STEVE PIECZENIK TALKS

Economic Sanctions Take a Bite Out of the Russian Soul!

“The First Cut Is the Deepest”,  a love song by the infamous British crooner Rod Stewart,  explains a basic principle of economic warfare---strike fast and hard and the enemies’ economy will be ‘severely hurt’. Unfortunately for the Russian people,  the economic sanctions instituted by the Obama administration then followed up by the Germany, France, 

England the rest of the EU, has had a significant economic impact on Russia as well as it’s erstwhile allies---Belarus, Ukraine [eastern],  and Kazakhstan. 

Recent Open Source Intelligence Reports [OSINT] like Stratfor report the following telltale signs of financial distress:

[1] Russia entering period of zero to negative economic growth. 

[2] Approximately $100Billion of capital outflow from major Russian businessmen and investors.

[3] Belarus, the closest Russian ally and will probably suffer the most from the economic sanctions. 

[4] Belarus is Russia’s largest export market amounting to $17 Billion in 2013.  Primary exports affected include vehicles [2.5 billion], dairy products [ 2.2 billion] and machinery [1.5 billion].

[5] In turn, Belarus receives all of its crude oil and natural gas from Russia. But in order to buy those precious commodities, Belarus needs subsidized loans from the Russian –dominated Eurasian Economic Community.  However, because of decrease Russian financial assistance, Belarus will have to seek recourse from the International Monetary Fund under the World Bank auspices [ a shadow agency for the USA]. 

[6] Kazakhstan’s main exports to Russia are ores [$1.5 billion], mineral fuels [$785 million], and iron steel [$773million]. It also exports its own crude oil and gas.

However, “Kazakhstan is heavily tied into Russia’s financial and banking system” [Stratfor, 8/10/ 14].

What does this mean for this very important Central Asian country that was once within the Communist Penumbra?

Kazakh’s TENGE [currency ] is tied directly to the Russian Ruble unlike the Belarus Ruble which floats according to world currency values.  So as the Russian Ruble goes down… so does the “Kazakh’s Tenge”. Without having done anything negative, other than to be associated with Russia, Kazakhstan has already lost 20% DEVALUATION.

What we are witnessing is the hidden war conducted by the spread of numbers all over the world which does not on the surface appear to kill anyone.  However, those numbers or electrons,  known as ‘economic warfare’ has a far more deadly strategic outcome than any military assault or weaponry.  Russia could experience at one and the same time, both external and internal disruptions that would threaten the economic,  political and psychological stability of the Russian Federation.

It is not a pleasant sight to watch an evolving economy like Russia’s implode because of Putin’s Foolhardy wasteful spending on the Sochi Olympics in order to garner some national pride. Was it really worth $51 Billion? Not from my perspective.

Is the Ukraine incursion worth billions more while the Russian economy is bleeding even more billions on an hourly basis?  

As in medicine and love, ‘the first cut is the deepest’ and inflicts the greatest damage.  Putin has not recovered from that infliction.  Instead he has spent an incredible amount of time, energy and resources trying to retaliate against a phantom enemy [capitalism] while having done nothing to redress the hemorrhaging wound.

As someone who helped to take down the Soviet Union [“Evil Empire” ala Reagan/Bush Sr],  I have no patience to witness the downfall of the Russian economy.  The Russians are a great people with an incredible culture.  As a people,  they have suffered more than any other country in defeating the Nazis and other Fascist systems.

The Russian people deserve a new leader who understands that the future of Russia is not tied to the parochial concerns and limited talent of an ex-KGB/Stasi agent named Vladimir Putin.  Putin’s grandiosity, self-absorbed entitlements and brash outbreaks of febrile utterances have compounded Russia’s failures and exposed its internal financial weaknesses that even we the bourgeois capitalists could never have dreamed of some thirty years ago.

Putin in his ill-timed,  poorly conceived concerns for my treasured Russian people reminds me of a statement that my favorite French Foreign Minister Charles Maurice Talleyrand Perigord made about one of his many mistresses-Madame De Stael [but I will change it to fit this particular occasion]:

“Putin is such a good friend and great leader of the Russian people that he would throw all the Russians into the Volga River,  watching them drown so that he could have the pleasure and glory of saving the very drowning that he had created”  Talleyrand understood the paradoxical nature of self-defeating grandiosity because although he was Napoleon’s trusted Foreign Minister,  Talleyrand had to ally himself with the dreaded enemy, the British, in order to end Napoleon’s Grand March to France’s self destruction. 

Take heed PUTIN!!
Russian Czar Alexander I defeated the WILD CORSICAN in order save France and Europe!!  Who knows who might have to defeat you in order to save Russia and the world economy?  Sacrificing your friends, Belarus and Kazakhstan, like the infamous courtesan Mdme De Stael,  is no way to treat your friends or remain in decent company.

 “Vsyovo Haroshovo!” All the best!!