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Ukrainian-Russian situation: impact to the market

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http://www.reuters.com/article/2014/03/28/ukraine-crisis-crimea-army-idUSL5N0MP2A320140328

MOSCOW, March 28 (Reuters) -

A deputy head of the Federal Security Service, Alexander Malevany, told Putin at the meeting active measures were being taken to counter what he called growing Western efforts to weaken the Russian state and curb Moscow's influence in its post-Soviet backyard.

THREATS FROM THE WEST

Despite signs that tensions with the West may be cooling as a status quo takes shape in Crimea, Malevany warned Putin at Friday's meeting that Moscow faces growing threats from the United States and its allies, who are trying to weaken Russia's influence on Ukraine.

"There has been a sharp increase in external threats to the state," he said. "The lawful desire of the peoples of Crimea and eastern Ukrainian regions is causing hysteria in the United States and its allies."

The Foreign Ministry has fuelled such concerns with near daily reports that ethnic Russians were being targeted.

Putin has received permission from parliament to send the armed forces into Ukraine if necessary, raising concerns he could cite alleged threats to Russian-speakers in eastern regions as grounds for intervention there.
 
I have a feeling this might be a factor:

"Pensions will, at a minimum, double"....

I have shirt-tail relatives in Romania who romanticize about how good it was when Russia was in control and Socialism was the way. Everybody had a job, everybody got paid. Of course, they went to the factories and did nothing, and now they sit around the house and do nothing, but the big difference was that now they don't get paid, and then they did. I guess it's some kind of distribution system.

Not being politically or economically literate, I don't understand how the system works, but for those who don't do much, living in poverty ridden countries, belonging to Mother Russia and being able to drink at the teat without doing anything for it, is desirable. The politics of Socialism vs. Capitalism don't seem to matter to the man on the street, or the woman sitting by the elevator, if they get paid.
 
Not being politically or economically literate, I don't understand how the system works, but for those who don't do much, living in poverty ridden countries, belonging to Mother Russia and being able to drink at the teat without doing anything for it, is desirable. The politics of Socialism vs. Capitalism don't seem to matter to the man on the street, or the woman sitting by the elevator, if they get paid.

I think Maslow nailed it:

450px-Maslow%27s_Hierarchy_of_Needs.svg.png


But we're drifting off topic.....
 
@Roblab

I don’t know to what extent the Soviet Union was ever socialist. I do know it lacked democracy, freedom of speech, and all the other basic democratic freedoms. In that aspect Russia seems to be gradually closing in on the Soviet system. Today though, I don’t think anyone argues that Russia is a any longer a socialist country. But somehow, they do seem to pay their citizens twice as much in pensions compared to what the Ukraine paid the retirees in Crimea. However, I don’t really know that much about pensions, unemployment benefits and other forms of economic entitlements in Ukraine to say if they are currently at a reasonable level or not…


Re: Maslow:

As I remember Maslow, shelter has suspiciously gone missing from the orange base of that particular pyramid.
 
"Pensions will, at a minimum, double"....

I have shirt-tail relatives in Romania who romanticize about how good it was when Russia was in control and Socialism was the way. Everybody had a job, everybody got paid. Of course, they went to the factories and did nothing, and now they sit around the house and do nothing, but the big difference was that now they don't get paid, and then they did. I guess it's some kind of distribution system.

Not being politically or economically literate, I don't understand how the system works, but for those who don't do much, living in poverty ridden countries, belonging to Mother Russia and being able to drink at the teat without doing anything for it, is desirable. The politics of Socialism vs. Capitalism don't seem to matter to the man on the street, or the woman sitting by the elevator, if they get paid.

These societies are in a transition which might be very difficult for them and which they struggle to understand. Their factories (or businesses) in the past were not as efficient as western businesses, but they did have some economic activities that supported them and perhaps that was good enough for a decent living. At least they could feel good about being employed, supporting their families and having some control of their lives.

Now there are no employment opportunities where they live and it is probably difficult to create some as apathy and poverty sets in. My guess is that they are scared, depressed and feel hopeless, maybe angry. Luckily for Romania, it is part of EU, with open borders, that will help to pull them up. Not sure how Russia, Ukraine and their citizens will fare. I just hope that no one starts any wars as that will not resolve anything.
 
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