Diesel is an important economic input because the vast majority of goods are transported by diesel power trucks, trains, and ships. In addition, farm machinery and construction equipment is typically diesel powered. Unlike many consumer goods, there is no easy substitute for diesel fuel.
It is estimated about 30% of the price of food is the fuel cost. METARs should expect structurally higher prices for food and consumer goods across the supply chain until the situation in the Gulf is stabilized.
IOM, Zelensky has several cards. US military is leaving America vunerable by not adopting the drone skills that have become so important in Ukraine and Iran wars.
US has invested a lot in drones and has been using them for a long time, but that’s not really one of Zelensky’s cards.
I meant specifically that Ukraine is objectively winning on the battlefield. They’ve made small, but non-trivial gains in recent months and recently smashed a Russian offensive.
Zelensky said that he would agree to a mutual pledge of each nation promising to stop attacking its energy infrastructure, which would solve the diesel issue. However, US leaders are more terrified of upsetting Putin than US voters and have not asked him to do so.
I think it is worse, they identify with white supremacist impulses. On this topic rightly deflation in China scares them. Inflation is necessary. Not this much inflation, unless renegotiating the debt is the goal.
