Good morning. Here’s your Daily Situational Awareness for Thursday, 10 November 2022.
GEOPOLITICS BRIEF
XI: CHINA’S MILITARY MUST DEVOTE ALL EFFORT TO PREPARE FOR WAR: Speaking at the Chinese Central Military Commission (CMC) Joint Operations Command Center, Chinese President Xi Jinping said the Chinese military must devote its efforts towards preparation for war. Saying “combat ability” was the “fundamental and only criterion” for the military, Xi called on military leaders to “concentrate all energy on fighting a war.” Xi directed China’s military leaders to create an organizational culture that was “absolutely loyal, good at planning wars, efficient in command, and dares to win,” saying China must do all it can to make the PLA a world-class military by 2027.
RUSSIAN FORCES ORDERED TO RETREAT IN KHERSON: Following a televised briefing by Russian General Sergei Surovikin, Russian Defense Minister Sergei Shoigu ordered the withdrawal of all Russian forces from the western bank of the Dnieper River. Citing the impossibility of providing adequate supplies to troops in Kherson and surrounding areas, Gen. Surovikin called attempts to hold the western bank “futile.” The general instead recommended that Russian troops withdraw across the Dnieper and form defensive lines along the river’s eastern bank. The announcement was met with cautious skepticism by Ukrainian government representatives who said, “it makes no sense to talk about a Russian withdrawal” until the city of Kherson was under Ukrainian control.
AMLO: NO AMERICAN GMO CORN FOR MEXICO: Speaking at a news conference Mexican President Andres Manuel Lopez Obrador (AMLO) announced his country would not permit the purchase of American yellow corn crops. Despite admitting there was a large market for the crops, AMLO said the Mexican government could not purchase the crops as they included genetically modified organisms (GMO), and there was a lack of scientific data on the long-term effects of GMO consumption. The comments follow on the heels of last week’s meeting with U.S. Trade Representative Katherine Tai, who stressed “the importance of avoiding a disruption in U.S. corn exports.”
IRAN SAYS ITS “STRATEGIC PATIENCE” WITH SAUDI ARABIA MAY RUN OUT: Iranian Intelligence Minister Esmail Khatib told the Saudi Arabian government that Iran could no longer guarantee its continued “strategic patience” with the kingdom. Warning against continued hostilities, Khatib said, “Glass palaces will crumble, and these countries will not experience stability anymore” should Iran decide to retaliate and “punish” foreign countries meddling in its affairs. Iranian officials have repeatedly blamed foreign governments for fomenting ongoing protests and civil unrest in the country. The latest reports come after threats issued last month by Revolutionary Guards chief Hossein Salami insisting Riyadh control Saudi media outlets, which he claimed were interfering in Iranian affairs. Iran has previously denied it posed a threat to the Saudis following reports that Saudi officials had passed intelligence to the United States, indicating Iran was planning imminent attacks on Saudi targets.
In today’s Early Warning, Mike gives his top six themes for the U.S. economy, including an outlook on inflation, future monetary policy decisions, and the future of the dollar. For this and the latest geopolitical indicators, get access to the full brief here: https://forwardobserver.com/subscribe