Bush's Economic Warnings to Russia Face Hurdles

[DogPoundPup]

Source: Wall Street Journal

U.S. President George W. Bush's implicit threat of financial retaliation against Russia faces a major obstacle: The U.S. and the European Union don't have much economic sway right now over oil-rich Moscow.

Mr. Bush warned Wednesday that Russia's invasion of neighboring Georgia puts Russia's global aspirations "at risk," a hint that the U.S. might use its economic power to stymie Russia's entry into the World Trade Organization or penalize Russian companies.

But the U.S. doesn't do that much business with Russia, while the European Union buys so much gas from Russia that it is Moscow that has the upper hand.

"The reality is that in the near term, the economic leverage anyone has over Russia is limited," said Carlos Pascual, vice president of the Brookings Institution and a former national-security aide to President Bill Clinton.

U.S.-Russian trade totaled $26.6 billion for all of last year, less than Americans buy from China in a single month. Russians have invested roughly $760 million in factories, companies and real estate in the U.S.; by contrast, Japanese investors have plowed $233 billion into such U.S. assets, according to the U.S. Bureau of Economic Analysis, part of the Commerce Department.

Read more: http://online.wsj.com/article/SB121867961126739479.html?mod=hps_us_whats_news

[AlphaCentauri]

1. * impotence political lies

[NCDem60]

2. We won the cold war because

the Soviet Union could not keep up economically. The arms race was bankrupting their country. We no longer have that advantage.

International Reserves and Foreign Currency Liquidity

United States $75 billion (as of July 25, 2008)
Russia $568 billion (as of June 2008)

External Debt

External Debt of the Russian Federation (March 2008) $477 billion
External Debt of the United States (March 2008) $13,773 billion

The U.S. external debt is increasing quarterly by nearly as much as the total external debt of Russia.

The American government, American business, and the American people have merrily sold this country away.

[bhikkhu]

3. That puts it very nicely

The US at the moment is the largest debtor nation on the planet. beyond any conceivable rival. Russia at the moment is flush with cash.

I only hope the Ossetians and Abkhazians are given some consideration, and perhaps even left alone to govern themselves as they have been for so many years now.

[tanyev]

4. It is a threat given by an idiot, full of sound and fury, signifying nothing.

[SpiralHawk]

5. Republiconomics = FAIL & impotence

You got no lead in your pencil, Commander AWOL & cronies.