Saturday, May 17, 2014

Obama's strategy of letting Putin hang himself is working

Vox says Obama's strategy of letting Putin hang himself is working

"Most of this is economic. Russia's self-imposed economic problems started pretty quickly after its annexation of Crimea in March and have kept up. Whether or not American or European governments sanction Russia's broader economy, the global investment community has a mind of its own, and they seem to have decided that Russia's behavior has made it a risky place to put money. So risky that they're pulling more money out."

"The lesson that Putin is learning is that Russia depends on the global economy, whether it likes it or not, and the global economy doesn't like it when you go invading other countries and tempting the richest nations in the world to maybe consider sanctioning you. This is actually a significant change for Russia, which at the height of its Soviet power was not integrated into the global economy and so didn't have to worry about things like investor sentiment. But now it is and it does."

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