Sometimes I wonder. In the modern world of trying to punish the punisher, on Wednesday, as reported in the late edition of USA Today our good pal Vlad retaliated against the United States, the European Union, Canada and Japan by prohibiting the import of American and Canadian grain, and European and Japanese produce into Russia, soon to be known as the Eurasian Union if Vlad gets his way.
Why would he do this?
Well, for starters, he is petulant. He is annoyed that sanctions have been placed against him for his activities against Ukraine. This country is the prize, the breadbasket of Europe, and his Empire, if he is successful.
In the process, as the old Communist he really is, he forgot the basic premise of Economics 101, you know the one... to keep prices low, the supply must outweigh the demand for a product. Good old Supply and Demand. Oops... he blew that question on the final.
So the result of his petulance and disgust with the West, the G-7 countries, is higher prices for a loaf of bread and an apple. He is going to win a lot of fans with that action, so much so, memories of the glory days of Brezhnev, Krushchev and Stalin will be rushing forth in the collective minds of his subjects.
It is the old "cut off my nose to spite my face" reaction.
Forget about us, or the other "affected" countries. The lack of a Russian Market for American or the West's produce will not have a great deal of impact to our farmers' livelihood. There are always other markets which will buy our quality of food.
No, sadly, the Russian people will suffer, first with higher prices for basic needs, and then with bread lines, lines for toilet paper, and fruit, and cars, and so much more. Then, because the food becomes more expensive, people can't buy it; which forces the market to close; which then forces the proprietor to lay off his workers; which forces the worker to sacrifice buying other products; which actions affect additional companies; and on it goes.
All because Vlad is mad about the sanctions.
So, finally, who suffers in this scenario? Americans? Canadians? Germans? None of these people. Nor the Japanese or the French or the Brits. And who can Vlad turn to? The North Koreans? The Chinese? No again.
But the Russian people will suffer, much like they did in 1983, 1965, 1952, 1939 and 1918. They will long for the return of Gorbachev and Yeltsin. But they will be stuck with Vlad. And he won't be budging.
It is just another day in paradise, The Worker's Paradise. 2014 style.
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