Last week, Putin announced the accession of four areas of Ukraine. In his speech to the world, Putin targeted the United States and threatened the use of nuclear weapons. This speech marks an important moment for global markets. I will explain why as we take a closer look at Putin’s growing problem in Ukraine. WATCH NOW
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Putin speech transcript http://en.kremlin.ru/events/president/transcripts/69465
I have read the full transcript of Putin’s speech, and I encourage everyone to read the full speech, because they just give you bits and pieces in the news. I will try and provide a brief summary. The speech has surprisingly little about Ukraine, and spends more time targeting the United States with the accusation of imperialism. The main idea is that Russia, and a lot of other nations around the world, are sick and tired of the US acting like colonists, and forcing their will on other nations. He says, “It is critically important for them to force all countries to surrender their sovereignty to the United States.” In the speech he specifically highlights the relationship between Russia, China, and Iran on one side of this conflict and the US and the rest of the western nations on the other side. He finishes the speech by talking about transgenderism and sex change operations in the US, and calling Western leaders Satanists.
What stands out about this speech is the hypocrisy of Putin. He is making a speech on the evils of imperialism, while invading Ukraine. This is Putin’s problem in Ukraine. You cannot accuse the West of empire building when you are doing it yourself. Now, I am not here to try and claim the US is perfect. The US has made mistakes, many of which I point out on this channel. But the mistakes by the US are nowhere in the realm of what is going on between Putin and Ukraine, and it is extremely dishonest for Putin to make this comparison in the speech.
Why I think this speech is so important to highlight, is because this argument about imperialism is something you hear more and more in the business world. You hear it from Russia, China, and others, that the US needs to stop sticking their nose in other people’s business. However, when you look at the details of a situation, this is almost always a false argument.
Let us use the example of China. China is a member of the WTO or the World Trade Organization. As a member of the WTO, they have agreed that they will not use forced labor in manufacturing. They agreed to this, not only because it is the right thing to do, but because it is fair to the other nations in the WTO. If one nation were to use forced labor, they could unfairly compete with the other nations, because they could produce things so cheaply. Well, we all know that China uses a lot of forced labor, a direct violation of their agreement with the WTO.
So, when the US calls them on this, China will use the argument, “The US needs to stop sticking their nose in our business.” And “The US is imperialist.” These arguments are false. It is not imperialist to expect you to abide by the rules that you yourself agreed to. Expecting people to follow contracts, is not imperialist.
The same thing goes for Putin’s speech. Invading Ukraine was a violation of every United Nations agreement Russia has been a part of. It is not imperialist to tell Russia that they cannot invade other countries.
Let us use a more concrete example: The SEC or the Securities and Exchange Commission has been fighting Chinese companies that want to be listed on the NY Stock Exchange, but do not want to follow the same accounting rules as everyone else. China and Hong Kong are the only two jurisdictions in the world that will not allow inspections from the US based PCAOB inspectors. The Chinese companies are saying, “Just trust us. Our Chinese auditors, and our more relaxed accounting standards, are just as good.” This is another example of the same argument, that because the US is threatening to kick them off the exchanges, the US is being imperialist. It is just not true. If China wants the benefit of access to US investors, they need to use the same accounting standards, so that US investors are not taken advantage of.
This is an important moment for global markets that has been building for the last 40 years. We have experienced globalization, where emerging markets have started participating in the global economy. But if you want the benefit of global markets, you have to play by the same rules. If you do not want to play by the same rules, that is fine. Go off and do your own thing. Places like Russia and China could operate independently if they wanted, just like North Korea. That is fine. Close your borders, and do whatever you want. But that is not what you are doing. You want to be a part of the WTO, and the United Nations, and sell your exports on global markets. If you want the benefits of global markets, you have to play by the same rules. That is not imperialism. That is following a contract and the rule of law.
When I see things like this speech from Putin, I think it is important to be able to stand up and say in a calm and cool way, “No, that is not correct. The US is not being imperialist by telling you that you to stop invading another country.” In all of these examples, we have to be able to stand up and hold people accountable for their agreements.
Let me just add one other thing. Putin makes all these comments about transgender people and Satanists. Guess what? The US does have some things that might seem unusual and different. But that is what freedom means. Freedom is the ability to do what you want in life. The US has a whole range of people exploring a range of ideas. The alternative is what they have in Russia, where if you are outside the norm, they will throw you in the Gulag. We all have to decide what type of world we want to live in. I for one, am going to choose freedom.
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Neither Zach De Gregorio or Wolves and Finance shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.