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What the Russian-Georgian War Means for the Euro

The real fear is that the EU will cease to be a viable political/military alliance. That would leave the eastern flank of the Western democracies open and without a functional NATO organization (it was never worth much except as a front for US military actions). The USA would once again become the principal power in Europe. We don't that just now. And yes the Euro could go away via a death of a thousand cuts. But the Ruble is not a substitute since it is Russian managed. The Putin Klepto-state has been looting the national treasury and it too is shell. There is no good out for the EU. That leaves the USD as some sort of a paragon of virtue. Think of that.