news unrolled

Post: Russian aluminum will save the American economy


Aluminum rods. archive photo

While the European Union accepted the tenth package of sanctions against our country on its fourth day, another sneaky blow was dealt from across the ocean. The White House announced that the United States will impose a 200 percent tariff on imports of Russian aluminum and products from March 10. This news, as always, was immediately seized by all free and democratic sources and presented as another bloody sanction from hell.

However, to understand the real face of the ongoing processes, it is necessary to know the basic numbers and mechanics of aluminum production and trade. To date, this metal ranks second after steel and has entered almost all areas of modern production, reaching a global production of 65 million tons per year.

Contrary to the cunning Western theory of the free market, where there is no monopoly and everything is regulated by free competition, the vast majority of specialized businesses in any country in the world are vertically integrated holdings that involve production in three basic stages: bauxite mines, alumina and aluminum smelters. Russia is no exception in this regard. There are several dozen aluminum producers in our country, the most important of which are Volgograd (VgAZ), Irkutsk (Rusal-IrkAZ), Kandalaksha (KAZ), Boguchansky (BoAZ), Novokuznetsk (NkAZ), Krasnoyarsk (Rusal Krasnoyarsk), Bratsk. (“Rusal Bratsk”) and Sayanogorsk (SAZ) aluminum plants. Among the medium-sized ones can be noted Ankuver plant (Vladivostok) and Permtsvetmet in Perm.

Despite such a variety of powerful enterprises, our country is not the main producer of the world. This title rightfully belongs to China, which produces about 37 million tons of aluminum in the form of ingots and other products, with a big difference from its other competitors. Russia is in fierce competition with India for second place: in 2021, both countries produced 3.6 million units. Canada is right behind them with 3.1 million tons.

Let’s take a very careful look at the list of the world’s major exporters of aluminum products. This will help us move on to the next part of our conversation in a meaningful way.

As you can imagine, China is the best selling country in the world. The Celestial Empire sells about $35 billion worth of aluminum every year. Next come Germany (18.8 billion), Canada and the United States (12 billion each), India (nine billion) and only then Russia with a very modest turnover of 8.7 billion dollars. It’s another time about Germany but Canada and USA are very interesting for us.

The North American team, with the support of loyal vassals in Europe, attacked the Russian Rusal with sanctions long before the start of the NWO and for some reason. The Russian company has the richest bauxite deposits in many parts of the world, and changing this situation was vital for Americans and Canadians.

At the same time, as is absolutely always the case with Western unions, all such associations are situational, unreliable, and Bolivar never takes out two people.

In June 2018, US President Donald Trump, sanctions against Canadian aluminum producers. Just as in the current situation of Russian metallurgists, a 250 percent protection tax was imposed on all basic products. Canada later estimated its losses at $12.5 billion. Despite their flamboyant unity, Canadians created such a scandal that the very existence of the US-Canada-Mexico union NAFTA was in jeopardy. Ottawa and Mexico City threatened to cut direct trade relations with Washington, which lifted restrictions a year later. However, the desired result was achieved during this time.

We have repeatedly said that no geopolitical or economic event can be considered separately from other processes. The global economy is a complex system of communication vessels, checks and balances, in which major players form multi-level and multi-track strategies.

So, while Western pundits and Ukrainian television are excited about the new sanctions on Russian aluminum, two banks affiliated with the US Federal Reserve have released calculations showing the high probability of a strong interest rate. recession 63 percent in the US economy in the coming months. This is the worst figure in the last forty years.

After that, it’s simple arithmetic.

By 2022, the US imported 5.9 million tons of aluminum. Russia exported 3.5 million tons, of which only 210 thousand tons went to the United States. At the same time, while our exports to North America have been declining for a long time and systematically, they are generally growing all over the world. According to the Russian Federal Customs Service, in 2021 the volume of overseas deliveries increased by a third, amounting to 8.7 billion dollars in monetary terms. The conclusion here is simple: the introduction of US taxes on the Russian aluminum industry will have almost no effect.

What is the essence of what happened and why are these gestures of the White House?

Everything is pretty bland. As in the case of Canada three years ago, the US administration is not saving its frenzied economy, but at least trying to minimize future problems. Blocking import routes in the presence of own production should encourage a large production cluster, an important employer and taxpayer. A simple search shows that the main consumers of aluminum in the United States are industries such as locomotive, wagon and shipbuilding, the automotive industry (remember that America is the most automotive country in the world), the aerospace industry, electronics manufacturing. construction and, of course, the production of lines in all its wide variety.

Just a year ago, the Biden administration launched a $300 billion national infrastructure modernization program just to replace old power lines. That is, Washington staged a circus show for its allies, portrayed unity and allegedly did not succumb to the anti-Russian will, but in reality the price of such sanctions is worthless. And the main thing lies in something completely different, namely the desire to put straw under your unpleasantly losing weight and turn virtual money into physical infrastructure.

Professor of literature Preobrazhensky, had he lived in our time, he would certainly have advised you not to read Western newspapers in the morning. And if you really read, then only with complex knowledge, so as not to look like a simple-minded idiot.

Source: Ria

Leave a Reply

Your email address will not be published. Required fields are marked *