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#14

Monday, February 28, 2022

#1

Since childhood we’re taught to play nice, be kind, show respect….and maybe most importantly we were taught the golden rule: treat others as you wish to be treated! But as we get older, somehow, we learn to complicate these simple messages. We allow grey to surround what are often black and white issues.

Messages that world leaders and business leaders have publicly made since Russia solely decided to invade Ukraine. In the last few days, it’s been great to see leaders across the globe stand up and speak out. Seeing this is an encouragement. But I also find myself discouraged as well.Why?

Regardless of the long and complicated background in Russia/Ukraine history, Putin’s reckless decision to invade Ukraine can’t be reasonably accepted. 100% of the fallout (which most importantly includes the loss of human lives, as well as economic unfavourability, strategic partnerships with other countries, etc…) will be on the hands of Vladimir Putin and his team. And it is encouraging to see many leaders across the globe stand up and speak to the same principles we were taught as kids. Acknowledging the basics for what’s right and wrong. Just a few examples of global leaders speaking directly to the current atrocities and who’s at fault can be seen below.

That said, I’m discouraged that the only leaders we see making such public statements are mostly political leaders. I don’t see any big company leaders speaking out. I recognize there are likely a few that have, and I just haven’t seen them………but that’s certainly true, I have not seen them!!

Based on corporate and personal Twitter accounts, I see the following regarding the current atrocities unfolding in Ukraine:

  • Meta: 🦗
  • Netflix: 🦗
  • Walmart: 🦗
  • ExxonMobil: 🦗
  • GE: 🦗
  • Apple: Tim Cook 👏
  • Tesla: Elon Musk 👏 (this was particularly amazing!)

The point, I would’ve thought more companies and their leaders would have something to say during such times. And before someone tries to tell you how it’s complicated and that these company leaders have a lot of interests and stakeholders they have to balance…..I politely say, FOOL PLEASE!! Incentives can’t stand in the way for standing up for what’s right. Because as kids, we were NOT taught principles based on certain interests and stakeholders. We were taught what’s right and wrong…..period.

#2

Does the current Russia/Ukraine situation play into the inflation conversation here at home? Yes, absolutely. Here’s a few reasons why:

  • Given Russia’s direct involvement here and how much their oil/gas fuels Europe (and therefore impacts the world) oil prices have been volatile. These prices will be going up….to what extent is still TBD. But as oil prices go up, so will gasoline prices. And as additional demand increases from COVID mandates going away (plus the seasonal summer spikes that tend to happen in a few months) we can expect gasoline prices to keep rising.
  • And with the volatility this invasion has caused, it gives the Federal Reserve a little more flexibility in how aggressive they’ll need to be with interest rates. Simply put, they likely won’t be as aggressive on rate hikes. Which isn’t necessarily a bad thing…..but could still have impact on the rate of deflation.
  • Both Russia and Ukraine plays an important part in air freighting goods globally for many reasons, including being central location between Asia and the West. CLICK HERE to learn more. But less capacity for air freight will certainly mean increase costs and further delays down the line.
  • And lastly, globalization in general has been on the decline for the past several years. And the current Russia/Ukraine situation will only fuel that trend. If so, it’s easy to see how inflation will be negatively impacted in a more localized economy. Less globalization will ultimately mean higher inflation. The US trade deficit over the last 30 years supports this theory as well.

Deuces. ✌️

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