The US Department of Defence announced on Monday that it will send Ukraine another $350 million worth of military aid. The further supplies come as Ukraine reportedly gears up for a spring offensive, despite suffering heavy losses in Donbass.

The package is the 34th tranche of military aid doled out to Ukraine by the US since August 2021. It includes ammunition for Kiev’s US-provided HIMARS rocket artillery systems, 155mm artillery rounds, high-speed anti-radiation missiles (HARMs), riverine patrol boats, and other anti-tank and mortar systems.

Amid reports of dwindling stockpiles at home, the Pentagon no longer discloses how much of each ammunition type its arms packages include. These figures have been omitted from every such statement since the beginning of January, but a comparison of the supplemental fact sheets released with each package suggests that the US has sent Ukraine at least 500,000 155mm shells since the beginning of March 

These NATO-standard shells are in desperate demand, with Ukrainian Defence Minister Aleksey Reznikov claiming earlier this month that his forces need 594,000 per month to fire their Western-provided guns at full capacity. Aside from those provided by the US, Reznikov has asked the EU to provide 250,000 shells per month. 

At a meeting on Monday, however, 18 EU countries committed to providing just a million of these shells within a year, a figure that falls well short of Kiev’s demands.

Media reports have warned  or months that the effort to arm Ukraine has depleted military inventories in the US and Europe. With Kiev reportedly ignoring Western advice and refusing to surrender the encircled city of Artyomovsk (called Bakhmut in Ukraine), US and EU officials are now concerned that its forces may lack the ammunition for a springtime offensive against Russia, the New York Times reported last week.

The US has given Ukraine more than $32.5 billion in military aid since last February, out of more than $110 billion allocated by the administration of US President Joe Biden for military and economic assistance to Kiev. Russia has repeatedly warned that such military outlays will not change the outcome of the conflict but make Western nations de-facto participants in the hostilities.

Four Republican congressmen have entreated US President Joe Biden to send cluster munitions, a controversial weapon banned in 110 countries, to Ukraine, dismissing concerns about escalating the conflict as misplaced in a letter to the White House on Tuesday.

The Biden administration shouldn’t hesitate to send cluster munitions – specifically dual purpose improved conventional munitions (DPICM) – because of “vague concerns about the reaction of allies and partners and unfounded fears of ‘escalation’,” Sen. James Risch (R-Idaho), Sen. Roger Wicker (R-Mississippi), Rep. Michael McCaul (R-Texas), and Rep. Mike Rogers (R-Alabama) wrote in their letter. After all, they said, other countries have already sent such weapons without triggering Russian retaliation.

Acknowledging the weapons’ horrific effects, the signatories argued that while Ukrainian leaders are “aware of the risks to non-combatants,” the “existential threat posed by Russia’s invasion and daily acts of barbarity” is more important. Additionally, they claimed, “d,” US DPICM are equipped with “technologically advanced measures” that limit collateral damage.

A 2008 UN treaty banned cluster munitions in 110 countries, including three-quarters of NATO member nations. It has been signed by another 13 countries, though neither Russia, Ukraine, nor the US are on that list. Ukraine is the only country where the deadly devices are currently in use, and both sides have been accused of deploying them in the conflict.

Aside from one attack in Yemen in 2009, the US has not used cluster munitions since it invaded Iraq in 2003 and has not produced any since 2016. Central Command has admitted the hundreds of smaller bombs they contain are often left unexploded across the strike area, posing risks similar to landmines to anyone – especially children – who encounter the odd-looking little “petal mines.”

While the White House initially balked at Kiev’s request for DPICMs in December, it stopped short of a hard “no,” and the issue is reportedly still under consideration if the US runs out of available ammunition to ship overseas. 

In April, 27 members of Congress denounced Russia’s alleged use of cluster munitions, calling them “barbaric and indiscriminate weapons” and urging Biden to join the UN convention. The current policy, they said, was “wholly unacceptable given what we know about the immediate and long-term damage done to societies on which they are deployed.”

While the Republican Party’s 2022 campaign platform stressed curtailing the Biden administration’s blank check to Kiev, the Pentagon announced another $350 million in weapons just this week, to be drawn from the US’ own stockpiles.

21/3/23

Dave C

 Thousands of shopping basket essentials have risen sharply in price, with some products doubling in just one year, it has been revealed.

The figures come from an analysis of more than 25,000 products and make clear that budget items, which many have turned to during the cost of living crisis, are rising fastest.

