-level party conference meeting on Saturday, Mr Merz said: “The welfare state as we have it today can no longer be financed with what we can economically afford.”

Once the export champion of Europe, Germany’s economy has slowed dramatically since 2017, with GDP growing by only 1.6 per cent since then versus 9.5 per cent for the rest of the eurozone.

Germany’s economy shrank by 0.2 per cent last year following a 0.3 per cent dip in 2023 – the first time since the early 2000s the economy has retreated two years in a row.

Industrial production fell under the Left-leaning “traffic light” coalition of Olaf Scholz and continues to slide under the new government, with GDP declining by 0.3 per cent in the second quarter of 2025.

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After concerns were raised by congress that Intel’s current CEO Lip-Bu Tan was a venture capitalist investing in Chinese companies, a concern shared by President Trump, apparently things have changed considerably.

Mr. Lip-Bu Tan came to the White House to address concerns about protecting U.S. national security interests. President Trump announces the U.S. government now has a 10% stake in the tech firm.

President Trump (Truth Social) – “It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future. I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN! Thank you for your attention to this matter.”

Intel has been struggling for the past several years, and President Trump has been focused on getting Semiconductor and Chip manufacturing established in the USA, a big national security issue.  The Trump administration has been negotiating a 10% stake in Intel by converting grants the company was awarded under former President Joe Biden.

Obviously, I’m not a big fan of government collaboration with private corporations, but this approach aligns with a very specific national security issue.  This sounds like something Commerce Secretary Lutnick and President Trump would structure as a win/win.

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The Canadian govt led by Prime Minister Mark Carney has completely capitulated to the power and influence of President Trump.

While explaining how the United States has fundamentally changed the entire landscape of global trade, the leader of the Snow Mexicans announces he is dropping all countervailing and retaliatory tariffs against the USA and getting nothing in return.  Total and complete surrender by Canada; there is ZERO upside for Canada – NADA, Zippo, Zilch.

Prime Minister Mark Carney made the announcement, then faced the ire of the assembled media who were furious about the details within the statement.  The Canadian people had been promised an “elbows up” fight to the end. Instead, today they got down on their knees and begged Trump to retain the USMCA.

Complete and utter capitulation by Canada. No digital services taxes. No countervailing duty tariffs. No reciprocity tariffs on Steel and Aluminum. No retaliatory tariffs (reciprocal/baseline). Meanwhile, the USA keeps 50% tariffs on steel and aluminum against Canada, and Canada only gets 25% tariffs against U.S. steel/aluminum.

In addition, Canada has pledged to continue gaslighting their citizens, while wasting time, effort and resources on a hope to retain the USMCA, while refusing to admit to themselves that President Trump intends to dissolve it. WATCH:

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If that recap sounds bad for Canada, trust me – it’s way worse.  Really bad, horrible – terrible even.  So far beyond bad, the light from where horrible starts could not reach the Canadian terrible place for a year.  Not good.  😊

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At noon today, President Trump is scheduled to make an announcement from the oval office in the White House.  Several people have speculated about the subject matter, but my suspicions are that this relates to the U.S-Canada trade status.

Perhaps the USMCA is officially opened for renegotiation; or perhaps the “elbows up” team has taken a knee.  Regardless, that’s my guess about the subject of the announcement.   Let’s watch together:

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The leader of the Snow Mexicans looked really small after the White House Ukraine peace summit.  Just a guess, but I’m thinking Carney -with economy slowly contracting around him- is trying to get relevant quickly.

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HatTip to Ben for calling attention to this remarkable story.

Essentially China’s “Belt and Road” initiative is a system of China putting massive infrastructure investment funds into a targeted country in exchange for their ability to extract resources needed for Chinese expansion. However, several nations are now rising up against the Chinese influence as it surfaces in the lives of the citizens.

Angola is a case study in China investing billions and with the investment a large number of Chinese citizens arrive set up businesses there.  Over time resentment against the Chinese has been building.  Then a flashpoint with a massive jump in gas prices.  Suddenly, anarchy erupts, and all the Chinese businesses are looted, some even killed in the violence.

[READ STORY HERE]

China is now evacuating some of the 300,000+ Chinese citizens from the region, and the Chinese embassy is urgently warning people about the escalating crisis.

Remember when Tunis erupted at the origin of the “Arab Spring”?  That was a combined economic and cultural flashpoint. This escalating problem in Africa has a similar theme to it.

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Considering that Volodymyr Zelenskyy has been called a “puppet” for various western interests, the reports of Zelenskyy bringing EU leaders along for his meeting with President Trump strikes as a little ironic.

