An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
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Wednesday, April 30, 2014
Marshall Auerback — Russia And The Ukraine- Sanctions Won’t Work
Russia's energy club with which to beat Washington. Pipelines.
Russia’s gift to North Korea’s leader Kim Jong-un is much more than money. It will effectively usher North Korea into a prestigious club of energy transit countries –Turkey, Georgia, Kazakhstan, Colombia to name a few — which serve as energy umbilical cords to economies larger than themselves. Should the pipeline be built, in good days Kim will be able to collect a nice chunk of money in transit fees but in his bad days – of which there are many – he will be able to coerce and intimidate the third largest economy in Asia-Pacific in ways that will make his missile and underground nuclear tests a fond memory. Keeping Kim in a box is an important component of President Obama’s Strategic Pivot in Asia-Pacific. Putin is throwing the despot the key to the box.
I'll bet this is exactly what the geniuses in Washington were expecting to happen.
Russia’s gift to North Korea’s leader Kim Jong-un is much more than money. It will effectively usher North Korea into a prestigious club of energy transit countries –Turkey, Georgia, Kazakhstan, Colombia to name a few — which serve as energy umbilical cords to economies larger than themselves. Should the pipeline be built, in good days Kim will be able to collect a nice chunk of money in transit fees but in his bad days – of which there are many – he will be able to coerce and intimidate the third largest economy in Asia-Pacific in ways that will make his missile and underground nuclear tests a fond memory. Keeping Kim in a box is an important component of President Obama’s Strategic Pivot in Asia-Pacific. Putin is throwing the despot the key to the box.
ReplyDeleteI'll bet this is exactly what the geniuses in Washington were expecting to happen.