A shopper walks past turkeys displayed for sale in a grocery store ahead of the Thanksgiving holiday in Los Angeles earlier in the month. AFP
A shopper walks past turkeys displayed for sale in a grocery store ahead of the Thanksgiving holiday in Los Angeles earlier in the month. AFP
A shopper walks past turkeys displayed for sale in a grocery store ahead of the Thanksgiving holiday in Los Angeles earlier in the month. AFP
A shopper walks past turkeys displayed for sale in a grocery store ahead of the Thanksgiving holiday in Los Angeles earlier in the month. AFP


Inflation isn't Biden's biggest problem right now


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  • Arabic

November 29, 2021

US President Joe Biden remains mired in alarmingly low poll numbers, with the latest figures showing about 43 per cent approval of his performance compared to 52 per cent disapproval. In addition to the cyclical, historical patterns of US politics that I recently outlined in these pages and which are obviously a major factor, most observers on all sides point to two primary, and closely related, issues at play: the economy and the pandemic.

For many Democrats, this unpopularity makes little sense. On the economy, they argue that the media is fixated on negative stories involving inflation while ignoring the roaring comeback on many other fronts. They have a powerful case.

More than 5.5 million jobs were created in the past 10 months, leading to the lowest unemployment figures in 52 years. And while gross domestic product growth sagged a bit this summer, it's now anticipated to run between 5-7 per cent in the last quarter of 2021.

Stock market values have soared. And while there is a tight labour market, that has resulted in a significant strengthening of bargaining power for many workers, whether individually or collectively.

Yet, ongoing inflation carries a powerful negative political punch. The October rate of 6.2 per cent was among the highest in recent memory and slightly exceeded already gloomy forecasts. Whenever inflation is outpacing growth in spending power and wage increases, there is bound to be political blowback.

The Democrats offer both a sophisticated and a ridiculous response to such criticism.

The serious response, which tends to be made more quietly and aimed at better-informed audiences, holds that by allowing the economy to, in effect, overheat somewhat in favour of greatly revived consumer demand, the administration and the Federal Reserve Board have erred in favour of job creation and economic growth at the expense of higher inflation.

The core argument is that both the economy and ordinary people would be far worse off with an unemployment crisis than rising but manageable inflation and a labour shortfall. That's probably true, but it doesn't play well, or even really register, on main streets.

The second argument, usually spouted on television, is that corporate greed is responsible. This is ludicrous, though it may appeal to the anti-big business sentiment of many Democrats and even some populist Republicans.

Corporate profits are up, they say, therefore there must be gouging. But when demand for many goods and services cratered during the lowest points of the pandemic, most corporate profits similarly tanked. Now that demand is back up, predictably so too are profits.

This resurgent demand is helping to fuel inflation, as ongoing supply-chain bottlenecks continue to make many high-tech goods, especially those requiring computer chips, scarce and pricey. Higher wages due to the extremely tight labour market add additional inflationary pressure.

Cargo containers sit stacked on a ship in Bayonne, New Jersey, earlier in the week. As surging inflation and supply chain disruptions are disrupting global economic recovery. AFP
Cargo containers sit stacked on a ship in Bayonne, New Jersey, earlier in the week. As surging inflation and supply chain disruptions are disrupting global economic recovery. AFP

Across the economy generally, demand is overwhelming supply, and therefore, inevitably, prices are going up.

Not only is this not Mr Biden's fault, his relative success in managing the pandemic has actually contributed to a strong recovery that made significant inflation virtually inevitable.

In their quest to shift blame, Democrats are especially targeting the oil and gas industry, because rising petrol prices are the most obvious signs of inflation that Americans see in giant numbers on huge signs everywhere, every day.

The administration is reduced to investigating the oil industry for supposed malfeasance and collusion, despite the emergence of a global energy crunch based on the very same dynamic of resurgent demand confronting reduced supplies.

Mr Biden is even releasing 50 million barrels of crude oil from the strategic petroleum reserve, which will account for one day's supply in the global market, and therefore probably won't even dent prices at the pump. But, hey, we tried.

Thus far, the administration and the Fed are resisting calls to raise interest rates to keep the roaring recovery going and prioritise jobs and growth over inflation. Depending on coming trends, they may have to revisit this judgment, possibly quickly.

