Russia’s Putin: Judo Injury Upsets Financial Market

December 2, 2012

 If you were in a hand-to-hand gang fight with all the worlds leaders, you’d want to have Vladimir Putin on your side. Putin is well known for his shrewd political conduct as well as his Judo skills.
But according to Bloomberg News concerns over a presumed Judo injury have caused financial market distress:

“The lack of a more detailed explanation for Putin’s curtailed travel injects more uncertainty to an investment climate at a time when near-record amounts of capital are leaving Russia. Investors, who have to contend with the worst corruption among advanced economies, say Putin is needed as a guarantor of stability after he prolonged his more than decade- long rule this year for a new stint that may extend to 2024.
“Uncertainties around Putin’s health aren’t good for investors,” said Sergey Dergachev, who helps manage $8.5 billion of emerging-market assets at Union Investment Privatfonds in Frankfurt. “Investors don’t like uncertainty, and many still associate Russia’s relatively stable foundation with Putin.”
(snip)
Capital outflows reached $58 billion in the first nine months of this year, after $80 billion left the country in 2011, according to the central bank. That compares with a combined inflow of about $120 billion in 2006 and 2007, before the collapse of Lehman Brothers Holdings Inc. sent the world economy into turmoil.
(snip)
While Putin’s health isn’t a concern, the controversy reflects the opacity of political life in Russia, said Peter Westin, chief equity strategist at Aton Capital in Moscow. The country is the most corrupt member of the Group of 20 group of advanced economies according to Transparency International’s 2011 Corruption Perceptions Index.”
(snip)
The Moscow-based business newspaper Vedomosti on Nov. 1 cited two people close to the Kremlin as saying that Putin re- injured his back during a Sept. 6 flight leading a flock of endangered cranes into the wild in a motorized hang glider. The president is undergoing treatment and doctors advised him against any flights, Vedomosti wrote.
Peskov the same day said Putin, a judo black belt, hadn’t aggravated an old back injury during the stunt.
A strained muscle in the lower back or a degenerative lumbar spine condition would be consistent with Putin avoiding air travel and his apparent difficulty in walking, according to David Geier, an orthopedic surgeon at the Medical University of South Carolina in Charleston.”
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So the palace intrigue continues; I think what we need to acknowledge is how fragile the world economy is at the present time. Even the back injury of a world leader can tilt financial markets. Coming up in the future we will be looking at what’s going on in Europe regarding Germany’s long-planned power-grab over the economies of Europe.
For more on the Bloomberg News story go to this link

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