For Russian citizens, bread lines have given way to conga lines at one of the hottest resorts in Turkey.

The commodities boom in Russia is allowing the former Soviet citizenry to enjoy the Life of Riley that Americans once took for granted.

Instead, we now get the Staycation.

Our former Cold War enemy enjoys water aerobics; we park a beach chair under the backyard sprinkler. Our former Cold War enemy hops a plane to some hot resort; we can’t afford to back the SUV out of the driveway. Our former Cold War enemy savors caviar by candlelight; we chow down weenies at the Wal-Mart.

But don’t worry, it’s OK. You’re taking part in that new American sensation called the Staycation. While Big Media would like you to believe that the Staycation is a good thing, it really is just another clue that we lost the Cold War to Russia.

Rather than face up to our Cold War defeat and invest accordingly, we let Big Media package our economic house arrest as a cheery Staycation. You’re not poor; you’re on a Staycation. Sure, go ahead and spend $70 on the family to see the latest Indiana Jones remake set in a time when America ruled. Back then, the Dow Jones Industrial Average really meant something.

But as you can see in this chart, America’s Dow Jones Industrial Average (^DJI) must also be on Staycation compared with the Russian RTSI Index (RUS: RTS.RS).

The Russians have no illusions about keeping their money at home all summer. Eager to leave behind their own Soviet-era Staycation, now have the disposable income to travel and enjoy life. Middle-class Russians with money spend it on travel. Middle-class Americans take a Staycation. And travel is one of the most reliable economic indicators of a healthy economy.

The New York Times recently took the pulse of the new Russian middle class by writing about the Kremlin Palace Hotel on the Turkish coast. It was a real showcase of Russian middle-class prosperity.

The Times described the resort as “a kind of Las-Vegas-does-Moscow-by-the-shore extravaganza whose buildings are replicas of major sights at the Kremlin complex and nearby neighborhood.”

One 51-year-old Russian healthcare worker from outside Moscow told the Time that she could buy a package tour for $800 “and here we are, in paradise.”

As Russia’s energy-driven economy continues to boom, the country’s middle class is eager to spend their money travel. The Times cited the Russian government by saying that Russian tourists visiting countries outside the former Soviet Union grew to 7.1 million in 2006, the last year statistics were available, from 2.6 million in 1995.

If you really want to cash in on Russia, China and other emerging markets, there is a psychological hurdle you need to clear: that we lost the Cold War. Otherwise, you will continue to hope for a rebound — an economic miracle that would restore America’s economic might.

Accept that truth that we lost the Cold War and you will see with new eyes the vast opportunities of emerging markets such as the Russian RTSI Index.

Factor in that we lost the Cold War and you’ll discover that the notions of volatility, ROI and potential take on whole new meanings. Suddenly, you’re out of the rut. It’s exactly the kind of change you need to turn your Staycation into a vacation.

Tags: Economy, Russia, Transportation

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