Friday, August 8, 2014

Effects of Russian ban on USA Agriculture

The USA destabilizes the Ukraine and a democratically elected government is overthrown by neo-nazis in the pay of USA.  The Crimea votes for independence and affiliates with the Russians, although the Russians offer them on "autonomy."  So the USA leads sanctions on Russia.  Talk about non-sequitor.

(And our newly installed "government" has fallen apart.)

Now Russia is obliged to respond, and is doing so in ways easily predictable, as this article shows and my earlier posts predicted.

What is the effect of the ban?    Well, USA's #7 export to Russia in dollar value, meat, was already dropping precipitously.  Check this out...

http://dataweb.usitc.gov/scripts/cy_m3_run.asp?Fl=x&Phase=HTS4&cc=4621&cn=Russia&HTS2=02&HTS2desc=MEAT+AND+EDIBLE+MEAT+OFFAL
Click to make larger...  meat prices are inflating in USA (inflation is always a monetary event) and more supply may help keep prices down in USA (a supply and demand event.)  USA may have already been pricing ourselves out of the Russian market.

Although meat is the 7th largest import from USA into Russia, hard to say what USA meat means to the Russian economy, except to say the Russians in the above article named dollar amounts of what they plan to buy from Chile, etc... and figure Russia has at least $323 million more to spread around the rest of the world.

How is Syria, Iraq, Afghanistan, Romney/Obamacare and the borders working out for USA?  The stock market keeps going up, so nothing else matters?

The USA was never designed to be a military adventure state.  Time to eliminate a standing military and return welfare to the preacher man.

As an aside, Dmitry Medvedev has said
The Russian PM has also warned against possible attempts to use the situation to drive up prices.
"I would like to warn that attempts to gain from price speculation in this situation will be roughly stopped," Medvedev said.
Dimotchka!  Please....  you have a country closer to a free market than USA.  Gougers create price signals that allow for the best distribution of scarce goods, and signals calling for where production needs to be initiated.  Gouged prices do not last long, but the people who create production to meet demand signalled by the gouged prices do.  Price gouging is critical to your success of creating domestic production.

Feel free to forward this by email to three of your friends.


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