The nation of Russia seems to be feeling a surge in pride after its walk over the former Soviet republic of Georgia. But the party seems to have left the country with a bit of an economic hangover. Actually, you might call a 43% drop in the country's stock market is a lot more damage than a hangover.
According to Bloomberg.com, foreign investors have pulled $35 billion out of the country. Russian President Dmitri Medvedev has ordered the government to do "everything necessary" to reassure foreign investors. Sorry, Dmitri, but even a nation sitting on so many naturally resources still rests on global exchange and cooperation for economic success.
The only thing Russia can do to improve its economic stability is to bring military stability to its part of the world. Whatever George Bush says, the real power rests with investors in today's society. Russia's economy is still relatively small and volatile, and while it may have a powerful military - it is not strong enough to ignore investors' wrath.
While some fear we are heading into a second Cold War - and I believe the McCain/Palin ticket seems eager for this as a way to scare voters into sticking with a Republican ticket - the reality is that our economic co-dependencies will increasingly prevent dangerous military actions. The challenge of this powerful, global flow of capital, and the present example of the economic results of Russia's action, will lead to fewer flare-ups, greater stability, and a chance for everyone to make more money together.
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