Embargo Russia? America Had Best Get A Clue

5. US cosmonauts will continue flying the space shuttle with it's now 1 in 12 chance of exploding, rather than on Russian rockets. What dear reader do you think will happen to the US space program if/when another one or two shuttles explode? Furthermore, the more and more expensive shuttles (maintenance on old equipment is a upward curve)

6. The US satellites will no longer get Russian ion engines and thus NASA's bills for engines will more than double in price.

These are just the economic costs, there will be plenty of political costs, such as everything to do with the war on terror.

Now lets us see what US suppliers to Russia will loose. Note, the lack of goods from the US will not hurt Russia, as there are hundreds of European and Japanese suppliers biting at the bit to suck up US market share, what little there is.

Meat incl. poultry … US$636.7 million (poultry has already fallen victim)

Passenger cars … $399.3 million
Civilian aircraft … $384.3 million
Oil field drilling equipment … $319.6 million
Excavating machinery … $170.7 million
Computer accessories … $155.1 million
Agricultural machinery … $148.1 million
Service industry machinery … $125.2 million
Trucks, buses & special purpose vehicles … $117 million
Materials handling equipment … $98.6 million
Iron & steel products … US$2.9 million
Railway transportation equipment … $18.7 million
Engines & parts … $70.1 million
Coal … $3.8 million
Synthetic rubber … $3 million

So, first off, the struggling US auto industry is set to loose a further $490 million in exports. But since they will be getting bailed out for $50 billion in US taxpayer monies, they can just add this right on top of it.

Airbus will also be kind to thank America for giving them an extra $340 million in business. As a matter of fact all US provided goods are absolutely substitutable for European goods, with the loan exception of possibly coal, but Abkhazia has large coal deposits and will be more than happy to export to Russia .

Furthermore, Europe has flatly showed the blind fools in DC that they will not follow America into idiocy, with the as always exception of the Anglo Lapdogs in London. There's a nice doggy, there's a nice doggy...now bark at the bad Russians on command...good neutered English pup.

But beyond all this is even a greater issue for America . It would seem that Russia is the 8th largest financier of America . That's right, America is now threatening its own financiers, a beggar with pride is a hungry beggar.

As such, the Russian government, never mind the billions extra held by Russian companies, holds $65 Billion in US government debt. The most obvious thing that the Russian government should than do is liquidate this debt. If nothing else, a fire sale of this proportion will have a major down ward pressure on all other US debt, costing the US far more than those $65 billion and throwing into doubt their ability to finance further without seriously raising interest rates and thus squeezing their serfs even more. Do you understand that US taxpayers? Your government is about to make your difficult lives much worse, and by the time you grow up to be adults and realize this, it will be to late.

The final card in the Russian economic arsenal, is of course the most devastating. This card can fully damage the entire US financial sector right from critically injured to mortally. Russia, as the world's 2nd largest oil exporter and the world's largest gas exporter, can refuse the US dollar, outright.

This will have the effect of removing the only reason why the US dollar is a reserve currency: to buy and sell petroleum products. All those European, Japanese, Chinese and other customers will no longer need the dollar, thus will sell it. This will have a sharp impact on dollar demand and with all those dollars flooding back into America , will drive inflation well past the US government's ability to lie about it. With Iran already refusing, the 3rd largest, the renewed US inflation caused by the explosion in inflation will have the same effect upon any nation whose currency is linked to the USD.

Of all such currency Saudi Arabia's is the key. Already SA is facing almost a 30% inflation and the serfs are angry as the cost of imported rice, a main dietary staple, has more than doubled. What will happen if inflation really accelerates? Either Riyadh will leave the dollar or face revolution. Either way, the dollar will loose its final anchor and its status as reserve currency. With this blow will go what is left of America 's economy and empire.

So, when US politicians are mouthing off and taking trade war steps, maybe they had best stop, for once in their lives, and actually do the math as to whom will be the real loser.

Note: sums by category were quoted from: Top Russian Exports & Imports

Stanislav Mishin

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