According to the President's Export Council, since 1993, the US has imposed more than 40 economic sanctions on 36 countries. The last one came back to haunt US and the Europeans.
US imposed economic sanctions on Russia for its Ukraine invasion on 24 February which is hurting the US and Europeans badly because they need Russian oil, gas, fertilisers, minerals, corn, wheat etc.
Although US is the biggest producer of oil in the world, it has to imports about 10% of its requirement. Russia is the 2nd biggest oil producer in the world and it exports about 40% of its oil production.
If inflation becomes too high, the economy can suffer; conversely, if inflation is controlled and at reasonable levels, the economy may prosper. With controlled, lower inflation, employment increases. Consumers have more money to buy goods and services, and the economy benefits and grows.
Prices climbed at the fastest pace in decades in the month leading up to the war in Ukraine, underlining the high stakes facing the United States — along with many developed economies — as the conflict promises to drive costs higher.
As a result, gas price has sky rocked, as shown on the price chart below.
The US Consumer Price Index rose by 7.9 percent through February, the fastest pace of annual inflation in 40 years. Rising food and rent costs contributed to the big increase, the Bureau of Labour Statistics said, as did a nascent surge in gas prices that will become more pronounced in the March inflation report.
The February report caught only the start of the surge in gas prices that came in response to Russia’s invasion of Ukraine late last month. Economists expect inflation to pick up even more in March because prices at the pump have since jumped to record-breaking highs. The average price for a gallon of gas was $4.32 on Thursday, according to AAA.
Rapidly climbing costs are hitting consumers in the pocketbook, causing confidence to fall and stretching household budgets. Rising wages and savings amassed during the pandemic have helped many families continue spending despite rising prices, but the burden is falling most intensely on lower-income households, which devote a big chunk of their budgets to daily necessities that are now swiftly becoming more expensive.
The United States spends more on national defense than China, India, Russia, United Kingdom, Saudi Arabia, Germany, France, Japan, South Korea, Italy, and Australia — combined. While the chart above illustrates last year’s defense spending in dollar terms, the United States has also historically devoted a larger share of its economy to defense than many of its key allies.
US military budget:
The military budget is the largest portion of the discretionary United States federal budget allocated to the Department of Defense, or more broadly, the portion of the budget that goes to any military-related expenditures. The military budget pays the salaries, training, and health care of uniformed and civilian personnel, maintains arms, equipment and facilities, funds operations, and develops and buys new items. The budget funds five branches of the U.S. military: the Army, Navy, Marine Corps, Air Force, and Space Force.
On 24 February, Russia invaded Ukraine. The cost of direct damage to Ukraine's infrastructure amid Russia's ongoing invasion has reached almost an estimated $63 billion, according to an analysis by the Kyiv School of Economics. More than 600 properties which include 50 schools, 1 maternity hospital, 1 theatre etc were damaged. Several thousands of people were killed. Practically the whole of Mariupol city was flattened by the Russian bombs.
More than 4 million Ukrainian refugees have fled to neighbouring countries for safety. NATO countries including US have been helping Ukraine with military weapons to fight the Russians.
Ukraine has tried a few times in vain to talk peace with Russia. Obviously, Ukraine cannot defeat Russia. Currently Ukraine needs money more than weapons to feed themselves and repair all the damaged buildings.
Record high inflation in US is the beginning of the end of US supremacy in the world.
Created by Koon Yew Yin | Apr 18, 2024
After the stock closed yesterday, KSL announced its 4th quarter EPS which is 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year.
Created by Koon Yew Yin | Mar 29, 2024
Currently Sabah Government does not know that solar panel produces the cheapest electricity???
Created by Koon Yew Yin | Mar 23, 2024
During my life time I saw every Prime Minister being replaced by another politician for one reason or another. Dr Mahathir managed to stay the longest time of 22 years.
Created by Koon Yew Yin | Mar 04, 2024
All property developers have just announced their annual profit for 2023. All of them reported increased profit.
Created by Koon Yew Yin | Mar 04, 2024
Although my writing of this article sounds boastful but I feel that it is important to keep this record for posterity. Engineers play a pivotal role in shaping our modern world.
Created by Koon Yew Yin | Mar 01, 2024
What can KSL do to benefit shareholders? I hope all the shareholders will read this article so that they can attend the coming annual general meeting to vote out those directors who are seeking re...
Created by Koon Yew Yin | Feb 29, 2024
After the stock market closed, KSL announced its 4th quarter ending Dec 2023 EPS of 12.74 sen. The total is 40.76 sen for 4 quarters. Its total EPS for 4 quarter ending 2020 was only 17.8 sen.
Created by Koon Yew Yin | Feb 29, 2024
KSL is the cheapest in terms of PE ratio. KSL Holdings Bhd is a holding company. It is engaged in real estate services.
Created by Koon Yew Yin | Feb 26, 2024
Several economists and local industry representatives are confident that Malaysia’s gross domestic product (GDP) growth will strengthen this year, despite easing in the final quarter of last year.
Created by Koon Yew Yin | Jan 08, 2024
KSL price chart is super bullish as shown below. KSL last traded at Rm 1.33.
Inflation is found everywhere except our mkt.
Who can bring inflation to our mkt ?
2022-04-01 13:16
Donald Trump actually predicted what would happen to US if Biden became president!
Which means, the mid term election of this year may see total wipeout of Democrats! Mega win for Republican for both house and senate!
A reminder, a imcompetent administrators create so much problems rather than solution regardless in US or Malaysia!
2022-04-01 13:25
Go check the national debt for USA. It is more than USD30 trillions. It can take 200 years to resolve the problem for a country that is only less 250 years old.
It may cost USD0.10 to print a piece of USD100 bill. Can you trust that same bill to buy RM420 value of durians/Russian gas? There is no sufficient back up by gold bars to print those bills. That's why China would prefer to stock up with Gold.
When the Rubles are required to buy the Russian gas commenced, later other currencies can be asked when the seller/exporters country insisted so. Then, we can know which are the countries in the queue that can offer their currencies for international trade.
2022-04-01 16:46
I find that very few people dare to speak out like you. Your way of looking at the problem is really excellent, I feel that the country is really having a problem with the leader.
https://stickmanfighter.online
2022-10-17 10:48
Whenever USA enter an economic boom & with high inflation, doomed gurus always predicted the end of the country. But the country always recovers to the dismal of detractors. In reality, if the US collapsed, the world would be in the worst shape.
2022-10-17 11:25
beinvested
USA is led by dumb people. If USA being attacked, how much Ukraine can help USA.
USA should not put its nose into every country's problem if USA has not settled the internal problem of their people.
Goods can cost triple the price, inflation. Americans are suffering as we are talking but USA is offering millions/billions to Ukraine now. Many of the European countries are rich such as the UK or Germany so they can absorb the refugees wit free Visa.
But dumb people/leaders will always do the exact opposite things and they can be professors, university researchers or seasoned politicians.
2022-04-01 11:15