Monday, July 14, 2014

New German-Russian Axis Forming?

A correspondent writes in regarding a Zero Hedge post, The Emerging German-Russian Axis,

The land area from the North Sea and the North Atlantic to Vladivostok will knit together during the next fifteen years because the US cannot meet the energy needs of its allies and because its most powerful weapon, the US Navy, is obsolete (except for boomers).

Air- and ground-to-ship missiles make it impossible for navies to live in narrow waters such as the Black Sea, Baltic, Persian Gulf, Red Sea, the northern part of the Indian Ocean, and anywhere else within four- or five-hundred miles of land.

Narrow waters such as the Persian Gulf and the Mediterranean are analogous to what is called in land warfare, "killing sacks." These are places that are everywhere subject to a massive volume of enemy fire. That means the struggle of maritime powers to control the Eurasian landmass is over, with the Eurasian landmass wining.

The English Channel used to be a protective moat that allowed the British navy to force unequal commercial transactions on on inhabitants of sea coasts of the world without Britain paying the expense of a first-class army to defend Britain against invasion.

Today, the Channel is a maritime killing sack. A rowboat could invade Britain without the British navy being able to interfere, provided that sufficient rockets emplaced anywhere on the continent within four-hundred miles protected the rowboat from British ships and aircraft. An additional weakness of navies is that attacks from them have no deniability.

Sergei Lavrov, the Russian Foreign Minister has just told the Ukraine regime that Russia will use nuclear weapons if Ukraine attacks Crimea. So the only spot on the southern border of Russia that once was reachable by maritime power is out of reach.
The ZH article argued that "a combination of German industrial might and Russian raw materials and military strength would instantly create a colossus."

Indeed, the only thing I can think of that would be bearish for the dollar would be if the Holy Roman Empire was reborn with nuclear weapons and issued bonds in a currency not subject to devaluation by a central bank.

But there is yet time for another another deflationary squeeze of the crowded dollar shorts before any of this happens.

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