Night Rider said:
http://www.stratfor.com/weekly/20091109_russian_dilemma
that's the correct link there for peat's post
That was actually an excellent article, well impressed. I should add that communist pressures are ironically responsible for the corruption of America's state apparatus, IMF and World Bank. Think of the necessity to drop the gold standard, restructure Bretton Woods and force the western worlds adoption of fiat currencies pegged to the US dollar. IMF membership involves opening up currency flows and debasing currency from specie.
This is a significant factor in the global financial crisis, yes we can blame Greenspan in 2001, the breaking of the Taylor Rule and the inflationary policies which inflated the bubble, but it wasn't just America which was involved, it was these factors mixed with artificially low interest rates, fiat currency and the carry trade. All this debased currency flying around the forex markets looking for prospective yield. The crack in the dam was the mortgage market through Freddie and Fannie, but if it didn't manifest itself in this outlet, it was only a mater of time before it found another crack in the dam.
Now the world economy is highly volatile and unless we adopt a central world bank and currency, or return to specie (see gold going through the roof at the moment as more and more countries realize this), then things will continue unabated. This present strategy of adopting quantitative easing, is actually a disaster and it's manifesting itself now, everywhere we look. Well, I guess what I am trying to say is, it was the conflict with Russia during the cold war, and the OPEC oil embargo which caused the debasement of currencies.
Irony? It should be for all you geopolitical pundits out there.
As far as the military technology which came out of Russia being something to be in awe over, due to it's sophistication and sometimes superiority over it's western counterparts (despite America having such capitalist advantage) it has a lot to do with their monopoly over the commanding heights of the economy. This is has it's downside of course, especially on the common citizen who has scarce access to the materials, but for the military it was a major advantage and from studying healthcare systems recently in economics, it's very similar to the pro's and con's of a mononopsy health system.
The resources must be rationed on a ratings system (not a price system) and there are shortages (which in New Zealand will constantly manifest through Dr and Nurses striking ever four years) but there are also advantages because the supplies have no mark up and are thus very cheap. Now combine this with an authoritarian central bureaucracy and very little rights for workers (with fear to boot) and it can shift the resources surprisingly fast towards military requirements, free of resistance.
This must have been a boom for the Soviet Military, pity about it's people though.