Ukraine/Russia/USA/EU/NATO continue to be one of the most important issues. In fact, I continue to believe that things will escalate significantly over the next few weeks.
It appears that Mr. Putin’s game plan is clearing up. As anticipated, a large % of the Pro-Russian population turned out for the “independence” vote on May 11th. Here is the latest…
- Referendum results in Donetsk and Lugansk Regions show landslide support for self-rule
- 96.2% vote for Lugansk federalization at referendum
- Radicals, army, heavy weapons used in Ukraine to disrupt referendums – FM Lavrov
What happens next?
These regions will now ask, in one form or another, to join Russia in order to be protected from the Ukrainian forces. Mr. Putin will happily oblige. Essentially, it’s the same game plan as what had happened in Crimea. No shots fired, no invasion and Russia regains complete control of East Ukraine. A great strategy.
The fun starts when Ukraine’s interim government (under the direction of the US, the EU and NATO) refuses to let East Ukraine go (which they will). This should give Russia the pre-text needed to enter Ukraine in order to “defend” its new territory and its people.
As you can imagine this situation will spark a number of economic sanctions (from both sides), political storm, war rhetoric and a million other unforeseen consequences. It is highly probable that this would be incredibly unsettling for financial markets. I can tell you one thing, the markets do not have this priced in. The upcoming week is critical.
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
Click here to subscribe to my mailing list