Showing posts with label russia. Show all posts
Showing posts with label russia. Show all posts

Sunday, October 16, 2016

Russia key player US Democrat War on Intelligence for Election

The war on intelligence is in full swing.  It's game time.  They've been planning this for years.  As we explain in Splitting Pennies, the world isn't as it seems, in fact - the world is a great big illusion to many.
In case you're not following this trend, since the 1980's the Elite in America have invested heavily in what one expert calls the "Dumbing Down" of Americans, basically, a coordinated effort to make Americans stupid.  To get the gist of this program, you'll want to checkout this book The Deliberate Dumbing Down of America.  It lays the groundwork for what decades later will become full scale intelligence warfare - it's the war for your mind.  You see, the Elite, as rich and powerful as they are - they don't force anyone to do anything, physically.  There's this pesky thing now, called "FREE WILL" and sadly, few choose to follow this (they prefer, to do what is told to them on TV, or have their opinions formed for them).
Being covered here on Zero Hedge in an unprecedented fashion, never before have we seen the inner workings of how the Elite manipulate elections in America.  During previous presidential elections, there wasn't such internet penetration.  Also, the majority of people now carry smartphones, able to capture odd moments, or record 'secret' conversations, like this election official admitting to busing voters around to vote again and again.
There's two issues high level planners are using to manipulate the vote.  But let's give credit where credit is due.  They're doing a great job, but at the consent of voters - and most of this 'manipulation' is actually legal.  They are preying on the general stupidity and laziness of people.  The first issue, is the artificial 'race war' that's being created - that's a topic for another article.  The second issue, is the perceived threat of Russia.  Russia never was a threat and never will be, economically, militarily, or otherwise.  But it has throughout history, from time to time, served as a convenient enemy (such as during the 'Cold War').  Where to begin?  
Wall Street has long had a unique and fascinating relationship with Russia.  Currently, Wall St. dominated by Russian programmers (physically that is, they live and work in NY).  This relationship was most interesting however, when a group of Wall St. Bankers saw opportunity in revolution, and provided needed financing to a group of rag tag intellectuals known as the Bolsheviks.  If you're not up to date on this situation, this book is a MUST READ: Wall Street and the Bolshevik Revolution.  Not only does this book tell the tale of how Wall St. financed what would later become the Soviet Union, it also serves as a good example of 'how the world really works.'
Today's topic is more artificial - there's no situation with Russia.  It's completely contrived.  The Democratic party, in collusion with the entire establishment against Trump, has created a situation where "Russia is Bad" playing on the fears of older boomers who remember sitting under their desks in school during bomb raid drills.  Even though many have grown up to realize it was all lies during the Cold War - not all have.  And even those smarter boomers have deep seeded mistrust of Russians in the back of their subconscious planted long ago, by the social control mechanism.
Point 2.  It's impossible for Russia to 'hack' the election and fix the results.  But, this is a meme that needs to be implanted because it's actually the DNC that's planning to fix the elections, with their establishement friends at Diebold.
Point 3.  Trump has no business with Russia.  The threads they weave to build this link are so weak they are almost silly.  Trump sold a property to a Russian oligarch in Palm Beach.  He has sold thousands of properties, in New York and South Florida, statistically, any number of those properties could be Russian owned.  There are 3.3 MILLION RUSSIAN-AMERICANS this is not a small number.  Unlike previous generations of immigrants, modern Russian-Americans may keep ties to Russia especially with family.  It's actually surprising that Trump hasn't done MORE business with Russians in America, especially regarding properties, as this has been one demographic that's been naive to the real estate bubble, snapping up high end properties in NYC, Miami, and LA.  It looks as though, journalists were 'told' to make a connection, and then it was regurgitated throughout the establishment controlled media.
So what is their game?  Problem-reaction-solution.  What's the problem?  Russia wants to take over the world (or something like that, but since Soviet Union collapsed this argument is very weak).  What is mostly people's reaction?  Fear, confusion, and flight to safety - or at least, perceived safety.  What's the solution?  An establishment character, a 'Clinton.'  Bill Clinton was in office at a time when the Soviet Union collapsed, and was highly disorganized.  Of course, just like we said in previous articles, Bill Clinton was not responsible for the boom of the 90s, and he wasn't responsible for a weak Russia.  But the way this social control paradigm works, it works on subtle references, subliminal messages, deeply implanted subconscious memes - and when you hear a 'bell' you raise your right hand and say "I pledge allegience to the flag of the United States of America, and to the republic for which it stands.."
Trump is being painted as a traitor - an anti-American, Pro-Russia (which means, pro-Criminal in their programming speak).
Russia Slams "Unprecedented, Insolent" US Cyber Threats, Vows Retaliation  This is perhaps the most embarrasing, ridiculous moment for a Vice President who is helping the democratic party get another one of their own elected, by being a key player in this anti-Trump/Russia meme.  WARNING - TO THOSE READERS WHO HAVE CHILDREN, YOU MAY WANT TO CENSOR THIS CONTENT AS IT CAN LEAD TO ADULT-STUPIDITY.
Russia in this case is a bystander, they're just again a convenient enemy.  But are they really?  As we've seen in the complex black hole Syria, the enemy of my enemy, is my friend.  It wouldn't be surprising if Democrats had a deal with the Kremlin, 'look mean - wave your arms around, speak in large words with a loud voice' and the translator inserts in English "I will destroy American Culture, burn your villages and steal your potatoes!"

