Energy prices are rocketing, inflation is soaring and millions are being starved of grain. Surely Johnson knew this would happen?
The rouble is soaring and Putin is stronger than ever – our sanctions have backfired
H/T: Richard Medhurst
Tag: recessions
The energy crisis will divide Europe
The energy crisis will divide Europe
German economic power is waning, and with its industrial base getting weaker and its population poorer, the willingness to support other members of the Eurozone will be more limited. This is not a recipe for stability, and it seems more likely than not that European solidarity is already past its high point.
Moscow’s New Found Independence + More
Moscow’s New Found Independence
Hudson noted, however, that “the biggest beneficiary” of Russia having been laden with sanctions is Washington. This is because Europe, which is heavily reliant on Russian energy, is faced with simultaneous energy and food crises, thus leaving it with little ability to pay attention to other matters.
“Basically, Washington doesn’t care if Russia wins the war [in Ukraine], because the US has succeeded in eliminating its competition in Europe, especially Germany.”
Related:
The agency added that the European Union’s commitment to reduce member states’ gas consumption by 15 percent from August 2022 to March 2023 will continue to increase oil demand by about 300,000 barrels per day for the next six quarters.
The Aframax vessels are optimally-sized to dock at European docks, which often cannot fit supertankers, an analyst from E.A. Gibson Shipbrokers told Bloomberg, and the current sky-high rates should remain heightened in the months ahead so long as sanctions against Russia remain.
…
“The market consensus was too pessimistic about Russia’s capability to re-route volumes to other buyers,” IEA analysts said. “Russia’s exports adjusted towards other buyers without a serious disruption to its production.”
Pelosi expected to visit Taiwan, Taiwanese and US officials say and Could Get Us All Killed!
Nancy Pelosi Taiwan Visit Could Get Us All Killed
Related:
Pelosi expected to visit Taiwan, Taiwanese and US officials say
Officials also believe the Chinese leadership doesn’t completely grasp the political dynamics in the United States*, leading to a misunderstanding over the significance of Pelosi’s potential visit. The officials say China may be confusing Pelosi’s visit with an official administration visit, since she and Biden are both Democrats. Administration officials are concerned that China doesn’t separate Pelosi from Biden much, if at all.
Pelosi is in the presidential line of succession, thus the administration takes extra care of her security when she travels overseas, the White House said on Tuesday, according to CNN.
They’re well aware that Pelosi is the second in line of Presidential succession!
Calling a recession and blaming it on interest rates
The latest US GDP figures for second quarter of 2022 renewed the debate about whether the US economy was in a recession or not. Real GDP contracted in the second quarter of this year by a 0.9% annualised rate (or by 0.2% quarter over quarter). That meant the US economy had contracted for two successive quarters, and so ‘technically’ (by that definition) was in a recession. Real GDP is now up only 1.6% from Q2 2021. And business investment is slowing, up only 3.5% from this time last year, the slowest rate since the end of the COVID slump in 2020.
Calling a recession and blaming it on interest rates
Despite sweeping sanctions, Russia’s economic outlook has improved since April — but it’s gotten worse for almost every other country
Russia’s economy is holding up better than expected amid sweeping sanctions over its invasion of Ukraine, according to the International Monetary Fund’s World Economic Outlook report issued on Tuesday.
Despite sweeping sanctions, Russia’s economic outlook has improved since April — but it’s gotten worse for almost every other country
US recession is very likely, IMF says + A recession alarm sounds on Wall Street
“It’s a very narrow path,” IMF chief economist Pierre-Olivier Gourinchas said. “The current environment suggest that the likelihood that the US economy can avoid a recession is actually quite narrow.”
US recession is very likely, IMF says
Related:
Hungary’s Viktor Orban sees Russia-US talks as ‘new strategy’ for Ukraine
Three Other Writers With Thoughts On Ukraine
‘EU may cut financial aid to Ukraine’
The funds promised to Ukraine by the EU have been delayed due to concerns over the bloc’s own economic troubles and infighting in Brussels, Bloomberg reported on Friday, citing people familiar with the discussions.
‘EU may cut financial aid to Ukraine’
H/T: THE NEW DARK AGE
Related:
EU Stalls on Ukraine Aid as Fears Spike of Gas Crisis at Home
The European Commission also committed in May to finance the bulk of the reconstruction of the country, which could amount to $750 billion, according to Ukrainian government estimates. That could prove an even thornier debate for the EU as there’s no agreement over how to raise the funds. The commission’s offer scared some member states, wary of the massive effort required to rebuild the country and potential corruption issues, people familiar with the discussion said.
…
EU economy commissioner Paolo Gentiloni told ministers during the closed-door meeting that national governments need to ensure that the economic response to the war’s fallout is strong enough to avoid the risk of fatigue among Europeans, an EU official said. Gentiloni told reporters on Thursday that governments have a “duty” to mitigate the impact of higher prices, in particular of the energy bills, on the poor.
Trying to ward off any more protests, huh?! 🤷🏼♀️
Ms. Cat’s Chronicles 
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