German Chancellor Friedrich Merz Rejects Request to Send Escorts to Middle East to Support EU Oil Shipments


Posted originally on CTH on March 17, 2026 | Sundance 

The EU has balked at the request of President Trump to support military escorts for EU oil shipments through the Strait of Hormuz destined for European Ports.  However, it is the position of German Chancellor Fredrich Merz which really highlights the arrogance of the issue.

Germany has deactivated its nuclear reactors and decided not to purchase Russian oil/gas. As a consequence, the German industrial economy is contracting; the German auto industry is collapsing; German manufacturing plants are closing – and mass layoffs have been announced.

Into this self-created dynamic, Germany has become dependent on (1) Oil and Gas from the middle east, and (2) LNG from the USA. Germany is a completely dependent nation on the issue of energy production. Yet, this is Germanys position:

[SOURCE]

Setting aside for a moment that “the middle east is not a matter for NATO,” while reminding ourselves Ukraine is also not a NATO member state – yet Germany is supporting the pro-war ‘coalition of the willing,’  President Trump previously pointed out that NATO would never come to the aid of the USA when the Greenland Arctic Security debate was going on.

The EU in general, and Germany specifically, is essentially proving President Trump’s point.  However, as a result of intentional migration, Germany has over five million Muslim residents now residing inside the country.  We should consider that this overlay is also part of their internal political consideration.

What Chancellor Merz said next is almost too European to be real, but it is:

The German government destroyed affordable energy for Germans.  The German government refuses to escort their own equity stakes to mitigate energy costs for Germans.  Now the German government will limit the price increases to once per day to provide relief to Germans.

Seriously folks, you cannot make this stuff up.

The tectonic plates are shifting, and we are bearing witness to old geopolitical structures collapsing as the ground beneath them moves.

When history is written it will reflect that President Trump didn’t destroy NATO – he simply removed the mask.

PRESIDENT TRUMP – “The United States has been informed by most of our NATO “Allies” that they don’t want to get involved with our Military Operation against the Terrorist Regime of Iran, in the Middle East, this, despite the fact that almost every Country strongly agreed with what we are doing, and that Iran cannot, in any way, shape, or form, be allowed to have a Nuclear Weapon.

I am not surprised by their action, however, because I always considered NATO, where we spend Hundreds of Billions of Dollars per year protecting these same Countries, to be a one-way street — We will protect them, but they will do nothing for us, in particular, in a time of need.

Fortunately, we have decimated Iran’s Military — Their Navy is gone, their Air Force is gone, their Anti-Aircraft and Radar is gone and perhaps, most importantly, their Leaders, at virtually every level, are gone, never to threaten us, our Middle Eastern Allies, or the World, again! Because of the fact that we have had such Military Success, we no longer “need,” or desire, the NATO Countries’ assistance — WE NEVER DID! Likewise, Japan, Australia, or South Korea.

In fact, speaking as President of the United States of America, by far the Most Powerful Country Anywhere in the World, WE DO NOT NEED THE HELP OF ANYONE! Thank you for your attention to this matter.”

President DONALD J. TRUMP

If the EU/NATO countries don’t want to support their own oil shipments, then pull the USA out of EU/NATO support arrangements.

Japanese Prime Minister Sanae Takaichi Emphasizes Constitutional Inability to Conduct Overseas Military Operations


Posted originally on CTH on March 16, 2026 | Sundance 

Responding to questions about whether Japan would send military ships to the middle east to participate in escorts through the Strait of Hormuz, Japanese Prime Minister Sanae Takaichi noted the current constitution blocks Japan from conducting overseas military operations.

Exactly as we outlined when President Trump first made the request via Truth Social {SEE HERE} Prime Minister Sanae Takaichi may want to support the request, but Japan’s post WWII constitution about military operations doesn’t permit it.

Japan’s military can be constitutionally defensive only.

While an argument might be made that escorting oil destined for eventual arrival in Japan may technically squeeze within a narrow interpretation of ‘defense’, considering the operation would take place far from Japan a highly conservative Sanae Takaichi is not going to try and thread that precarious needle.

