President Obama is headed to Russia next week. The visit is planned to allow discussions on a host of topics: trade, North Korea, missile defense etc. Amongst the laundry list of issues, I find one group’s request to be most interesting. From Reuters:
CEOs use Obama visit to press Russia on rule of law
I suppose it would make sense to talk to Russia about business relationships. Of particular interest to this group of CEOs is this:
“Stability and sanctity of contracts — this is what worries us, given what happened to some Western firms in Russia,” said an industry source with a major U.S. firm.
Come on! You’re kidding me right? President Obama is supposed to teach, coach, lecture the Russian government on the rule of law and the sanctity of contracts? Let’s see….
Automobile Industry – I don’t remember the rule of law or the sanctity of contracts being followed as bond holders were summarily removed from their preferred lender positions so that the Obama could “not run the auto industry.”
Financial Industry – I don’t remember the rule of law or the sanctity of contracts being followed as companies were told they had to take bail out funds or would be subject to audits, forced contracted compensation to be paid back or forced “healthy” institutions to absorb “toxic” institutions thereby making them a toxic institution
Credit Card Industry – I don’t remember the rule of law or the sanctity of contracts being followed as mortgage companies were forced to provide credit to a broader population without regard for their ability to repay the credit.
While never close friends, The Russians used to listen to the United States due both to our military capabilities and our financial strength. I’ve got to believe that any sentence in Russia that begins with “President Obama says…” ends with a roomful of Russian belly laughs.
