Don’t back Russia into a desperate corner

Bank+exposure+to+Russia

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.

eruopeanbankexposuretorussia pmOne 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.

gassuppliedbyrussia ∞∞∞

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: , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.


%d bloggers like this: