Kremlin KGB Kings

Here is a great write-up sent out by John Mauldin in his weekly newsletter. Mauldin was ranked as the second best investment adviser (only Warren Buffet was higher). He forwards an article written by Stratfor, the world's private intelligence company. Stratfor is an adviser to most multinational corporations around the world regarding security and terrorism.

As investors, having timely and accurate data about dangerous places and nationalistic policies of governments around the world can prevent potentially catastrophic losses. Often, we think of an investment in terms of preventing small losses. However, I have learned by sad experience that in some countries, one can lose the entire investment, sometimes literally overnight, if that country doesn't respect private property. One of those places is Russia. Vladimir Putin and Dmitry Medvedev, the joint KGB Kings of the Kremlin, have transformed Russia over the the past 8 years from a fledgling democracy into a oligarchical fascist dictatorship where there is no free press, freedom of assembly, freedom of speech, private property rights, or due process protections.

As an investor that invests internationally, I recommend this newsletter highly. It is written by an expert on the Russian Federation and has great insights into what is really going on and how it will change the world.

The Real World Order

"Russia Is No Longer a Free Country"

"This year Russia has become a different country. It is no longer a democratic country. It is no longer a free country". Andrey Illarionov

This is a significant quote because Illarionov was the senior economic adviser to Vladimir Putin. It was he who persuaded Putin to begin a flat tax in Russia that caused its economic boom. He also played a key role in eliminating Russia's foreign debt and in creating the fund that used oil revenues to boost foreign reserves and create a soverign wealth fund. He also obtained admittance for Russia into the G8 and was Putin's personal representative to that organization. The above quote was stated at the time of his resignation. He now lives in the West and works for the Cato Institute.

Here is an excellent article in which many Russian citizens who are striving for basic human rights in their country condemn Russia's invasion of Georgia. It is a factual, unbiased recitation of events thus far:

Human Right Defenders Condemn Russia's Operation in Georgia

No Suprise! Russia Annexes South Ossetia

Russia announced today that it will annex part of the territory of Georgia into its own borders. The monster reveals its nefarious motives more every day! Worse yet, Russia also announced that it will build a permanent military base within the conquered territories. It also indicated that it would soon do the same with other Georgian areas.

"The disclosure will expose Russia to accusations that it is annexing land regarded internationally as part of Georgia. Until now, the Kremlin has insisted that its troops intervened solely to protect South Ossetia and Abkhazia from Georgian “aggression”.

Needless to say, Russia's KGB Kings have repeatedly lied over the past month to the international community. This is only the latest revelation of Russia's dark heart that has emerged over the past few years. Tyranny has come once again to Russia, and now, it has begun to bludgeon its neighbors once again also. 1968 is here again. Here is the entire article:

Kremlin Announces that South Ossetia Will Join 'One United Russian State'

Russian Opposition Party Decries Recognition of Georgian Breakaway Regions

Now, human rights organizations are going into the region to catalog atrocities, and they are finding that despite widespread reports of such atrocities by the Georgians, there are no eyewitnesses. They are rumors, and nothing more, apparently planted to turn the hearts of the locals against their Georgian countrymen. One report by a human rights worker explains that while the rockets came from the direction of Georgia, what remains of the rockets themselves are Russian Grad rockets. This same reporter said the following:

For instance, all of a sudden, that maybe it was Russia that bombed everything to spite Georgia.

First a bombardment took place, then, after a massive shelling, the armored vehicles moved in.

And after the armor, the infantry forces walked in.

On the level of the shelling, and the armor, genuinely, the rights of the civilian population were violated.

Weapons were used which in no case can be used.

There were direct tank attacks on residential buildings, and on the building’s basements.

But from the point of view of the atrocities that, supposedly, were committed by individual Georgian soldiers, the infantry, we did not find any information from first-person sources.

It is possible that they were fed fables that the peaceful people had long since left.

This same human rights organization indicated that Russia has grossly overstated the number of civilian casualties in the area. Instead of the thousands that Russia claimed, the human rights workers were only able to document "tens of victims", not hundreds or thousands.

On the other hand, the same human rights worker said that there were decaying corpses of Georgian soldiers widespread throughout the area. These are a grave concern because they raise the likelihood of disease.

More Russian lies?

Russia's Medvedev: Itching for New Cold War!

