May 13: Inflation and Covid - a Picture of Policy Failure

In which, data continues to mount that the federal government made critical errors on Covid and the economy, but wants to do more to correct your “critical” errors, and Russia… always Russia.

Russia’s spring freeze in Ukraine

Shifting men and materials to the Donbas was supposed to be a game changer for the Russian war plan in Ukraine. 

A couple weeks in, the plan seems to be working… terribly.

Russian forces are bogged down and needing to withdraw on their northern flank around Kharkiv, Sweden and Finland are clearing obstacles to joining NATO, and the UN is opening up war crimes investigations.

The losses on the ground and in the diplomatic arena don’t seem to be altering Russian strategic positioning, though, as the Russian unload their hypersonics on Odessa, and seek to maintain a blockade of Ukrainian ports still in Ukrainian hands.

The use of hypersonic missiles to strike Odessa is particularly revealing. Many observers had initially thought Russia hadn’t dipped into its more advanced arsenal in order to retain a NATO deterrence. The use of hypersonics could indicate that Russia’s munitions stocks are getting depleted even as Russia digs in and/or its not anticipating a NATO intervention.

Out with the old, in with the… old? Elections, etc.

A couple weeks ago, French President Macron had been reelected to a second term and we were anticipating several other elections while Sri Lanka’s government seemed to be in tailspin.

This week witnessed elections in the Philippines and Lebanon, and the collapse of the Sri Lankan government.

Despite the fact that all these countries are experiencing varying degrees of economic distress and political upheaval, ruling parties retained power in Lebanon, a scion of an old ruling family returned to power in the Philippines, and Sri Lanka’s new leader is a political insider. 

Meanwhile, in Hong Kong, Beijing got its man into the leadership chair, which means stricter governance is going nowhere and will likely get even more oppressive.

A picture of policy failure: Inflation and Covid

The twin-headed hydra of inflation and Covid continued to wreak its chaos on President Biden and the Democrats this last week. 

Inflation continued its (somewhat lessened) climb while gas prices hit new highs. Meanwhile, the stock market continued to go into hibernation and appeared to be joined by the crypto currencies, many of which crashed in value as well.