Friday, March 25, 2022

Economy will decide. Whose?

"Russia's defence ministry said on Friday that the first phase of its military operation in Ukraine was mostly complete and that it would focus on fully 'liberating' eastern Ukraine's Donbass region," ET. "The announcement appeared to indicate that Russia may be switching to more limited goals after running into fierce Ukrainian resistance in the first month of the war." Or maybe they have achieved most of what they set out to do. On 25 February, "Ukraine's military said...that Russian forces aimed to block the Ukrainian capital Kyiv while creating a land corridor on the southern coast towards the annexed Crimea peninsula and the Transdniestria region of Moldova," Reuters. "Ukraine's Defence Ministry said on Friday (yesterday) Russian forces had managed partially to create a land corridor to Crimea from territory in Ukraine's Donetsk region," National Post. The latest map by the rabidly anti-Russian BBC shows that Russia now controls territory along its border with Ukraine, linked Donetsk with Crimea and can cut off Ukraine's access to the Black Sea if it takes Mykolaiv and Odessa. "Russian news agencies quoted the defence ministry as saying that Russian-backed separatists now controlled 93% of Ukraine's Luhansk region and 54% of the Donetsk region - the two areas that jointly make up the Donbass," ET. According to the UK Russia is losing the war. "Ukrainian forces are re-occupying towns previously seized by Moscow as Russian army morale continues to fall, according to UK officials," Huffingtonpost. But, there is another side to the war. Commodity prices are soaring. Brent crude is trading at $120 a barrel today, oilprice.com. "UN chief Antonio Guterres has warned that the conflict could reverberate far beyond Ukraine, causing a 'hurricane of hunger and a meltdown of the global food system'," ET. "President Biden said...that a food shortage is 'gonna be real' following the sanctions that were placed on Russia by the US government," Fox. Inflation in the UK rose to 6.2% in February and "rising energy prices could push inflation to a 40-year high of 8.7% in the final three months of 2022," BBC. "The OBR (Office for Budget Responsibility) still expects real household disposable incomes to tumble by 2.2 percent per person in 2022-23 - the largest annual fall since ONS (Office for National Statistics) records began in 1956," DM. Meanwhile, the Solomon Islands confirmed that it is to create a security partnership with China, Reuters. "North Korea has announced that it successfully launched its largest intercontinental ballistic missile (ICBM) in a test on Thursday," BBC. Chinese President Xi Jinping has vowed reunification with Taiwan but has not directly mentioned force, BBC. Will the US and NATO take on China if it attacks Taiwan now? Russia's economy is suffering, but how long can Americans hold out? Weapons will not help the US or UK economies. As a previous Democrat President said, "It's the economy, stupid," wikipedia.

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