TOKYO, March 16 (Reuters) – Japan has no plan to dispatch naval vessels to escort vessels in the Middle East, Prime Minister Sanae Takaichi said on Monday, after U.S. President Donald Trump called on allies to protect tankers traversing through the Strait of Hormuz.

“We have not made any decisions whatsoever about dispatching escort ships. We are continuing to examine what Japan can do independently and what can be done within the legal framework,” Takaichi told parliament.

Trump’s call in a social media post for U.S. allies, including Japan, to help protect oil and gas shipments through the strategic waterway puts Tokyo in a difficult position because while it relies heavily on Middle East energy its war-renouncing constitution limits the scope of overseas military operations it can conduct.

Japan’s Maritime Self-Defense Force has conducted anti-piracy operations in waters near the Middle East, but those missions were policing operations rather than combat missions against state actors. Japan can deploy its military overseas to respond to what it determines to be an existential threat to the nation, but that would be politically difficult and a high legal threshold for Takaichi’s government to justify.

Takaichi will travel to Washington this week for talks with Trump that she said will cover the conflict with Iran.

“I would like to engage in solid discussions based on Japan’s views and position regarding the need for early de-escalation,” she told lawmakers. (link)

President Trump Calls on Oil Dependent Nations to Send Military Ships to Backstop Security in Hormuz


Posted originally on CTH on March 14, 2026 | Sundance 

President Trump’s latest two messages via Truth Social present an interesting geopolitical approach with multiple enmeshed aspects.

First, some background context is needed.  Treasury Secretary Scott Bessent and USTR Jamieson Greer are in Paris to meet with Chinese government officials ahead of a scheduled meeting between Chairman Xi Jinping and President Trump.

The main objective of the pre-summit assembly before President Trump goes to Beijing, is to hammer out the actionable agreement details that can be signed off by Xi and Trump.  Bessent and Greer are looking to put a deal together with their Chinese counterparts so that Trump and Xi can announce mutually beneficial outcomes during their summit.

Second, President Trump has already indicated the March 31/April 1 meeting with Xi will be all business. The traditional pomp and splendor will not be present, and Trump will only be visiting Beijing – no sidelines.

Third, Secretary Rubio will be accompanying Trump on this trip to Beijing, which might seem ordinary were it not for the fact that in 2020 China sanctioned and banned Rubio from entering China for criticizing Xinjiang and Hong Kong.

Fourth, there are rumors that President Trump is going to announce a significant weapons deal with Taiwan at some point immediately following the trip.  If those rumors are true, it would be a top priority for the Chinese advance team in Paris to stop that from happening.

Regardless of what happens in the next few weeks, President Trump will be meeting with Chairman Xi with full Eagle eye confrontation toward the returning dragon stare.  There will be no panda mask on this trip whatsoever; this face to face is an apex predator showdown, while the world watches intently.

Everything President Trump does between now and his arrival in Beijing, should be contemplated through this adversarial position.  With strong moves in Venezuela and Iran President Trump has already pulled Chairman Xi into the jianshu circle, showing the soul of his blade.

Chairman Xi does not have anything resembling a retreat position. He has a highly focused domestic audience, and the eyes from the Great Hall of the People will be watching intensely.

In the next two weeks we will likely see critical probes of both Trump and Xi’s wills surface in ancillary stories connected to each stakeholder, most likely swirling around the Iran conflict. Do not be surprised if we see all of the advanced USA influence purchasing by China now activated with very specific anti-Trump narratives.

That is the context for President Trump to call out many of the oil dependent countries:

TRUTH SOCIAL – “Many Countries, especially those who are affected by Iran’s attempted closure of the Hormuz Strait, will be sending War Ships, in conjunction with the United States of America, to keep the Strait open and safe. We have already destroyed 100% of Iran’s Military capability, but it’s easy for them to send a drone or two, drop a mine, or deliver a close-range missile somewhere along, or in, this Waterway, no matter how badly defeated they are.

