Treasury Secretary Scott Bessent appears on Fox News with Maria Bartiromo to discuss current geopolitical events and the ramifications for the U.S. economy.  It is a rather lengthy interview and discussion that touches on numerous key points.

Bessent notes the upcoming meeting between President Trump and Chairman Xi of China is still on schedule and U.S. Operation Financial Fury against Iran is yielding good results.  I had no idea the U.S. government has made $30 to $40 billion from the Intel backstop.  WATCH:

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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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In order to deal with a UniParty congress that is always seeking to disrupt his policies and frame processes against his office, President Trump recently notified the House and Senate the hostilities against Iran had ended and negotiations were underway.

In doing so, President Trump changed the dynamic and the Iranian regime now views President Trump as legally less empowered to trigger military strikes against the regime.  To counteract that issue, President Trump either needs congress to authorize further military action against Iran, or a triggering action that would justify such renewed strikes.   Iran attacking a ‘humanitarian effort” is one such triggering action.

Via Truth Social – “Countries from all over the World, almost all of which are not involved in the Middle Eastern dispute going on so visibly, and violently, for all to see, have asked the United States if we could help free up their Ships, which are locked up in the Strait of Hormuz, on something which they have absolutely nothing to do with — They are merely neutral and innocent bystanders!

For the good of Iran, the Middle East, and the United States, we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business. Again, these are Ships from areas of the World that are not in any way involved with that which is currently taking place in the Middle East. I have told my Representatives to inform them that we will use best efforts to get their Ships and Crews safely out of the Strait. In all cases, they said they will not be returning until the area becomes safe for navigation, and everything else.

This process, Project Freedom, will begin Monday morning, Middle East time. I am fully aware that my Representatives are having very positive discussions with the Country of Iran, and that these discussions could lead to something very positive for all. The Ship movement is merely meant to free up people, companies, and Countries that have done absolutely nothing wrong — They are victims of circumstance.

This is a Humanitarian gesture on behalf of the United States, Middle Eastern Countries but, in particular, the Country of Iran. Many of these Ships are running low on food, and everything else necessary for largescale crews to stay on board in a healthy and sanitary manner. I think it would go a long way in showing Goodwill on behalf of all of those who have been fighting so strenuously over the last number of months. If, in any way, this Humanitarian process is interfered with, that interference will, unfortunately, have to be dealt with forcefully. Thank you for your attention to this matter!” ~ DONALD J. TRUMP

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Acting Attorney General Todd Blanche appears on NBC News to discuss the legal framework for the Iran conflict and push back against the media’s defense of James Comey.

[Transcript] – KRISTEN WELKER: And joining me now is acting Attorney General Todd Blanche. Mr. Blanche, welcome back to Meet the Press.

ACTING ATTORNEY GENERAL TODD BLANCHE: Good morning.

KRISTEN WELKER: Good morning. Thank you for being here in person.

ACTING ATTORNEY GENERAL TODD BLANCHE: Of course.

KRISTEN WELKER: We really appreciate it. Let’s start right there with the war. As you know, the War Powers Act requires Congress to authorize military action beyond 60 days, which the U.S. passed on Friday. The president did send a letter to Congress, just to recap, saying that hostilities have been terminated, given the ceasefire that was put in place on April 7th. And yet, the U.S. is actively engaged in a naval blockade of Iranian ports as part of this conflict. Is the United States at war with Iran?

ACTING ATTORNEY GENERAL TODD BLANCHE: No. I mean, what President Trump said this weekend is absolutely true. My job as the acting attorney general is to make sure that the president, that we all are doing the right thing legally. And we absolutely are. As we said to Congress last week, there has been nothing going on, no hostilities, no exchange of fire since – in almost a month, in almost a month. And how do you end a conflict? How do you end this? You have a ceasefire. And that’s exactly what we have, and Congress knows that and the leadership knows that. And there’s a lot of drama. I’m sure that Senator Schiff will come on here and say something different. This has been done repeatedly for many, many years, with many, many presidents. And there’s nothing inconsistent about what we’re doing and what’s been done in the past.

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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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Yury Ushakov is the Senior Aide to Russian Federation President Vladimir Putin. Following a lengthy telephone call between President Trump and President Putin, Ushakov provides the following readout:

MOSCOW – Aide to the President of Russia Yury Ushakov: Colleagues, good evening.

President Vladimir Putin held another telephone conversation with President of the United States Donald Trump. The call lasted for more than an hour and a half. The exchange between the two presidents was conducted in a friendly manner and was frank and businesslike.

Understandably, Vladimir Putin began by expressing his sympathy and support for the President of the United States in connection with the assassination attempt against him on April 25 at the Washington Hilton hotel. Fortunately, neither Donald Trump himself, nor his spouse, nor any members of his entourage were harmed. The secret service was quick to neutralise the assailant. The Russian leader strongly condemned this crime and stressed, in particular, that politically motivated violence was unacceptable in any forms and manifestations.

It was also mentioned during the conversation that this dangerous incident occurred on the eve of the US First Lady’s birthday on April 26. President Vladimir Putin asked to convey his best wishes and noted her contribution to efforts aimed at facilitating the reunification of Russian and Ukrainian children with their families.

When discussing the international agenda, the presidents focused on the developments surrounding Iran and the Persian Gulf.

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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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Chopper pressers are the best pressers.  President Trump pauses to answer questions from the assembled press pool as he departs the White House for an event at The Villages in Florida.

The majority of the questions centered around Iran and ongoing negotiations.  President Trump stated he is not happy with the latest proposals from the representatives of the Iranian delegation as they do not reflect control within the government. “It is a very disjointed leadership structure,” President Trump noted. “They are confused and combative with each other.” The USA economic embargo against Iran known as “Operation Financial Fury” continues with Secretary of Treasury Scott Bessent grinding the Iranian economy to a halt.

President Trump also noted the European Union has not fulfilled their obligations within the U.S-EU trade agreement, and as a result President Trump is raising the tariff rate on European vehicles to 25 percent.  WATCH:

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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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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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