Friday, March 21, 2014

Russia Turns East? Now That is an Ominous Sign

Hmm, now this could be the new moves in the Great Game played by Putin in the next several years.

While Europe is furiously scrambling to find alternative sources of energy should Gazprom pull the plug on natgas exports to Germany and Europe (the imminent surge in Ukraine gas prices by 40% is probably the best indication of what the outcome would be), Russia is preparing the announcement of the "Holy Grail" energy deal with none other than China, a move which would send geopolitical shockwaves around the world and bind the two nations in a commodity-backed axis.

Ties looking eastward might be exactly what China and Russia needs to fend off America and Europe. I mean if Europe imposes sanctions that bite and Obama actually grows a spine then Russia could sell its product to the east instead of the west.

I mean a China/Russia axis would be perfect for both countries. The Chinese get the clean natural gas imported from their neighbor to the west and the Russians have a partner that will back it if they try to do further buffer-state satellite building.

It will also keep money in Russian pockets as America slowly moves toward energy independence. The Chinese can keep producing and growing their middle class without having to rely on America so much. In fact the Chinese could debt bomb us without ruining their own economy by relying on Russian imports to tide them over.

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