Interview, Fireside Chat
Buck off: US pauses Ukraine aid
- The White House has confirmed a suspension of all US military aid to Ukraine, a move described as a bargaining chip to compel President Zelensky to accept Donald Trump's peace plans and negotiate an end to the conflict.
- Vice President J.D. Vance initially displayed unwillingness to engage in the peace process, contrasting with the administration's stated goal of stopping the killing and pressuring both Zelensky and Putin to the negotiating table.
- Secretary of State Marco Rubio supports the strategy of "squeezing" Ukraine to force Russian negotiation, while the White House reportedly seeks an apology from Zelensky for a previous public meltdown regarding the war's timeline.
- The aid suspension halts deliveries of arms and ammunition worth over $1 billion, including items in the production pipeline that may not arrive for months, creating both immediate and long-term logistical risks.
- The Economist's defence editor, Shashank Joshi, notes that while short-term artillery parity remains, medium-term deficits in spare parts, precision-guided rockets (HIMARS), and maintenance will likely grant Russia greater freedom of manoeuvre 30km behind the front line.
- Ukraine's primary immediate concern is a potential shortage of Patriot missile interceptors, as European alternatives currently lack the capacity to effectively counter Russian hypersonic and ballistic missiles.
- While Starlink services are not officially classified as military aid and thus may continue, a European official warned that cutting the service would be operationally disastrous due to its jamming resistance and flexibility, forcing Ukraine to rely on less secure workarounds.
- The suspension of US intelligence sharing poses a significant risk to Ukrainian situational awareness and deep-strike targeting capabilities, with European nations unable to fully replicate the granularity or volume of American signals intelligence and surveillance.
- Despite the pause, Ukrainian leadership remains confident the situation will not cause an immediate unraveling, citing stabilisation on the eastern front under new commander Mihailo Drapaty, though the psychological impact of perceived US abandonment is described as severe.
- Stablecoins, which are pegged to the dollar (e.g., Tether trading near $1), now account for 40% of all crypto transactions, a figure that has doubled since 2020.
- In Turkey, particularly at the Grand Bazaar, stablecoins are increasingly used for real-world purposes including savings preservation against inflation, supplier payments to bypass banking delays, and migrant remittances.
- Turkey has emerged as the country with the highest relative usage of stablecoins, while the US remains the largest absolute market for crypto trading.
- Analysts warn of risks regarding Tether's lack of independent audits despite its claim of holding 72% of assets in US treasuries, citing the 2022 collapse of Terra Luna as a precedent for market volatility.
- Regulatory scrutiny is tightening globally, with EU exchanges delisting Tether in January and Turkey implementing licensing requirements to curb illicit activities such as sanctions evasion by Iran and Russia.
- In the US, the administration aims to draft legislation to regulate stablecoins, with the specific goal of using them to increase the dollar's global dominance, though the industry hopes for a more friendly approach than Europe's.
- The Louvre is hosting its first-ever fashion gala and exhibition in its 231-year history to attract new audiences and donors, featuring approximately 100 outfits from 45 fashion houses displayed alongside permanent collection items.
- The museum aims to secure $800 million for renovations, a figure that underscores the massive scale of the institution, which contains over 400 rooms and 18 eight-hour days of viewing time.
- Curator Olivier Gabay designed the exhibition to entice visitors to explore wings of the museum beyond the Mona Lisa, utilizing strategic pairings such as a Balenciaga chrome-plated dress next to a 1500s suit of armor.
- In contrast to the Louvre's integration, the Dolce & Gabbana exhibition at the Grand Palais was criticized for being "nakedly commercial," with branding elements like sequined Jesus figures on sweatshirts and rented spaces that deceived the audience regarding the organizer.
- The Louvre's fashion strategy involves high-priced tables sold to fashion houses and donors, modeled after the Met Gala, blending authentic curation with blockbuster event tactics to generate revenue.
- Cultural observers suggest that the dynamic pairing of fashion and museums will likely increase as institutions seek to serve broader public interests, moving past the dismissal of fashion as purely consumer culture.