US President Joe Biden with US Secretary of the Treasury Janet Yellen. EPA
US President Joe Biden with US Secretary of the Treasury Janet Yellen. EPA

Harping on inflation is good politics for Republicans, and apparently has an inordinate appeal to much of the media. But there's definitely a good news story Democrats could tell if they decided to get serious and disciplined about messaging.

The other major Republican attack on Mr Biden is truly topsy-turvy. Their main talking point in recent days is that he campaigned as the man who would, single-handedly, defeat the coronavirus (though he never said anything like that) but since it continues to plague much of the country, he failed, which accounts for his low approval ratings.

In fact, from ubiquitous new vaccines to new treatments, and effective wide-ranging mandates, the Biden administration has performed well.

One of the primary reasons the pandemic continues to rage in much of the country is that many Republicans have systematically discouraged Americans from getting vaccinated or masking and other mitigation, blocked or banned mandates, and much of the party has spread wild disinformation about this deadly disease.

Texas Governor Greg Abbott and Samsung Electronics Vice Chairman Kim Ki-nam attend a press conference in Austin, Texas, last week. Abbott has loosened pandemic restrictions in the state. EPA
Texas Governor Greg Abbott and Samsung Electronics Vice Chairman Kim Ki-nam attend a press conference in Austin, Texas, last week. Abbott has loosened pandemic restrictions in the state. EPA
By dismissing inflation, the Democrats are doing themselves no favours

Yet, Mr Biden's significant, if badly hampered, successes on containing the pandemic have come at the price of a virtually inevitable surge in inflation given renewed demand and have fuelled paranoid Republican culture war talking points.

Though there is ongoing bad news on both, Mr Biden doesn't really have either an inflationary or economic crisis or an out-of-control pandemic at present. But he plainly has a serious messaging crisis.

Far too many Americans do not realise or register how much improvement has occurred in 2021, despite the wide-open Thanksgiving holiday last week in stark contrast to last year's lockdown non-feast.

Yet, by dismissing inflation, first as imaginary and more recently as the function of "corporate greed", the administration and the Democrats more broadly are doing themselves no favours. They need to be much more honest with the public about real inflationary pressures and the defensible, logical choices they've made.

They should certainly take a cue from former president Donald Trump, whose hyperbolic grandiosity was as effective as it was repulsive. Though they need not replicate his pathological dishonesty, they could learn a thing or two about politically useful boasting about their actual successes from the man Mr Biden derisively dismisses as "The Former Guy".

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
What%20is%20Dungeons%20%26%20Dragons%3F%20
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Why are asylum seekers being housed in hotels?

The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.

A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.

The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.

When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.

RESULTS FOR STAGE 4

Stage 4 Dubai to Hatta, 197 km, Road race.

Overall leader Primoz Roglic SLO (Team Jumbo - Visma)

Stage winners: 1. Caleb Ewan AUS (Lotto - Soudal) 2. Matteo Moschetti ITA (Trek - Segafredo) 3. Primoz Roglic SLO (Team Jumbo - Visma)

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

Heather, the Totality
Matthew Weiner,
Canongate 

Bullet%20Train
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20David%20Leitch%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Brad%20Pitt%2C%20Aaron%20Taylor-Johnson%2C%20Brian%20Tyree%20Henry%2C%20Sandra%20Bullock%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
War 2

Director: Ayan Mukerji

Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana

Rating: 2/5

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Profile of Bitex UAE

Date of launch: November 2018

Founder: Monark Modi

Based: Business Bay, Dubai

Sector: Financial services

Size: Eight employees

Investors: Self-funded to date with $1m of personal savings

The specs
  • Engine: 3.9-litre twin-turbo V8
  • Power: 640hp
  • Torque: 760nm
  • On sale: 2026
  • Price: Not announced yet
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EPurpl%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECo-founders%3A%20%3C%2Fstrong%3EKarl%20Naim%2C%20Wissam%20Ghorra%2C%20Jean-Marie%20Khoueir%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EHub71%20in%20Abu%20Dhabi%20and%20Beirut%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2021%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E12%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%242%20million%26nbsp%3B%3C%2Fp%3E%0A
Match info

Uefa Champions League Group C

Liverpool v Napoli, midnight

What to watch out for:

