Is the Phrienamy of my Phrienamy my Phriend?

Iph I asked you this question would you answer it any other way than NO?

Q? Would you still be my phriend if we played a game of chance according to my rules, using my money, using my gameboards. And would you still be my phriend, if I changed the rules whenever I was losing. And if you tried to use the same tricks I would punish you for trying. And even though I let you win money, I print more of it so that yours won't be worth much and I can continue playing the game.

A? (ask yourself this)

So why do you think Russia is going to continue putting up with the drek that the United States Federal Reserve and Treasury Department are getting away with.

If Russia were stupid enough to answer yes to this question, they would impoverish themselves, squander energy resources for less than their real value, and never ever win. The Russians have lost a quarter of the value of their equity markets in two days. How much more abuse can they take?

How long will it take Medjedev to learn to imitate South Park's Cartman and say "Screw you guys, I'm going home." For our sake I hope it takes some time.

Russia has the curious good fortune to have gotten into the game in the bottom of the ninth inning. Every other country is so deep into the Dollar dominated system that they have no choice but to cross the stream of finance with the American Scorpion on its' back. Russia had been flat broke twice in one generation. One more economic disaster is a cake walk for them. Third time's the charm as they say.

Bernake and Paulson are less than 6 weeks away from the finish line. They have no plan or, in the parlance of Administration Speak, "time horizon" beyond that point. Nothing they have done or are doing right now serves any purpose other than to kick the can down the road. Everyone who isn't led by the nose, knows this. Everyone is just praying that the "can" can still be kept kicking down the road.

Putin has a golden opportunity to exceed at achieving all of his goals for a greater Russia, if he can force an expedited end to the charade we call global international finance or US dollar hegemony.

What is keeping him from doing any and all of the following:

1) A complete overtaking of Georgia.
2) Placing a Fire Sale on his foreign assets, specifically US GSE debt holdings (Fannie/Freddie)
3) Cutting off 20% of Europe's energy supplies.
4) Parking some ICBM Nukes in Hugo Chavez's "crazytown" formally know as Chile.
5) Giving Iran some free Tanks, Missiles and other weapons for safe keeping.

What would happen. A crap shoot. Literally. No one can really predict with confidence how things turn out. But, WTF, If I am in Putins' place, I don't see how I'm better off sticking with the status quo. Heck no, I scream FIRE in the theater and make sure I'm the first one through the only exit door.

Remember this guy has fun shooting a tranquiliser gun at wild TIGERS!!!!!!!!!! not that pussy footing pigeon shoot at a "game" ranch where the targets are practically tied down so you can still hit one when your so piss drunk, you shoot your lawyer in the face.

I only offer these 5 events, because he has already committed these already to some extent, I can imagine a lot of other options at his disposal that can achieve his goals. I can imagine them but I never want to see them happen so "mums the word".

If he were to do all of this at once and with conviction, he could vapor lock the global scam being perpetrated upon the hapless citizens of the world powers.

Europe would have so many problems to deal with they would be forced to ignore the issues of the United States, watch for a return to "Dark Ages II, the eccentric bugaboo". Latin America will go bananas. The Middle East would redo the 1970's. All of Asia will look like a panicked crowd running wild underneath Godzilla. Aussies, Black Shirts and Canadians will drink beers, hunt and build fences to keep everyone out. Africa will be ignored by everyone, as usual, except China.

Dumping Russian holdings in US Debt would force a mark to market fubar of biblical proportions. The US would have to either bailout everyone else holding the debt or force a close to all of the markets. I doubt they will pull off the global "timeout" so everyone has to call their marks and margins. Everyone else should band together and not sell but the prisoner dilemma will mean that everyone seeks to defend their own hides. Gold nose dives as everyone tries to clear out, the only ones buying Gold will be :SURPRISE: Russia and anyone else with cash to spend. HMMMMMM China has a lot of cash burning a hole in their tattered pockets. I wonder what they will do. Help the US or look out for themselves?

Poor ol' Hank and HeliBenny will have to put the US Bureau of Printing and Engraving into hyper-overdrive. Lucky for them, they managed to herd some of the scared sheep into Treasuries recently. It won't be but a drop in the credit crunch bucket, but every bit helps.

Every government will place export controls on everything money related. My GLD ETF that shot up 700% gets confiscated by the IRS. Thanks for that, I am glad I could help uncle Sam in his time of need. By the way uncle, my boss just let me go, can you help me out? What's that? Oh you need me to get to the back of the line behind 38% of my cousins. OK, thanks for nothing.

Everyone heads for the exits at the same time. The US has to make a choice, inflate away the loses or give up almost 50% of the economy. You can print all you want no one will take it.

Dick "treat-as-secret" Chaney could try to fight our way out of this mess, but I am confident that our military leaders will refuse to wage war just so that a few can stay rich. And none of the brass will go for the "football" option. Putin will match Chaney blow by blow. No doubt of that. So why would we try. Seriously Dick, don't be a dick. Give the football back to the nice man in the uniform. Slowly.

So what happens when we give up 50% of our economy? Well, we just try to get by, live simpler lives. We get to find out what the real America is all about. The other 95% of the worlds humans get to compete for that half of the global economy we lost to greed.

First world nations will be the ones that have natural resources in abundance, stable societies and citizens who can fend for themselves.

Second world nations will be those that can manage to get by on their own.

Third world nations will be saddled with large populations of people incapable of self reliance, lacking in capital for productive wealth creation and dependant on the charity of others.

Hmm sounds a lot like how it is today.

In this new world order the Russians get to set the global agenda from now on and the Chinese, if they manage to keep it together, will evolve, overtime as a counterbalance.

You can't be a big shot unless you have someone to lord over so the EU gets to be someone elses' bitch again, (note: If you don't want to be a bitch again don't be a EUnuch, go back to being unique). You would think you learned your lesson the first time.

I can only hope for the best for everyone else. I just don't hold out much hope for Africa. They always seem to get the shaft. It's not fair, but neither is life in general.

When the dust settles the measure of each nation will be taken from the strength of its governance and the value of its goods. How the US measures up then will be sad. But from where we will end up soon, we can only improve.

Strength and Honor