Hopefully China, France, Japan, South Korea, the UK, and others, that are affected by this artificial constraint, will send Ships to the area so that the Hormuz Strait will no longer be a threat by a Nation that has been totally decapitated. In the meantime, the United States will be bombing the hell out of the shoreline, and continually shooting Iranian Boats and Ships out of the water. One way or the other, we will soon get the Hormuz Strait OPEN, SAFE, and FREE! President DONALD J. TRUMP

There is a significant overlay here.

First, any nation that sends supportive military ships into the Strait of Hormuz is openly taking a position against the Iranian regime.  China cannot take that position, and President Trump knows it – so he’s calling out the dragon’s alignment for the world to see.

…. If you get oil from the region, come protect your ships while I kill the bad guys…

Remember, Japan has a very limited military, and their post-World War II constitution was blocking them from building one.  Changing that position was the goal of Japanese Prime Minister Shinzo Abe, a friend of Trump, and he was traveling throughout Japan with that message when he was assassinated.  That objective now falls to the protege’ of Abe, Prime Minister Sanae Takaichi.

Japan is included on that list of countries specifically to antagonize the dragon, with President Trump saying I have a strong industrial friend in your back yard.

For the rest, notice the countries Trump did not name: India, Thailand, Vietnam, Philippines or any of the Asian countries that are dependent on oil from the middle east.   Trump is not asking the dependency allies of the United States to participate. Instead, President Trump is calling upon the fake-ally countries that oppose the United States but hide behind a friendly smiling mask.

This is a bold underline for President Trump’s former statement where he publicly doubted the NATO allies would ever come to assist the USA (ie. Greenland), even though they are dependent on the security the USA provides.

In this Iranian conflict, the Europeans are dependent on oil from the middle east, but they will not put their military into the fight even if it secures their own economic future.  Opening the Strait of Hormuz benefits the Europeans, but they only want to pontificate grand prose about it; similar to how they pontificated about the threat Iran presented, then lost their supportive tongue when Trump finally did something about it.

A few hours later, President Trump drives home the point:

TRUTH SOCIAL – “The United States of America has beaten and completely decimated Iran, both Militarily, Economically, and in every other way, but the Countries of the World that receive Oil through the Hormuz Strait must take care of that passage, and we will help — A LOT! The U.S. will also coordinate with those Countries so that everything goes quickly, smoothly, and well. This should have always been a team effort, and now it will be — It will bring the World together toward Harmony, Security, and Everlasting Peace!” President DONALD J. TRUMP

Now we wait to see who steps up.

Spoiler Alert – ¹No one will!

¹And that’s the point Trump is making.

I also concur with this point:

Shanaka Anslem Perera“The coalition call is not about Iran. Iran’s military is destroyed. The coalition call is about the world that emerges after Iran. If America escorts the tankers alone, the Strait reopens under American control and dollar pricing survives. If a coalition escorts them, the Strait reopens under international consensus and the yuan-for-Hormuz proposal dies. If nobody escorts them, the Strait stays closed and China’s shadow fleet is the only commerce moving through it.”

Indicted John Bolton Beclowns Himself and Showcases Why His Neocon Mindset is Useless


Posted originally on CTH on March 13, 2026 | Sundance 

While under federal indictment for improper retention, holding and releasing classified intelligence, John Bolton appears on NBC News to complain about how President Trump is conducting the war against Iran.

It is hilarious to see Bolton pontificate, with all the customary arrogant self-assurances, that President Trump did not plan for a scenario where the oil flows through the Strait of Hormuz would be disrupted, while simultaneously proclaiming President Trump is giving Russian President Vladimir Putin a gift with the lifting of oil/gas sanctions to support the global market.

His insufferable ignorance is laughable. John Bolton just cannot hear himself.  Trump didn’t plan for the oil shortage, but Trump lifted Russian oil sanctions.  Say that again slowly John, while looking in the mirror.  Trump didn’t plan for an oil shortage, but Trump planned to lift Russian oil sanctions.  Slow it down and repeat as needed, until the ah-ha moment sinks in.

Consider that President Trump did actually plan for the Strait of Hormuz to be closed; perhaps even planned for a long time for the issue {GO DEEP}.  And planned, well in advance, for an offset to deliver massive amounts of oil even with the Strait of Hormuz closed.