To clarify, Russia is not a threat to US democracy.  Russia has severe problems of its own.  Russia is not going to hack the elections.  Russia is being used as a 'proxy issue' in order to confuse voters into voting for Clinton, the establishment candidate. 

Tuesday, October 27, 2015

Why A Russian Default Is A Very Real Scenario In 2016

Debt.
Everyone understands it pretty well when it comes to their personal finances. You borrow money, you have to pay it back. If you can’t, your creditor hounds you until you either come up with the cash or restructure your repayment schedule. Or, worst case, you eventually file for bankruptcy, thereby defaulting on your debt. Simple.
Yet people, especially in the West, seem blithely unaware that the same basic principles apply to countries, as well. Most of us tend to think that nations can’t or won’t default on their debt. Well … maybe Greece will. But surely not a big country.
Why we believe this is partly due to an ignorance of history, which features literally countless defaults, among nations great and small. Even the US has done it.More than once. It happened right at the beginning, in 1779, when the fledgling US nation defaulted on its first currency, the Continental (which led to widespread use of an early American pejorative phrase: “not worth a Continental.”) And a very recent example was when Nixon severed the tie between gold and the dollar in 1971; that was a default on the precious metal debt the country owed to France and others.
It’s also partly due to the current financial behavior of the American government, which acts as if the cure for a debt problem is more debt (do not try this at home, by the way).  As Congress raises the federal debt ceiling, and the Federal Reserve creates ever more currency units out of thin air, it creates the illusion of stability. All it’s really doing, though, is just kicking the can down the road.  The US has placed itself firmly on this path. But that doesn’t ensure that the rest of the world’s nations can or will follow the same one.
Particularly Russia.
In 2014, I published The Colder War, which became a New York Times Bestseller.  Vladimir Putin, Russia, oil and energy were all dissected in my book, which today is every bit as timely as it was when I wrote it in 2013.  Because of the decade I spent researching the book, I have a very unique Westerner’s perspective on Russia.
Here’s one of the things I learned: Russia is completely unafraid of a default on its debt.
Russia was a basket case in the 1990’s.  The first war in Chechnya was a disaster, both economically and psychologically for the Russians.  Russia not only lost that war, it had a disaster of an economy, ran a huge governmental budget deficit, and was stuck with a very unfavorable fixed exchange rate between the ruble and the currencies of all its trading partners. The country was barely staying afloat.
Then, on top of all that, came the two additional straws that finally broke the Bear’s back: the Asian financial crisis and a crash in oil prices.
But the West totally mis-guessed the eventual outcome. The World Bank and the IMF arrogantly assumed the Russians would continue to play by their rules.  In fact, years later it was leaked that billions in IMF relief funds had headed east, where they were “misplaced.” Or, in laymen’s terms, stolen before they even hit the Russian bank accounts.
On August 17, 1998, the so-called “Russian flu” infected world markets. Moscow announced that a moratorium would be placed on payments to foreign creditors. In addition, the ruble was devalued by 33% (from 7.1RUR/USD to 9.5RUR/USD).  Within a few months, the government allowed the ruble to float freely and the currency devalued by another 120% to 21RUR/USD.  There were bank closures, political fall guys and rabid inflation.
The Russian oligarchs, many of them ruthless criminals, made their moves—and consolidated their wealth at levels that would make the American robber barons blush.
Into this chaos, in 1999, entered Vladimir Putin—one of the most mischaracterized politicians on the planet. An archetypal Russian strong man, he brutally squashed the Chechen revolt and moved decisively to bring the oligarchs under state control, which meant killing or imprisoning them, or driving them into exile. Most importantly, he committed massive resources to reviving an energy sector that had fallen into disrepair, and made it quasi-public with companies headed up by his buddies and inner circle. As prices moved upwards, Russian crude oil output expanded like crazy to become #1 in the world and the economy boomed, as did Putin’s global agenda.
