Events in Ukraine are coming to a head…
Running down the tale of woe, we’ve got the kidnapping of UN observers… shootings of city mayors… Ukrainian Special Forces moving against pro-Russian “gangs” that have taken over government buildings… and the gathering of Russian troops on the Ukrainian border.
At this point, there’s no denying that the situation will end badly… for Ukraine, that is.
My sources in the region are confirming that Ukraine has cut off freshwater supplies to Crimea. But it won’t be enough.
When it comes to Russia versus Ukraine, there’s only one ultimate winner…
Putin’s Widening “Sphere of Influence”
Russia is using the phrase, “sphere of influence,” to describe its eminent domain over all of the former Republics that once made up the USSR.
And it’s hell-bent on increasing its “sphere of influence,” once again.
The Kremlin believes that it has the right to reconstitute the former USSR, as it was the country that originally dissolved it. And why shouldn’t it try to get them back?
After all, the former USSR went through a gut-wrenching breakup after Perestroika in 1986. The entire region became a basket case overnight.
Massive government-run infrastructure was handed over to “private” investors… Pensioners were impoverished overnight… And entire future “countries” were forced on a path to fend for themselves.
This was the biggest case of economic cleansing of our time. I mean, imagine the United States breaking up and each state having to develop everything from the ground up.
The former Republics had no choice but to move forward and become economically self-sustaining.
The experiment is still in its infancy, but one thing is crystal clear…
If the former USSR were to reconstitute today, it would be economically stronger than it was in 1986 – or at any time before.
The World’s Worst Nightmare
The reunion of the USSR isn’t as far-fetched as you may think, either.
Except for the Baltics, none of the former Republics have close ties to Europe or the West.
Not to mention that none have any meaningful military power. They’ve spent resources on everything but defense. Heck, even if they combined forces, they wouldn’t be a match for a fraction of Russia’s firepower.
And to think that the West will provide any type of military aid to these countries would be a prelude to the unthinkable. The only options are economic sanctions and political isolation – akin to what the world did to Iran.
Of course, Russia isn’t Iran…
Russia is self-sufficient – more so if it retakes its former Republics. And as we know, Europe needs Russian energy – badly.
In the end, Russia is transforming into the world’s greatest nightmare. It’s a massive petrostate that’s run by thugs who have the largest nuclear arsenal in the world.
So much for worrying about the terrorist organizations seeking chemical or nuclear weapons to threaten the world. Russia already has everything it needs to make the world a much more dangerous place.
And judging by their words and actions – first in Georgia, and now in Ukraine – they’re not interested in what the “rational” West has to say.
Rest assured, I’ll keep you abreast of the situation – along with the investment implications – over the coming weeks.
And “the chase” continues,