Give his narrow and stale globalist mind a little longer than normal to see the strategy; give him quiet time in a room with no windows to contemplate the outcomes he is witnessing; and we might even sell tickets to see the moment his ancient neocon brain explodes.

Secretary Bessent Announces “Narrowly Tailored, Short Term Sanction Relief” for Russia


Posted originally on CTH on March 13, 2026 | Sundance |

Trump, you magnificent bastard, I read your book!’

President Trump and Treasury Secretary Scott Bessent are facing mounting criticism for creating a window for Russia to sell oil and gas to the global market via “narrowly tailored, short-term” sanction relief.  However, few people are putting the issue into context, and the background here is exceptionally interesting.

According to the terms announced by Secretary Bessent, the license to sell applies solely to Russian crude or petroleum products loaded onto vessels as of March 12 and is valid through midnight Washington time on April 11. [Treasury Notice Here – OFAC Technical Details Here]

[source]

The sanction relief license to sell will be done in globally recognized petrodollars and applies only to preexisting oil and petroleum products that are already in transit at sea.  However, here’s where it gets very interesting and the ramifications are significant.

Immediately following the Alaska summit between Russian President Vladimir Putin and President Trump, Russia restarted Arctic-2 LNG terminals and began increasing oil production for storage on ‘floating platforms.’  President Trump met with Putin on August 15, 2025, and the curious increase in Russian production began on August 18, 2025.

In the past six months Russia has been pumping sanctioned oil and gas and storing it on ships and mobile sea platforms, seemingly (at the time) with no customers.  Suddenly, against the background of the Iran conflict, all of that previously stored ‘on the water‘ production, now worth double, is authorized for global sale (in petrodollars).

Either Russian President Putin is the luckiest guy in the world, or Russia knew something.

In 2025 what Russia did following the Alaska summit did not make sense; now it does and the ramifications are stunning.

President Trump was looking for a way to organize a strategic partnership with Russia on the issue of energy production but was hampered by the preexisting sanction regime and strong opposition from domestic and international politics.

The ‘coincidental’ timing’ of Trump meeting with Putin and then subsequently Russia producing massive amounts of oil and gas for storage on the water suddenly starts to take on an entirely new light.  Did Putin know something was coming, something that would eventually make the Russian over production and ‘on the sea’ storage worth billions.

The implications here are quite remarkable; however, they simultaneously explain most of the behaviors since the Iran confrontation began.

Media reports highlight that Vladimir Putin was asked about a previous joint agreement for military support between Iran and Russia and why Russia did not respond when Iran was attacked.  Foreknowledge would explain that reaction.

Additionally, the Russian Federation president never responded to the Trump operation to take down Venezuelan dictator Maduro and seize control over Venezuela’s oil production.

If there was some discussion inferring that a ‘limited sanction relief’ protocol might be possible, that would explain why Russia began storing oil and gas at sea.

This fact pattern would also indicate that President Trump’s decision toward Iran was made at least six months ago, with a set of geopolitical events planned between the Alaska summit and the eventual confrontation with Iran.

TIMELINE: Trump and Putin meet. Three days later Russia begins pumping oil/gas and storing it at sea. President Trump then triggers the Venezuela western hemisphere security operation; Russia stays silent.  President Trump then triggers the confrontation with Iran; Russia rejects involvement. And then two weeks after the Iran confrontation begins, Trump removes sanctions on Russian oil/gas “in transit” at sea.

Suddenly all of the Russian produced and stored product ‘on the water’ has greater value and new customers.

Just a coincidence?  No way.

The United States needs the oil/gas market stability that Russia can provide.

Venezuela was/is to Trump as Ukraine was/is to Putin.

We’ll keep watching.

Enjoy the rest of your day.

.

.

Democrat Senator Ruben Gallego Urges President Trump to Renegotiate USMCA


Posted originally on CTH on March 12, 2026 | Sundance

It is transparently obvious now that Canada is going to rely on UniParty (Corporate) opposition to President Trump in the dissolution of the USMCA (CUSMA) in favor of two distinctly different bilateral trade agreements; one with Canada and one with Mexico.

