If we fought another ‘Cold War’ with Russia, it might be cold in the literal sense this time around. (I might as easily have used the term “participated” because that is really all we did in the first one.) This new cold war would be waged for the natural resource reserves (OIL mostly) under the Arctic ice that Russia claims to be theirs It’s surely not ours, though we might have to back Canada militarily if this evolves.
In August 2007, a Russian submarine, with a mechanical arm, planted a specially made rust-proof titanium flagpole, complete with Russian flag, in the Arctic seabed at a depth of 13,980 feet. There isn’t as much ice up there these days as you’d think, by the way. There is little left since ice-breaker vessels have been breaking it up for the passage of oil tankers for a while now. Even as far back as Standard Oil, decades ago, companies have been trying relentlessly to clear the Northwest Passage for oil shipping. All the while, they were warming and changing ocean currents unintentionally. (That is a story for another time, however.) Don’t get me wrong. I am not taking you down the radical environmentalist, tree-hugger road here. Personally, I would drill an oil well through a polar bear’s head if it would get me $2 gal gasoline for life.
We have problems coming with Russia. It is festering on a few different fronts. There are Iran issues that involve them, missile shield issues, the fact that they have their interjected themselves into the European debt crisis, land disputes that involve the future energy plans of many countries. Putin is about to take the helm again in Russia as its ‘decider’. His reputation does precede him. I am a student of Putin and his life. While I am not an expert on him, I can say I know just about everything about this, except where the bodies are buried. He is brilliant and cunning and has the heart of a lion. I personally live my life by the Latin saying: “nihil timendum est,” which translates as “fear nothing,” but this man eats that for breakfast as a shake. He even once said he would “one day bring the USA to its knees….without even firing a single shot or missile”. As much as I admire this man and how ‘bad ass’ I think he is in a lot of ways, that he continues to hold power concerns me greatly going forward, as I think it should concern every American.
As an investor in US markets however, I am as excited as a child on Christmas Eve night. If events unfold in the right way, these problems with Russia could be a boon to our economy.
I once wrote a thesis on how I suspect Putin could try to hurt the US’s economic stability (without a shot or missile). He might try to play the role of ‘savior’ to the European Union and the Euro by announcing Russia’s intention to enter the EU and adopt the Euro. Such a move could save the EU and Euro if a super-crisis develops over there. Even a mere whisper or implication of Russia’s stepping in would have the desired effect, sending the markets whipsawing and just going crazy. This could potentially send the US Dollar crashing (or at least running around with its head cut off for a bit). Putin can move markets with words and actions like no other. It could get real crazy, real quick if he starts talking some more about this kind of intervention.
Putin is also fortifying and revamping his military and he has plenty of money to do it. Right now Russia is in a position similar to the one the US was in during the Cold War era when we used spending tactics to try to bankrupt them. I am a great student of ‘social cyclicality’ and how great societies switch places in the course of the evolution of the world. It has happened many times before. I find it ironic that we seem to be heading toward socialism while Russia is now living life high on the capitalist hog so to speak. I am a child of the 1980s, back when it was preached in schools that all Communism and Socialism was the axis of evil, period. That wasn’t very long ago
Canadian foreign policy and the law of the sea
By Barbara Johnson, Mark W. Zacher
“In 1968 vast quantities of oil and gas were discovered at Prudhoe Bay in Alaska. … the Humble Oil Company, a subsidiary of Standard Oil Company of New … send a large oil tanker, to be specially modified into an ice–breaking vessel to clear the North West Passage for oil shipping from the North Slope.”
Russia plants flag on Arctic floor
Putin Pumps Over $9B Into Shipbuilding for Nuclear Submarines
Friday, November 11, 2011
Prime minister of Russia, Vladimir Putin, has announced plans for the country to build five nuclear submarines in a massive $280 billion rubles (US$9.28 billion) shipbuilding and maintenance order for the Russian Navy.
In all, seven contracts were signed by the Defense Ministry and United Shipbuilding at the Sevmash shipyard in Severodvinsk . Among these contracts were orders for five Yasen and Borei class strategic nuclear submarines. The agreements will serve as some of the final requirements set by the Defense Ministry in 2011 for the Russia’s military revamp.
Putin, who is seeking to be elected for his third term next year, was quoted by Reuters saying that he is sure the realization of the unprecedented program in terms of both goals and financial resources will enable his nation to carry out a large scale modernization of the Naval fleet.
He added that all of these vessels will be built by Russian companies and that the Russian shipbuilding industry must be prepared for serial production of advanced hardware and weapons that are completely compliant with standards and tasks that the Navy must fulfill.
The Moscow Times said that the submarines are to be built at a Sevmash shipyard atop of an Orthodox monastery. The precise value of each contract has not been disclosed, however it has been estimated that one Yasen submarine costs around US$1.3 billion.
Since 1993, the Borei and Yasen nuclear submarine programs in Russia have been strangled by delays and controversies with late delivery times, questionable technologies, and a sharp drop in military spending in the ‘90s.
The nuclear submarine contracts are only one installment of the US$653 billion modernization plan to be completed by 2020.
November 12, 2011 3:40 pm
“In his first meeting with foreign journalists and academics since announcing he
would stand again for the Russian presidency next March, Mr Putin on Friday
night dismissed the risk of “catastrophic” inflation as a result of ECB
intervention. But he warned that the combined forces of the IMF and the European
financial stability facility would not be sufficient for a task that could
require “1.5 trillion euros”.
HE IS GETTING READY….this is laid ground work coming now.
Steve Goff says : “listen to the whispers…this way the screams are not so
Flash: Russia to honor Syria arms contracts MOSCOW, November 13 (RIA Novosti) Russia will honor all arms contacts with Syria despite continuing violence against anti-government protesters in the country, a senior military official said on Sunday. “Since there are no restrictions on the supply of arms to Syria, Russia will fulfill its obligations under the contracts signed with this country,” Vyacheslav Dzirkaln, deputy head of Russia’s Federal Service for Military and Technical Cooperation, told reporters in Dubai. http://en.ria.ru/world/20111113/168663837.html