The Flinchum File

Thoughtful Economic Analysis and Existential Opinions
Subscribe to the Flinchum File
View Archives

Involuntary Mercenaries

Vladimir Putin is the greatest danger to the United State, far more dangerous than ISIS or Ebola.  He is also a danger to the Russian people.  Yet, they still love him.  Vitaliy Katsnelson has written an excellent article on the Private Portfolio website, proving that — perspective is everything.  Yes, their access to information is highly restricted but is very effective in presenting Putin as working hard for the Russian people.  Nothing could be further from the truth.  Putin is working for himself.

He has essentially run that nation for twenty years and is now rumored to be one of the world’s wealthiest men, at about $40 BILLION.  During that time, Russia’s petro-economy has gone from largely dependent on oil to one that is almost entirely dependent on oil.  He had the opportunity to make it better but has made it worse!  During the years of high energy prices, this increasing dependence was not obvious to the Russian people.

So far this year, the Russian ruble is down 27%.  Imagine what would happen in this country if the dollar dropped 27% so rapidly!  Yet, the Russians inexplicably still love their unsavory leader.

Don’t forget that Hitler knew it was time to start the war when the bond markets cut him off.  Putin is getting closer to that point, where Russia can no longer borrow enough to stay afloat.  However, instead of starting a war, he could throw Russia into the arms of China.  Already this year, he has announced two huge deals with China, which analysts agree are very favorable to China.  Russia could become the spear held by China.  The patriotism of Russians would serve their Chinese masters well.