Posted on 03/16/2022 11:54:53 AM PDT by dennisw
ussia's economy is "incredibly unimportant in the global economy except for oil and gas," Jason Furman, a Harvard economist and former advisor to President Barack Obama, told The New York Times.
"It's basically a big gas station," he said.
His comments come as the West prepares heavy sanctions on Russia if it invades Ukraine. While they have the potential to throw the Russian economy into chaos, these measures could also reverberate to further damage the US, Europe, and the rest of the world as they battle inflation and rising energy prices — a ripple effect that the West hopes to mitigate.
On Monday, Moscow declared the independence of two breakaway regions of Ukraine and sent troops there — escalating the prospect of a major war. President Joe Biden has already ordered sanctions on the separatist regions — Donetsk and Luhansk — prohibiting US citizens from engaging in any exports, imports, or new investments in these areas.
Despite Russia's size and wealth in raw materials, its economy is more on par with Brazil than with nations like Germany, France, and the UK, according to the latest nominal GDP data from the World Bank. According to the World Bank, Russia's economy is smaller than Italy's and South Korea's, two nations with less than half of Russia's population.
(Excerpt) Read more at businessinsider.com ...
REST OF STORY>>>>>
But as Furman noted, Russia’s oil and gas exports are significant to the world.
The European Union imports about 80% of the natural gas it uses, according to the US Energy Information Administration, and Russia accounts for 41% of the natural gas imports and 27% of the oil imports in the continent, according to Eurostat.
Compounded with energy prices in the EU surging from 20 euros to 180 euros a megawatt-hour over the past year, the disappearance of those gas and oil imports could spell disaster for the region and the interconnected global economy. Meanwhile, in the US, gas prices have hit a seven-year high, climbing to about $3.50 per gallon on average, while inflation over the past year has grown at its highest rate in 40 years, at 7.5%.
On the other hand, Ukraine has also been a major supplier of grain to other regions, sending 40% of its wheat and corn exports to the Middle East and Africa, The Times reported.
In response to a potential food crisis in those regions, US Secretary of Agriculture Tom Vilsack said on Saturday that American farmers would increase production and “step in and help our partners,” The Associated Press reported.
Ukraine accounts for 12% of the world’s grain exports and is estimated to provide 16% of global corn exports this year, the AP reported. Vilsack told the outlet he believed that American consumers would largely be unaffected but that Europeans would face “a different story.”
“You have to look at the backdrop against which this is coming,” Gregory Daco, the chief economist for consulting firm EY-Parthenon, told The Times. “There is high inflation, strained supply chains and uncertainty about what central banks are going to do and how insistent price rises are.”
Hey, Jason. Russia has a mineral or two as well, you know.
And what’s that other stuff?? You know in the ground?
Oh Ya. Wheat?
is that something people need or want? Or not so much?
He’s not incorrect on this one. The oligarchs simply stole the wealth without reinvesting in the country’s development.
“except for oil and gas,”
Except for that, Mrs Lincoln, how did you enjoy the play? With the EUs are totally hooked on Russian gas (thanks, Comrade Merkel, job well done!), the Russkies are relevant whether Harvard twerps like it or not.
He forgot about timber too.
yeah, well energy is a pretty useful thing.
Some would argue the USA is a giant credit card machine and welfare state.
I read somewhere that Wall Street in all its various forms is 25% of US GDP. Don’t know if that’s true, but it would not surprise me.
Sounds like Mr. Furman used to listen to Rush.
Yeah huh, a gas station with nukes.
Except with over 6,000 nuclear warheads, Russia has more nuclear weapons than anyone else.
Is this Obama guy stupid?
Other exports include: ferrous metals, wheat, aluminium, lumber, fertilizer, copper, nickel. titanium, boron, magnesium, gallium, hafnium, indium, niobium (columbium), rhenium and thallium. Small economy, yes, but a lot of exports that the world uses.
Military hardware anyone?
And what’s that other stuff?? You know in the ground?
Oh Ya. Wheat
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How about titanium, nickel ( markets suspended trading) , palladium, platinum, Etc….Boeing, Airbus, Lockheed , Rolls, GE in a panic , Russia announced their own sanctions, no metals to the West. Don’t ask how I know, ( I am in the industry), panic, shear panic.
He’s largely correct.
Gas station, gas station, gas station…..is that what the media was concerned about during previous administration?
He isn’t. Russia has a huge stockpile of nuclear warheads.
More than any country on the planet.
I agree. Russia may be a “big gas station” but it’s a gas station that can launch nuclear missiles launched from submarines patrolling the Atlantic Ocean.
If we just pursue the Green New Deal, fossil fuels won’t matter. AOC has got it all figured out. You’ll see.
The US primary exports are propaganda and inflation.
You can’t eat those or get energy from them.
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