This morning our cruise ship slipped deftly into its moorings in Port Said (Egypt) which is the entrance to the Suez Canal. Everywhere I look, I see ships laden with containers coming and going. Some headed into the Suez Canal for the shortcut trip to various Arabian ports, while others are headed to various Mediterranean ports in Italy, France and Greece.

In previous blogs I have talked about Vladimir Putin's strategy to build an empire for himself in Russia using energy as a leverage tool. I also noted in a previous post that I felt the invasion of South Ossetia by Georgia had tentacles that reached all the way to quite possibly MI6 in Britain and the CIA in America. My reasoning was that by drawing Russia into carefully planned skirmishes, its empire building plans could be cooled off.

Well, if the recent events involving Georgia and South Ossetia were designed to cool Russia down, they have well succeeded. At this time of writing, the Russian stock market has taken a severe drubbing and in fact is still closed to prevent further capital flight.

I would say, Mr. Putin is probably right now re-thinking his whole approach to empire. As we complete the second inning in what will be an exciting game, the score stands at America 1 Russia 0.

SCORE America 1 Russia 0 Inning 2

I continue to ponder the deeper meaning of the situation involving Russia, Georgia and South Ossetia. A recent article in the newspaper THE INDEPENDENT written by journalist Askold Krushelnycky further made me ponder the situation.
I am now convinced that the world is concerned that Vladimir Putin and his right hand man Dimitry Medvedev are intent on flexing their muscles and making a push to establish a Russian Empire. Let's face it, Russia does have natural resources and it does have some military power, so what's to stop it from expanding its reach at a time when global powers are otherwise pre-occupied with the threat of a stagnating global economy?
Mr. Krushelnycky in his article notes that Russia may now have its sights fixated on the Ukraine. The following is an excerpt from the article:

I continue to ponder the deeper meaning of the situation involving Russia, Georgia and South Ossetia. A recent article in the newspaper THE INDEPENDENT written by journalist Askold Krushelnycky further made me ponder the situation.

I am now convinced that the world is concerned that Vladimir Putin and his right hand man Dimitry Medvedev are intent on flexing their muscles and making a push to establish a Russian Empire. Let's face it, Russia does have natural resources and it does have some military power, so what's to stop it from expanding its reach at a time when global powers are otherwise pre-occupied with the threat of a stagnating global economy?

Mr. Krushelnycky in his article notes that Russia may now have its sights fixated on the Ukraine. The following is an excerpt from the article:

Call me a cynic, call me a skeptic. Whenever a hotspot flares up in the world, I invariably find myself exploring for deeper meanings instead of just accepting the perspective offered up by CNN.

The current situation involving Georgia, Russia and South Ossetia has certainly given me plenty to ponder.

As a brief history, as the Russian empire expanded in the 18th and 19th centuries, the tribal people of Ossetia generally sided with the Russians instead of trying to fight them. In the 1920's, this loyalty seems to have been rewarded when Russia established the South Ossetian Autonomous Region which today lies inside the breakaway Republic of Georgia.

As the Soviet Union began its fade to black as the Communist model failed, Georgian nationalist leader Zviad Gamsakhurdia began locking horns with South Ossetia. Violence flared in 1990 as South Ossetia declared its intention to secede from Georgia. When the Soviet Union officially failed in 1991-1992, South Ossetia ramped up its separatist rhetoric. Clashes followed and casualties mounted

Fast forward to the present and we see that the situation has again flared up. But this time, the dynamic is different and this invites a series of questions.

Copper is the only metal with a Ph.D in Economics. Right now, Dr. Copper is telling us something very important.....

Copper is telling us that demand is going to outstrip supply going forward. In fact a quick look at www.kitcometals.com shows us that Copper inventories are on the decline. There are 2 dynamics at play here.

One dynamic is unfolding in Chile right now. Chilean power officials today admitted that the coming winter season that the southern Hemisphere is going into right now had better yield some rain and snow in the mountain areas. Come Spring, this rain and snow will melt and replenish the rivers thus enabling hydro-electric generating stations to run at full capacity. If there is a lack of moisture, Chile will have to resort to power rationing, much like what South Africa is doing right now. This will have a serious negative impact on the many operating Copper mines in Chile. Take note of how the South African power situation has affected Platinum prices of late and I think you will see my point.