by Gary Dorsch, Market Oracle:
The confrontation over Ukraine has the potential for spiraling out of control and could lead to “serious problems in the heart of Europe,” warned former Secretary of State James Baker on March 9th. “It is clearly the most serious East-West confrontation since the end of the Cold War,” Baker said on “Meet the Press.” “For someone who was the last US-Secretary of State during the Cold War, it’s very disappointing to me to see that we’re moving now from cooperation with Russia to confrontation again. The risks are very substantial. I think we are pretty much in a “Cold War Lite,” right now.” Baker said he hopes a diplomatic solution can be reached because he thinks there’s no good endgame for the Russian Federation.
In truth, the Kremlin’s tactical triumph in annexing Crimea without a shot being fired in anger has so stunned the West that the degree to which the West was outsmarted and out maneuvered has yet to sink in. Russia’s de-facto annexation of the Black Sea peninsula does not threaten to plunge Europe towards a new Cold War. But it has caught German Chancellor Angela Merkel and US President Barack Obama flat footed, and they’re struggling to come up with a response to Moscow’s land grab. German Chancellor Merkel told an extraordinary EU summit in Brussels on March 9th, “One can’t just go on like nothing has happened.”
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