New research from Which? shows the annual inflation rate for popular food and drink in February was 16.5 per cent across eight big supermarkets.

On average, budget range prices are up by a higher 22.9 per cent with own-brand up 19.7 per cent, premium supermarket lines by 13.8 per cent and big brands by 13.3 per cent.

The increases are adding hundreds of pounds to annual food bills and are way ahead of rises in salaries, pensions and benefits. 

Earlier this month, Bank of England policymaker Catherine Mann warned ‘greedflation’ might take its toll on ordinary people if companies use the cost of living to justify large price hikes.

https://www.dailymail.co.uk/news/article-11888217/Supermarket-essentials-DOUBLE-price-BoE-warns-companies-profiting-greedflation.html

Bent double, like old beggars under sacks,

Knock-kneed, coughing like hags, we cursed through sludge,

Till on the haunting flares we turned our backs

And towards our distant rest began to trudge.

Men marched asleep. Many had lost their boots

But limped on, blood-shod. All went lame, all blind;

Drunk with fatigue; deaf even to the hoots

Of tired, outstripped Five-Nines that dropped behind.

Gas! GAS! Quick, boys! – An ecstasy of fumbling,

Fitting the clumsy helmets just in time;

But someone still was yelling out and stumbling

And flound’ring like a man in fire or lime …

Dim, through the misty panes and thick green light,

As under a green sea, I saw him drowning.

In all my dreams, before my helpless sight,

He plunges at me, guttering, choking, drowning.

If in some smothering dreams you too could pace

Behind the wagon that we flung him in,

And watch the white eyes writhing in his face,

His hanging face, like a devil’s sick of sin;

If you could hear, at every jolt, the blood

Come gargling from the froth-corrupted lungs,

Obscene as cancer, bitter as the cud

Of vile, incurable sores on innocent tongues, –

My friend, you would not tell with such high zest

To children ardent for some desperate glory,

The old Lie: Dulce et decorum est

Pro patria mori.

Wilfred Owen1893 – 1918

(The old lie- Dulce et decorum est pro patria mori – it is sweet and fitting to die for one’s country.)

 Retail sales in Poland slumped for a second straight month in February, at the fastest pace since 2020 as inflation continued to squeeze spending power, Statistics Poland reported on Tuesday.

Last month, sales in the sector dropped by 5% year-on-year, far more than an expected 1.4% decline, the figures showed. On a monthly basis, retail saw a 3.6% decline from January.

“Retail sales of goods, with calculations based on data from stores with at least 10 employees, decreased by 5% in February. At the same time, in January this fall was 0.3%,” the report said.

Economists attribute the weak turnover to persisting pressure on households’ real disposable incomes and purchasing power, caused by spiraling inflation.

Sales of furniture and household appliances slid 10.3% in February, while retail sales of other durable goods contracted by 12.3%.

Purchases of food in Poland fell for a second month in a row, losing 4.6% in February compared to the same period last year. The data also showed a 26.2% annual decline in fuel sales.

Poland’s inflation is at its highest since 1996. Consumer prices rose 18.4% year-on-year in February, up from the 16.6% the previous month, according to the latest data from Statistics Poland.

Annual inflation in Poland accelerated in February to the highest level since 1996, data released by the national statistics service GUS showed on Wednesday.

Consumer prices rose 18.4% year-on-year in February, up from the 16.6% recorded in the previous month.

Economists are predicting that the latest surge will mark the peak of the current cycle, but Polish consumers say they are struggling to pay household bills and buy basic groceries, with price growth at its steepest in more than a quarter of a century.

The figures show that the February reading surpassed the previous high of 17.9% recorded in October 2022, with food prices, transport and energy costs rising fastest last month.

Prices of food and non-alcoholic beverages saw the most significant annual increase in February of up to 27%, compared to 26.6% in January. Housing-related rates jumped 22.7% while the cost of heating fuel, water and central heating increased, the report said.

The Polish economy slowed in 2022 amid soaring inflation and a plunge in consumer spending brought on by the conflict in neighboring Ukraine and the impact of sanctions on Russia.

Poland may end up “joining” the ongoing conflict between Russia and Ukraine should the latter fail to protect its “independence,” the Polish ambassador to France, Jan Emeryk Rosciszewski, has said. The senior diplomat made the remarks on Saturday while speaking live to the broadcaster LCI. 

