The financial markets appear to have shrugged off the broader implications of armed conflict in Eastern Europe today. While the Dollar began the day relatively unchanged, it has now strengthened, and both crude oil and gold have sold off, showing market expectations of limited duration and impact of the armed conflict in Georgia. Crude has sold off again, with prices collapsing below $113/barrel. The stock market has continued to show greater strength, too.
I am paying close attention to the conflict, however, because now that Russia has escalated the conflict throughout Georgia, if Russia imposes itself militarily upon all of Georgia, as it now appears they will, and takes control of the Georgian oil pipeline in the south, Europe will be licking the hands of the Russians for decades to come. They will be paying a very costly crude oil tax to Russia. This can only mean more costly oil. We must keep in mind that this oil pipeline to Europe passes through Georgia, but has its origins in some of Russia's other breakaway former states that were once part of the USSR. Is Russia seeking to impose itself as a global military power once again, now that its pockets are lined with oil-derived gold? Will the conflict spread to Ukraine, where the Russian fleet has a port, if the President of Ukraine fulfills his threat to close the port to the Russians? The world has become a more dangerous place in the past few days. I'm just not sure we realize it yet!
May I suggest that in a time like this, the place for the U.S. President to be -- is here at home?! It strikes me as somewhat of a "let them eat cake" attitude for him to be partying in Beijing with the enemy while serious conflict breaks out in the world. Couldn't he leave Kissinger and former President Bush there to shake hands with athletes and hobnob with world leaders? If matters should get worse and this conflict suddenly escalated to a broader or (heaven forbid) global scale, could he even get back home? Would they let him even leave if things worsened? The United States would be faced with not only a global national security crisis, but a Constitutional one, also.
I am paying close attention to the conflict, however, because now that Russia has escalated the conflict throughout Georgia, if Russia imposes itself militarily upon all of Georgia, as it now appears they will, and takes control of the Georgian oil pipeline in the south, Europe will be licking the hands of the Russians for decades to come. They will be paying a very costly crude oil tax to Russia. This can only mean more costly oil. We must keep in mind that this oil pipeline to Europe passes through Georgia, but has its origins in some of Russia's other breakaway former states that were once part of the USSR. Is Russia seeking to impose itself as a global military power once again, now that its pockets are lined with oil-derived gold? Will the conflict spread to Ukraine, where the Russian fleet has a port, if the President of Ukraine fulfills his threat to close the port to the Russians? The world has become a more dangerous place in the past few days. I'm just not sure we realize it yet!
May I suggest that in a time like this, the place for the U.S. President to be -- is here at home?! It strikes me as somewhat of a "let them eat cake" attitude for him to be partying in Beijing with the enemy while serious conflict breaks out in the world. Couldn't he leave Kissinger and former President Bush there to shake hands with athletes and hobnob with world leaders? If matters should get worse and this conflict suddenly escalated to a broader or (heaven forbid) global scale, could he even get back home? Would they let him even leave if things worsened? The United States would be faced with not only a global national security crisis, but a Constitutional one, also.