Through a series of deft political maneuverings, Putin still controls Russia 16 years later.  During that time, he has stayed enormously popular among his countrymen despite policies that Westerners (and some dissenting Russians) find reprehensible. His prolonged supremacy is quite a feat, given how the byzantine nature of Russian politics laid low any number of his predecessors.  But he’s done it by persuading the mass of the people that he always acts in what he sees as the best way to push Mother Russia to the head of the table among nations, and that in that pursuit he’s willing to let all manner of chips fall where they may.
Today, Russia is in crisis again, having been hit with the double whammy of plummeting energy prices and heavy sanctions laid on by the West over Putin’s foreign policy. Given the country’s struggling economy, it’s puzzling why the world is ignoring the risk of Russia defaulting on its debt. Again. And why it may be underestimating Putin. Again.
Why a Russian Default is a very real scenario in 2016
The IMF is loaning billions to Ukraine.  In addition, NATO is spending billions in Ukraine on a war that has lasted longer than any US or NATO official expected.  The West, led by the US, has put national sanctions on Russia, and personal ones on many of Putin’s associates—despite a clear historical record that shows sanctions almost never achieve their stated ends.
To understand how misguided this is, you just have to ask one question: Who holds the majority of the debt that would be at risk in a Russian default? Not China.  Not Iran.  Not Syria.  No, it’s the exact same nations, and banks and funds within those nations, that are applying the sanctions against Russia.
So, if Russia does default, what does it mean in terms of its political relationship with the West?
Nothing.
But what does it mean to its creditors?
Everything.
They’re the ones who will take the hit. And by the way, to anyone who thinks they will be able to enforce their nation’s debt laws on the Russian government or any Russian companies, I have this to say: I wish you the best of luck.
Don’t buy my story?
Here is a chart of Brent Oil pricing verses the 10-year Russian credit default swaps (CDS).
The market is completely mispricing the Russian CDS, by totally ignoring the potential for a Russian Default.
For comparison purposes, in the oil crash of late 2008 early 2009, Russian CDS popped 600% to over 7%. (The CDS market can be a bit complicated, but in general terms, the higher the rate, the more perceived risk is being priced into the market.)
Even earlier this year, with the Brent price of oil trading higher than it does now, the CDS were 100% more expensive. But they’ve since fallen to around 3%, which is absurd, as oil is lower now than when the CDS were at 100% higher rate—therefore if the market was paying attention, CDS should have a “higher” rate now than earlier this year.
10yrRuscds
The market is assuming that Putin will play by the western bankers’ rules; therefore there is no fear that the Russians might default on their debt.
Otherwise, there’s no reason Russian CDS would be 50% lower than earlier this year, given the fall in the price of oil, which is critical to their economy.
Has something else changed?
Are we in some better place globally now? I highly doubt it for many reasons, but how about I just mention one horrific fact: the world has never seen more displaced persons—ever— than we currently have at over 60 million.
Or has Putin merely distracted the Western world by diverting its interest to Ukraine and Syria?
Those are relatively small items on Russia’s policy agenda. Putin’s real focus is on strengthening his country’s economy by ramping up business with China and the emerging markets. That is where the future lies. If Putin can’t entirely eliminate all dependence on the West, he’s certainly moving forcefully to greatly diminish its influence.
The $400 billion natural gas deal he signed with China in 2014 is just one powerful indicator.
In a few words, if Putin believes that the benefits of a default outweigh the consequences to his country, he won’t hesitate to do it, no matter the international ruckus it might raise.
So … my advice is that if you are invested in any funds or banks that are exposed to debt in Russia, I would rethink your investment thesis. The rules of the game are apt to change quickly, and not to the foreign debt holders’ benefit.
And, if you like ironic coincidences, I’ll close with this one.
Donald Trump is the current leader for the Republican presidential nomination. During his business career, he’s helmed four companies that filed for Chapter 11. Which just happens to be the same number of Russian bankruptcies that have occurred during ‘The Donald’s’ lifetime.
Who knows, ‘The Donald’ and Putin might end up the best of friends…