A bilateral trade negotiation between the United States and Canada would be devastating to the interests of the Canadian government.  Particularly after the Venezuela operation and new strategic relationship with the United States, Canada has almost zero points of leverage to negotiate anything similar to their current exploitative trade position.

Canada is going to rely on congress to stop Trump from forcing reciprocity in the bilateral discussions. However, as a positive indicator that President Trump will factually have congressional support for the elimination of the USMCA, Democrat Senator Ruben Gallego has written a letter to President Trump requesting a comprehensive review. [LETTER HERE]

[SOURCE]

This is a key Senate democrat who notes the problem.  One of Gallego’s top points of concern is the loophole that Canada uses to assemble Chinese component parts into finished goods for tariff free distribution into the United States.

Ever since President Trump won the 2024 election, Mexico has been taking proactive independent action to block Chinese component goods. But Canada has done the opposite and begun to enhance their trade relationship with China to take even more Chinese component and finished goods.

Gallego writes to U.S. Trade Representative Jamieson Greer from the position of wanting to increase wages and enhance jobs in both Mexico and the USA, growing both economies. However, Gallego’s advocacy simultaneously bolsters why the USMCA should be dissolved and also puts Canada at a distinct disadvantage.

MEXICO – Mexico’s President Claudia Sheinbaum told reporters during her morning news briefing on Wednesday that her U.S. counterpart, Donald Trump, is open to doing away with the U.S.-Mexico-Canada trade agreement (USMCA) and replace it with individual trade deals with each country.

[…] “There might be revisions that create bilateral deals instead of involving the three countries because some things are more important between Mexico and the United Sates or between Canada and the United States,” said Sheinbaum. “Not everything has to be trilateral.”

Mexico’s president said the subject was brought up by Trump during a Tuesday phone conversation. […] According to Sheinbaum, her country is ready to consider possible changes. (read more)

Just like the original NAFTA dissolution, if Senate democrats agree the USMCA is structurally flawed then Canada will lose its only hope to retain the trilateral agreement.

It appears that some Senate democrats like Gallego recognize this issue and support the need for exceptional change.

There is a significant difference between Mexico and Canada as it pertains to trade.  Two distinctly different bilateral trade agreements would be the best outcome for the USA.

Team Mexico have already been holding bilateral discussions with USTR Jamieson Greer, and I suspect the broad outlines of a free trade agreement between the U.S and Mexico have already been agreed.

While Mexico has been working diligently for 16 months to get into alignment with the USA on a new free trade agreement, Canada has been doing everything possible to retain their “elbows up” position in opposition to the USA.  This will not work out well for Canada.

“The key thing that has struck me, and I think it has struck all Canadians, is so many of these guys in the Trump administration, frankly, they just hate Canada,” said Brian Clow, former Prime Minister Justin Trudeau’s deputy chief of staff who led Canada-U.S. affairs. {source}

“Canada joining at a later date”? 😂🤣😂

Witkoff and Kushner Meet Russian Delegation in Florida – Reports Indicate Discussions of Strategic Economic Cooperation on Oil


Posted originally on CTH on March 12, 2026 | Sundance 

The fact that Team Russia and Team USA would be discussing a strategic economic alliance on the issue of energy is not a surprise to those who watched both President Putin and President Trump outline that same content discussion in Alaska last August.  However, given the current conflict with Iran and the escalating oil price issue, Russia and the USA discussing Russian oil capacity and U.S. sanctions therein takes on a new angle.

It has been obvious that domestic U.S. politics, in combination with the Russia-Ukraine war, has impeded President Trump from organizing a strategic reset with Russia pulling away from historic conflicts.  However, CTH is also clear-eyed on the longer-term ramifications for Eastern Europe when contrast with Putin’s ambitions to fix what he perceives as prior Russian Federation mistakes regarding the West (more on that at the end).

As noted in social media exchanges from Witkoff and Dmitriev, the discussion was productive.

