Saturday, August 09, 2014

Russia and sanctions

Illargi writes "The EU and US instigated, financed and supporetd the Maidan movement, installed their very own handpicked government in Kiev, established an army aimed at eradicating all signs of discontent among Russian speaking Ukrainians in east Ukraine, with crucial parts played by CIA, Blackwater and various other mercenaries, blamed Putin for the downing of a plane without providing any evidence whatsoever of his involvement, announced a second series of economic sanctions on Russia, and then claim Russia has no reasons at all to announce its own set of counter sanctions.
It would be funny if it weren’t so out there."
The Saker writes "... Russia used these sanctions to do something vital for the Russian economy.  Let me explain: after the collapse of the USSR the Russian agriculture was in disarray, and the Eltsin only made things worse.  Russian farmers simply could not compete against advanced western agro-industrial concerns which benefited from huge economies of scale, from expensive and high-tech chemical and biological research, which had a full chain of production (often through large holdings), and a top quality marketing capability.  The Russian agricultural sector badly, desperately, needed barriers and tariffs to be protected form the western capitalist giants and, instead, Russia voluntarily abided by the terms of the WTO and then eventually became member.  Now Russia is using this total embargo to provide a crucially needed time for the Russian agriculture to invest and take up a much bigger share on the Russian market.  Also, keep in mind that Russian products are GMO-free, and that they have much less preservatives, antibiotics, colors, taste enhancers, or pesticides.  And since they are local, they don't need to be brought in by using the kind of refrigeration/preservation techniques which typically make products taste like cardboard.  In other words, Russian agricultural products taste much better, but that is not enough to complete.  This embargo now gives them a powerful boost to invest, develop and conquer market shares."
As Keynes said long ago  in Globalization and Self-Sufficiency "Ideas, knowledge, science, hospitality, travel – these are the things which should of their nature be international. But let goods be homespun whenever it is reasonably and conveniently possible, and, above all, let finance be primarily national.
For these strong reasons, therefore, I am inclined to the belief that a greater measure of national self-sufficiency and economic isolation among countries may tend to serve the cause of peace, rather than otherwise."

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