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In-Brief

• It is now accurate to say that the US economy, at least for the short-run, is in “stagflation.” That is a period of high inflation and slow or no growth. It was caused by the horrible fiscal policies of the Biden administration and the flawed monetary policies of the Federal Reserve. Stagflation may give way to recession. Over 80% of Americans believe we are in a recession or headed to one.
• A severe defeat for Democratic candidates in November is still in the cards. Keep your powder dry until late October when we will see the last-minute trends. Recent polls continue to suggest growing Republican strength in major races.
• Individual Senate election predictions are made in the main report.
• The Russians in Ukraine are suffering badly from numerous Ukrainian attacks. The war is at a key stage with Ukrainian advances day by day, but no imminent victory just yet. Russia is being greatly diminished politically, militarily, and economically by this war, which it has lost. The partial destruction of the Kerch bridge is a major problem for Russia as they try to supply their troops.
• The Russian annexation of Ukrainian territory will not be allowed to stand by the Ukrainians or the international community. Putin is now desperate and losing badly in Ukraine militarily and at home politically. But his priority now is not desperate actions to win the war but actions at home to stay in power.
• China’s economy remains in deep trouble and is stagnant. President Xi is nearly certain to get a new 5-year term this week.