Hit Them In The Wallet

By now most of America has moved on from Ukraine but if things go to crap you can be sure that the Tea Party will have something to say…..right now they are fixated on some freeloading rancher and cannot be bothered with another issue………..

Sanctions are being imposed…..kinda like the sanctions we impose on everybody that crosses us in one way or the other……people ask if that is really the way to go with Putin…….if we listen to some of the hawks they would have American troops already boot deep in the conflict in Ukraine………that is a scary thought….at least to me……….

But will sanctions really be that expensive to Russia?  There is an opinion on that subject that you may find interesting…..

Vladimir Putin’s approval rating has jumped 10 points during the Ukraine crisis, to 72%, according to the state pulling group. But that could change when Russians see what their adventure there is really costing them, Ilan Berman of the American Foreign Policy Council writes in the Wall Street Journal. Here are the ways Russia is hurting:

  • Almost $51 billion flowed out of the country in the first quarter of 2014, according to new statistics from the Central Bank of Russia.
  • Russia’s economic development industry expects the economy to grow less than 1% this year—down from an earlier estimate of 2.5%. The World Bank predicts the economy shrinking almost 2%; that would amount to about $30 billion in lost production.
  • Gazprom might regret jacking up gas prices for Ukraine, because that may permanently cost it a major customer. The Ukrainian government has already issued a temporary stop on purchases.
  • Russia will pump $7 billion into economic aid for Crimea, which is a lot even if you consider the resources it’s gained by annexing the peninsula.
  • One financial analyst is predicting a total capital flight of $160 billion this year.
  • And none of that is counting the blows to Russia’s international standing—including its ouster from the G8.

“The longer the crisis over Ukraine lasts, the higher the economic costs to Russia are likely to be,” Berman concludes. “Sometime in the not too distant future, it might become considerably more difficult for the Kremlin to continue to ignore the real-world price that is associated with its policies.” Click for Berman’s full column.

Could this drive Russia into the postured it had back during the Cold War?  Are we looking at a stand-off between East and West?

The world is watching……..what will China do?  Will it consider expanding its territory?  And then there is that malignant midget in North Korea.

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