Tuesday, May 29, 2012

The Three Biggest Changes To The World When Romney Becomes President

(Note from publisher-This article came to me, written by an author in Russia about the perspective from businessmen in his country.)

The view from a conservative American businessman living in Russia
In almost every setting here in Russia, I’m asked as an American what I think of President Obama.  It is a sort of great therapy experience to be able to express myself in the Russian manner of offering opinions concerning systemically pathetic apparatchiks.

Then I’m also asked about Romney’s potential to challenge Obama. This is also very therapeutic as I lay out the top three changes that will happen in the world if he is elected.

From my unique viewpoint from this peculiarly humbled, country the greatest impact will be what happens in respect to: 1, King Dollar, 2, Oil going below $60, and, 3, Russia and China coming to terms with a real capitalist.

King Dollar comes about when President Romney, the stern school teacher, reenters the chaotic classroom, slams a yardstick firmly on the table, and, pointing to the rabble rousers, says, “that’s enough of that.” Class will now come to order. Perceptions by the unions (I’m living in the mother of all unions, everyone works for a union here, and I mean everyone), banks, government workers and everyone else will instantly change, because fiscal and monetary order will be re-established. Just the structural attitude of a US president who knows what he is talking about, coupled with a Paul Ryan disciplined budgetary process, and the Dollar returns to sanity as everyone starts to get real.

This will make the non monetized currencies around the world become very weak. Russia will be hurting big time as they try to make sense out of a possible extinction of the Euro.  If the Russian central bank doesn’t off load its overextended position in Euro reserves, they will really be in for a ride to try and stabilize an ever increasing worthless Ruble. I’m watching the Ruble staying very low against US Dollars because of this position. They will hate to become dollar denominated again, not to mention the rest of the world. When Barack and Geitner are replaced, and Krugman starts his new career as an interior decorator, the FED just might stop printing in time to allow confidence to return to the Ben Franklins everyone loves to hate.

Oil below $60 a barrel comes about as President Romney immediately turns the US inward to a national developed energy bonanza. This will just put another world of hurt on Putin’s cronies. It’s a very strange economy here that only starts revealing its underbelly as you start opening your eyes and see the best system of corruption the Mafia can buy. Russia has only one export that anyone in the world cares about, Oil and Gas. They dump titanium and aluminum and arms on the world markets but lately, more efficient suppliers are impacting that cash for resources program. The world of unions, soviets, and socialists, just cannot compete. Working wages here are ridiculously low …trying to compensate for shoddy workmanship, which I believe has something to do with national pride, which is almost non-existent.
This situation here reminds me of what happened in Las Vegas in the 80’s and 90’s. The mob was running the old standards like the Tropicana, Stardust, Castaways, and the Fitzgerald downtown, and due to the way the mob works, paying off the “up line” creamed all the cash that would otherwise be available for modernizing and competing with the likes of Steve Wynn’s Mirage (built with Junk Bonds that actually paid off) and so, unable to compete, they had to sell off to the corporation boys who could manage cash flow, and re-invest to make much bigger, better valued destination resorts. The cronyism program doomed those hotels to the extent that the entire mob ended up only controlling the trash and a few laundries. Even those were lost to them after a short time. That is what is happening internally in Russia.

Putin has about 35 million pensioners…who don’t get much, but what they do get, keeps them home and quiet. Add those to the huge overburdened bureaucracy coupled with a modernizing effort for the Military, and Putin’s financial boys are sweating anything below $80 per barrel. It would be very difficult to have a 3rd devaluation of the Ruble in the last 23 years. Watching ones bank balance reduced when the decimal point is moved over one place again is just about more than even tough old Russians can take.
I had to laugh when Joe Biden made the comment about Russia being on board with Iran’s sanctions.

Wow! What an absolute joke. Putin will do anything, taking even enormous risks, to destabilize oil in an effort to keep prices high. Their support of Assyria, Iran, Egypt and Islam to foment for war with Israel is a wide open strategy here.  Everyone knows Russia has to somehow keep world pricing of oil above, well above, $80 a barrel just to break even. So when Romney takes the shackles off the US oil industry, just watch how Russia plays with the supply to Europe through the Middle East to keep futures trending above supplies.

Russia and China come to terms with a real, honest capitalist. As President Romney starts to call out protectionist monetary maneuvering by China and makes various counter moves it will have a beneficial impact on our balance of payments. If China wants to dump their treasuries, good, go ahead, Europe will be snatching them up big time. It’s pathetic that Russia’s opinion about the US has devolved into their profiling us as a bunch of naïve babies. Not that that matters much, but it does wear the US down with all the mischief the Putin regime likes to delve in around the hot spots in the world. Much like Ronald Reagan’s perception by the Ayatollah’s in Iran, his speak was clear enough that they didn’t want to take him on in any manner, so they returned those poor unfortunate American hostages just before he was sworn in. Carter’s foreign policy was weak; Obama’s lead from behind / blowing in the wind joke of Hillary type of a blind date gone wrong leadership is the reason the world’s class room resembles a bunch of 13 year olds hopped up on sugar.

Romney is just too good to be true. He will be one of the most honorable & classy candidates to make Americans proud since Ronald Reagan. You can see it so much clearer over here. Putin is trying to pay women to have children.  As a result more are having 1 child for the 30,000 rubles (about $10,000 US) but not two (it takes 2.2 children per woman just to stay even, currently Russia is averaging 1.3, and will lose over 30 million people in the next 12 years). Why? Couples cannot support them based on real wages in Russia today. You absolutely cannot start a business, and if you do, and it’s successful, the mob moves in and takes it over. They give ownership two choices; you can walk out, or go out feet first. Everyone laments that they are being squeezed by low wages, high inflation and no opportunities. They lament that they’re always in the position that ‘they have to keep the wolf fed and the sheep safe’.

I admit that from my distant perspective, I’m afraid Romney won’t get elected because people back home in the US may want their government handouts more than they want reality. If that happens, reality will hit the US hard and quick, and then those checks won’t be worth the paper their printed on and when even a small part of discomfort begins, survival of the fittest enters in, That reality starts to really suck. This part of the world is the full natural extension of every leftist dream.  They’ve done just about everything liberals wish for, in spades. Why oh why can’t the liberals all come over here to central Europe, set up Liberal Leftist land to welcome all the like minded warm and fuzzies, give everyone a government job, full Obama style medical care, 6 week vacations, Government housing, free dead brain education and concerts, and a Chevy Volt, and of course a complicit press corp., and leave the rest of the worlds real people alone.

смарт-брюки, Russia  

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