While Joe Biden spikes the football and wishes economic devastation on an entire nation of people for what their dictator is doing, Russian President Putin is seeking his own retaliatory response.
His nation is the largest world producer of oil, a major exporter of fertilizer, and the 2nd largest producer of natural gas.
The US sanctions create a lot of collateral damage for industries such as grain, seafood, and luxury goods. Russia was the US’s 23rd largest trading partner.
The U.S. imports approximately 96% of the nation’s potassium fertilizer from Russia, including 1 million short tons per year, according to Michigan Potash & Salt Company.
Together Russia and Ukraine exported 25.4% of the world’s wheat in 2019, according to the Observatory of Economic Complexity (OEC). USDA analysts said exports from the two countries would fall to a combined 52 million tons this marketing year.
Putin said in a statement: “This (obstruction) concerns energy carriers, oil. Of course, it concerns gas, including liquefied gas. This also concerns fertilizers, some other goods, metals, and so on, chemical products in the broad sense of the word. As for fertilizers, then, of course, if this continues further, it will have serious consequences for this segment of the world market and for food in general.
“It will also affect macroeconomic indicators because inflation is inevitable in this case.”
Russia announced it will temporarily suspend the shipment of Russian fertilizers for export.
We’ve already addressed the fertilizer issue. One Oklahoma farmer told Laura Ingraham that farmers are anticipating a 30% increase in food over oil and fertilizer.
According to Fox Business, “Peter Zeihan, a geopolitical analyst and author, told FOX Business the world was on the verge of “the worst fertilizer situation in modern history in terms of supply” before the Russians rolled into Ukraine.”
“All three source materials that go into fertilizer (phosphate, nitrogen, potash) are subject to abject shortage,” he said. “And even if the war were to stop tomorrow, it’s already too late. It’s too late for the planting season for the Northern Hemisphere this year.”
“And as food prices rise, as they’ve been for the last two weeks – and pretty sharply – farmers will do what farmers do. They will plant what they think that they can grow for the greatest bang for their buck. So, I can see (the United States) increasing our production and our exports by a small amount. But the scale of what we’re talking about here is insufficient food for hundreds of millions of people.”
The sanctions aren’t stopping Putin and he will win in Ukraine. The media thinks Russia is losing the war. That’s probably fake news.
Meanwhile, the West will suffer hyperinflation, making a lot of people poor overnight for nothing. It will hurt the US middle class.
Biden’s mocking of Russia’s alleged imminent economic collapse is going to come crashing down on him and his party.
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