Can Biden Survive This?

by Greg Valliere, AGF Management Ltd.

THE CRITICISM HAS BEEN WITHERING — with good reason — as the U.S. got caught flat-footed by the Taliban’s easy capture of Kabul. Even Democrats have a hard time defending the tone-deaf performance by Joe Biden.

BIDEN FACES A FIRESTORM of Congressional hearings and growing doubt from U.S. allies about American resolve. But let’s not forget that for the American public, this was an unpopular war, with huge costs in lives and treasure.

THE BLAME GAME: Biden will share blame with Donald Trump, who was a fierce critic of the war; without consulting aides, Trump set a deadline for withdrawal. Liz Cheney got it right yesterday — both Trump and Biden miscalculated. The inept withdrawal, of course, is on Biden’s watch.

DEMOCRATS WE TALKED WITH YESTERDAY suggested that public opinion polls will show just how unpopular the war was, and that Biden had to exit this quagmire early in his presidency. Some Biden allies believe the withdrawal will be largely forgotten as the 2022 elections approach.

BUT THAT MAY OVERLOOK THREE HUGE NEGATIVES:

1. The Biden administration’s naiveté has been stunning, claiming the Afghan military could prevail. Even as Kabul fell, Secretary of State Anthony Blinken was talking nonsensically about negotiating with the Taliban, warning that Afghanistan could become a “pariah” — as if the Taliban gives a damn.

2. We suspect that news of torture and killing will be dominant in the coming days, as the Taliban impose a barbaric rule throughout the country. Women will be sent back into the middle ages.

3. A huge negative will be the perception of America by U.S. allies and adversaries. Like Trump before him, Biden apparently is reluctant to commit U.S. forces anywhere, sending a limp message to nervous allies in Taiwan, Cuba,
Ukraine — and especially Pakistan.

BIDEN’S MANTRA FOCUSES ON U.S. TROOPS AND THEIR FAMILIES: Beau Biden fought in Afghanistan, and the president has frequently speculated that his son’s fatal brain tumor may have come after exposure to munitions used in the war. Biden is concerned about the human loss; Trump was outraged by the billions wasted.

OUR BOTTOM LINE is that while this chaotic withdrawal will hurt Biden in the short-run, isn’t not fatal to his presidency. Republicans and Trump bear some of the blame.

BUT THE NEGATIVES ARE PILING UP FOR BIDEN: A confusing Covid policy, rising inflation, a surge of illegal immigration, exploding urban gun violence, and now this horribly bungled withdrawal from Afghanistan. Biden turns 79 this fall; you have to wonder if he’ll be enthusiastic about starting a second term at the age of 82.

 

 

 

 


The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is a registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

For further information, please visit AGF.com.

©2021 AGF Management Limited. All rights reserved.

This post was first published at the AGF Perspectives Blog.

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