Saturday, November 8, 2014

Sanctions Backfiring on Norwegian Salmon Exports

After USA blamed Russia for the USA destabilization of the Ukraine, the Europeans inexplicably joined the USA in sanction on Russia.  Russia grows stronger as EU countries stagger.
The export value of Norwegian salmon was NOK 4 billion (USD 585.8 million) in October, which represents a small decline of NOK 130 million (USD 19 million), or 3 per cent, compared with October 2013. This is the first time that salmon´s monthly export value has fallen in two years.
So far this year Norwegian salmon exports have totalled NOK 35.8 billion (USD 5.2 billion), NOK 4.5 billion (USD 659 million), or 14 per cent higher than in the same period in 2013, according to figures from the Norwegian Seafood Council.
"The reduction in the value of exports in October is a combination of lower prices and lower traded volumes. Despite the current Russian ban on imports, the demand for Norwegian salmon remains very strong,...
The average export price for fresh whole salmon in October was NOK 35.82 per kg. This is 5 per cent lower than in the same month in 2013, although just over 2 per cent up on the average export price in September.  
So "very strong" demand, but at lower prices.  Yes, if you lower prices, demand increases.  If you ban demand, with sanctions on Russia, then you have excess supply.  To move excess supply, you reduce prices.  To harm Russia because the USA destabilized the Ukraine, the Norwegians are taking less money for their salmon.  Brilliant move!

I recall Daniel 4:17
'The decision is announced by messengers, the holy ones declare the verdict, so that the living may know that the Most High is sovereign over all kingdoms on earth and gives them to anyone he wishes and sets over them the lowliest of people.'
Our leaders are doomed to be complete idiots so we can know that God is in charge.  You have a better explanation for why we only get idiots as politicians?

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