Mercedes is willing to begin military and weapons production. Historically speaking, this did not work out so well for Europe the last time; however, as with all things German, the expanded backstory is a little more complicated.

Due to a combination of terrible political decisions related to the German and EU energy sector, the German industrial economy is contracting rapidly. Germany is the heart of the EU economic engine.

At the same time as the German economy is contracting, the economic footprint of China in the EU is growing. The core issue centers around a declining auto sector but extends to all ancillary manufacturing outputs.

By following the WEF’s “Build Back Better” program, Europe as a whole has ended up making itself energy-dependent and vulnerable. The Gulf oil and gas crisis, the looming 25% Trump tariffs on EU cars, and the withdrawal of U.S. troops from German NATO bases only add to their growing economic troubles.

Around the same time as this economic convergence, Germany began ramping up its commitments, support, and spending for Ukraine in the conflict with Russia. Subsidy outflows rose just as GDP was falling, a clear example of an economic spiral that can easily spin out of control.

German Chancellor Freidrich Merz is trying to deal with the consequences of exceptionally short-sighted and damaging policy, but reversing the trend would require Germany to focus all policy operations inwardly away from Brussels and the demands of the collective European Union. This is now the core issue in German politics driving bold dividing lines between political power structures.

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Something is going to happen, I’m not entirely sure what it is, but something is going to happen on May 8th and 9th as Russia pauses the conflict with Ukraine to celebrate one of their most treasured holidays, Victory Day.

My spidey senses are telling me, Ukraine and the EU are planning something very controversial to coincide with this national holiday in the Russian Federation.

Germany has done this before, but this time with President Trump pulling back from NATO, this year holds a different context.

GERMANY – Berlin police published an administrative order on 6 May restricting freedom of assembly and access to public spaces in the areas around three Soviet war memorials from 06:00 on 8 May until 22:00 on 9 May.

In the restricted zones of the Treptow-Köpenick, Mitte and Pankow districts, the wearing of military uniforms and insignia is prohibited, as is the display of the letters Z and V, St George’s ribbons, flags and items bearing Russian symbols, flags of the USSR, Belarus and the Chechen Republic, and portraits of their leaders, as well as depictions of Ukraine that exclude its occupied territories.

Russian military and marching songs – including all versions of Sacred War – are also banned, along with any actions that glorify Russia’s war against Ukraine.  The ban applies to everyone present in the restricted areas, regardless of whether they are participating in demonstrations or not. (more)

May 9, celebrated as Victory Day, is one of the most significant and heartfelt holidays in Russia, symbolizing resilience, unity, and remembrance. This day honors the Soviet Union’s victory over Nazi Germany in World War II, known in Russia as the Great Patriotic War. It is a time when the nation collectively reflects on its history, pays tribute to those who sacrificed their lives, and celebrates the enduring spirit of its people.

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Anyone who has ever dealt with a toxic narcissist understands the psychology behind their manipulative language, words and intents.  What Canadian Prime Minister Mark Carney is doing here is very dangerous, particularly for the Canadian people.

After a year of increased provocative language intended to confront President Trump for U.S. nationalist policy changes on economics, trade and security, Prime Minister Carney travelled to Europe where he again delivered strong remarks saying that Europe is now the center of the “rules based international order,” the western government control mechanisms that have maintained economic and security relationships for the past one-hundred years.

Essentially, Carney, after saying the USA was no longer a reliable or obedient partner, emphasized the opposition to state nationalism must come from a collective decision to retain the old geopolitical structures.  President Trump must be opposed, and Europe -according to Carney- represents the assembly that will not permit state government nationalism (sovereignty) to replace their long-constructed globalist systems.

Today, Prime Minister Carney faced questions about those remarks. I don’t want to influence the audience, but with the context in mind, watch and listen closely to his response. [Prompted]

[NOTE: The question comes from the Toronto Star, the only ‘conservative’ media outlet permitted under the rules of the Canadian regime to ask questions.  All other outlets who might challenge the government viewpoints are strictly controlled and not permitted audience.]

Notice how Carney divides the world of opposition to President Trump, indicating the 5-Eyes nations of Canada, Great Britain, Australia, New Zealand are in opposition to Trump and in alignment with the old control mechanisms.  Adding to this grouping, Carney pulls in the entire European continent and boldly proclaims his position as lead diplomat and representative for their effort against the USA.

This is a very dangerous game that Prime Minister Carney is choosing to play here.  This is the behavior of a person who is toxically narcissistic and prepared to claim victim status as soon as his target hits back.  Carney has carefully and purposefully deceived his domestic audience, and things are about to get very ugly.

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How do you sum up the economic forecast for Europe? This story highlights one of the craziest stories in a long time. This is so blindingly suicidal, it cannot be stupidity. This is intentional.

BACKGROUND – You might remember last year due to climate/carbon emission regulations inside Europe EU automakers had to pay fines to the EU Commission if they did not meet electric vehicle targets. In order to avoid the penalties many EU automakers began purchasing ‘carbon credit’ offsets from Chinese EV automakers.