[SOURCE]

All indications of this meeting give the appearance of less focus on progress in the Ukraine-Russia conflict, and a higher focus on current economic conditions -created by the Iran conflict- that could be enhanced with cooperation between the U.S. and Russia. {GO DEEP BACKGROUND}

According to Kirill Dmitriev, Russian special presidential envoy for investment and economic cooperation with foreign countries and director general of the Russian Direct Investment Fund (RDIF), relayed through the Russian News Agency (TASS), “he visited the US upon orders from Russian President Vladimir Putin, taking part in a meeting of the heads of a working group on economic cooperation between the two countries.”

According to the envoy, the meeting addressed both promising projects that can help restore Russia-US relations and the current crisis on global energy markets.

The US is becoming increasingly aware of the role of Russian oil and gas in ensuing the stability of the world economy, as well as of the [in]effectiveness of sanctions against Russia, Dmitriev said after the meeting. (source)

“We discussed promising projects that could contribute to the restoration of Russian-American relations and the current crisis on global energy markets,” Dmitriev also wrote in a Telegram post.

“Today, many countries, primarily the United States, are beginning to better understand the key, systemic role of Russian oil and gas in ensuring the stability of the global economy, as well as the ineffectiveness and destructive nature of sanctions against Russia.”

With the strong likelihood that Russia’s restart of their flagship LNG terminal Arctic-2 was directly related to the August summit in Alaska {SEE HERE}, there is already a baseline established for strategic cooperation.

President Trump would have no problem with Russia introducing millions of barrels of oil into the global market given the issues created by conflict in/around the Strait of Hormuz.  However, obviously the issues for streamlined Russia oil exports surround (1) preexisting sanctions, (2) domestic U.S. anti-Russia politics and (3) the political and economic position of the anti-Russia European Commission leadership.

As we previously outlined with the Liquified Natural Gas (LNG) benefit, Russia previously extracted, liquified and pumped massive amounts of LNG into floating storage platforms from Arctic-2.  Those LNG supplies doubled and tripled in value in a few days once Qatar shut down their production facilities and are now being sold to various Asian countries.

Europe has a massive energy problem with severely low LNG storage rates and now a shortage of oil, with EU gasoline prices rising much higher & faster than the rest of the world.  Europe is facing a severe energy crisis overall and now their preexisting economic troubles are being amplified.

More than ever Europe needs the Russian oil/gas, but ridged ideologues will never compromise on their anti-Russia position.  They have even steeper sanctions against Russian oil/gas scheduled to trigger at the end of this month.

It will be interesting to see how President Trump navigates the potential benefit from Russian energy products into the global market against the backdrop of all the geopolitical angst and political opposition against Russia.

…. AND that brings me to a point of discussion that I’ve had with a few dialed-in people.

When you look at the long term, and when you overlay the mindset of Russian President Vladimir Putin, almost everyone in Russia/Eastern Europe who evaluates the future can see the potential for Putin to exploit the EU’s self-created economic vulnerabilities for his own expansionist objectives.

Yes, some elements of the U.S. banter about further Russian expansion are not propaganda.  Most of it is, but there is an element to the future forecast -beyond the Ukraine conflict- that could see Russia in a much stronger position, and the EU in a position of significant weakness.

The MAGA-minded European and Russian people, the ones who have strong wisdom on the issues, can all see a specific set of dominos falling that could place Putin in a position to recapture the remaining pro-Russian geographies in Europe back into an expanded Russian Federation.

Given the highly unstable mindset and friction points within European leadership, that would be a very bad combination to contemplate.

A strategic USA reset with the Russian Federation is a reasonable and pragmatic goal.  There is no reason for America and Russia to be in conflict or opposition and pulling Russia away from a relationship with China has massive benefits for both countries.

The Russian people are not affectionate toward China at all, not even a little bit.  In reality, China is a necessary ally for Russia but not a choice they would select if other options were available and variables were changed.  The Russian people are exceptionally independent, incredibly strong and brutally proud; however, they are also more Western-minded (European, without self-flagellation) than Eastern-minded (Asian).

