During August and September — when oil prices were high, Russia invaded Georgia, the financial crisis began unfolding, the doom-and-gloomers were at it. We were told that it was the end of capitalism. We were told that our foreign policy was being controlled by Mikheil Saakashvili. We were told that our choices were a close friendshp with Putin or a new Cold War.
Now it’s clear that such apocalyptic visions were not true.
- Oil prices were high because of a bubble. They are still too high, but we can manage that.
- Russia invaded Georgia because it is a Gap state with money and an army. That’s a serious problem, but one we can manage.
- Our financial system melted down. We are rebuilding it.