Tuesday, September 30, 2014

US Stocks Slide, Ruble Plunges As Russia Prepares Capital Controls

Just days after Ukraine began discussing capital controls, and Russian lawmakers passed a bill enabling asset freezes, it appears Russia has reached its limit.
  • *RUSSIA SAID TO WEIGH CAPITAL CONTROLS IF NET OUTFLOWS INTENSIFY
The Ruble is plunging towards 40 to the USD (CB intervention levels), US equity futures gapped lower, and European stocks are sliding.
As Bloomberg reports,
Russia’s central bank is weighing the introduction of temporary capital controls if the flow of money out of the country intensifies, according to two officials with direct knowledge of the discussions.

Such measures would be preventative and used only if net outflows rise significantly, the people said, who asked not to be identified because no decision has been made. They didn’t give a timeline or a level that may force such a move, saying they are looking at all possible scenarios.

The discussions are the latest sign that U.S. and European sanctions are hurting Russia and rethink policies the central bank has sought to avoid. The Economy Ministry last week raised its estimate for this year’s outflows to $100 billion from $90 billion. Russia hasn’t had a net inflow of private capital since 2007, the year after lifted restrictions.

Central bank Chairman Elvira Nabiullina, a former economic aide to President Vladimir Putin, said in an address to the government on Sept. 25 that “introducing capital controls doesn’t make sense.”

Still, if trades restrictions -- such as the U.S. and EU sanctions and Russia’s retaliatory measures -- are prolonged and the tax burden rises, capital outflows will intensify. That will push the regulator to shift its focus more toward ensuring financial stability from fighting inflation and use various instruments “including non-standard” means, Nabiullina said.

The central bank’s press service declined to comment. The Finance Ministry isn’t discussing such measures, Svetlana Nikitina, a spokeswoman, said by text message.
US equities gapped lower...

And the Ruble plunged...
  • *RUBLE WEAKENS TO BOUNDARY OF RUSSIA CENTRAL BANK'S TRADING BAND
  • *RUBLE WEAKENS TO LEVEL WHERE CENTRAL BANK SAYS WILL INTERVENE

Open a Forex Account

Monday, March 24, 2014

Unintended consequences? Western sanctions will cause Russia to change its economic partners...for the better

Western sanctions might push Russia to deepen cooperation with BRICS states, in particular, to strengthen its ties with China, which will possibly turn out to be a big catastrophe for the US and the EU some time later. 

On March 18, the spokesperson for the Kremlin, Dmitry Peskov, claimed in a BBC interview that Russia would switch to new partners in case of economic sanctions being imposed by the European Union and the United States. He highlighted that the modern world isn't unipolar and Russia has strong ties with other states as well, though Russia wants to remain in good relations with its Western partners, especially with the EU due to the volume of deals and joint projects. 

