The Winds of Change are Blowing

The old line goes something like this, “an east wind blows ill will” or perhaps something slightly different. In this case, troubles are brewing from the east. Both Russia and China have stepped up their military activities. China has expanded their naval and air force  presence over parts of Japan and have declared areas previously international to be under their control.

Russian T90 main battle tank

Russian T90 main battle tank

Russia has decided to step up the international Geo-political chess game with the changes occurring in the Ukraine. The Ukraine had successfully moved out of direct orbit of the old Soviet Union when the old federation collapsed in 1990. This never has sat well with the old guard like Putin. Now that the Ukraine is in turmoil and their president ousted, the Russian politburo wants to reel them back in using this new instability as an excuse to retake the country.

President Barack Obama entered office with the collegiate naïvety of a law professor. His belief was negotiation is the method all world leaders will listen to if we just approach it right. Of course the American voter, tired of two protracted middle east wars was a receptive audience. The problem is, countries in the control of ambitious and ruthless leadership will play someone like the President as a cheap fiddle. They see the United States as a weakening super power, struggling to return to prominent economic status pre 2008. The rewards and loans given to the financial community were nothing more than a reward for the Wall Street moneyed political sponsors. The ‘official message’, this is the way to financial recovery, was a smoke screen told to the willing media and most of the gullible public.

Obama responds - shrink the militaryWe haven’t recovered to a level that the cooked statistics in Washington suggest. The tax revenues aren’t close to approaching the spending rate. These powerful nations understand the consequences of protracted debt and know the U.S. will need to cut back its military. Conservatives and Republicans may lament this but it is inevitable. Unfortunately, we took on more financial burden through the changes in health care law. This burdened taxpayers even more significantly. Once the next phase of large corporate mandatory compliance engages, the economy will take another hit.

Among this backdrop we have our President making empty veiled threats if Russia decides to occupy the Ukraine with troops on the ground. Too bad that Putin, a former KGB leader, doesn’t scare as easily as most of our Republican Congressmen. When the dust settles, we’re just going to look more foolish on the International stage. Iran played us for fools when it came to nuclear weapon negotiations and the Russians will do what ever they please, despite all the lines President Obama wants to draw in the sand.

Perhaps the President’s message on income inequality plays well to the former Soviet Union, but even Russia and China recognize some capitalism helps their economy.

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