Rosciszewski squarely blamed the hostilities, which have been ongoing for over a year already, on Moscow, stating that it was “not NATO, not Poland, not France and not Slovakia” that was ramping up international tensions, but Russia. According to the diplomat, the situation now is “either Ukraine will successfully defend its independence, or we will be forced, in any case, to join this conflict.”  

“Otherwise, our principal values, which are the basis of our civilization and our culture, will be in fundamental danger, so we will have no choice,” Rosciszewski stated.

The hawkish statement promptly made headlines in international media, prompting the Polish mission in France to elaborate further on the remarks made by its head. According to a message released by the embassy on Sunday, Rosciszewski’s comments were not actually an admission that Warsaw was ready to go to war with Russia, but merely a “warning” and a pledge to continue supporting Kiev.

“Listening carefully to the entire conversation allows us to understand that there was no announcement of Poland’s direct involvement in the conflict, but only a warning against the consequences of Ukraine’s defeat – the possibility of Russia attacking or dragging into the war more Central European countries –  the Baltic states and Poland,” the statement reads. The embassy also condemned the purportedly “sensational” reporting on the bombshell interview, suggesting that some unidentified media outlets may have acted in “ill will.”

The remarks received a poor reception in Moscow, with a top Russian senator, Alexey Pushkov, warning Warsaw of the potential consequences and questioning its presumed resolve to fight Russia on its own.

“A very presumptuous statement by the Polish ambassador in Paris. For the first time, an official representative of Poland said what its leaders have long had on their minds. However, all the ‘courage’ of the Poles is based on the support of the United States. Is Warsaw sure that Washington is ready to fight?” Pushkov said in a Telegram post.

Poland has been among the most active supporters of Kiev in the hostilities against Russia, sending in assorted military hardware, including tanks and artillery pieces, to prop up Ukraine. Apart from that, Polish mercenaries have been directly involved in the conflict in significant numbers, according to Moscow. Warsaw has also announced a major military buildup of its own, seeking to greatly expand the ranks of its armed forces and procure large amounts of modern military hardware from overseas.

RT 3/23

Dave C.

 Russian President Vladimir Putin has warned London against the planned delivery of depleted uranium (DU) armor-piercing tank rounds to Ukraine, saying the weapons will be treated by Moscow as containing “nuclear components.”

Putin commented on British plans to include DU munitions in a forthcoming delivery of Challenger 2 main battle tanks as he spoke alongside Chinese President Xi Jinping following talks in Moscow on Tuesday.

“I would like to note that if this happens, then Russia will be forced to react accordingly, bearing in mind that the collective West has already started to use weapons with a nuclear component,” he stated.

A similar warning was issued by Russian Defense Minister Sergey Shoigu on the sidelines of the Russia-China talks, who said the move would bring the world yet another step closer to a nuclear disaster.

“Another step has been taken, and there are fewer and fewer left,” Shoigu told reporters.

The looming delivery was announced on Monday by Annabel Goldie, the UK minister of state at the Ministry of Defence, as she responded to a written inquiry on the matter. She confirmed the plans to deliver DU rounds to Kiev, lauding them as a highly effective weapon.

“Alongside our granting of a squadron of Challenger 2 main battle tanks to Ukraine, we will be providing ammunition including armor-piercing rounds which contain depleted uranium. Such rounds are highly effective in defeating modern tanks and armored vehicles,” Goldie said.

The DU munitions have long been the subject of international controversy, with critics of their use highlighting the toxicity and radioactivity of the material. Depleted uranium is used to make the hardened cores of armor-piercing rounds, excelling in this role due its high density. The round’s core evaporates on impact, turning into aerosol and contaminating the environment with uranium.

The UN has already expressed alarm over the UK plans. Farhan Haq, a spokesman for Secretary-General Antonio Guterres, told a media briefing that the international body had long voiced concerns about the consequences of DU use, as well as about those who supply such weaponry. 

These munitions were actively used by NATO during the First Gulf War, as well as during the bloc’s aggression against former Yugoslavia, both in the form of tank and aircraft artillery shells. The use of the munitions was acknowledged by NATO in a 2000 report, with the US-led bloc revealing that it had used some 10 metric tons of the material in Yugoslavia – and 300 metric tons in Iraq.

The report acknowledged that the material poses a threat due to its toxicity in an “aerosol form,” but insisted the DU was not “particularly highly radioactive.”

21/3/23

 Spaniards are facing surging prices for tomatoes and pork amid burgeoning demand for the products from abroad and geopolitical tensions, the Financial Times reported this week, citing the billionaire owner of Spanish supermarket chain Mercadona.

