Begging Arms And Special NATO Status
Jeffrey C. Borneman | September 18, 2014
While President Obama received congressional approval for a War on Syria Wednesday and the French finally get to bomb someone (ISIS in Iraq), Ukraine President Petro Poroshenko Thursday begged before a joint session of congress for more U.S. assistance including lethal arms and special NATO status in its struggle against Russia .
Investors should read carefully the following sentence regarding DEMAND for Defense spending while asking themselves when members of Congress last cheered (standing ovation) a foreign leader begging for weapons?
"Drawing cheers from members who want to arm the former Soviet state, Poroshenko declared his forces need more military equipment, both lethal and non-lethal -- urgently need (sic)," adding, "Washington should slap more sanctions on Moscow and give Ukraine a special security status," reports Reuters.
A reminder: The IMF guaranteed Ukraine a $17 billion bailout (loan) this spring with the caveat that Ukraine retake Crimea from Russia. The Ukraine/Russian conflict was, and remains, an IMF sponsored War. Investors will remember too, that the US is the largest contributor of funds to the IMF (about 17% of its budget).
Poroshenko insisted that Ukraine would never accept Russia's annexation of Crimea, which he called "one of the most cynical acts of treachery in modern history," but his most memorable quote was, “Please understand me correctly. Blankets, night-vision goggles are also important, but one cannot win the war with blankets.” (Reuters)
The takeaway for investors is that the Ukraine/Russian War is meant only to drain Russia of blood and treasure (and eventually Putin's popularity). NATO (the US) clearly does not want a decisive victory for Ukraine regarding Crimea, as more direct US involvement, or even assigning "Special Non-NATO Status, may prompt Putin to invade other NATO countries, drawing the US into a direct War with Russia. Bleeding Russia is the preferred method. Once Russia lashes out militarily, cornered from the double-edged sword of high Inflation and low Energy prices, the US would then claim adequate justification to satisfy Ukraine's DEMAND for Defense.
You heard it here first.
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