What is the real end game in the obama vs Putin economic war. I read this: There is a “nuclear” option. If Russia decides to impose capital controls and/or imposes a “holiday” on repayment of larger debt tranches coming due in early 2015, the European financial system will be bombed – Shock and Awe-style; after all, much of the Russian bank and corporate funding was underwritten in Europe. Were Russia to deploy this “nuclear” financial option, the Western financial system would not be able to absorb a shock of default. And that would demonstrate – once and for all – that Wall Street speculators have built a ‘House of Cards’ so fragile and corrupt that the first real storm turns it to dust. And what if Russia defaults – creating a holy mess out of the country’s $600 billion debt? This scenario reads as the Masters of the Universe telling Janet Yellen and Mario Draghi to create credits in the banking systems to prevent “undue damage” - as in 2008. But then Russia decides to cut off natural gas and oil from the West (while keeping the flow to the East). Russian intel may wreak non-stop havoc in pumping stations from the Maghreb to the Middle East. Russia may block all the oil and natural gas pumped in the Central Asian ‘stans’. The result: the greatest financial collapse in history. And the end of the ‘Empire of Chaos’s’ exceptionalist panacea. Of course this is a doomsday scenario. BUT DON’T PROVOKE THE BEAR, BECAUSE THE BEAR COULD PULL THAT OFF IN A FLASH.
Posted on: Thu, 25 Dec 2014 08:51:37 +0000
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