Ever since I beat Vladimir Putin in an arm-wrestling match (yes, it’s a true story, told in Arm Wrestling With Russia), I haven’t had a high opinion of him. He was an officer in the KGB, and bemoaned that the collapse of the Soviet Union was “the greatest catastrophe of the 20^th century” (no, Pootie-Poot, the existence of the USSR was the century’s greatest calamity.)

But not until now has it become fully apparent how stupid he is.

As we saw last week in The Next War In Europe, Pootie tried to screw Ukraine for bolting from his imperial clutches in the Orange Revolution. I predicted this would fail if Ukrainian President Viktor Yushchenko stood up to him and called his bluff.

Sure enough, once Viktor did so, and showed the Euroweenies what it looks like to be a mensch with a backbone, Europe exploded in anger against Putin.

Big mistake, Pootie.

Capital flight from Russia has spiked dramatically since President Vladimir Putin first sent troops into Crimea and may reach $70 billion over the first quarter of the year, prompting fears that the country may soon have to impose capital controls to stem the loss.

"It is shocking," says Bartosz Pawlowski from BNP Paribas. "Markets have been extremely complacent, fooling themselves that Russia is invulnerable because it has almost half a trillion in foreign reserves. But reserves can become almost irrelevant in this sort of crisis."

Lars Christensen from Danske Bank says the authorities may resort to some form of financial coercion to lock down funds in Russia. "Capital controls are a serious risk, and should not be discounted. Whatever now happens, there has been permanent damage to the Russian economy because investors are not going to forget this lightly."

The US and the EU are ratcheting up the pressure each day following a spate of sanctions last week on Mr. Putin's inner circle. The latest example came Monday (3/24), when....

With money running low, government functions become inviable

As a mental challenge, try to think of all of the governmental activities — federal, state and local — that could be privatized. Now, go a step further. Suppose you were required to develop a plan to privatize, or make self-supporting through user fees, nearly every activity of government.

Could you or a group of your friends do it? Try it. I expect your success will surprise you.

The reason this is relevant is because most governments will reach their borrowing limits in the not-too-distant future, which means they will have to operate on current revenue from taxes and fees. Many governments have reached or are reaching their ability to increase taxes, and income-tax systems will begin to fall under their own weight. Governments will be forced to downsize and privatize — or private citizens and groups will just take over as they are increasingly doing because of failing government schools, for example.

The U.S. government was created to protect people and property and to ensure liberty; but more and more often, it does just the opposite.

In addition to two religious nutcases – senile Pat Robertson and terrorist Ahmadinejad – there are large numbers of ordinary Israelis who are pleased about Ariel Sharon’s incapacitating stroke.

Robertson announced that Sharon’s stroke was “God’s punishment” for withdrawing from Gaza, while Iran’s Ahmadinejad announced he was “praying to Allah” for Sharon’s death. While most all Israeli citizens aren’t this crazy or ghoulish, a lot of them think that Sharon’s passing will be, in the words of one Israeli friend of mine, “better for the future of Israel.”

Let’s call these folks Chinese Israelis. The Chinese have an ancient proverb: Be careful what you wish for, because you just might get it.

The reality is that Sharon’s passing is a disaster for the state of Israel.