Here’s where/why Trump is being careful and pragmatic.  President Trump doesn’t want to see an outcome where Russia is eventually stronger than Europe.  There’s not enough frictionless history between the USA and Russia to trust Putin when he says the Federation has no plan to expand into Europe.

The USA can/should be strategic allies with Russia. However, it would be much better if a strong Europe existed at the same time.  Hence, Vice President Vance and Secretary of State Rubio continuing to emphasize that Europe needs to stop cowering in politically correct wokeness.  The EU is destroying itself at the same time Russia is getting stronger.

.

Last point, the Lyndon LaRouche team, Promethean Action PAC, are very happy with the ongoing fracture of the USA away from the UK/EU group.  However, be cautious around Political Action Committees who say, “President Trump needs people to understand what he is doing” and we are here as his official policy interpreters.

Remember, President Trump doesn’t need policy interpreters.

Volkswagen Loses Half Their Profit, Now Plan to Cut 50,000 Jobs Over Next Four Years


Posted originally on CTH on March 10, 2026 | Sundance

The origin of this issue goes back to 2021 and the relaunch of the Build Back Better European green energy program to fight the non-existent climate change problem.  We have been highlighting the consequences within the EU auto sector.

We noted in October of last year, the EU’s mandated fines against auto manufacturers who do not hit their production goals for electric vehicle sales began in 2025.  EU automakers unable to meet the regulatory compliance goal began purchasing carbon credits to avoid stiff EU fines.  Many of those carbon credits were purchased from Chinese EV automakers, who then turned around and started using the extra EU revenue to discount Chinese cars sold in Europe.

At the same time as Chinese autos hit record highs in Europe, EU car sales are flat or declining.  Now, Volkswagen is announcing they lost half their profits in one year and will be cutting 50,000 jobs in the next four years.

(MSM – Europe) – Volkswagen just revealed its operating profit sank like a stone last year, dropping by more than half as tariffs, Chinese competition, and shifting strategies took a serious bite out of the bottom line. And that performance now has the VW Group’s execs reaching for the cost-cutting scissors, including plans to shed 50,000 jobs by the end of the decade.

The German automaker reported an operating profit of €8.9 billion ($10.3 bn at current rates) for 2025. That’s down a hefty 53 percent from the year before and well below what analysts were expecting. Revenue, meanwhile, barely moved, slipping only slightly to around €322 billion ($374 bn). (read more)

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

The EU tariff applied to gasoline powered cars or hybrids from China is 10%.  That tariff is not enough to stop the imports. The Chinese hybrid autos are substantially less than European car brands, and there’s no financial incentive for China to build auto plants in the EU zone especially when you consider the EU is subsidizing those cars by purchasing carbon credits.

When analyzed from a cost and consequence, the entire EU dynamic toward car companies is a little funny.  However, for Germany this is a serious issue, and with the German industrial economy already stagnant – every impact to their auto industry only makes the situation worse.

When you overlay the big picture of their expensive “green energy” costs, the EU find themselves in an unescapable downward spiral.  Quite literally, all commonsense seems to have been lost in their green energy chase.

By focusing on energy targets, specifically by trying to force production of European electric vehicles that are not favored by European car purchasers, the EU is shrinking their economy to the benefit of Beijing exploitation.

German Chancellor Friedrich Merz recently travelled to China for a discussion with Chairman Xi Jinping.  Chancellor Merz returned to German with a stark message about how the nation needed to quickly get productive in order to meet the far superior work ethic he saw in China.

At the same time, the EU has destroyed its energy sector by chasing windmills and solar farms instead of maintaining the much cheaper coal and gas alternatives.  Overall, Europe has made a series of really bad decisions, but those consequences will surface the hardest within the largest industrial economy, Germany.

They’ve got major problems now.

