Don’t back Russia into a desperate corner

It is a grave mistake to put President Vladimir Putin or the leader of any nation with nuclear weapons into a situation in which they think they have nothing to lose.

I wrote a post Wednesday on the danger of nuclear war with Russia.  Pepe Escobar pointed out that Russia has other means of Mutually Assured Destruction.

One would be to default on Russia’s debts, or even suspend payment on the debts, pending the end of the current emergency.  This would threaten major banks in Western Europe that have extended credit to Russia.

Another would be to cut off gas exports to Ukraine and the countries of the European Union.

Either of these things would hurt Russia as much as it hurts Russia’s enemies.  Russia needs credit, and Russia needs foreign markets.

But if the country has been brought to the brink of collapse anyway, then its leaders have nothing left to lose by striking back.

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What Putin Is Not Telling Us by Pepe Escobar for RT News (via World News Daily)

Russian Roulette: Taxpayers Could Be on the Hook for Trillions in Oil Derivatives by Ellen Brown for Nation of Change. (Hat tip to Naked Capitalism).   Big Wall Street banks bet wrong on oil prices.  Thanks to bailout provisions in the Chromnibus budget bill, the U.S. government may rescue them.

Tags: Banks, foreign loans, President Vladimir Putin, Putin's Russia, Russia, Russian Federation, Russian gas exports, U.S.-Russian relations