US President Joe Biden will face two catastrophes – a campaign miscalculation in Ukraine and an inevitable recession in the United States, according to an article in Hong Kong-based Asia Times.
“U.S. GDP fell 1.9% year-on-year in the first quarter. An unexpected drop in May retail sales reported on June 15 by the Department of Commerce and a 14.4% month-on-month drop in US new homes reported on June 16 June, indicate a contraction in the second quarter, that is, a recession, according to the standard criterion. This means disaster for Democrats in the elections next November, “said David Goldman, author of the article.
Not only the US and the EU, which created sanctions against the Russian Federation, but also the world economy suffers from interruptions in the supply of energy resources and food caused by Western restrictions on Russia’s trade and financial flows.
Central banks in the EU, the US, and the UK are preparing to sharply raise rates in order to slow down economic growth, limit demand and, as a result, inflation.
“Monetary policy can only bring down inflation by forcing consumers to stop buying, forcing retailers to liquidate stocks at lower prices and dampening demand for raw materials. This is a medicine that is worse than the disease,” Asia Times emphasizes.
Therein lie two disasters for Biden. “He underestimated the resilience of the Russian economy and the capabilities of the Russian military. It will not be easy to go down this ledge. It may be impossible,” the author emphasizes.
“A compromise in Ukraine with significant territorial concessions to Russia – the only possible way to end the war – would humiliate Washington,” said an Asia Times columnist.
Biden is unlikely to survive this, according to Congress. Americans no longer believe in salvation – Biden has no plan.