Monday, August 7, 2023
“Fanaticism consists of redoubling your effort when you have forgotten your aim.” – George Santayana
Hello everyone! You’re reading the premium daily Crypto is Macro Now newsletter, where I focus on the growing overlap between the crypto and macro ecosystem. Thanks so much for being a subscriber! Nothing I say is investment advice. Nevertheless, I hope you find it useful – if so, please consider hitting the Like ❤ button at the bottom, I’m told it boosts the distribution algorithm.
If you’re not yet a subscriber, I hope you’ll think about becoming one to support my work. It would REALLY (really, really) make my day! 😊 It’s currently only $8/month (with a free trial!), although I will be raising the price at the end of the summer.
IN THIS NEWSLETTER
War escalation
Power shifts
Internet censorship
Crypto in Turkey
Inflation is coming back
WHAT I’M WATCHING
War escalation
Less than two weeks after Russia and Ukraine said that all ships approaching each other’s ports would be assumed to be carrying military cargoes (and therefore possibly subject to attack), Ukraine has attacked a warship based in Novorissiysk. What’s more, Ukraine has declared six key Russian ports on the Black Sea as a “war risk area”, suggesting further attacks are likely.
Why it matters:
Novorissiysk is one of the largest ports in Europe, and a major node in the export of Russian oil and grain. The attack and temporary closure of the port, and the threat of further disruption, is not only an economic blow to Russia – it also implies supply pressure on oil and grain, arguably two of the global economy’s most significant commodities.
Beyond the potential impact on inflation and human misery, the escalation of the war adds to market uncertainty. Yesterday, Ukraine damaged two bridges in Crimea that connect the region with mainland Ukraine. Russia has often repeated that it would view an attack on its territory as motive for the use of “all weapons available”.
Power shifts
Over the weekend, Saudi Arabia hosted talks in Jeddah aimed at ending the war in Ukraine. Over 40 countries attended, including China.
