Vladimir Putin is discovering that the power of warships, nuclear missiles and tanks and artillery are one form of power but a greater power is simply money. Control of money and the economy are worth all the arsenals in the world. I remember a quote that was attributed to one of the Rothschild Banking Empire: Give me control of a nations money and I care not who writes the laws.”
In a similar mystery of history that underlines the importance of money to would be Caesars’ is the strange behavior of Adolf Hitler. We all know that the Treaty of Versailles enacted crippling war reparations on the German people but Hitler continued to pay them up until a month before he shot himself in his bunker. That means that while Hitler had taken over France he continued to pay WWI war reparations to “France” even after he owned the place and did it up until he a month before he died in Berlin! Why would he do that?
Perhaps Hitler was afraid of annoying Swiss credit agencies calling him all the time, trying to get a payment out of him. Did the bankers have more Panzer Divisions than Hitler? Couldn’t Adolf find a better use for the money than paying reparations to a country he now owned? What kind of power is it that makes a homicidal sociopath like Adolf Hitler faithfully write checks he would rather not write to faceless bankers in Switzerland who should have been terrified of him?
The message being sent to Vladimir Putin is more elloqent than Shakespeare, more terrifying than Steven King novels, more powerfull than a locomotive and its being delivered by a nameless, faceless, transnational amorphous thing called the “Global Economy”. What the Americans and NATO couldn’t do the global financial markets and forign investors are doing with great zeal: they’re rubbing Putins nose in the fact that he cant be a czar without the money.
Consider this from an article on Bloomberg:
Sept. 17 (Bloomberg) — Russian markets stopped trading for a second day after emergency funding measures by the government failed to halt the biggest stock rout since the country’s debt default and currency devaluation a decade ago.
The ruble-denominated Micex Stock Exchange suspended trading indefinitely at 12:10 p.m. after its index erased a 7.6 percent gain and plunged as much as 10 percent within an hour. The benchmark fell 17 percent yesterday, the biggest drop since Bloomberg started tracking the gauge in May 2001. The dollar- denominated RTS halted trading after similar declines.
The government yesterday injected $20 billion into the interbank lending market via central bank and Finance Ministry auctions in a bid to contain soaring borrowing rates as credit dried up in the wake of the Lehman Brothers Holdings Inc. bankruptcy. The one-day MosPrime overnight rate, a gauge for monitoring liquidity demand, leapt 25 basis points to a record 11.08 percent today.
The Finance Ministry attempted to stop the selloff by offering 1.13 trillion rubles ($44 billion) of budget funds to the country’s three biggest banks, OAO Sberbank, VTB Group and OAO Gazprombank, for at least three months. That measure came as KIT Finance, a Russian brokerage, said it’s in talks to find a buyer after failing to meet some financial obligations related to repurchase agreements.
Ever since he invaded Russia and indulged in beligerance with NATO and the USA he’s had problems with the markets in Russia but now he’s getting handed his head. Either Putin, like Hitler before him, learns to play ball and kiss up to the big bankers or he can kiss his new empire good bye. I doubt that he is missing the import of these events and I’m sure he remembers the insane economy after the Soviet Union dissolved and I doubt he wants to repeat the experience. He risks getting shot himself if he doesn’t join with the West to calm the financial markets. The US economy may be well and truly in the outhouse right now but it seems a message that he could be in much worse shape than us is being delivered in a way that he can’t ignore. The formerly booming Russian economy gave Putin the money to try and threaten the other players on the world stage and without that money no one cares about his dream of reconstituting the Soviet Empire.
I suspect that Russia will be more accommodating in the times to come until it feels it has enough of a strangle hold on world oil supplies that might give it the power to go up against the supreme ruler of our world: money. Until then the Russians will doubtless slink away and learn to play this money game until it can beat the global economy and its masters at its own game. On a week when so much is going up in smoke in Wall Street and the confidence people have in America its interesting that the Russians have it worse than us at the moment anyway. Russia will be back however. You can take it to the bank.