Better late than never… After decades of neutrality, Finland and Sweden last week applied to join NATO (the transatlantic political and military alliance) to beef up security against Russia. Both countries were already tied to Europe’s economy via the EU. NATO’s expected to welcome them with (mostly) open arms within months, which will further isolate Russia from Western markets willing to buy its gas. If trade relationships keep shifting, a “multipolar” world could emerge: one anchored by the US and the EU on the one side, and Russia and China on the other.
Gelato-nomics… Last year a US dollar got you about 0.82 euro (not much gelato). Now the currencies are almost equal. The USD has appreciated this year as global investors parked more cash in USD than in other currencies, like the war-shaken euro. A strong dollar is good for American tourists, making summer trips to Rome less expensive. Bigger picture, it could cool soaring US inflation, since it makes imports (relatively) cheaper. On the flip side: a strong USD makes US exports pricier (think: fewer Ford EVs sold in Europe), which could check economic growth.