Lunatik
Active member
Even before Russia invaded Georgia in August, the Russian stock market was falling sharply. This was because the Russian government was intervening in business affairs, brushing aside the rule-of-law that is so essential to economic growth. The Georgian invasion made foreign investors even more nervous, and they began pulling their investment funds out of the country. Some wealthy Russians moved their money out as well. This caused the Russian markets to fall even more, so that they have lost over half their value in the last four months. Many Russians blame this on yet another U.S. conspiracy to humiliate Russia (as the Americans did in 1991 when the Soviet Union fell apart and Russia "lost" the Cold War.)
The EU has looked at its armed forces (about two million troops) and realized that, although twice the size of the Russian armed forces, the EU probably has less combat strength. The EU armed forces have been allowed to run down since the Cold War, too often becoming a bunch of aging civil servants with obsolete weapons. The Russian invasion of Georgia, and the inability to muster enough troops for peacekeeping in Afghanistan, has finally motivated Western Europe to improve their defenses. In effect, a new arms race is stirring in Europe.
The Czech Republic and Poland have refused Russian suggestions that Russian military personnel be stationed at the new U.S. anti-missile bases on their territory. Russia insists that these bases are an act of aggression against it. The U.S., and Europe, insists that the bases are to protect Europe from Iranian, or other Middle Eastern, missile attacks. Czech counter-intelligence officials also accuse Russia of funding Czech groups that oppose the missile bases.
Russia is cracking down on Western media appearing on Russian television. The government controls most of the mass broadcast media, and wants to remove "decadent" U.S. stuff like South Park and the Simpsons, and replace it with more patriotic shows. Just like in the good old days, before the Soviet Union disappeared. The government has had some success in manipulating public opinion, usually by exploiting existing attitudes (anger at the loss of empire and hostility to the United States).