This article discusses two covers of The Economist magazine. One cover focuses on the dangers of persistent inflation and the dilemma facing central bankers, while the other cover discusses Ukraine's future as a prosperous and democratic country.
The economic troubles in Russia have led to increased investment from the United Arab Emirates (UAE) in Russian oil and gold markets, while wealthy Russians are flocking to the UAE, boosting its economy and causing a real estate boom.
Russia's stock market is performing well on the surface, but experts believe it is an illusion meant to hide the declining state of Russia's economy, which is likely to continue suffering as long as President Putin remains in power.
The Russian economy is facing several major issues, including a labor shortage, soaring inflation, a tumbling ruble, the risk of recession, a real estate bubble, and the nationalization of foreign businesses, which could lead to stagnation and a fall in GDP growth in the long term.
The Russian ruble's recent volatility and decline in value reveals the underlying struggle of funding the military without damaging the national currency or causing inflation, while the Kremlin's efforts to stabilize the economy in the short term may not prevent long-term economic decline and stress on the ruble.
Economists are increasingly lowering the odds of a U.S. recession, while the global trade finance gap reaches a record $2.5 trillion, and China's property developer Country Garden avoids default. North Korean leader Kim Jong-un plans to meet with Russian President Vladimir Putin to discuss military cooperation, and economists/traders believe the Fed will maintain a cautious approach to interest rate adjustments. The scarcity of homes for sale in the U.S. leads to a surge in prices, and the issue of providing high-speed internet access to all Americans faces challenges due to high costs. The Philippines considers reducing tariffs on rice imports, and Putin announces that Russia will not rejoin the grain deal with Ukraine until its demands are met. Jill Biden tests positive for Covid-19, and a new poll indicates that voters believe President Biden is too old to run for re-election. McConnell's health and leadership ability are questioned, and there is debate about using federal funds to rebuild flood-prone infrastructure in Florida.
Summary: Rising oil prices and increasing gas prices, driven by the Russian-Saudi agreement to extend oil production cuts, are contributing to inflation concerns and putting pressure on the markets, leading to potential gains for oil stocks like ConocoPhillips and Chevron.
Ukrainian President Volodymyr Zelensky warns that a weakened Vladimir Putin will resort to nuclear threats and winter bombings, but urges Western leaders not to panic and emphasizes Ukraine's determination to prevail in the conflict.
The European Union condemns the "illegitimate" elections held in Russian-annexed parts of Ukraine, while a UN official says that Russia's aggression in Ukraine is synonymous with torture and inhuman cruelty; meanwhile, the Kremlin spokesperson claims that no one will be able to compete with Putin if he runs for president in 2024, and the UN Human Rights Commissioner states that Russia's withdrawal from a grain deal is fueling global food insecurity. Ukrainian forces regain control of drilling platforms near the Crimean coast and Putin arrives in Vladivostok for the Eastern Economic Forum, while South Korean media reports that Kim Jong Un is en route to Russia, and Ukraine reports advances in Bakhmut and Donetsk city. Finally, Brazil's President Lula says it's up to the judiciary whether to arrest Putin if he visits the country.
The West needs to increase pressure on Russia's economy by intensifying sanctions and implementing stricter controls on Russian exports, oil price caps, and financial transactions, while also uncovering hidden stashes of money and putting Russia under a full financial embargo.
Russian President Vladimir Putin acknowledged that inflation in Russia has made it nearly impossible for businesses in the country to plan, but he brushed off longer-term concerns, stating that the problems are not "insurmountable."
Russia has raised its inflation forecast for 2023 and 2024, expecting a weaker rouble as the costs of the war in Ukraine increase.
The Russian central bank has raised its key interest rate to 13% in response to inflationary pressures and a weak rouble, and warns that rates will remain high for a considerable period of time, with further rate increases possible in the future.
The Chief of Defence Intelligence of Ukraine believes that if the war of aggression against Ukraine continues, the Russian economy will only hold out until 2025 and their arms supply will dry up in 2026 or earlier.
Ukrainian President Volodymyr Zelensky warns that Russian President Vladimir Putin could ignite World War III unless more assistance is provided, comparing Putin to "a second Hitler" and emphasizing the need to stop him from invading other countries.
Ukrainian President Volodymyr Zelensky emphasizes that US financial support to Ukraine is not only about aiding the country in its fight against Russia, but also about preventing Vladimir Putin's further global aggression.
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