'New Cold War, Good for Business?'
By Armand C. Hale (09/02/08)
Russia has announced to the world that they don't have a problem with a new cold war.
They are also saying they don't want one. What is wrong with this picture? Plenty I say.
Due to the conditions of the world economy to include ours, Russia has not only recently flexed its military muscle, but now is poised to flex its own overshadowing economic power. Unlike the last cold war, Russia is in the cat bird's seat. With the wealth of oil filling its coffers, it stands to reason that they have the economic base to wage and win, a new cold war. The U.S. on the other hand is in a weaken state economically and a new cold war would cause irreparable damage to an already weaken state. Since the U.S. has no large oil producing operations filling the American coffers, the U.S. would not be able to stand toe-to-toe with the Russians for very long. According to the Center for Individual Freedom "You can thank Congress for 30 years of a no drilling energy policy." Granted the U.S. Defense Industry would profit in the long run of any type of cold war. Defense stocks would go through the roof. Unfortunately the U.S .treasury, i.e. the American people, would not. Such a move could only result in the further weakening of the U.S. dollar as the Russians continue to put economic pressure on the U.S. and its allies. This would lead to a worsening economy in the U.S. while Russia , would grow stronger. And since our economic crisis has become a world crisis, our allies would not be able to afford to bail out the U.S. without further weakening their own economy. Not that they would or even want to help us out.
So in this case, is it prudent for the U.S. to even entertain a new cold war at this time? The defense industry would say it is good for business. Maybe. Other market sectors would also benefit for a short period of time. In the end the American taxpayer would have to yell "uncle" and try to constrain the burden of any exorbitant amount of spending that would take away from America's recovery. With the current economic crisis sitting squarely on the taxpayer's shoulders, a new cold war would only spell a foreboding disaster with worldwide repercussions. Russia may say "they don't want one", but they have the economic strength to just let things ride.
Sitting in the cat bird's seat must spell "poetic justice" to the old "politbureau" folks since we in the West helped rebuild their economy and they are now in control of their destiny. It is definitely good for their business.
Armand C. Hale
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