European car makers were paying China for carbon credits, and Chinese car companies began using the payments to lower prices. Europe was, essentially, paying China to undercut their own auto market. The result was European car makers, specifically those in Germany, losing market share to lower price EVs from China.  German industry began shrinking.

If that wasn’t crazy enough, what comes next is beyond laughable. As a result of lost sales and diminished volumes, Volkswagen had shut down auto plants. Now, Volkswagen is announcing that Chinese automakers, their China “partners,” will take over the underutilized facilities and start building Chinese cars in Germany.

GERMANY – Volkswagen Group is facing increased pressure from its board to further cut costs despite already announcing radical measures, such as axing around 50,000 jobs in Germany by 2030 and reducing production capacity by up to 3 million units per year to 9 million, which would make it very difficult to avoid plant closures or sales. Overall, Europe’s largest automaker aims to reduce costs by 20% by the end of 2028.

In an attempt to mitigate the effect of these measures, the automaker appears ready to do what not too long ago would have seemed unthinkable, namely selling China-developed cars in Europe and even sharing its underutilized plants in the region with its Chinese partners.

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Six days ago, in Marsberg, German Chancellor Friedrich Merz criticized the U.S. approach to Iran, saying Washington was being “humiliated by the Iranian leadership” and demanding the conflict end “as quickly as possible.”

Three days ago, President Trump responded with an announcement that U.S. troops in Germany would be drawn down, and there would be a 25% tariff on all imported European autos.  {GO DEEP}

Suddenly, Friedrich Merz reverses his position:

[SOURCE]

Imagine that.

But seriously folks, when people argue that it’s not about the economics of the thing – remind them, it’s always about the economics of the thing.

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President Trump paused for a brief press gaggle with the assembled pool of reporters.  President Trump noted he had just received a proposal from Iran but had not yet had time to read it.

At the end of the remarks President Trump was questioned about pulling troops out of Germany and he replied, “we are going to cut way down, and we are cutting a lot more than the 5,000.”   WATCH:

A few hours later President Trump sent the following message via Truth Social:

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Keep in mind the background issue of Germany supplying Ukraine with weapons and material to keep fighting Russia, while the Merz administration triggers policy to force increased German military troop levels.

Facing crushingly high increases in energy costs, last Monday in Marsberg, German Chancellor Friedrich Merz criticized the U.S. approach to Iran, saying Washington was being “humiliated by the Iranian leadership” and demanding the conflict end “as quickly as possible.”

Germany is facing a perfect storm of economic consequences following their decision to chase the climate change agenda (Build Back Better) and eliminate their coal and nuclear power plants.  Combine the German/EU policy to stop purchasing cheap LNG and oil from Russia, in addition to skyrocketing energy costs from oil/gas flows from the Middle East, and the outcome is rising manufacturing costs leading to massive layoffs.

The German industrial economy is the heart of the EU economy, and President Trump is now hitting them both right where it hurts.

Today two announcements hit an already vulnerable Germany directly.  The first is: “The Secretary of War has ordered the withdrawal of approximately 5,000 troops from Germany,” chief Pentagon spokesman Sean Parnell told Fox News Digital. “This decision follows a thorough review of the Department’s force posture in Europe and is in recognition of theater requirements and conditions on the ground.” {source}

The second announcement is even more brutal for Chancellor Merz:

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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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Anyone can tell those nations who are at greatest risk from the current oil/gas shortage are those nations who either: (a) do not have the infrastructure or capability to derive their own oil/gas, or (b) those nations who intentionally chased the “net-zero” climate change nonsense and thereby created the same problem as group (a).

The middle east oil/gas disruption is clearly showing which nations intentionally put themselves into the worst possible position.  The U.K and Europe are at the top of that list.  In this 20-minute recap, Mike Steger expands on his former outline about a new global reset and points out how the crisis in Iran is only a symptom of a more structural geopolitical shift that is underway and irreversible.

Steger’s analysis explores how the United States is mobilizing its industrial base, securing global energy flows, and positioning itself for a new century of economic and strategic dominance. From emergency energy directives and nuclear expansion… to the rebuilding of the American grid and supply chains… to the unraveling of Europe’s political order — this is a turning point moment. The question is not whether the world is changing, but rather who will shape what comes next. WATCH (prompted):

TIMESTAMPS:
0:00 A new American century begins
2:30 The global energy crisis explained
5:15 Trump’s industrial strategy
8:20 Ending the climate agenda
10:50 Defense Production Act mobilization
13:50 Rebuilding America’s energy system
16:25 The global order shifts
19:10 Final message

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British Prime Minister Kier Starmer, French President Emmanuel Macron, Italian Prime Minister Giorgia Meloni and German Chancellor Friedrich Merz issue a joint statement on their plan to open the Strait of Hormuz, after President Trump secured and opened the Strait of Hormuz.

Essentially, after holding an international teleconference, leaders from the U.K, France, Italy and Germany gather to express their importance on an issue that has been entirely resolved without them.  The result is akin to a Monty Python skit that’s missing the part where a guy comes out and slaps them in the face with a big fish.  WATCH (prompted):

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