Ukraine is one of the first emerging market to go in flame. As often I told you the economic crisis can easily become a revolution.
How did it start.
The start actually is quite a few year ago when Russia, taking advantage of the US being bogged down in the Middle East, re-conquered (politically this time) the ex USSR countries that had been swayed towards the West in the 1990s.
The came the US disengagement from the Middle East and the famous President Obama speech Pacific Pivot Strategy. What President Obama did not clearly tell is that more than a Pacific Pivot…in reality the US was doing an Old Enemies Pivot, Russia and China.
Ukraine, substantially, is a punishment to Russia for the Syria affront when Putin shamed Obama into not following up on its threat (by the way, as only 4% of the nerve gas has been destroyed till now, there is quite a substantial US deployment in Jordan). Now Russia 1 US 1. This has been shown to us from an intercepted call published by a German newspaper (guess what…not only the US spy!)
The issue is that the demonstrations are going beyond the original intent, as the economic condition are ripe for a proper revolution. They are actually getting more than they bargained for. Tonight there are news of police switching side to to the protesters.
This is actually the third phase of the Global Financial Crisis. First Share Markets. then economic crisis and last one, revolution in the weakest country. I was waiting for Greece…got it wrong. As of now we have Ukraine and Thailand on the brink.
investorpolitico 