Dividing the World Economy = Economic Decline

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by Martin Armstrong

QUESTION: Do you think Putin is losing?

JK

ANSWER: I really think the rhetoric is dangerous. People are ignoring that the world is dividing. This is creating a dangerous new cold war that can easily turn very hot. If Putin was losing and his position would be in jeopardy, then he would get much more aggressive.

My point is that people are not those who create wars – it is politicians. Some people are stupid followers and just believe the political statements. I pray that Putin is not losing because it will get very ugly then. We must understand that answer here is a very simple solution. Let the two provinces vote on their own fate. That would remove any justification for Putin to be in Ukraine and the entire world can breathe again instead of holding their breath.

This is all drama and we have to look at the big picture here. Is it really wise to push Russia into total isolation? Using the SWIFT option is highly dangerous and now Swiss banks have frozen the money of Russian individuals. The West has now shown to the entire world that the global financial system is political and not independent. That has been a huge mistake. That will only provide the incentive to push forward China’s alternative SWIFT system. That is a division of the world economy and will only raise trade barriers and reduce economic growth going forward.

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World peace has NOT been created by nuclear weapons. It has been created by international trade. Neither Russia nor China would want war as long as their economies benefit from the global economy. Isolate them and you now remove the incentive for peace. We are tormented by short-sighted people in government everywhere who fail to comprehend how and why the world economy has benefited everyone.

Imposing sanctions, which are never a deterrent, and removing Russia from SWIFT, they now know the US and Europe are the enemies. The sanctions from Crimea have never been lifted. Once imposed, they always become permanent. This leaves the future very dark indeed and these morons are clueless about incentives, human nature, or history. These brilliant leaders of the free world are pushing society to its doom. Severing world trade with Russia is a warning sign even to China. Disagree with the West and you will be cut out of the world economy. That leaves only ONE resolution – WAR.

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