While the West tries to downplay and ignore the idea that a new Cold War has begun between Russia and the West, Russia has embraced the idea. In fact, if Russia's President Medvedev has anything to say in the matter, Russia is eager for it. Russia's once fledgling democracy has now fully evolved into a elitist capitalist dictatorship controlled by a few militant oligarchs. “We are not afraid of anything, including the prospect of a Cold War," he boasted today. Russia troops continue to occupy tiny Georgia, including the port city of Poti, nearly two weeks after Russian leaders agreed to pull out of Russia. In fact, Medvedev said today that Russian forces are continuing to build, not withdraw.

This is important because as I continue to take the pulse of business leaders throughout the United States, we are only now beginning to price into the market the consequences and costs of this new Cold War (using Medvedev's terminology). Finally, we are beginning to wake up, sit up, and take notice that the past is still prologue in our relationship with Russia.

There is one significant difference this time, however. This time, Russia has a wealthy, capitalist economy awash with petrodollars and the confidence and willingness to pick a fight. They have no intention of backing down with the West.

Interestingly, the Founding Fathers of the United States, in their studies of human history, said that democracies have a tendency to do precisely that, evolving into tyrannical dictatorships controlled by a few wealthy elitists. They feared that such would also eventually be the fate of the United States, resulting in tyranny. That's why, when a woman asked what kind of government has been chosen following the Constitutional Convention, Ben Franklin replied, "a republic, if you can keep it". He knew that historically, democracies tend to degrade and destroy themselves, partly because where a majority rules, minorities rights are destroyed. Perhaps this is why Jesse Jackson pines for a day of "democracy of capital", in which the majority will take the property of a wealthy minority by force, if necessary.

On the other hand, a republic operates on the concept of the "rule of law", protecting minority rights and holding the tyranny of the majority at bay. This was also one of the reasons why they provided for United States Senators to be chosen by the states rather than by vote. This was changed, and the United States took a giant step toward democracy (and away from the republic they had given us), with passage of the Seventeenth Amendment. This amendment fundamentally changed the form of government in the United States away from that envisioned by the Founding Fathers.

We are now seeing this devolution of democracy occur in Russia, but also in the United States to a lesser degree. Lest anyone bristle at the suggestion that the United States is descending toward the tyranny of democracy, I would suggest that class warfare is one example of this. The idea that the majority can take the property of a wealthy minority by voting it away, is a form of tyranny that the Founders dreaded. A small, unpopular minority of wealthy people are preyed upon by the majority. Here is a link to a good explanation of the difference between a republic and a democracy:

'A republic, if you can keep it' ...or remember what it means

(There Is No) Freedom of Speech or Press in Russia

One economist critical of the Kremlin, Mikhail Delyagin, was apparently given an appearance by mistake on a popular talk show. Before “The People Want to Know” program aired, Delyagin was digitally removed from the tape.

The show’s host, Kira Proshutinskaya, said she was embarrassed over this and other incidents, and admitted that networks are constantly intimidated by the Kremlin.

“I would be lying if I said that it is easy to work these days,” she told the Times. “The leadership of the channels, because of their great fear of losing their jobs — they are very lucrative positions — they overdo everything.”

I recall how the Soviets used to doctor photos to remove people from them. This looks a lot like the old Soviet mentality has returned to Russia. The above is a quote from the following news story about the absence of press freedom in Russia:

Press Freedom Absent in Russia

The Following is a news story about persecution of critical voices in Russia. This person was prosecuted for publishing an opinion to a BLOG!

Criminal Case Launched Against Russian Opposition Blogger

In Russia, Vladimir Putin has passed a law, article 282 of the Russian Criminal Code, that allows the government censors to classify anyone's speech as "extreme". It can therefore be censored and the person prosecuted. Imagine the number of KGB agents necessary to monitor millions of blog posts all over the internet each day! They're serious about censorship and silencing those with a different perspective! The sentence is two years in prison! His crime? Criticizing the Federal Security Service!

Here is another article about the office of Russia's largest radio media conglomerate being raided. Check out the photo of the hooded soldiers that conducted the raid in the article below. Often, Russian authorities won't shut down media source entirely. Instead, they will harass them and accuse them of various activities, including tax evasion. If that doesn't work, they prosecute them and send them to prison. The intent, of course, is intimidation!

Russian Media Group Offices Searched, News Program Cut

"Everyone Lost"

Political opposition voices in Russia recently released a statement saying that in the war upon Georgia has no victors. “No one won from the war,” the opposition leaders write. “More precisely, everyone lost.”