Those "new partners" are not really new since Russia has been closely interconnected with them for almost 13 years. This is all about the so-called BRICS organization, consisting of Brazil, Russia, India, China and South Africa. BRICS represents 42 percent of the world's population and about a quarter of the world's economy, which means that this bloc of states is an important global actor. 

The BRICS countries are like-minded in regard to supporting the principles of international law, the central role of the UN Security Council and the principles of the non-use of force in international relations; this is why they are so actively performing in the sphere of settling regional conflicts. However, the cooperation between Brazil, Russia, India, China and South Africa goes beyond political aspects and is also demonstrated by dynamic trade and multiple projects in different areas. Today, in total, there are more than 20 formats of cooperation within the BRICS which are intensively developing. For example, in February the member-states came to an agreement about 11 prospective directions of scientific and technical cooperation, from aeronautics to bio- and nanotechnology. In order to modernize the global economic system, at the center of which stand the US and the EU, the leaders of Brazil, Russia, India, China and South Africa have created the BRICS Stock Alliance and are creating their own development bank to finance large infrastructure projects. On the whole, despite fierce criticism of BRICS as an organization with no future, it is developing and increasing cooperation with its members and, in fact, BRICS is showing pretty good results. 

With suspension of Russian participation in G8 and possible strengthening of economic sanctions, the experts expect some particular industries to be targeted, including limits on imported products. While the West seeks to hit Russia hard, it is important to notice that Russia is ready to switch to other markets, for instance BRICS, and increase trade volumes with countries from this bloc. 

Indeed, Russia buys significant amount of products from NATO states, for example, 50 percent of fruits and berries come from Spain, Holland and Poland. Nevertheless, Russia is intensifying its economic ties with the developing world. In 2012 Russia was buying 41 percent of its beef from Brazil, though this index has recently decreased to 20 percent, and Russia is likely to increase its import in case of need. In February 2013, Russia and Brazil reached an agreement on the long-standing problem of pork exports to Russia, as well as agreeing on a list of sanitary and quality requirements for the annual import of millions of metric tons of Russian wheat. This is a shining example of the substitute partnerships that have yielded positive results, although some problems with sanitary norms had to be resolved. In other words, it's beyond the power of the EU and US to make Russian people suffer from products scarcity since they are not the country's only trade partners. 

The biggest brick in BRICS 

china russia leaders
© Reuters/Sergei Ilnitsky
Chinese President Xi Jinping (L) and his Russian counterpart Vladimir Putin.
It's hard to ignore the fact that the role of the biggest and strongest member of BRICS is China's, and obviously Russia will seek to improve its relations with Beijing even more than before. During the last year, relations between Russia and China have been enhancing and actively developing in various spheres. In particular, in 2013 the states signed 21 trade agreements, including a new 100 million ton oil supply deal with China's Sinopec. In October 2013, the Xinhua news agency also reported that the two governments signed an agreement to jointly build an oil refinery in Tianjin, east of Beijing. 

Moreover, China promised to pump $20 billion of investment into domestic projects in Russia, focusing on transport infrastructure, highways, ports, and airports, and it hoped to increase investment in Russia four-fold by 2020. In 2013, the trade volume between the states reached $89 billion, with bilateral economic relations showing positive signs, meaning that further cooperation will increase. 

Indeed, leaders of the states called for annual bilateral trade between the two countries to be boosted to $100 billion by 2015. Besides, the two countries are considering further partnerships in the energy sector, particularly in the gas industry. 

Currently, Russian gas is not supplied to China, though in 2013 Russia's biggest independent natural gas producer, Novatek, signed preliminary memorandums with CNPC to sell at least 3 million tons of LNG per year between Yamal LNG and PetroChina International. Another Russian company, Rosneft, which is 75 percent state-owned, is vastly expanding its LNG projects to diversify its portfolio, and is focusing heavily on eastern markets, like Japan and China. In terms of confrontation between the West and Russia, the gas contracts between China and Russia could really gain momentum. At the same time it's possible that Moscow would sign contracts on the sale of the Sukhoi Su-35 fighter to China before President Putin embarks on a visit to Beijing in May. 