According to the businessman, who is ranked as Spain’s fourth-richest person, the Russia-Ukraine conflict has heavily weighed on tomato prices as it resulted in sharp surge in prices for natural gas, forcing farmers to shut down production of vegetables in greenhouses in Northern Europe due to high heating costs.

As a result, buyers flocked to Spain’s solar-powered growers, pushing up prices from €1.39 per kilogram in January 2021 to €2.05 today.

“The cost has gone up by a whopping 66 cents. We’ve raised prices by 50%,” Roig said, as quoted by the newspaper.

“So we had two options: either buy tomatoes or leave customers without tomatoes. And we believed it was more important to have tomatoes at €2.05 than to not have tomatoes.”

According to Roig, the price of pork, vital for making Iberian ham, has skyrocketed due to soaring demand from China, for which Spain is a major supplier.

“There are one billion Chinese people,” the businessman said. “How much did they ask for?     don’t know. What I do know is that pork cost €1.05 [per kilogram in January 2021] and now it costs €1.96.”

Earlier this week, the country’s national institute of statistics (INE) reported that the Consumer Price Index (CPI) for food stood at 16.6% in February, marking the highest level since 1994. This is despite the IVA (Spain’s sales tax) reductions adopted during the previous month.

RT 19\3\23

Dave C.

 Real wages in the UK will not return to their 2008 level until 2026 despite an easing of inflation, the Resolution Foundation, an independent think tank, reported this week in its analysis of the new budget.

According to the report, the country is on track for a “disastrous decade” of stagnant incomes and high taxes, with cuts to public services.

The publication highlighted that real wages fell at an annual rate of 3.9% in January, noting that the bigger picture for wages is “one of long-term pay stagnation.” 

The decrease in household disposable incomes this year and next are the worst in a century, the think tank stressed.

“Britain’s economy remains stuck in a deep funk – with people supported into work but getting poorer, and paying more tax but seeing public services cut,” it wrote.

The UK is forecast to have gone through “the biggest energy and inflation shock since the 1970s, while avoiding a recession, with unemployment peaking at just 4.4%,” Resolution Foundation added.

According to the study, taxes as a share of GDP are expected to hit 37.7% by the end of the forecast period, representing a 70-year-high and a 4.7% increase since 2019-2020.

The freeze on income tax thresholds since 2022-23 means that typical households will be worse off by £1,110 ($1,337) by 2027-28 when the freeze ends, it noted.

Torsten Bell, chief executive of the Resolution Foundation, stated that “Jeremy Hunt’s first budget was a much bigger affair than many expected, combining improvements to the dire economic and fiscal outlook with a significant policy package aimed at boosting longer-term growth in general, and the size of the workforce in particular.

“But stepping back, the UK’s underlying challenges remain largely unchanged. We are investing too little and growing too slowly. Our citizens’ living standards are stagnant. We ask them to pay higher taxes, while cutting public services,” he concluded.

RT 19/3/23

Dave C

Britons are facing the biggest decline in living standards since records began in the 1950s, and the highest taxes since the World War II as the economy grinds to a halt this year, the Office of Budget Responsibility (OBR) reported on Wednesday.

According to the report, real household disposable income, a measure of real living standards, will drop by 5.7% over the financial years 2022-23 and 2023-24.

“While this is 1.4 percentage points less than forecast in November, it would still be the largest two-year fall since records began in 1956-57,” the report said.

A surge in energy and consumer goods prices triggered inflation, which currently stands above nominal wages and has led to a historic fall in disposable incomes, the OBR noted, adding that “this means that real living standards are still 0.4% lower than their pre-pandemic levels.”

According to the forecast, living standards will not return to pre-pandemic levels until 2028 and the tax burden remains on course to be the highest since the Second World War.

The UK “continues to see the tax burden reach a post-war high of 37.7% of GDP at the forecast horizon in 2027-28, including the highest ratio of corporation tax receipts to GDP since the tax was introduced in 1965,” the watchdog said.

The British economy is expected to shrink by 0.2% this year despite claims by the government that the country is set to avoid a recession.

RT 17/3/23

Dave C.

 Food inflation has accelerated in the Netherlands with prices surging 18.4% year-on-year in February from a 17.6% January reading, data shared on Tuesday by Statistics Netherlands (CBS) shows.

