Free Markets, Free People

Russia: The New Military and The New Currency

Russia is our friend. Don’t believe it? Well let’s look at a couple of things.

Just as the US starts talking about cutting defense spending and axing weapons systems and programs, what are our friends in Russia doing?

President Dmitry Medvedev on Tuesday announced a “large-scale” rearmament and renewal of Russia’s nuclear arsenal, accusing NATO of pushing ahead with expansion near Russian borders.

Meeting defence chiefs in Moscow, Medvedev said he was determined to implement reforms to streamline Russia’s bloated military and stressed Moscow continued to face several security threats needing robust defense capacity.

“From 2011, a large-scale rearmament of the army and navy will begin,” Medvedev said.

He called for a renewal of Russia’s nuclear weapons arsenal and added that NATO was pursuing a drive to expand the alliance’s physical presence near Russia’s borders.

“Analysis of the military-political situation in the world shows that a serious conflict potential remains in some regions,” Medvedev said.

So, new nukes and large-scale rearmament in the face of US defense cuts. As the article asks “reset” or new Cold War?

And then, just to really upset the apple cart, how about a new currency?

The Kremlin published its priorities Monday for an upcoming meeting of the G20, calling for the creation of a supranational reserve currency to be issued by international institutions as part of a reform of the global financial system.

The International Monetary Fund should investigate the possible creation of a new reserve currency, widening the list of reserve currencies or using its already existing Special Drawing Rights, or SDRs, as a “superreserve currency accepted by the whole of the international community,” the Kremlin said in a statement issued on its web site.

The SDR is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries.

The Kremlin has persistently criticized the dollar’s status as the dominant global reserve currency and has lowered its own dollar holdings in the last few years. Both President Dmitry Medvedev and Prime Minister Vladimir Putin have repeatedly called for the ruble to be used as a regional reserve currency, although the idea has received little support outside of Russia.

Now there’s not much “there” there as it pertains to this initiative, but it another indicator, among many, that the “Joe Biden Challenge” is alive and well and Russia is in the running to bring it to fruition.

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14 Responses to Russia: The New Military and The New Currency

  • It is my admittedly hazy understanding that Russia is broke: the banking failure hit them hard and they haven’t got as much money coming in from oil sales as they did a year ago.  Have they got the money for aggressive rearmament?

    Oh, what am I saying???  As we see from our own government, there really isn’t a need to have money to spend it, is there?

    • We rely upon money borrowed from the Chinese, who are now a bit leary about lending to us.

      Who in their right mind is gonna lend to Russia? Perhaps Obama will bail ’em out to support their defense spending?

      • DON’T GIVE HIM ANY IDEAS!!!  We’re already bankrolling Hamas “defense spending”.

  • Now wait a dad-garned second. I clearly remember last year that The Clown™ said that when he won, there would be a “new day” of diplomacy, of countries that were our enemies becoming our friends, including Iran, North Korea, and even Russia.

    Maybe Putin and Kim Jong Illness and Boss Hugo in Venezuela are starting to realize what a naïve and inexperience jackarse we have in the White House, and they can take full advantage of his stoopidity.

  • Let’s leave the fear-mongering to the Obama Administration…Russia is BROKE. It can TALK aobut new weapons, it can’t pay for them. So, on the campaign trail this might mean something, but the reality is it’s meaningless.

    • Hey, it can spend money it doesn’t have just as well as we can – and besides, since the Iron Curtain fell, it actually has a tax base to exploit.

      • A tax base, really…it’s an economy that is still primary materials exporting based…oil’s down, there isn’t a tax base to exploit. And no, you can’t spend money you don’t have, as Obama and the US Congress will soon find out.

        This is just Russia running a bluff, as usual.

  • Russia’s not a threat.  They are weak, and rely on assistance and connections with Europe.  They just want to be taken seriously, and want to be seen as responding to our efforts near their border (think about it — how would we feel if they were operating the way we are in areas near the Russian border, you gotta understand their perspective too).  No need for fear, Russia can’t hurt us.

    • They may able to cobble together some functional nuke, and hurt us with that. Most likely they are just going to go on playing the bad guy, until China rapes them long time . . .

      • A particular scene from the movie Full Metal Jacket came into my head with I read that last line

    • No, Scott, it’s not that Russia doesn’t pose (there’s a triple negative for you) a threat or that it can’t hurt the U.S. It can certainly pose a threat and it certainly can harm the U.S. The meaning of Russia’s weakness is that it can do very little to help itself. Depending on its internal mood and the factional rivalries that set it, that weakness could become the source of threat or harm to the U.S. Strong regimes in weak countries can be extremely dangerous, and it is not as if Vladimir Putin and his gang don’t know everything there is to know about terrorism.

      Having Leftist stumblebums like Obama and Biden in charge of American national security must be mighty tempting to an old KGB cabal. If they can find some political or economic profit in it, they might give it a try, and then of course throw it over to useful idiots to work the “America was of course responsible for the terrorism launched against it” angle.

      Come to think of it, you do that sort of work, don’t you, Scott? In fact, your scoffy post above is almost a pre-apology.

  • OK, I’m worried Erb and I agree on something..on second thought, let’s INCREASE Defense spending, because if Erb is ‘fer it; I’m a’gin it.