The Market Update

U.S. Playing Poker with Russia

 

The question, therefore, is whether Russia will do the same in Poland? The AP reported a Russian general made threats of attacking Poland - possibly with nuclear weapons - if they signed the agreement. And after the agreement was signed, Russia informed NATO it was suspending cooperation agreements with the Cold War era organization.

It's not clear the average American understands what has happened in the region. Gorbachev in his op-ed piece took issue with the U.S. media's portrayal of the conflict, saying, "Russia had not wanted a crisis." He charges the media with a classic tail wagging-the-dog strategy. Georgia was the aggressor in the conflict, although it's not clear whether the West had knowledge of Georgia's intent.

Some U.S. foreign policy experts have criticized U.S. policy toward Russia. Flynt Leverett and Hillary Mann Leverett wrote an article for the National Interest , Wrong on Russia "that media has it all wrong calling Russia the aggressor, when in fact it was the U.S.

"In the post-Cold War period, it was Washington, not Moscow, which started the game of acting outside the United Nations Security Council to pursue coercive regime change in problem states and redraw the borders of nominally sovereign countries. In Russian eyes, America's invasion and occupation of Iraq, including arresting and presiding over the execution of its deposed President, undermined Washington's standing to criticize others for taking military action in response to perceived threats. And American unilateralism in the Balkans, along with planned deployments of missile defense systems in Eastern Europe and support for 'color revolutions' in former Soviet republics, trampled clearly stated Russian redlines."

And pointing out the obvious, the Leveretts say Russia has responded in kind with a threat.

The Leveretts and Gorbachev suggest the U.S. needs to rethink relations with Russia. First, the U.S. needs continued Russian cooperation in the war on terror. Second, Russia remains the largest producer of energy on the planet. And any interruption to the supply of oil could send shivers through energy markets; higher oil prices Thursday were attributed to rising Russian tensions.

What will the U.S. do: Will it continue to aggravate Russia or make a diplomatic effort to ease tensions?

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