Friday, October 16, 2015

Russia Under Putin Is Fragile Enough To Break-up

Western countries consider Russia under President Vladimir Putin as an expansionist nation trying to reclaim its Soviet-era glory. On the other hand, Russian authorities have accused the West of trying to break Russia up into pieces. But Russia may be at the risk of crumbling into pieces even without any Western interference, reports The Economist.
Russia Collapse

However, Vladimir Putin has reversed federalism in Russia, turning it into a centralized state. He has imposed “presidential” representatives for each region, eliminated regional elections, and changed the way tax revenues are distributed in Moscow’s favor. In short, Russia of today is like a Khanate where local representatives have been given a license to rule by the chief Khan in the Kremlin.

The primary job of the Kremlin-appointed presidential representatives is to bring votes for Vladimir Putin. In exchange, they are granted freedom to rule the way they want, plus a share of oil revenues. Vyacheslav Volodin, Putin’s deputy chief of staff, recently said, “No Putin, no Russia.” If Putin goes out and Russia runs out of money, Chechnya would be the first to break off, says The Economist.

Press TV: This does seem like the twilight zone where the US can militarize as much as it wants the region, but Russia can take no countermeasures to protect itself. 
Martin: It is schizophrenia on the part of the West, particularly on the part of the United States, to have about 40 military installations around the Russian Federation and around former Soviet republics, such as Kazakhstan and Uzbekistan, and to seek to build more US military installations in the Russian sphere of influence and on the Russian border, and then say that Russia is engaged in militarism
 
and then to actually plan and carry out a coup in Ukraine much like the coup that the CIA carried out in Iran in toppling former Prime Minister Mosaddeq and then to basically make the Russians into the bad guys. 
It is basically schizophrenia and lies, but let us understand that the United States has a much more intricate and well-founded media and PR machine than Russia does. But as a whole, I think the world understands who the good guys here are and it’s the Russians as opposed to the United States and its corporatism. It is not American imperialism; it is American corporatism going around trying to harvest resources. 
Press TV: How dangerous is this current status quo that exists between the US and Russia? 
Martin: It is very dangerous and it is very confrontational. There is a history with regards to Russia whether it was an imperial Russia or Soviet Union. 
Russia does not take it kindly to being surrounded and having enemy forces massed on its borders and history has shown that foreign countries that have tangled with Russia it does not work out well for them. 
"And the West is foolish if they think they are going to dismember the Russian Federation, which I think is their ultimate objective." 
They broke up the Soviet Union and I think they want to foster internal strife in the Russian Federation and try to break up the Russian Federation even further and that is foolhardy that I think the rest of world needs to take note as to what is happening – that the United States will go in and try to break up the territorial integrity of foreign nations.
 
DYI Comments:  Whether it is American Imperialism or Corporatism our State Department has always wanted to finish off Russia, in the beginning it was based on ideology, now it is a grab for natural resources especially oil and gas.


If Russia proper ends at the Ural Mountains new countries will be formed who would need western technology to develop their natural resources, making it far more likely to be friendly to the U.S.
   Currently today do not be fooled by the lower oil prices this is geo-politics being played out. The Saudis became tired of being the central bank of oil by restricting their out put while the remainder OPEC nations cheated on their allocation requirements.  They decided to increase their market share by bankrupting many of the marginal players whether OPEC or non-OPEC nations.  This also includes putting a dent into the U.S. horizontal drilling and fracking as well.  Once the Saudis decision was made our U.S. State Department became the cheer leader for even lower prices to send the Russian economy into recession.  If oil prices go lower in the twenty dollar range and stay down (one or two years) Russia economy will severely contract placing Putin's reign in serious jeopardy.  With Putin gone under these conditions it would be highly likely the far eastern provinces will break away.

PEAK OIL

The U.S. is now involved as a major player in natural resource wars.  The war on terror has been a side show since day one; the U.S. with its military presence in the middle east is all about oil.  Oil and gas prices are in a secular bull market roller coaster as the world has essentially arrived at peak production.  Now is the time to dollar cost average into your favorite oil/gas natural resource mutual fund as many of the stocks have experienced a 40% plus decline.  DYI's favorite is Vanguard's Energy Fund symbol VGENX.   If oil prices go to the low twenties or lower then lump summing will be will be acceptable as most of the risk of lower prices would be subdued.  Take a look at Adams Natural Resource Fund symbol PEO. 
DYI

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