While there are many reasons why inflation is at a 40-year-high, Moody’s Analytics’ chief economist Mark Zandi explains that it’s the war in Ukraine that accounts for more than 33% of current inflation rates.
The conflict, along with the sanctions imposed on Russia, has caused more inflation in the United States than either the COVID-19 pandemic or American Rescue Plan. That’s bad news for the economy because President Biden seems to be doing everything he can to escalate the conflict rather than find ways to push both sides to reach an agreement.
The Biden Administration’s recent commitment to ship long-range rocket systems to Ukraine is perhaps one of the most dangerous decisions the President has made since the conflict began. These rocket systems can be used to not only strike the Russian military in Ukraine but even Russia itself.
Russian President Vladimir Putin has warned the United States that this shipment would lead Russia to bomb targets that it has not struck yet, but it appears no one in the Biden Administration is listening. To emphasize his point, the Russian military struck Kyiv yet again; Russia claims it hit tanks shipped from NATO, but Ukraine claims that the strike hit grain wagons, thus exacerbating food shortages that have sent food prices skyrocketing around the world.
Given the nature of the conflict, it’s impossible to know which side is telling the truth, but either instance would be bad news for all involved. The fact that Russia is willing to bomb new targets to prevent weapons importations means that thousands more will be killed in a conflict the Biden Administration could have easily stopped before it started. If food shipments are being hit, poor and middle-class Americans will continue suffering as they dip into savings and max out their credit cards to keep pace with inflation.
Sadly, the Biden Administration cares little about how the conflict affects ordinary people. In fact, it is now planning on selling Ukraine armed attack drones even though experts are warning the sale could drag the United States into World War 3, putting America in direct conflict with a nation that has more nukes than the United States.
What’s more, the Global Organized Crime Index is now warning that thanks to America’s provision of weapons to the region, Ukraine is now one of the largest arms trafficking markets in Europe. While inflation is certainly a concern, it pales in comparison to a potential terrorist attack that could occur if terrorists manage to get their hands on the advanced weaponry the United States is shipping into a completely unregulated conflict zone.
Inflation is at record highs, shortages are plaguing the nation, and the president’s acolytes at the FED and Treasury Department have only now realized what most people in the nation already knew; that is, that inflation isn’t transitory. Now, it’s becoming apparent that the main cause of inflation in the United States is the Ukraine war that the Biden Administration pushed for and continues to escalate.
There is no telling how long it will take the President to realize that pushing both sides to negotiate rather than trying to weaken Russia at all costs is the best option for all involved. What’s more, even if the president does manage to figure things out, there are many in his cabinet who care only about humiliating Russia at all costs, even if it costs the lives of poor Americans who struggle to make ends meet.
Sadly, in the meantime, millions of people around the world will suffer as the armed conflict takes the lives of innocent men, women and children, sends people fleeing from their homes into neighboring countries, and sends food prices rising, making it difficult if not impossible for many to find affordable food options.