Clothing was also considerably more expensive, surging 11.8% last month from 9.4% in January. Experts point out that these two items in particular contributed to inflation last month, which amounted to 8%.

An economist at the third-largest Dutch bank ABN Amro, Aggie van Huisseling, said that unusually high energy prices continued to fuel inflation in the country. The increase in food prices stems mainly from the soaring costs of fresh vegetables, as products like tomatoes currently come mainly from greenhouses that are heated with gas, Van Huisseling explained.

At the same time, fuel prices eased somewhat, declining 9.4% in February compared to the same period last year, figures from the CBS showed.

According to the European harmonized consumer price index (HICP), consumer goods and services in the Netherlands were 8.9% more expensive in February than the previous year and up from 8.4% in January.

Economists from ABN Amro expect inflation to cool this year and decline to 4%, but warn that a rise in energy prices will be passed on to the cost of other products.

Annual inflation in Poland accelerated in February to the highest level since 1996, data released by the national statistics service GUS showed on Wednesday.

Consumer prices rose 18.4% year-on-year in February, up from the 16.6% recorded in the previous month.

Economists are predicting that the latest surge will mark the peak of the current cycle, but Polish consumers say they are struggling to pay household bills and buy basic groceries, with price growth at its steepest in more than a quarter of a century.

The figures show that the February reading surpassed the previous high of 17.9% recorded in October 2022, with food prices, transport and energy costs rising fastest last month.

Prices of food and non-alcoholic beverages saw the most significant annual increase in February of up to 27%, compared to 26.6% in January. Housing-related rates jumped 22.7% while the cost of heating fuel, water and central heating increased, the report said.

The Polish economy slowed in 2022 amid soaring inflation and a plunge in consumer spending brought on by the conflict in neighbouring Ukraine and the impact of sanctions on Russia.

Food prices in Finland saw a historic jump of 16.3% last month in annual terms, according to official data released on Tuesday. The figure represents the highest price growth since 1964, the country’s statistics agency reported.

Data showed that the high cost of electricity, food, and increased loan interest rates were the main drivers of inflation on an annual basis.

According to the report, the core inflation rate, which excludes food and energy prices, continued to rise sharply and reached 6.6% in February.

Jukka Appelqvist, chief economist of Finland’s Central Chamber of Commerce, said that while prices may not continue to rise as rapidly as in February, the persistence of inflationary pressures is a major economic risk. The official noted that there were no signs of an uncontrollable spiral of prices and wages falling in the country. However, he warned that a stable and low inflation rate is unlikely to happen in the near future.

The prolonged tight monetary policy and rising interest rates could lead to a deeper recession than anticipated, Appelqvist suggested.

The EU nation sank into recession in the fourth quarter last year after GDP had shrunk more than expected from the previous three-month period. The decline was led by exports, investments and consumption, official data shows.

Economists have projected a mild recession for the Finnish economy this year before a rebound in 2024.

RT 17/3/23

Dave C.

 French President Emmanuel Macron bypassed parliament and enacted a controversial pension reform package on Thursday, triggering riots and arson on the streets of Paris. The move, which raises France’s retirement age to 64, had already caused months of strikes and protests.

Macron invoked a special constitutional power to pass the bill, immediately before a vote was set to take place. Prime Minister Elisabeth Borne announced the decision in the National Assembly, as opposition lawmakers booed, jeered, and sang.

Under the power invoked by Macron and Borne, the bill is considered passed unless a majority of lawmakers file a motion of no confidence against the government in the next 24 hours. Right-wing leader Marine Le Pen said that her National Rally party would back such a motion, as did a number of leftist leaders.

Macron has argued for months that France’s pension system will go bankrupt unless citizens pump more money into the system. Raising the retirement age from 62 to 64 – which would still see French workers retire earlier than most of their European counterparts – would be a “just and responsible” way to achieve this, he said in January.

France’s trade unions – who have protested the reforms since last year – have argued that the system should instead be buoyed by increasing taxes on the wealthy.

Thousands of protesters gathered in Paris as Macron’s bill was passed. Near parliament buildings, police fired tear gas at the demonstrators and faced off against the crowd in lines.

Rioters set fires and blocked roads throughout the French capital, as groups of masked protesters clashed with riot police.Prior to the bill’s passage, almost half a million people protested in cities across France on Wednesday, according to figures from the Interior Ministry. Police have already made 73 arrests in the capital, Le Figaro reported, citing a police source.

RT 16/3/23

Dave C