Apparently, the EU is worried that Zelenskyy could screw things up for their Ukraine interests, so handlers or minders are being dispatched along with him just in case. Finnish President Alexander Stubb and NATO General Secretary Mark Rutte are among the names being discussed as chaperones for the Ukraine President.

Additionally, French President Emmanuel Macron and U.K. Prime Minister Keir Starmer are planning a teleconference Sunday as the “coalition of the willing” brainstorms the best way to avoid a Zelenskyy capitulation to the terms and conditions outlined by President Vladimir Putin.

With BlackRock and J.P.Morgan prepositioned to control the Ukraine Recovery and Reinvestment Bank {LINK}, the coalition of the willing want U.S. troops to backstop the terms of a potential peace agreement.  The banks and financial beneficiaries need the insurance provided by the U.S military.

Ultimately, banking interests are the stakeholders in the future, and the U.K, France and German political officials represent the strategists in place to protect the interests of the banks.  Not coincidentally, this is classic -albeit inverted- fascism.

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U.S. Customs and Border Patrol has discovered a massive network of Chinese shell companies, set up in Taiwan, South Korea, Vietnam and Indonesia, specifically to avoid U.S. tariffs.

…”Investigations into transshipping are ongoing, the CBP tells FOX Business with monetary recovery likely to grow beyond $400 million”…

Up to 250 shell companies have been identified in the Beijing network with boots on the ground going to look at manufacturing facilities in Southeast Asia that have no manufacturing activity, yet they generate products for shipment to the USA.

CBP is now on the trail of what CTH identified in January of this year with a visit to Vietnam {GO DEEP}.

ASEAN NATIONS – U.S. Customs and Border Protection has busted up a duty-evasion ring attempting to evade President Trump’s tariffs, FOX Business exclusively reports. 

The CBP uncovered over $400 million in unpaid trade duties through investigations permitted under the Enforce and Protect Act (EAPA), a tactic used to police and stop illegal transshipments and other methods aimed at defrauding the U.S. government. That figure is expected to rise as the investigation deepens. 

[…] A source tells FOX Business’ Edward Lawrence that one of the operations had boots on the ground in Taiwan and Indonesia to look at mattress factories and found that there was no production going on. 

Additionally, over half, or $250 million, came from a network of 23 Chinese shell companies which funneled repackaged goods as if they were made in Asian nations, including South Korea, Indonesia and Vietnam, to avoid tariffs.  (read more)

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The BRICS economic partnership was formed during the Obama administration.  Brazil, Russia, India, China and South Africa (BRICS) watched U.S. President Obama subcontract U.S. trade policy to the U.S. Chamber of Commerce and Wall Street.

In the aftermath of the 2007 economic crisis, created by Congress and banking interests, the BRICS group identified two central points of ‘western’ financial influence that concerned them.

Following the financial crisis, the relationships around the World Bank (WB), International Monetary Fund (IMF), EU central banks and various multinational institutions and multinational corporations, merged even closer with the government.

The priorities of the Davos and World Economic Forum (WEF) crowd were now virtually indistinguishable from many national governments.  We are almost twenty years downstream from that inflection point, and we are seeing the outcomes.

The WEF essentially flipped the traditional record of ‘fascism’.  Instead of government telling corporations how to operate, the modern version was now corporate assemblies giving direct instructions to installed politicians for government policy.

Put another way, multinational corporations are telling government officials what to do. Think of “The Great Reset” or “Build Back Better” or climate change (Paris Treaty), as recent examples.  Worse yet, western governments are doing exactly what the WEF has told them to do.

This corporate control of government is exactly what the BRICS assembly foresaw when they assembled.  When multinational corporations run the policy of western government, there is going to be a problem.  In the bigger picture, the BRICS assembly are essentially leaders who do not want corporations and multinational banks running their government.

As a result, if you really boil it down, what you find is the BRICS group oppose the WEF business model.

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The Bureau of Labor Statistics (BLS) releases the July inflation data today [RELEASE HERE].  Overall, inflation remains low and stable with a July outcome of 0.2 percent, 2.7 percent year over year.

The prices for highly consumable goods like food at home are declining, meanwhile the prices of long-term durable goods is ticking up.  Put another way, the prices of the stuff we export are lower, the prices of the imported durable goods are a little higher.  Put them together and the aggregate inflation is stable.  WATCH:

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We should anticipate these similar economic outcomes as the baseline tariffs and reciprocal tariff rates begin solidifying.  The largest portion of the tariff rates will be absorbed by the producers, the pass-through rate will be far less.

Additionally, highly consumable goods like food and energy products should remain stable with downward price pressure as the cost of production drops.

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