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Saturday, July 5, 2014

Financial Structure and Stability Matters

      It may very well be that the financial structure of a nation matters.  However, what happens when the economy of that nation is either too big or too laden with natural resources to fail?  Nothing in the short term, which may very well be three generations or 60 years.  In the case of the United States, a system laden with short cuts, bubbles and capitalist 'cheats' can be ably managed enough not to fail.  Only for the reason that there is no viable alternative, such is the legacy of Bretton Woods.  In the case of Russia, folks can discuss the curse of natural resources, yet it doesn't seem to slow 21st century Russia down.  It can act with impunity, if not smart impunity in the style of smart power.  If your 'near abroad' neighbors do not act the way you want them to, find a way around modern rules for elections and military aggression.  It is not had to do in a multi-polar world.  This is because of oil price shocks or not, your natural resources and economic ties will prevent others from taking any real action.

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