Good morning!

European nations are ramping up defense budgets to reduce reliance on America. This buildup requires a whole lot of money—likely hundreds of billions of euros over the coming years. This will take massive borrowing.

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Right now, each European country borrows money on its own, but that might not be enough. So leaders are calling for more joint EU borrowing mechanisms—even a single, shared European bond market that would attract global investors.

They’re discussing this as investors worldwide are seeking alternatives to U.S. treasuries.

The MarketWatch headline: “Europe’s Military Buildup Could Create a Bond Market Powerhouse That Threatens U.S. Treasurys.” The article says, “Europe is being pushed—by geopolitics rather than ideology—toward the equivalent of a federal debt market.”

Europe’s bond market is currently splintered by national borders, lacking the scale and uniformity of the U.S. Treasury market. A more integrated “Eurobond” system could rival it in size and appeal, raising Europe’s sovereign yield curve and increasing global term premiums—potentially unseating American treasuries’ dominance as the world’s premier safe-haven asset.

This would have drastic effects. Europe would have the money it needs to fund its military. Its financial system would become stronger and more unified. It would become more independent and powerful globally, and it would come at the direct expense of the United States.

The timing is precarious for the U.S. About $10 trillion in government debt will come due this year. Increased competition from Europe (and possibly other advanced economies like Japan) for global savings could force the U.S. to pay higher interest to attract investors. As Richard Palmer wrote in “One Way the World Can Hit Back,” this has nightmarish implications. Government spending, mortgages, loans—all would become more expensive, hammering the U.S. economy.

Our feature story this morning, “Rise of German Militarism,” focuses on how Germany is driving Europe’s push for arms spending. It is fascinating to see how this military push might accelerate the Continent’s economic integration and undermine America’s financial dominance to boot.

Trump Doubles Down on Tariffs

Worldwide rejoicing at President Trump’s tariff defeat by the United States Supreme Court was short-lived as he announced fresh tariffs over the weekend. The changing tariffs mean more arguments with the EU and more threats of a trade war.

• President Trump posted on Truth Social that he would now use other means to impose tariffs “in a much more powerful and obnoxious way.”

President Trump used the 1977 International Emergency Economic Powers Act in his first term and again, much more robustly, beginning last February, to impose sweeping tariffs. The Court ruled 6-3 that this act cannot be used in that way, so he immediately announced a 15 percent tariff under section 122 of the 1972 Trade Act.

• This is a stopgap. Under the Trade Act, these tariffs are in effect for only 150 days. But Congress can renew them. Or President Trump could potentially lift them for one day, and reapply them for another 150 days. That could be challenged in court, but by the time the issue is settled, the next stage of longer-term tariffs could be in place.
• Those longer-term tariffs will probably come from Section 301 of the same act, which allows the president to apply tariffs after an investigation into discriminatory trade practices—a procedure that generally takes at least six months.

The court’s ruling does not force an end to President Trump’s tariff policies, but it does force a change. It not only strikes down his preferred method but also reopens old wounds from last year’s tariff negotiations.

Europe protests: “A deal is a deal,” complained the European Commission in a statement protesting the 15 percent global tariffs. Bloomberg News reported today that the main political groups in the European Parliament have said they’ll now pause all work on passing the trade deal agreed with President Trump last year.

None of this is to say the Supreme Court’s ruling is right or wrong. Justices should look only at what the law actually states, not evaluate all the possible ramifications or try to influence policy according to their own beliefs and preferences.

But this does mean that tariffs will remain in the headlines for months to come—something EU leaders can use to rally Europeans against America. This also hands Germany more ammunition to unite the world against America—the subject of our latest Trumpet issue.

Mexican Cartel Head Killed, Violence Erupts

Parts of the Mexican state of Jalisco remain in lockdown this morning, and plumes of black smoke are rising over the city of Puerto Vallarta as drug cartel members reacted to yesterday’s military killing of Nemesio Oseguera Cervantes by the Mexican military. Better known as El Mencho, Oseguera was the leader of the Jalisco New Generation Cartel.

• Multiple reports from Mexican authorities and international news sources say United States agencies and military departments provided intelligence support for the operation to capture El Mencho in the town of Tapalpa.

A gunfight between his bodyguards and the military commandos deployed to capture him erupted. Oseguera was wounded, and he died while being airlifted to Mexico City for medical treatment.

Members of his cartel launched attacks in many towns spread across the 20 Mexican states where the Jalisco New Generation Cartel is active. They blocked roads by throwing spikes and nails onto the pavement and setting vehicles ablaze. They are specifically targeting banks, businesses and pharmacies to cause the most damage to Mexican society.

• The street battles between members of the Jalisco New Generation Cartel and Mexican authorities resemble the battles that broke out in 2019, when authorities arrested the son of jailed Sinaloa cartel kingpin Joaquín “El Chapo” Guzmán. These battles grew so intense that the Mexican government released the son to prevent further bloodshed.

Sober reminder: Mexican drug cartels are in a cold war with law-abiding Mexican people and their leaders—and they are winning. The scenes in Jalisco right now—blocked roads, grounded flights, fearful Mexican citizens and foreign tourists sheltering in place—are intended to remind the world that the cartels are extremely powerful and capable of instantly causing massive damage and bloodshed.

• Drug cartels control up to 40 percent of Mexican territory, employ around 185,000 active members, engage in advanced and extensive criminal activity, and use savage mafia-style threats and violence. The clashes between the Jalisco New Generation Cartel and Mexican authorities resemble a civil war more than a traditional law enforcement operation.

Historical analysis of the Mexican drug war indicates that more than 40,000 people died between 2006 and 2020. The potential for tens of thousands or more to be killed in the coming years is painfully evident right now.