In 2014, Russia and China have a full agenda for bilateral cooperation, which includes not only trade but also such spheres as energy, aircraft building, mechanical engineering, military and science cooperation, tourism, etc. At the same time, cultural ties between the two nations are also strengthening, with 2014-2015 being named years of youth exchange. The leaders of Russia and China also decided to prepare jointly celebration events for the 70th anniversary of the victory over German fascism and Japanese militarism in 2015. 

Another important aspect of cooperation between Russia, China and India touches upon Afghanistan. The trilateral involvement of those nations into the Afghan issue has been actively developing since 2013 and could become a major factor for the Afghan leadership following the US withdrawal. It is important to note that the Afghanistan issue is vital to the regional security of Russia, China and India. 

Once again, the recent Olympic Games emphasized the specific character of relations between China and Russia. The Chinese president, unlike European leaders, was present at the Opening Ceremony, which is especially demonstrative given that it was the time of the Spring Festival in China, when the Chinese prefer not to leave their homes except for visiting relatives and close friends. 

Thus, China may become the biggest beneficiary of the sanctions against Russia since it means further rapprochement between Russia and China. One should remember that China has always been mainly interested in doing business and for sure it would be silly for Beijing to lose such a great opportunity to strengthen its ties with Russia. If I were someone responsible for decisions in Brussels or Washington, I would revise my opinion on implementation of sanctions against Russia. I wouldn't call it a possible revival of the "Sino-Soviet axe" which existed during the Cold War and was an ideological counter-balance for the West, although this time the West itself is pushing one of its main rivals closer to another, creating a massive power that would surpass both the US and the EU by a long chalk. So the question is whether the West really wants this to happen? And what will it do when the Chinese dragon and Russian bear form an alliance? 

Brazil is not only about meat 

Brics brazil president
© Agence France-Presse/G20RUSSIA
Dilma Rousseff, President of Brazil, (L) speaks before the BRICS summit in Saint Petersburg in the sidelines of the G20 summit on September 5, 2013.
As was already mentioned, another BRICS-member Brazil is one of the Russian suppliers of meat, and trade in this industry is likely to rise if the West resorts to economic sanctions. However, meat import isn't the only thing that binds these states. Over the last few years, Russia has also imported Brazilian coffee, sugar, juices and alcohol and exported mainly fertilizers. Moscow and Brasilia made a commitment to develop comprehensive cooperation in various areas, although for the moment particular attention is being paid to the military sphere. For instance, in December 2012 the states signed a treaty on supplies of Russian helicopters to Brazil. 

The total trade volume between Russia and Brazil in 2013 made up $5.7 billion, however the two states seek to increase it up to $10 billion in the near future. The trade index in January 2014 reached $438.9 million, which was $25 million higher in comparison with January 2013. The distinctive feature of the cooperation between the two countries is the complimentary character of their economies, which makes ties between Brazil and Russia even stronger. In fact, there is a great potential for Russian-Brazilian cooperation and results of these ties could also be disappointing for the West. 

I is for India 

flag of india
© Agence France-Presse/Prakash Singh
In his speech at a joint session of parliament on March 18, Russian President Putin thanked both India and China for their stance on the Ukrainian crisis. But why is India supporting Russia? Maybe the Indian government equates some similarities with Crimea in the history of Sikkim's referendum and further merger with India when it became the 22nd Indian state in 1975 with Russian support. Maybe India is just seeking to develop closer ties and mutually beneficial partnerships with Russia. 

Anyway, let's look at some facts and figures. In 2012, bilateral trade volume reached $11,000 million which is rather modest in comparison with China or Brazil. Moreover, in 2013 this index slightly decreased. However, 2014 promises the renewal of bilateral contracts between India and Russia. For example, Defexpo India 2014 has reaffirmed the special relationship that exists between the defense industries of Russia and India, with a pavilion that houses exhibits of Russian companies being visited by top members of the Indian establishment. In general, the defense interactions between Russia and India are quite diversified, with almost every defense contract providing the creation of joint ventures or licensed production. In 2013, India's import of Russian weapons reached $4.78 billion. Another industry which attracts India is computer-guided weapons, produced by the Russian Morinformsystem-Agat Concern. 

