John, the situation in the former Soviet republics was bound to provoke a response from Russia.
The US is attempting to marginalize Russia in that area while establishing bases in many of the former Soviet republics. Add in the NATO memberships of so many former Russian satellite states and the pending membership of some of the republics, the stage was set for push back from Russia, who has been excluded from NATO consideration.
Russia's not going anywhere, and you saw what happens when people fail to respect a regional power.
What's interesting is the US press is hardly portraying this correctly. The Georgian government invaded the autonomous Ossetia area without provocation and with the implied consent and aid of the US as well as help from Israeli advisors.
Over-reaching has its consequences, whether it is in international relations, financial speculation, or just plain greed.
What is really going to cause some pain in 2010 is the fact the Fed will be out of bullets, the last being a drop to 1% Fed Funds rate. With a contraction in all credit, including consumer credit, no home equity draws, and no stimulus checks, the pain will be much more acute than we've seen recently.
The recent drop in fuel costs only means the pain will likely be much more harsh later on as lower energy costs will already have been attained, so the consumer will not see relief there when they need it most. |
