Too many goals…can they be achieved, and how soon? I think that political leaders in the US and the EU have a lot on their plate: contain inflation, defend Ukraine, get rid of oil & gas without building nuclear plants, punish Putin for everything he has done over the past twenty five years, deter Russia from invading Western countries, defend Taiwan, punish China for their treatment of Uyghurs and other transgressions, prevent food shortages, avoid a recession, overcome the consequences of Covid lockdowns, stimulate economic growth, and defeat political opponents domestically. I guess many of these aspirations can be achieved, provided there is political unity. In the US many expect a power shift after the November election, and members of the EU have diverging interests. A good example is a recent push for peace negotiations between Russia and Ukraine spearheaded by recently re-elected Macron and recently elected Shultz. Both leaders would rather have sufficient levels of gas in storage for this coming winter and avoid an influx of refugees in case there are food shortages. Then there is another spoiler, a recently re-elected Orban, who insists on having enough fuel for the Hungarian economy. On top, Orban is concerned with the fate/treatment of Hungarian minorities living in Western Ukraine. In the meantime, the economic picture is muted at best. A combination of high inflation and a negative wealth effect from declines of both stocks and bonds should depress the sentiment, affect spending, and lower growth rates globally. The Federal Reserve, bent on fighting inflation, offers a relatively optimistic picture, anticipating that “GDP would rebound in the second quarter and advance at a solid pace over the remainder of the year…”.
So many worlds, so much to do…
So many worlds, so much to do…
So many worlds, so much to do…
Too many goals…can they be achieved, and how soon? I think that political leaders in the US and the EU have a lot on their plate: contain inflation, defend Ukraine, get rid of oil & gas without building nuclear plants, punish Putin for everything he has done over the past twenty five years, deter Russia from invading Western countries, defend Taiwan, punish China for their treatment of Uyghurs and other transgressions, prevent food shortages, avoid a recession, overcome the consequences of Covid lockdowns, stimulate economic growth, and defeat political opponents domestically. I guess many of these aspirations can be achieved, provided there is political unity. In the US many expect a power shift after the November election, and members of the EU have diverging interests. A good example is a recent push for peace negotiations between Russia and Ukraine spearheaded by recently re-elected Macron and recently elected Shultz. Both leaders would rather have sufficient levels of gas in storage for this coming winter and avoid an influx of refugees in case there are food shortages. Then there is another spoiler, a recently re-elected Orban, who insists on having enough fuel for the Hungarian economy. On top, Orban is concerned with the fate/treatment of Hungarian minorities living in Western Ukraine. In the meantime, the economic picture is muted at best. A combination of high inflation and a negative wealth effect from declines of both stocks and bonds should depress the sentiment, affect spending, and lower growth rates globally. The Federal Reserve, bent on fighting inflation, offers a relatively optimistic picture, anticipating that “GDP would rebound in the second quarter and advance at a solid pace over the remainder of the year…”.