Russia » Economics
Author`s name Dmitry Sudakov

US Russophobia will mean Russia's survival

As many of you may have noticed, there are not a lot of Russian made goods for sale in America. Now most people of average intelligence will come to a conclusion that that must mean that there is nothing produced in Russia, as even the few food items sold in specialty stores are made in some upstate New York area or in California or Canada. However this is far from the truth and that truth will equally save Russia from the US led collapse.

Russian industry is booming, with an average 7-8% growth rate, low taxation and a motivated work force and it has been doing so since 1999. The final trigger that allowed Russian industry to burst out was the 1998 economic collapse, which was really just the final fall of the 1990s decade of collapse. The key that started this was not really just the fall of the Soviet Union but the readiness of the Russian establishment to believe the West that by letting in Western companies they would all become rich...well the oligarchs and chivaks became rich but the people as a whole suffered. Why? Simple: Russian industry had little time to learn to play in the Western world before it was crushed by Western giants who then sucked it dry and left empty husks, while flooding the market with US/EU goods.

The 1998 collapse, however made those imported goods entirely to expensive. This in turn led to demand being satisfied by local production, which in turn led to job growths and more demand and more job growth and so on...the road to recovery. This is the exact path, but in the opposite direction, that a quickly deindustrialized, debtor nation America is traveling on as it comes more and more to resemble the third world nation it now is...ok, maybe 2nd world.

Russian exports have also been growing and not just in raw materials, but also in grains, finished foods, beverages, machinery, weapons, IT and many other fields.

But why are there no products in America and how will this help the Russian economy survive America's death throws that threaten much of the world?

It all comes from America's own Russophobia...or rather that of the ruling elites who do as they please, the people be damned (and it will soon seem that way). Basically put, Russia is still under the Jackson-Vanik regime. What is the Jackson-Vanik Act? It was a 1970s law that forbade American trade with nations that prohibited free movement of their peoples and was used to undermine the Soviet Union. But, now you'll notice that the Soviet Union has been gone for 17 years, how could this still be in effect? It should not, but it is.

Russia , in the hopes of trading with America and in the spirit of revolution, quickly liberalized its immigration laws. Over 1 million Jews left, and after all the Jackson-Vanik Act was aimed at them. In the 17 years that have passed, some 15% returned to live in Russia from Israel. But the law has stayed in effect, hung like a treat in front of the Russian mule to get it to move constantly to the whims of the American master. This of course came to an end some 5 years ago, when the government basically said to hell with the US promises, just like with WTO membership, which not only will never happen (Russia is the ONLY industrialized nation not in the WTO, thanks to the US or its proxies like Georgia...which has 6 factories in the whole country) but Russia no longer needs the WTO and it's socialism.

Now, Russian industry is primarily aimed at satisfying the rapidly growing internal markets and not on exports to the world's debtors, the US. Because of this, mostly thanks to US Russophobic politicians, Russia will survive this world shaking economic collapse to come out one of the strongest industrialized nations in the world.

This statement has been evidenced that out of the BRIC group of countries (Brazil, Russia, India, China) Russia is the only one who's stock market has continued to grow while the others have been on the free fall, along with their primary customer America. The Europeans who also export heavily to the US will not be and are not to far behind.

Russia, however, with low taxes, massive resources, all the energy she needs and a huge internal market demand and a middle class of between 20-30% and growing and a poverty class of 15% and falling, will be standing rather tall by 2012.

Here's to the Holy Third Rome.

Stanislav Mishin

The article reprinted with the kind permission from Stanislav Mishin and can be found on his personal blog Mat Rodina