Dear Any One,
If you have been following the Ukrainian crisis. I expect you must have notice how far economics and technology have moved in comparison to politics and the art of governance.
Sitting through it all, you must have realized Mr. Putin had rebuilt his people and prepared at least three generations after him for the new shift. And we have not. We still have old Cold War grand Pa’s holding the realm and feeding us with old Cold War fears.
He fed us things we needed to know but kept us from seeing the new face of a diversified Russia – people with Koryo-Saram looks, Turkic looks and a Jewish brigade he kept behind the border in case they have to evacuate Ukrainian Jews and their kind to Khabarovsky or somewhere not too far from Ukraine.
So ask yourself why Russian infrastructure failed to buckle under the threat of sanctions and more sanction. Well, one simple reason is that Russian economy and Russians are more diversified and more inclusive that before.
Secondly, the Gorbachev-Yeltsin era and Wall Street burble and burst has taught Russian investors a hard lesson. They now invest heavily in bonds, properties, mortgage or what is known as fixed income securities.
Ask yourself, did you see any investor abandon assets because of risk and upheaval? No. Because Russia is so interwoven into our system, we are all bound to feel the effect. If Putin decides to make things worse, he could easily strike back at the mortgage backed security market, which will then affect things like university endowment, insurance companies and pension funds.
These types of investments relies more on fixed income security markets, bonds and insurance rather than banks.
Investors realized this. They knew sanctions will not work. In short, the whole thing made Mr. Obama more of a bank robber rather than anything else.
This singular action will not only force Russia banks to develop an alternative to our credit card/visa system, it will also quicken the rate at which Russia, China and India have been developing alternatives to our own system.
One good thing though – we have not been misled to another war based on hazy facts.
Nonetheless, time to cut our banking and economic ties to Politics, Washington and a bunch of old Cold War Senators. They are doing us no good.
Anyway, time to go, I’m sure you know what to do next election.