Ukrainian Bank Workers Detained in Hungary as Oil Tensions Deepen


Posted originally on Mar 9, 2026 by Martin Armstrong |  

The latest diplomatic explosion between Hungary and Ukraine did not come out of nowhere. Hungarian authorities recently detained seven Ukrainian nationals traveling through the country in armored vehicles carrying enormous quantities of cash and gold, reportedly tens of millions of dollars and kilograms of bullion. Kyiv immediately accused Hungary of “state banditism” and hostage-taking, while Budapest launched a money-laundering investigation and announced the individuals who they deem a “Ukrainian gold convoy” would be expelled.

But this incident cannot be understood without the broader economic conflict unfolding between the two countries. It is highly suspicious that these workers were traveling with 40 million in USD, 35 million euros in cash, and 9 kilos of gold. If it were nationals from any other nation then money laundering would not be deemed hostage taking. For Hungary, this is about energy and the oil lifeline that keeps Hungary’s economy running. Hungary and Slovakia rely heavily on crude delivered through the Druzhba pipeline network, one of the main arteries carrying Russian oil into Central Europe. That pipeline has been offline since late January after infrastructure damage in Ukraine halted deliveries, leaving the two countries facing supply shortages and rising economic pressure.

Budapest has repeatedly accused Kyiv of deliberately delaying repairs and effectively imposing an oil blockade. Prime Minister Viktor Orbán has openly declared that Hungary will use political and financial pressure to force Ukraine to reopen the pipeline and restore energy flows to Hungarian refineries.

From Hungary’s perspective, the situation is absurd. The European Union demands sanctions against Russia while simultaneously expecting smaller Central European economies to cripple their own energy systems. Hungary was granted exemptions to continue importing Russian oil precisely because its refining infrastructure and geography make sudden alternatives extremely difficult.

Image

When Ukraine halted the pipeline, Hungary and Slovakia responded by suspending diesel exports to Ukraine and threatening broader retaliatory measures, including blocking EU funding packages for Kyiv.

This is where the story becomes politically explosive. The EU leadership and Western media continue to frame the conflict purely through the lens of the war with Russia. But Hungary is looking at it through a far more practical lens: national survival. Hungary was forced to block the 90 billion euro package to Ukraine. Why would a nation agree to provide unconditional funds for a hostile country that is threatening its economy?

“We hope that a certain person in the European Union will not block the €90 billion, or the first tranche from the €90 billion, and our defenders will have weapons. Otherwise, we will give that person’s address to our Armed Forces, to our boys, so they can call him on the phone and speak to him in their own language,” Zelensky said, threatening to provide troops Orban’s number.

“If Ukraine blackmails Hungary, it cannot expect pro-Ukraine decisions in Brussels. Until order is restored, we will use every tool available. We have already stopped fuel deliveries, and we will continue applying pressure until oil supplies resume,” said Orban in a Kossuth interview on March 6. Hungary is giving Ukraine until today “to visit and assess the current state of the Druzhba oil pipeline together with representatives of the MOL group (Hungary’s oil company — ed)” or resume oil transit.

Energy is the foundation of every modern economy. Shut down oil flows, and you are not merely making a geopolitical statement — you are threatening industry, transportation, and the entire domestic energy market. The next step will be crucial. Will Brussells side with Hungary or continue to disregard a member state in favor of propping up Ukraine? This is one of the countless reasons why the European Union is doomed. There is no union, there is no loyalty. The unelected bureaucrats in Brussels are only concerned with beating the drums of war to buy time from the inevitable crash and burn.

Sunday Talks – Energy Secretary Chris Wright on Fox News


Posted originally on CTH on March 8, 2026 | Sundance

Almost all of the corporate news programs today are carbon copies of the same tired talking points, driving home the reality that mainstream U.S. media are concentric circles of the same news feed.  Essentially, media reports reporting on media reports, of other organized media reports.

No one seems to be asking any of the core operational and policy questions that can cut to the heart of the matter.  ie., “you are doing XXX, what is the intent of this action/policy move, and can you describe in actionable terms what benefit the American people can expect as a result of the anticipated outcome”?   Instead, the questions are all hindsight and reactionary.  Frankly, the repetition is mind-numbing.

In this Fox interview, Secretary of Energy Chris Wright answers some of the same questions from the CBS interview, sans the arrogant and condescending tone during the questioning.  WATCH:

.