Recently Russian stock market has been tumbling partly bços of the falling Oil. As Russian stock market is heavily weighted in Oil stocks, e.g. Gazprom, Rosneft, etc.
The Baku pipeline which runs through Georgia is the only supply US and Europe has independent of Saudi and Russian supplies.
Hence with the Baku pipeline cut off (which part of it has happened in Turkey territory last week), the world would be in a greater Oil Shock.
There are incentives for both sides, the Georgia incumbent government and the defecting South Ossetia to cut the pipeline. The Georgian armies are trained by US, and is an US ally, while the South Ossetia has been a Russian affiliate.
Putin has his reputation at stake to wrench South Ossetia away from Georgian control. However this mini-war is going to kindle other defections pro and against Russia in the former Russia continent, e.g. Tskhininvali, Chechnya, etc.
Meanwhile Iran has been awfully quiet after Europe impose new sanctions, and US threatening further measures. Expect Iran to go absolutely quiet ahead of its frantic push to accomplish its first nuclear reactor.
One side though, my daughter is due for birth soon, may be I should call her Georgina.
Going through the news, I read investment guru dishing out advice people to invest for the long term, especially stocks. Also known celebrities switching to public transport.
For myself, I am redeeming my credit cards points, now for gasoline vouchers instead of shopping vouchers.
The onset of Kondratieff Winter is here, when prices keeping falling. One thing that is still holding up is the massive Real Estate market in Asia, where all brokers and banks, (as I called them Goldman Sucks, Lesbian Brothers, Morning Standing, Mary Lynch, Sistergrope) have substanstial investments.
Once their pricey investment goes bust, the jewel in the crown would be lost. And these external events, Bernanke and Hank are helpless against.
Kondratieff Winter is still at this stage a Black Swan event.
Meanwhile the Large Hydron Collider experiment would only run in September. That is a bigger Black Swan event.
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