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Embargo Russia? America Had Best Get A Clue

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Embargo Russia? America Had Best Get A Clue

The new mantra of the ruling American elites, of the heads of the two branches (Republican & Democrat) of the One Party Police State is to embargo Russia as punishment for Georgia's war of aggression and extermination upon the Ossetian people.

Yes, dear reader, this makes about as much sense as cutting off one's nose to spite one's face. Not only is America, yet again and again, taking the side of mass murderers (I could write a very long article listing all the sociopaths that the US has backed in the past 50 years), but it is willing to damage its own critically ill economy to make symbolic gestures at Russia. Why?

An intelligent person would consider that maybe there is some deeper plan, some darker conspiracy going on, but no, there is none of either. What Russia is facing is pure American stupidity and vindictiveness, driven to such a degree, that it no longer recognizes when the real damage will be to its own people and its own interest, or for that matter really cares.

The modern America has no substance, only show. Glitz and mindless action is much more important than contemplation and planned movement or even the weighing of resources. Simply put, if Russia wants to understand America , think like a Caucasian (note: not a white person as most American readers will think I'm referring to, but a person from the Caucasus ). In other words: all emotion, no brains.

As such, what will the results of this be?

For Russia , there will be a loss of business, sure, but it is a minor loss, as the US still employs the Jackson-Venik Act to block most Russian imports into the US . However those that do come through, tend to be the most critical varieties.

By 2007 statistics, America is only 4.8% of the Russian export market of $365 billion dollars, of which most is petro products and Americans love paying more for their gas. This comes out to a bit more than $17 Billion. Now, Russia will of course retaliate with its own embargo in this new US trade war, which will cost $9.4 billion or so to America . The key difference here is: most of what Russia exports to the US is oil/petro products, Russian finished goods are minimal to America, again under the Jackson-Vanik Act. These petro products have a huge world wide market and are assured to sell instantly.

The US , however, exports finished goods and the only sector of the US economy, besides government of course, that has not suffered from the US recession, has been export manufacturing.

Lets be more specific. The US imports from Russia:

Oil & other petroleum products …US$10 billion
Aluminum … $1.8 billion
Semi-finished iron & steel products … $1.5 billion
Nuclear fuels … $866.3 million
Finished metal products other than steel … $852.9 million
Precious metals … $697.6 million
Nickel … $645.3 million
Steelmaking materials … $635.6 million
Fertilizers, pesticides & insecticides … $395 million
Fish & shellfish … $375.3 million
Military aircraft & parts … US$10.4 million
Railway transportation equipment … $50.3 million
Civilian aircraft parts … $42.4 million
Generators, transformers & accessories … $8 million

So, from a US import ban on Russian products, who will be directly affected? First and foremost, US drivers and consumers of petroleum products, such as the heating oil this year in the NE...but they enjoy being cold and broke and deserve it for living in the cold...or so many of the pundits defending this stupidity will say. The airline companies should really love this, especially when they have to pay more for parts to.

Next will suffer US manufacturing, export manufacturing to be exact, with a loss of $5.4 BILLION in high quality, cheap priced imports of metal and metal products. That should hit them right in the nads. But don't worry, Europe will more than happily suck up that additional capacity and further out compete the US.

Next will be the American drive for nuclear power and additional electrical capacity, or where did all those American earth lovers think their power for their future electric cars was going to come from? That'll be a loss of a combined: $874 million.

Than there's the US farmers, who are loosing their farms at the fastest rate in the past 70 years. They will be happy to hear that their cost of fertilizer will go up quite a bit, as the Chinese or Europeans will happily buy up the extra capacity created by the US embargo of $400 million.

On top of this, what is not mentioned is:

1. The loss of Russian transport planes to fly US/NATO troops, equipment and supplies to Afghanistan .

2. The loss of Russian sea transports that carry more than half of the US military equipment world wide...that's right, the US would have had a hell of a time even getting to Iraq without Russian one ever thought that through, right?

3. The US nuclear industry has already lost the ability to partner with Russia and will instead have to compete against Russia on the world market for nuclear power generators. Allow me to make this more clear: the last generator Russia built was last year, the last one America built was 25 YEAR AGO. Whom will consumers trust?

4. US commercial satellites will now cost almost double as much to send to orbit, riding on the EU rockets, instead of Russian rockets.

Pages: 12

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