Posted Sep 5, 2014 by Martin Armstrong
US Troops have headed into Latvia, Lithuania and Estonia. Eastern Europe is moving into a real crisis as many countries including Poland fear Russia. Belarus and Moldavia are effectively Russian states. Russia really want Ukraine and to take Kiev. That is a historical heritage to Russian and if Ukraine falls, they have the largest population so the rest cannot even put up a fight. Ukraine is the flash-point and it has been a key place in this chess game to reestablish the territory of the former Soviet Union.
The entire region is moving into crisis and the US share market has RISEN as more capital begins to flee Europe heading into the USA precisely on target for the first week of September and the shift in the ECM. Why stocks? People are becoming deathly afraid of banks and equities are increasingly seen as a safe place to park money with Europe moving closing to confiscating assets in accounts to bail out their failed banking system and Germany considers adding a tax on top of that to bail out the municipal governments. Let’s face facts. If war comes, do not count on sovereign, state, and municipal debt in Europe to survive well and that includes Germany.
In Ukraine, Pro-Russian mobs have taken control of more government buildings as Putin has now boldly demanded that the Ukrainian government pull back its troops from the southeastern part of the country effectively giving up Donetsk. Ukraine’s Acting President Oleksandr V. Turchynov has now publicly said his country’s forces are “helpless” as Russia continues to take dozens of key cities in the East.
The Russian invasion has spread fear across the entire region. American troops have been sent in for joint training in Latvia, Lithuania and Estonia, where the fears of a Russian invasion have crippled the economy. The sanctions against Russia have sent farmers in these regions to the brink of bankruptcy. The West has also miscalculated the impact of sanctions on Russia. The assumption that the people and Oligarchs will put pressure on Putin to back down has been dead wrong. This is now spun out of control and has created tremendous animosity toward the West that justifies war.
In Moscow, our sources are reporting that stores, which once sold food, have nothing to sell. They have been laying-off employees and it is turning against the West with bitter hatred. I have never seen such incompetence in strategy my entire life.