October 14, 2013

Putin triumphs as U.S. is about to default

The story repeats the 2011 debt-ceiling crisis. The situation has changed since then – different straw men win straw polls, but the essence remains the same. The overwhelming 2013 United States debt-ceiling crisis is in full swing. The analysis shows that the crisis is caused not by economic fundamentals but by a full-fledged undeclared information war. As the situation shows, this is much more dangerous in the information era than traditional physical war.

Putin’s last-minute shot

Monday, at the moment when the agreement in Congress on the debt ceiling was finally reached, but the final result of the bill passing was still unclear, Vladimir Putin suddenly publicly depicted the US as “a parasite on the global economy.” The international media immediately spread the incendiary wording reinforcing the divide. The question is why Putin adds oil to fire at the most sensitive moment when the US is still on the verge of default?

There is a bipartisan agreement between the two American parties. But de facto, there is a third party - the Tea Party, which is still not inclined to give up. Their refusal to raise the debt ceiling potentially could break not only the world financial system based on the dollar but the existing world political system, where the US is the unique superpower. America's status is what irritates Putin the most. In his book, this status the U.S. retains due to the dollar’s dominance as the world reserve currency. The default would immediately deprive the US not only of the financial but of the political superpower status. Was this an encouraging message to the Tea Party?