In a number of posts over the last couple of days I have made the case that Russia is laying the groundwork for their eventual invasion of East Ukraine. WHY? They must do so to counterbalance the US/NATO. If they don’t and Ukraine falls into Western/EU/NATO hands it will be viewed as a major defeat/disaster for Russia. Plus, Ukraine is a huge mess right now. It is literally facing a fiscal Abyss that will make the Great Depression in the US look like the tech boom of the late 1990’s. Further, people in East Ukraine are desperate to join Russia. Given their economic catastrophe and ethnic Russian background you will see people declaring independence and calling for referendums to join Russia, just as Crimea did. This is already happening.
Kiev will respond with force to put down the uprising (already happening) and Russia will be “forced” to go in to protect ethnic Russians. I will give this a maximum of 10-14 days to fully play out and for Russia to enter East Ukraine. As you can imagine this will spark a massive fight on an international stage between Russia/West and everyone else. In fact, I would expect the economic warfare and the cold war to intensify from this point on. Putin already suggested that Russian companies should de-list from foreign exchanges to avoid future problems. You must connect the dots here.
The US Stock market is not prepared for any of this. As such, when Russia invades expect stocks to crater and gold to surge.
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Why Russia Will Go Into East Ukraine & It’s Impact On The Stock Market Google
what would be the possible implications for the dollar and euro in this case? I know you’re not so much into currencies but don’t blame me for trying 🙂
Hi Bobby, That’s a great question. To be hones with you I am not sure. My advise here would be counter productive as I am not doing any work in the currency market at the time, but if USD breaks below 79 it will probably head lower for a while. Best of luck.
if a war is cooking near the EU borders I don’t see how it would be profitably for the single currency. russia already blocked an import of a pork meat from EU and this is hurting europe already. in any case, USA is in much better position than EU in a case of new cold war. maybe today’s FED announcement would give us a clue. best of luck to you, too.
Thanks Bobby, same to you.