Algae, waste coffee grounds and orange peels will be used in the pavilion's walls and gangways

The hulls of three ships will be used for the roof

The hulls will painted to make the largest Italian tricolour in the country’s history

Several pillars more than 20 metres high will support the structure

Roughly 15 tonnes of steel will be used

Porsche Macan T: The Specs

Engine: 2.0-litre 4-cyl turbo 

Power: 265hp from 5,000-6,500rpm 

Torque: 400Nm from 1,800-4,500rpm 

Transmission: 7-speed dual-clutch auto 

Speed: 0-100kph in 6.2sec 

Top speed: 232kph 

Fuel consumption: 10.7L/100km 

On sale: May or June 

Price: From Dh259,900 Â 

About Karol Nawrocki

• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.

• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.

• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.

• Met Donald Trump at the White House and received his backing.

UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Yahya Al Ghassani's bio

Date of birth: April 18, 1998

Playing position: Winger

Clubs: 2015-2017 – Al Ahli Dubai; March-June 2018 – Paris FC; August – Al Wahda

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

The biog

Siblings: five brothers and one sister

Education: Bachelors in Political Science at the University of Minnesota

Interests: Swimming, tennis and the gym

Favourite place: UAE

Favourite packet food on the trip: pasta primavera

What he did to pass the time during the trip: listen to audio books

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Company%C2%A0profile
%3Cp%3E%3Cstrong%3EDate%20started%3A%20%3C%2Fstrong%3EMay%202022%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EHusam%20Aboul%20Hosn%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDIFC%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%E2%80%94%20Innovation%20Hub%3Cbr%3E%3Cstrong%3EEmployees%3A%20%3C%2Fstrong%3Eeight%3Cbr%3E%3Cstrong%3EStage%3A%20%3C%2Fstrong%3Epre-seed%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3Epre-seed%20funding%20raised%20from%20family%20and%20friends%20earlier%20this%20year%3C%2Fp%3E%0A
Results

6.30pm Madjani Stakes Rated Conditions (PA) I Dh160,000 I 1,900m I Winner: Mawahib, Tadhg O’Shea (jockey), Eric Lemartinel (trainer)

7.05pm Maiden Dh150,000 I 1,400m I Winner One Season, Antonio Fresu, Satish Seemar

7.40pm: Maiden Dh150,000 I 2,000m I Winner Street Of Dreams, Pat Dobbs, Doug Watson

8.15pm Dubai Creek Listed I Dh250,000 I 1,600m I Winner Heavy Metal, Royston Ffrench, Salem bin Ghadayer

8.50pm The Entisar Listed I Dh250,000 I 2,000m I Winner Etijaah, Dane O’Neill, Doug Watson

9.25pm The Garhoud Listed I Dh250,000 I 1,200m I Winner Muarrab, Dane O’Neill, Ali Rashid Al Raihe

10pm Handicap I Dh160,000 I 1,600m I Winner Sea Skimmer, Patrick Cosgrave, Helal Al Alawi

F1 2020 calendar

March 15 - Australia, Melbourne; March 22 - Bahrain, Sakhir; April 5 - Vietnam, Hanoi; April 19 - China, Shanghai; May 3 - Netherlands, Zandvoort; May 20 - Spain, Barcelona; May 24 - Monaco, Monaco; June 7 - Azerbaijan, Baku; June 14 - Canada, Montreal; June 28 - France, Le Castellet; July 5 - Austria, Spielberg; July 19 - Great Britain, Silverstone; August 2 - Hungary, Budapest; August 30 - Belgium, Spa; September 6 - Italy, Monza; September 20 - Singapore, Singapore; September 27 - Russia, Sochi; October 11 - Japan, Suzuka; October 25 - United States, Austin; November 1 - Mexico City, Mexico City; November 15 - Brazil, Sao Paulo; November 29 - Abu Dhabi, Abu Dhabi.

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Eco%20Way%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20December%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Ivan%20Kroshnyi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Electric%20vehicles%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Bootstrapped%20with%20undisclosed%20funding.%20Looking%20to%20raise%20funds%20from%20outside%3Cbr%3E%3C%2Fp%3E%0A
Updated: November 29, 2021, 4:00 AM`