It’s official, the global financial crisis is truly global. Russia, who as late as May of this year was quickly becoming a global economic powerhouse again, is feeling the problems of the financial crisis. Oil prices are decreasing, and as a result so are Russian coffers.
Their stock index took a great plunge recently, and it is estimated that the country lost something like 33 billion dollars in August and September. Analysts think that soon a lot of the hight end restaurants and markets in Moscow and St. Petersberg will soon be bankrupt and no more. Also, we will probably see a reduction in Russian agressiveness. Sure, they’re still going to rattle their sabers, but we are not likely to see them take any real military action because they don’t want to make business matters worse.
Their situation mirrors that of the US in that lending is all but frozen, and many construction projects have been stopped midway through. After all, if there is no money, there can be no new construction.
I wonder if the growing crisis will be enough for the US and Russia to set aside some differences and get together, along with other world leaders, and try and find a viable solution to the problems facing the economic world right now. I know Bush wants to host a financial summit, and that is probably a good place to start, but I wonder if Russia will be invited. And if they are invited, I wonder if they will show up.
These are dangerous times for everyone, and I, for one, think it is time that our leaders stop behaving as children, start behaving like adults, and work together to solve some of these problems. The world is different than it was in the Cold War, and now more than ever we are so inter-connected and reliant upon one another that we better start acting like it. If we don’t we will have global economic failure, with the one country able to resist it (maybe) being China.