Voices from Russia

Tuesday, 26 August 2014

EU Pressure on Argentina to Halt Food Imports to Russia Might Backfire

00 San Telmo Market. Buenos Aires ARGENTINA. 26.08.14


Peter Koenig, a former World Bank economist, thinks that Argentina would laugh at the EU’s “ridiculously stupid” request not to increase food exports to Russia. A short while ago, the Financial Times reported that the EU was going to try to talk Latin Americans out of supplying Russia with foodstuffs. Several European diplomats visited the region and singled out Argentina as an obvious target for European pressure. Brussels failed to understand that Russia doesn’t need to import foodstuffs from Latin America. In fact, Koenig said that Moscow could help Argentina and other Latin American countries “free themselves from the economic and political pressures constantly exerted … by Washington”.

Commenting on Western sanctions imposed on Russia over the Ukrainian crisis, Koenig said that they’d positively affect Russia, as well as Argentina, Brazil, Chile, Peru, etc. They’d encourage those countries to “finally escape the claws of the predator empire of Washington, and go the way of independence, namely, towards a new area of economic sovereignty and a new world monetary system”. Koenig pointed up that sanctions promote greater integration of the BRICS countries. Brazil, Russia, India, China, and South Africa are likely to “come to a consensus … and issue their own currency, backed by about one-third of the world’s economic output and about half the world’s population”. Over the last few years, Russia and China “forged a solid political and economic alliance”. Therefore, they could be the first countries to introduce a new currency “delinked from the corrupt predatory western monetary system”. That currency could replace the dollar as a global reserve currency. Russia and China have a combined GDP of 21.1 trillion USD (762 trillion Roubles. 130 trillion Renminbi. 1.28 quadrillion INR. 23.2 trillion CAD. 22.7 trillion AUD. 16 trillion Euros. 12.72 trillion UK Pounds), about 27 percent of world economic output. Therefore, “a Sino-Russian currency would be backed by solid economic output and commodities”. On the other hand, Koenig explained that the US GDP (17 trillion USD (614 trillion Roubles. 105 trillion Renminbi. 1.03 quadrillion INR. 18.7 trillion CAD. 18.3 trillion AUD. 12.9 trillion Euros. 10.3 trillion UK Pounds)) is “mostly based on the output of the financial services industry and its military industrial complex, meaning it’s a GDP of destruction and overconsumption, as well as hollow financial and legal services”.

Koenig thought that Argentina could become the first country “to free itself from the economic sledgehammer of the immoral USA and at the same time enter into trade agreements with Russia and China”. That could be reasonable, considering that “90 percent of Argentina’s foreign trade takes place outside of the realm of the US dollar”, and that it’s likely to be an outsider in a dollar-based financial system. Koenig is confident that it’s only a matter of time until much of the rest of the world “jumps on the occasion and abandons the dollar. All it needs is one country that dares to take this first step, fearless of sanctions”. Koenig also said that if Brussels keeps on pushing Argentina, thus, “helping Obama and his blood-thirsty NATO war machine engage Russia in World War III”, Europe runs the risk of destruction. He asked, “Don’t they realise that Russia not only wants to save Europe from another humanitarian disaster, but would like to help them out of their Wall Street imposed economic disaster?” Koenig maintains that Europe must realise it should “get rid of their Washington-imposed neoliberal thieves” and seek a healthy alliance with the East. He emphasised that it’s never too late to make the right choice.

26 August 2014

Stanislav Fisher

Rossiya Segodnya



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