The Russian "August War" is still rumbling on, despite the fading of Western media interest. Russian troops continue to hold their positions well inside Georgia proper, and continue to harass Western deliveries of aid to shattered Georgia. However already, the Kremlin is starting to have to pay the price for their aggression . The FT reports this morning that the Central Bank of Russia has been forced to intervene to support the Rouble. The Bank confirms this, suggesting outflows of around $ 5 billion, however more independent voices suggest that he outflows over the month were more in the region of $15-$20 billion. It is, of course, not just the impact of the war- significant though that has been. The threats by Mr. Putin against Mechel , the announcement that grain trading was to be considered a "strategic" sector, the continued attacks against BP - TNK all have unsettled the markets substantially. Now, the perception has hardened that the risk profile of R...
Musings on World events from the perspective of a Social and an Economic Liberal.