Tensions Between Russia and the Ukraine Resurface, Global Uncertainty Escalates - Nathan McDonald

From the archives of sprott money news

August 11, 2016

Well, here we go again. A situation that many have forgotten about is now rearing its ugly head once again. This comes as many are speculating that the world is heading towards a major global conflict. The resurfacing of this news does not detract from this speculation, but rather adds significantly to its probability.


Tensions are flaring once again between Russia and the Ukraine. As many of my long-term readers will remember, this is a situation that I have written about extensively in the past, and as I noted then, was far from resolved.


Russia's "meddling" (as Western leaders like to put it) in the Crimea region is what led the world to heightened tensions only a few short years ago, and which only recently disappeared from the headlines last year. The reaction from the West, as it unsurprisingly took the side of the Ukraine, is in large part what I believe has led to the breaking of the oil market. This is something I have speculated extensively on in the past.


Through their proxies in the OPEC, the artificial breaking of the oil markets nearly brought Russia to its knees as they experienced incredible stagflation that crippled their economy. Yet, the will of the Russian people proved stronger and they persevered, as they have numerous times throughout history.


The resurgence of hostilities is not in fact coming from Russian sources, but from the Ukrainian side. As is being reported, a botched strategic strike issued by the Ukrainian military, which resulted in the death of two Russian soldiers, failed over the weekend. These actions led President Putin to suspend all peace talks with the Ukraine and their Western backers.


After failing in their attempts, Ukraine officials denied that any action was taken on their behalf, despite video evidence from RT proving otherwise.


President Putin has vowed to not sit idly by as these violent actions take place. Another arms race and show of force is once again occurring between both sides in the volatile Donbass region.


We can now expect renewed anti-Russian talks to become a much more daily event on Western mainstream media. There will be a renewal of economic sanctions against Russia, with the hopes of once again hurting their economy.


What Western leaders don't know, or maybe they do and are just ignoring it, is the fact that each time they engage in these actions, they push Russia closer and closer to China, solidifying an already incredibly strong power alliance that could threaten Western dominance.


Let's hope that tensions can once again be de-escalated. Let's hope that nothing significant will become of this and the doomsayers will be once again put back in the closet. Let's hope.

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About the Author

Nathan McDonald is a libertarian, entrepreneur and precious metals enthusiast. He has always taken a keen interest in free markets and economics since an early age, which naturally led him to become a true believer in precious metals and all that they stand for.

Nathan served eight years in the Royal Canadian Navy as an electronics technician, seeing the true state of the world, before starting his first successful business. He has since gone on to create a number of businesses, all of which are still in operation and growing.

In addition to this, Nathan runs a network of successful precious metals blogs, and a growing newsletter that has attracted readers from all around the world. He is a regular and highlighted writer for the highly respected Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

*The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.


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