Washington’s earlier boasts of driving Russian President Vladimir Putin from power, destroying Russia’s capacity to make war and halving the size of the Russian economy look ridiculous in retrospect.
The world economy is reeling from supply shocks in energy and food provoked by Western sanctions on Russia. Monetary policy can reduce inflation only by forcing consumers to stop buying, which forces retailers to liquidate inventory at lower prices and crushes demand for raw materials – a cure that is worse than the disease.
Russia meanwhile earned a record €93 billion (US$97 billion) from energy exports during the first 100 days of the war, a Finnish study concluded. China and India, which refused to join Group of Seven sanctions against Russia, reportedly are buying oil at a discount of $30 to $40 per barrel, while American and European consumers are paying the full price.
Energy prices have become the main driver of G7 inflation
Biden underestimated the resilience of the Russian economy and the capabilities of the Russian military.
Climbing down off this ledge won’t be easy. It may be impossible.
Biden denounced Russia’s leader as a war criminal, averred that he couldn’t be allowed to remain in office and bragged that US sanctions would cut the Russian economy in half. Defense Secretary Lloyd Austin claimed that the US would destroy Russia’s capacity to make war.
A compromise in Ukraine with significant territorial concessions to Russia – the only conceivable way to end the war – would humiliate Washington.
A negotiated solution to the Ukraine war, though, is not impossible.
Washington could continue to portray itself as the defender of Ukraine’s sovereignty while encouraging European leaders to do the dirty work and force Ukraine into negotiations with Moscow
France and Germany on February 15 asked Ukrainian President Volodymyr Zelensky to comply with the Minsk II agreement, then supported by Moscow, which would have given autonomy to Russian-speaking regions in the Donbas within a sovereign Ukraine.
At Washington’s prompting, Zelensky rejected a February 19 proposal from German Chancellor Olaf Scholz to avoid war. Michael Gordon reported on April 1 in The Wall Street Journal:
“Mr Scholz made one last push for a settlement between Moscow and Kyiv. He told Mr Zelensky in Munich on February 19 that Ukraine should renounce its NATO aspirations and declare neutrality as part of a wider European security deal between the West and Russia.
The pact would be signed by Mr Putin and Mr Biden, who would jointly guarantee Ukraine’s security. Mr Zelensky said Mr Putin couldn’t be trusted to uphold such an agreement and that most Ukrainians wanted to join NATO.
The hapless Zelensky did not invent the idea of NATO membership for Ukraine. He was given assurances by Washington and London, which stepped up weapons deliveries
https://asiatimes.com/2022/06/biden-stares-down-from-ukraine-economic-ledge/
The world economy is reeling from supply shocks in energy and food provoked by Western sanctions on Russia. Monetary policy can reduce inflation only by forcing consumers to stop buying, which forces retailers to liquidate inventory at lower prices and crushes demand for raw materials – a cure that is worse than the disease.
Russia meanwhile earned a record €93 billion (US$97 billion) from energy exports during the first 100 days of the war, a Finnish study concluded. China and India, which refused to join Group of Seven sanctions against Russia, reportedly are buying oil at a discount of $30 to $40 per barrel, while American and European consumers are paying the full price.
Energy prices have become the main driver of G7 inflation
Biden underestimated the resilience of the Russian economy and the capabilities of the Russian military.
Climbing down off this ledge won’t be easy. It may be impossible.
Biden denounced Russia’s leader as a war criminal, averred that he couldn’t be allowed to remain in office and bragged that US sanctions would cut the Russian economy in half. Defense Secretary Lloyd Austin claimed that the US would destroy Russia’s capacity to make war.
A compromise in Ukraine with significant territorial concessions to Russia – the only conceivable way to end the war – would humiliate Washington.
A negotiated solution to the Ukraine war, though, is not impossible.
Washington could continue to portray itself as the defender of Ukraine’s sovereignty while encouraging European leaders to do the dirty work and force Ukraine into negotiations with Moscow
France and Germany on February 15 asked Ukrainian President Volodymyr Zelensky to comply with the Minsk II agreement, then supported by Moscow, which would have given autonomy to Russian-speaking regions in the Donbas within a sovereign Ukraine.
At Washington’s prompting, Zelensky rejected a February 19 proposal from German Chancellor Olaf Scholz to avoid war. Michael Gordon reported on April 1 in The Wall Street Journal:
“Mr Scholz made one last push for a settlement between Moscow and Kyiv. He told Mr Zelensky in Munich on February 19 that Ukraine should renounce its NATO aspirations and declare neutrality as part of a wider European security deal between the West and Russia.
The pact would be signed by Mr Putin and Mr Biden, who would jointly guarantee Ukraine’s security. Mr Zelensky said Mr Putin couldn’t be trusted to uphold such an agreement and that most Ukrainians wanted to join NATO.
The hapless Zelensky did not invent the idea of NATO membership for Ukraine. He was given assurances by Washington and London, which stepped up weapons deliveries
https://asiatimes.com/2022/06/biden-stares-down-from-ukraine-economic-ledge/
