Wednesday, January 28, 2015


While most of the US is supporting the sanctions on Russia , they need to take a time out and see how they are going to affect our PIVOT TO ASIA.

First you need to understand what the Pivot to Asia was meant to do.  It was an effort to control the sea lanes to be able to block China's access to energy supplies. If you remember what we did to Japan to get them to go to war against us.  We cut off the oil supplies to Japan.  That did the trick they attacked us.

So here we go again, preparing to cut off energy to China to limit their world reach.  Well hello Dummies , this brought China and  Russia to sign huge deals for oil and gas, started them selling oil for other than dollars.  They formed what is now called the BRIC economic group to counter the IMF.

While the sanctions undoubtedly have an effect on Russia , the people seem to still be behind Putin.
The unsought problems the sanctions have caused , the current unstable EU.  Italy for instance have lost 50% of their exports and are hurting to begin with.  They don't need more problems causeed by the US an an attempt to bankrupt Russia.

There are other deals being cut between Russia and China giving China the new Russian anti missile systems, the building of a high speed rain system from Russia to China (chins is providing the cash)
with other deals in the works.

Other things not being talked about at all may in fact be more important than the above.  Russia with huge stacks of American dollars (that are high at the moment) are buying Gold and their own Rubles (at an all time low) getting the maximum bang for their bucks. The sanctions have a big new oil deal with Exxon that will now be done by more friendly folks.

When all the above is added up you have to be a math wizard to believe this is a good deal for anybody.  It could in fact be the straw that broke the camels back.  You see Sweden bailing out the the Euro which will most likely bring others to the same conclusion.  The EU was shaky before this event it might be the end.

This sanction business which our government has said don't  work (Cuba) we place them on Russia what will make this time different , nothing they will fail too , hurting many who will not forget who brought the pain.

1 comment:

  1. Checkmate, Putin. It's over for US hegemony. We are now just one of a half-dozen major economic powers, and probably in the worst position of the half-dozen, because the dollar is still strong, even though everyone is abandoning it, which damages the competitiveness of our imports. Crashing the dollar is the best thing that could happen to us, but our policy makers are doing the opposite, and have fallen into a trap of their own design.