Michael Fitzsimmons

What the Russian-Georgian War Means for the Euro

interesting and thought provoking article joe, but i'd like to challenge you on a couple points. first, if europe gets involved in a war with russia, so will the US - both are members of NATO and per NATO rules an attack on one is an attack on all. secondly, i don't believe russia is as hostile to europe as it is to the US. after all, it was US involvement in georgia which was behind the present conflict, and now the US is at it in poland wrt "star wars". russia stood by and watched the US put troops over iraqi oil reserves...i am sure taking back control of the BTC pipeline in georgia is a response. longer term, russia needs europe (and vice-versa) more than either party needs the US. you say the Euro is a designer currency, which is valid i suppose...but the US dollar has been made a fiat currency by the present administration's lack of budgetary restraints, excessive plundering of the US Treasury, and an insane tax policy to boot. they are just printing US dollars as fast as they can, and most of these dollars go to the well-connected and wall street bailout plans (it's call socialism for the rich). that said, we both come to the same conclusion vis-a-vis hard commodities, oil, etc. etc. which i believe you are dead-on and i view the current "correction" as a short term phenomenon...albeit a painful one for me.