Here is the full statement (see link below). They were incredibly courageous to issue it, considering how many members of the press and Putin political opponents have been murdered. It is estimated that among the press alone, more than 150 reporters have been murdered in Russia over the past 5 years just for criticizing the KGB King. That's about one every two weeks! Russia is the most dangerous place in the world to be a reporter. It's deadly to speak the truth about Vladimir Putin!

Russian Democratic Forces On the Georgia Conflict

Putin Sends in the Chechen Goons!

Russia Lost the Georgian War

As long as Putin's Russia continues it brutal invasion of Georgia, I will continue to post short updates on the status.

The Kremlin KGB Kings have sent Muslim Chechen gangsters into Georgia to brutalize and terrorize the Georgian people, despite the fact that they signed an agreement to withdraw one week ago. These mercenaries are so brutal in their conquests that even the Chechen puppet President begged Moscow to disband them. Putin refused. We also know that they are on the ground in Georgia because photos from the Kremlin of these thugs showed them on Russian armored personnel carriers with their battalion ID painted on the equipment.

We also now know that when Putin left Beijing suddenly, he was headed directly for the front lines of Russia's invasion of Georgia. He is personally directing the brutality and humiliation. Photos and video from Russia's state media showed Putin personally directing the invasion at the front. Since when is that in the job description of a Prime Minister, Mr. Putin? That has all the appearances of a dictator, not a diplomat!

Additionally, press photos yesterday also showed Georgian troops taken hostage by the Russians and hauled away blindfolded into Russia as political prisoners! Photos also showed the Russians stealing American Humvees owned by the Georgian military, and taking them into Russia also. They are now adding plunder and pillage to their war crimes!

We in the West had better wake up to realize that the bloodlust for power of the Kremlin KGB King will not long be contained within Russia's borders. Putin and his puppet-dog Medvedev will become more and more brazen and aggressive until they are checked. Europe is so worried about the oil and gas pipelines that they are being blinded by their need. If they don't establish their independence quickly, they will eventually wake up licking the feet of Putin, and being grateful for the privilege.

Vladimir Putin has the West's number. He knows how to manipulate the UN to block all diplomatic efforts to check his military conquests. He has repeatedly blocked all UN efforts to bring a halt to Iran's nuclear efforts. And he understands the weaknesses of Europe's desire for diplomacy better than Europe understands him. He humiliated President Sarkozy of France, agreeing to a ceasefire and withdrawal, and ignoring them as soon as the ink was dry.

Russia's Stock Market Beaten Up By Firm NATO Statement

Confront the Kremlin - excellent editorial by Oksana Chelysheva

Russia's stock market stumbled and fell by 5% today, in addition to the tumbling market over the past few weeks. U.S. stock markets haven't dropped that much in a single day for more than twenty years! Marketwatch.com has an excellent article on the subject today. Sorry, but I'm having difficulty grabbing the link. The terse NATO statement says that "business as usual" can not continue following the Russian invasion of Georgia. The chart says it all, however. Note the strong gap lower today!

$40 Billion Net Worth!

Putin's Imperial Russia

That headline is the estimated net worth of Vladimir Putin, the self-appointed Prime Minister of Russia. He had very little net worth at the time he became President of Russia. Not a bad salary for just 8 years in office! His own countrymen, based upon expert financial analysis of companies he owns or controls, and similar to that of Forbes magazine's calculations to estimate the net worth of the world's other billionaires, estimates that during his tenure in office, he has made himself into one of the world's wealthiest people solely through the activity of politics, a previously unheard-of feat. Wow! He must be some politician! If this net worth is accurate, then it places him as the world's seventh wealthiest person. It also placed him easily and squarely as Russia's wealthiest billionaire. It also places him well ahead of even the wealthiest members of the Saudi Royal Family, who have been in power for decades. Again, some politician!

At least part of that wealth came from using his office to confiscate the wealth of Russia's other billionaires, by throwing them in prison, confiscating their assets and selling them off. Doesn't that sound a little more like a tyrant... than a president? Is his middle name Amalickiah? I just wondered!

When confronted a few months ago by a foreign reporter and asked about his vast wealth, President Putin mocked the reporter, and the question, by smugly commenting that he was the wealthiest person on the entire planet, because he is so beloved by Russia.

That's a whole lotta love ... $40 billion worth!