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Russia has Europe and the Ukraine over a barrel

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A case of Russian blackmail results from trading partnerships.

Global trading partnerships can be a good thing. One of the intended consequences is to enlarge the economic pie for everyone and to develop symbiotic relationships. Nations may be different and possess different strengths, weaknesses, and attributes. In developing trading partnerships, nations and their businesses try to find complementary matches. One aspect in developing business relationships has to do with ethics, trust, and the rule of law.

In today’s world there are two basic types of nations:

1. Nations that are aligned with democracies and individual freedom referred to as the “free world”

2. Nations that are otherwise not aligned for a variety of misalignments ranging from dictatorships, autocracies, theocracies and terrorists

The trouble is that some free nations, including the United States compromised their ideological free world integrity by conducting business with their enemies. It did so believing that it could influence its trading partners to come around, or they did it because the private enterprise capitalists were willing to compromise on the basis that they aren’t truly patriots, just profiteers.

America’s relationship with the Chinese is one that is perceived to hold promise in terms of trending better. That is, China could be increasing individual freedoms. Whether they are or not, America has become greatly dependent upon China financially, and desires a piece of the market potential. Has it capitulated too far? The jury is out.

America bent over backwards with Russia because it wants to end the threat of nuclear war, and wants to ensure safe dispense of Russia’s dangerous weapons. Instead, Russia has dug in its heels and has transformed into a rogue nation and sponsor of terrorism. Under Vladimir Putin, the regime has reeled at the loss of territory what with the breakup of the Soviet Union. It wants to recover some land and its population of ethnic Russians.

Had Russia chosen a Democratic path and achieved economic success, it may be that some former cousin states would be flocking to its door for attention.

The Ukraine came knocking anyway because:

1. Its leaders were corrupted by Russian influence.

2. Its government was weak

3. Corruption led to trading partner dependencies for oil and food

Now, as much as the Ukraine may want to back away, it cannot do so unless and until the EU underwrites its losses and debts to the Russians. In the meantime, European nations have also become dependent upon Russians for energy. Everyone involved including the Germans put themselves at risk in this unwise trading partnership.

The way forward is direct, but far from easy.

For Europeans and the Ukraine to achieve sustainable economies requires economic engineering under the renewable energy paradigm, and that must happen on a fast track. That transformation take investment. For capital starved nations, that will require more severe tradeoffs: fewer guns and more butter.

Challenging is that free nations are under threat from terrorists. The rise of terrorism will continue as there is a global struggle in the pursuit of sustainable economies where vast populations are stranded in places that will not support them. The world has tipped, resulting from the population explosion that has not exceeded the planet’s capacity to support all of its humanity.

Blackmail:

“Russia pressures Ukraine not to sign EU association pact

MOSCOU: Russia heaped pressure Wednesday on Ukraine not to ratify a trade pact with the European Union, suggestingKiev could face a total ban on its food exports.

Read more: http://www.dailystar.com.lb/News/World/2014/Jul-23/264874-russia-pressures-ukraine-not-to-sign-eu-association-pact.ashx#ixzz38NdO7gMh

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