I look at eastern Europe and can’t help but be worried on what will happen next. The question is: What is Putin thinking? Does he want the whole country or will he stop there? What should President Obama do?
Three words, energy, taxes rates. Putin can do anything he wants short term but if the price of national gas drops or countries buy LNG from the US instead. Russia would feel it. President Obama and Congress should respond by approving the US export of oil and national gas. Sign off on the Keystone XL pipeline. Sell new offshore oil and national gas leases. All good things for the US economy. Europe and Japan could spend some of their money with American Companies instead of on a state run Russian one.
Another response would be to cut the US corporate tax rate to 12.5%. Investment from around world would flood into the US and away from Russia.
Let’s see how the Administration handles it today.