Tags

, , , , ,

Picture Al Jazera

The usual suspects have berated the administrations of America and Britain as well as anyone supporting the action in hitting back at the Houthis or anyone questioning the action of trying to stop attacks on shipping using the Red Sea accessing the Suez Canal. We should not forget that the Panama Canal traffic is still restricted due to the regional drought, and further that yesterday the Iranians kidnapped an American tanker of off Oman (it was revenge for the Americans doing it to the Iranians last year for breeching sanctions (with the same ship!)).  American media is already calling it “The War For The Red Sea” upping the anti unnecessarily.

That tanker attack immediately spiked world oil prices by 4% and now ship owners are having to direct ships the long way round the Cape, which massively raises shipping costs and will inevitably filter down to the consumer in an election year where governments are especially sensitive to spikes in what the peasants are having to pay for things.  

There is a serious risk, that we’re entering a perfect storm, likely to increase our already very high inflation which, in a year where more than 60 countries (it’s not just the USA)  have their General Elections is untenable for politicos (and Joe Public who will not be reluctant to demand action!). Biden does not want to be seen NOT to support the Israelis, but his support is strongly pro Hamas, and playing it weak plays to Trump’s trope that Biden is generally not to be trusted on foreign and defense matters and therefore not to be trusted on anything else either.  Biden will try to play it both ways and lose both camps.  The overall Geo-political situation is sitting on a powderkeg at the moment with lots of individual idiots running about with matches.  Yes, Erdogan I am looking at you! Leaders all feel they must grandstand on issues and someone, somewhere is likely to make a wrong step.

Copyright David Macadam 2024