Oh dear, this doesn’t bode well for those who are concerned about U.S. imposed 20% auto tariffs on EU, mostly German, automobiles.  [NOTE: Pay attention to the timing here as it relates to Nord Stream 2] Germany’s chancellor Angela Merkel has announced she will no longer uphold her prior agreement for NATO military spending.

At the 2014 NATO meeting in Wales, all NATO members agreed they would immediately begin a process to increase their military spending to two percent of GDP.  However, over time, and in direct contravention to the purpose of the effort, Germany (Merkel) began secretly working behind the scenes with Russia (Putin) on the Nord Stream II gas pipeline.
The Nord Stream 2 pipeline delivers natural gas from Russia to Germany.  That pipeline is expected to go on-line this November, 2019.  Today, Angela Merkel announces she will no longer uphold Germany’s financial commitments to NATO. These two issues are directly related.  It now looks like Merkel made a back-door agreement with Russia on NATO.

(Via Daily Mail) Germany’s military spending is set to fall below its NATO targets, in the latest flashpoint in Berlin’s long-running row with Washington.
The latest German budget plans, revealed on Monday, will see defence spending drop well below the two per cent of GDP expected from NATO members.
U.S. ambassador Richard Grenell said the cuts were a ‘worrisome signal’, while President Donald Trump has repeatedly accused Germany of freeloading on U.S. military might.

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Following a weekend of clashes, violence and stores burned in the city of Paris, French President Emmanuel Macron has replaced the police chief and announced blockades to keep yellow vest protesters away from key tourist destinations.

PARIS (AP) — France’s prime minister announced a ban Monday on yellow vest protests along the Champs-Elysees Avenue in Paris and in two other cities following riots on Saturday that left luxury stores ransacked and charred from arson fires.
Prime Minister Edouard Philippe said the ban will apply for an unspecified period in the neighborhoods that have been “the most impacted” in the cities of Paris, Bordeaux and Toulouse, where repeated destruction has occurred since the yellow vest protest movement began in November.

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Toyota made a huge announcement today [SEE HERE] that’s a direct outcome of the NAFTA replacement USMCA trade deal; and the new 75% rule of origin within the Auto sector.

The Toyota announcement is a total of $13 billion investment and includes expanded component part production in: Alabama ($288 million), Kentucky ($238 million), Missouri ($62 million), Tennessee ($50 million) and West Virginia ($111 million).   Additionally, Toyota will open a new assembly plant in Huntsville, Alabama ($1.5 billion) and serious investments in several other areas. [Details Here]
The guiding decision here relates specifically to the construct of the USMCA (NAFTA replacement).   Toyota was previously focused on multi-billion-dollar investments in Canada as they exploited the NAFTA loophole and procured component parts from Asia for North American assembly and shipment into the U.S. Market.  However, when they renegotiated NAFTA and created the USMCA President Trump and USTR Lighthizer closed closed the loophole.
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Earlier today President Trump welcomed Ireland’s Prime Minister Leo Varadkar to the White House and held a mini press conference in the Oval Office.

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The Bureau of Labor Statistics (BLS) released some important data today surrounding the state of the U.S. economy. The first release shows the current CPI (consumer price index) or rate of inflation:

(BLS Release) […] The all items index increased 1.5 percent for the 12 months ending February, a smaller increase than the 1.6-percent rise for the 12-months ending January. The index for all items less food and energy rose 2.1 percent over the last 12 months, a slightly smaller figure than the 2.2-percent increase for the period ending January. The food index rose 2.0 percent over the past year, its largest 12-month increase since the period ending April 2015. In contrast, the energy index declined 5.0 percent over the last 12 months. (read more)

As noted above, energy prices are 5.0% lower year-over-year; this is a significant reason for the current low inflationary rate.  Also energy prices (fuel, gas, oil) disproportionately impact the middle-class as an unavoidable cost.  Lower gas prices (currently down 9.1%) help middle-America, and also have a downstream impact of lowering product transportation costs.
An overall annual rate of inflation at 1.5 percent is exactly on target.  CTH has been predicting this energy-based outcome for more than three years:
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National Security Adviser John Bolton appears with Maria Bartiromo to discuss recent reports that Kim Jong-un is moving toward more nuclear testing.
Obviously that discussion moves quickly into the influence of China and Chairman Xi Jinping.
The frustrating question no-one ever seems to ask is not “if” China controls the DPRK government, but rather “to what extent”?
It has become more obvious in the past few years that North Korea’s Chairman Kim Jong-un has much less control over officials and military leadership within his own government than previously thought.
Does Chairman Xi and Beijing structurally control everything around Kim? Is Kim a hostage; forced to ride a dragon he doesn’t control?  I think the answer is yes.

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Once people start to realize that China controls North Korea as a proxy province, then the discussion can evolve toward the true nature of the challenge, and the way President Trump is precariously negotiating a hostage release while refusing to pay the ransom.
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National Economic Council Chairman Larry Kudlow appears on Fox News Sunday to discuss economic policy, budgets and taxes. Since the discussion is the economy, Wallace quickly puts on his doomsday hat.

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National Economic Council Director Larry Kudlow discusses the February jobs report, wage gains, stimulus from the European Central Bank, and President Trump’s ongoing trade confrontation with China.  [Solid Interview]
Chairman Kudlow notes some interesting dynamics at play including the recent National Household employment survey which showed 225k additional workers resulting in a drop in the overall unemployment statistics to 3.8%

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Additionally, the globalist-minded Wall Street crowd are disappointed that a March summit between Chairman Xi and President Trump has been scuttled. In aggregate terms, this cancellation backdrops USTR Robert Lighthizer’s strong granular demands of the Chinese delegation toward contractual enforcement terms. It is most likely Chairman Xi is not happy with the feedback he is receiving from his team. Too bad.
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President Donald Trump and First Lady Melania Trump welcome Czech Prime Minister Andrej Babis and Madame Monika Babisova to the White House in advance of a bilateral meeting between the two leaders. [Video and Transcript]

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[Transcript] Oval Office – 1:55 P.M. EST – PRESIDENT TRUMP: Well, thank you very much. It’s a great honor to have the Prime Minister of the Czech Republic. Prime Minister Babiš and Mrs. Babiš, thank you very much for being here. It’s a great honor. Great country.
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White House trade adviser Peter Navarro has been a core member of the U.S. trade team providing a brutally honest perspective toward how specific trade engagements can directly benefit the U.S. economy and U.S. worker.
Navarro has gained a reputation as a trade hawk, specifically as it relates to confronting the one-sided trade schemes of China.  However, that encapsulation doesn’t accurately reflect Mr. Navarro’s value.
The Big Club hates him.  Yes, Navarro is hated and opposed by all the right people.  He might be rough around the edges, but he fights… for ‘America First‘.
Navarro is unapologetic in openly calling attention to the process where Wall Street, the multinationals (corporations and banks) have gained power and influence over politicians in Washington DC.  Wall Street funnels hundreds-of-millions to Tom Dohohue, President of the U.S. Chamber of Commerce.  Donohue controls an army of K-Street lobbyists who purchase politicians and sell their CoC created legislation.
Specifically because he calls attention to the brutal truth of a corrupt process, he has become the target of attacks from Wall Street’s beneficiaries, the big club and Decepticon senators who take massive campaign bribes from Tom Donohue.
In a recent Op-ed, Peter Navarro highlights how the Trump economic team is delivering on a promise for structural global trade reform that directly benefits the U.S. economy, U.S. workers, and Main Street USA.
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