In February the two states also confirmed their plans to boost cooperation in nuclear energy, with the former backing the construction of more units at the Kudankulam Nuclear Power Project (KNPP) and other parts of the country. Besides, India and Russia are set to sign an agreement aimed at productive cooperation in many spheres: space and military cooperation, trade, construction of a pipeline from Russia to India, and plans to set up a Joint Study Group to look into the scope of the CECA (Comprehensive Economic Cooperation Agreement) with member-countries of the Customs Union (the Russian Federation, Kazakhstan and Belarus). It is certain that after this issue is addressed, trade volumes between Russia and India, as well as between the Customs Union and India will increase significantly. 

Costs for the West 

It's not really rational for the US and the EU to antagonize and try to isolate Russia. And there are several reasons for this. First of all, Russia is the largest oil and gas producer in the world and it simply means that imposing economic sanctions on Russia would shake up the global energy market and, therefore, the entire global economy. Not to mention the EU's dependency on Russian gas. Are the global economies ready to witness a new crisis, given that they are still recovering from the latest financial crisis? It's doubtful. 

Second, Russia is investing massively in the US financial market, especially in Treasury bonds, and consequently, if Russia decides to withdraw its investments in response to Western sanctions, it would hit the US economy and cause a real financial crisis. So, crisis again. 

Finally, during the last few years the Russian market has become one of the world's largest markets for EU goods, products and services, while the EU is actively investing in Russia. In case of further worsening of relations between Russia and the West, the EU will have a serious headache, searching for new markets and suffering lasting damage because of suspended joint contracts. 

So is it really worth pushing for such a gloomy future, or is it better to recognize the will of the Crimeans and give the whole of Ukraine a chance for a better life?

http://www.sott.net/article/276210-Unintended-consequences-Western-sanctions-will-cause-Russia-to-change-its-economic-partners-for-the-better

Friday, March 14, 2014

The Tanks Are Coming While Russia, US "Remain At Odds" Over Ukraine

With Interfax reporting that Belarus has begun full-scale military drills in a "readiness check", images from Russia and Ukraine suggest the worst-case scenario - that Russia is making preparations to invade Ukraine, not just Crimea but perhaps as far west as Kharkiv, or even beyond - is more possible. Talks have broken down:
  • *LAVROV SAYS RUSSIA, U.S. REMAIN AT ODDS ON UKRAINE: INTERFAX
  • *LAVROV SAYS RUSSIA TO RESPECT `WILL' OF CRIMEAN PEOPLE
Russia now has a massive force of tanks, troops, artillery, aircraft, and naval forces in position to potentially invade mainland Ukraine from Crimea in the south, but also from positions east and north of Ukraine.
Lavrov adds:
  • *LAVROV SAYS RUSSIA TO RESPECT CHOICE MADE AT CRIMEAN REFERENDUM
  • *LAVROV SAYS KERRY `DIDN'T THREATEN RUSSIA WITH ANYTHING'
  • *LAVROV SAYS WESTERN SANCTIONS WOULD BE COUNTERPRODUCTIVE
And subtley poitning out the hypocrisy:
  • RUSSIA'S LAVROV SAYS IF KOSOVO WAS A SPECIAL CASE THEN CRIMEA SHOULD BE A SPECIAL CASE TOO
Then Lavrov said this:
  • RUSSIA HAS HAD AND CAN HAVE NO PLANS TO INVADE SOUTHEAST OF UKRAINE - LAVROV
Which seems to run counter to the following images pouring in from across Russia of even more firepower on the move.


And images suggest more to come...

And finally:
  • *LAVROV SAYS `EVERYONE UNDERSTANDS WHAT CRIMEA MEANS FOR RUSSIA'
Which we suspect is why all the tanks are rolling