Thursday, June 19, 2008

A Disaster About to Unfold

The next six to nine months will bring much news from the arc of nations stretching from the Caucasus to the Baltic States.

War is brewing in the Caucasus. Russia is moving troops into Georgia's break-away province, still legally part of Georgia. These are called "peacekeepers", however they are warmakers. Azerbajian just anounced a 53% increase in defense spending. The only target of that will be Armenia.

Debt levels in Eastern Europe from Romania, Bulgaria, Czech Republic to Poland, Latvia, Lithuania are at critically high, societal shattering proportions. Far higher even than in the US and Britain (where they are catastrophically high) This debt is linked to banks in Greece, Italy and Switzerland that have driven investment in East Europe. I say "societal shattering" for a reason. Enormous unrest is about to explode in these regions. Outside "peacekeepers" might be needed.

We can now see why Russia suspended its adherence to the CFE Treaty which banned armored forces from operating in Western Russia. The headquarters of those divisions, as Putin already announced, are moving into Western Russia. The forces themselves will soon follow.

More soon, John.