About 55 percent of all Mexican homicides and 7 percent of all U.S. homicides are related to drug trafficking. Conservatives say this problem can be fixed by building a border wall and waging war on the cartels, but the truth is that towns are burning and people are being shot because a spiritual sickness has taken root throughout North America. Americans demand what the cartels supply.

IN OTHER NEWS

U.S. to allow Iranian uranium enrichment? According to a senior U.S. official speaking with Axios, United States President Donald Trump may be prepared to back off his ultimatum for Iran to stop all nuclear enrichment. Axios claimed on February 20 that the Trump administration could tolerate “token” nuclear enrichment if “it leaves no possible path to a bomb.” This comes as the U.S. has moved two carrier strike groups and dozens of additional warplanes into the region for potential strikes on Iran. Iran was allowed “token” nuclear enrichment under President Barack Obama’s 2015 Joint Comprehensive Plan of Action, which Trump criticized and nullified. Now, even with Trump in power, the U.S. may continue to treat violent Islamist nuclear technology as just another bargaining chip, unaware of what the Bible prophesies radical Islam is about to do.

Poland to mine its borders: Poland is withdrawing from the Ottawa Treaty, which bans antipersonnel mines, Prime Minister Donald Tusk announced Thursday. The Polish government wants to be free to mine its borders with Belarus and Russia’s Baltic Sea enclave of Kaliningrad should the threat of Russian invasion emerge, part of a larger defense project called “East Shield.” Bible prophecy revealed thousands of years ago that fear of Russia would stir Europe to militarize.

Hungary, Slovakia threaten Ukrainian energy supplies: Hungarian and Slovakian leaders threatened to cut off oil supplies to Ukraine, the Wall Street Journal reported Wednesday. They accused Ukraine of delaying to reopen the Druzhba oil pipeline to try to make the European Union admit Ukraine as a member. In January, Hungary and Slovakia contributed 60 percent of Ukraine’s electricity imports. Ukraine’s energy infrastructure has been targeted by Russian attacks, and temperatures are still frigid. Russian President Vladimir Putin has openly decried the fall of the Soviet Union, and the Bible prophesies that this man will soon lead a massive Asian military alliance. Because of this, Trumpet editor in chief Gerald Flurry has said Putin will regain control over some former Soviet puppet states.

Europe seeks a leap forward in drones: Defense ministers and top EU officials from Germany, France, Poland, Italy and the UK met on Friday and announced leap, a joint effort to build artificial intelligence-equipped autonomous drones and cheap air defense weapons in bulk. “We are implementing the experience from Ukraine and developing our industrial potential in a dynamic way. Europe has woken up,” Polish Defense Minister Władysław Kosiniak-Kamysz stated following the meeting. It’s possible these drones could even be used to form a European “drone wall” at the Russian border. Efforts to strengthen Europe’s militaries may be framed as a defense against Russia, but the Bible reveals that they will soon be used against the U.S. and UK.

Mexico overtook Canada as the top destination of U.S. exports, the Wall Street Journal reported Thursday. Last year was the first time Mexico’s annual imports from the U.S. topped Canada’s. U.S. Commerce Department figures record that Mexico received 16 percent of U.S. exports ($338 billion) and Canada received 15 percent ($337 billion). Major shifts are occurring in international relations, not only in rhetoric but also in consequential real-world trade and industry. The new Philadelphia Trumpet focuses on changes and conflicts in world trade and where the Bible says they will lead.

German soccer team cancels U.S. tour: On Friday, German soccer team Werder Bremen canceled its trip to Minneapolis and other American cities, citing internal U.S. conflicts over the enforcement of immigration law. “Playing in a city where there’s unrest and people have been shot, that does not fit with our values here at Werder Bremen,” the team stated, also citing tightened entry restrictions and financial factors. The cancellation shows that some Germans are willing to essentially boycott the U.S. over political disagreements. Soon, many more Germans will boycott many more U.S. cities, on a much larger scale.

U.S. trade deficit rising again: After dropping during mid-2025, the U.S. trade deficit reached a record-high $70.3 billion in December, the Wall Street Journal reported Wednesday. A major reason President Trump placed so many tariffs last year was to decrease that deficit, but even with those measures in place, imports surged in November and the deficit began rising again. The Supreme Court decision striking down these particular tariffs complicates matters. Even with a bold president making a bold move to try to reduce the deficit, the U.S. remains addicted to imports.

Armed intruder shot at Trump’s Mar-a-Lago residence: At 1:30 a.m. on Sunday, a sheriff’s deputy and two Secret Service agents confronted Tucker Martin, 21, who was carrying a gas can and a shotgun. Martin had breached a secure perimeter at Mar-a-Lago and, according to the Palm Beach County Sheriff’s Office, raised his shotgun when confronted and was shot. He did not survive. Text messages revealed he was upset over the Trump administration’s handling of the Epstein files. Donald Trump, who has been the target of multiple assassination attempts, was at the White House during the incident. Prior to the first assassination attempt at Butler, Pennsylvania, before the election, Trumpet editor in chief Gerald Flurry asserted that Trump, although threatened, would not be assassinated because he is the subject of yet-unfulfilled prophecies in 2 Kings 14 and Amos 7.

Artemis 2 closer to launch: Mankind took a small step toward returning to the moon on Friday as the Artemis 2 mission passed its “wet dress rehearsal.” It is tentatively scheduled to launch between March 6 and 9. The rocket will take four astronauts into orbit around the moon, the first time any human has been beyond low Earth orbit since December 1972. They will set a new record for distance traveled from Earth, beating the record set by the crew of Apollo 13 in 1970. If all goes well, Artemis 3 will follow in 2027 or 2028 and will be the first manned lunar landing in over 50 years. The missions are an opportunity to have all mankind lift up their eyes and gain a glimpse of a grand vision for humanity.