Can you hear the rockets coming, Fernando? They were there for you and me...
The big winner of all of this seems to be Justin Trudeau:
Oil, potash, and wheat. Those are Canada’s main exports. With Russia removed as a competitor the Canadians will reap windfall profits.
This is the quiet stuff that reveals how meaningless measurements involving pieces of paper with ink printed on it are. Running in circles declaring Russia’s GDP is small compared to the US . . .that’s a measurement based on inked pieces of paper.
You can create those by increasing government spending. The G parameter in the GDP equation is additive. Government can spend its way to GDP, regardless of it being borrowed or not.
In contrast, Russia’s GDP is based on joules — and fertilizer tons. Joules are a measurement of energy. They do not change their value per barrel as a consequence of the mood on NYMEX. Fertilizer tons weigh 2000 lbs no matter what counterparties have as their mood that day.
Russia’s debt is 20% of these GDP measures. The US, well over 100%. GDP is too often measured as a growth %. But when you look at the raw numbers that were used to compute that %, you discover how often government spending of an amount raised the GDP number LESS than the spending.
Remember how to measure things when you glibly lean back and imagine the US to be exceptional and superior. Getting your numbers from the Fed, or exported bytes of entertainment, differs a GREAT DEAL from getting your numbers from joules and tons of material vital to growing food.
This is the quiet stuff that reveals how meaningless measurements involving pieces of paper with ink printed on it are. Running in circles declaring Russia’s GDP is small compared to the US . . .that’s a measurement based on inked pieces of paper.
You can create those by increasing government spending. The G parameter in the GDP equation is additive. Government can spend its way to GDP, regardless of it being borrowed or not.
In contrast, Russia’s GDP is based on joules — and fertilizer tons. Joules are a measurement of energy. They do not change their value per barrel as a consequence of the mood on NYMEX. Fertilizer tons weigh 2000 lbs no matter what counterparties have as their mood that day.
Russia’s debt is 20% of these GDP measures. The US, well over 100%. GDP is too often measured as a growth %. But when you look at the raw numbers that were used to compute that %, you discover how often government spending of an amount raised the GDP number LESS than the spending.
Remember how to measure things when you glibly lean back and imagine the US to be exceptional and superior. Getting your numbers from the Fed, or exported bytes of entertainment, differs a GREAT DEAL from getting your numbers from joules and tons of material vital to growing food.