President of the Hungarian Chamber of Commerce and Industry warns of serious consequences of sanctions against Russia

Wednesday, July 30, 2014

The President of the Hungarian Chamber of Commerce and Industry László Parragh warns that sanctions can cause significant harm to the European economy and the consequences can determine the development of Europe for years to come.

Parragh said in M1 evening news that it was no coincidence that the majority of businesses opposed to sanctions.

According to Parragh, it is naive to think that while the Russian economy is hurting European economies won't be affected as the two economies are interdependent.

The President of the Chamber of Commerce noted that it makes a difference who pays the cost of the sanctions and what countries are damaged the most - warning that Hungary is especially vulnerable in this regard.

Diplomatic sources said on Tuesday that a preliminary agreement has been reached among the EU Member States' ambassadors on a wide range of economic sanctions against Russia.

European Union foreign ministers last week decided that punitive measures should be prepared against Russia; among them limiting Russia's access to the capital markets, defense sector's products, as well as the so-called dual-use products that could be used for military, police and civilian purposes; the ministers also suggested export restriction on the so-called sensitive technologies used in the energy sector.

(MTI –


Anonymous said...

The West and Eastern Europe has been economically gutted by the Globalists - economically destroyed from within.

Defining Away Economic Failure: “Offshoring Manufacturing” and the Decline of America’s Industrial Base - Redefinition Is America’s Most Powerful Factor of Production
By Dr. Paul Craig Roberts

...Not if stocks are up because corporations are buying back their own stock. Corporations are now the largest buyers of stocks. Recently we learned that from 2006 through 2013 corporations authorized $4.14 trillion in buybacks of their publicly traded stocks. Moreover, it appears that corporations have been borrowing the money from banks with which to buy back their stocks...
Borrowing to buyback stock leaves a company with debt but without new investment with which to produce revenues to service the debt. The massive stock buybacks demonstrate that American capitalism is now corrupt. In order to maximize personal short-term financial benefits flowing from bonuses, stock options, and capital gains, CEOs, boards of directors, and shareholders are decapitalizing public companies and loading them up with debt...
It works like this: The excess of US imports over US exports leaves foreigners with claims on US income and wealth that are settled by foreign purchases of US assets. The income produced by these assets now flows abroad with the consequence that income earned by foreigners on their US investments exceeds the income earned by the US on its foreign investments.

According to Ms. Hester’s reasoning, Americans would be better off it they produced nothing that they need and in place of manufacturing relied on the incomes of US fashion designers and pattern makers who specify the offshored production for US markets, on the compliance officers and freight agents, on production planning and expediting clerks, and on longshore workers and railroad employees who deliver the foreign-made goods to US consumer markets.

Ms. Hester believes that the value-added by offshored manufacturing is inconsequential. How then did China get rich from it, becoming the second largest economy and employing 100 million people in manufacturing (compared to America’s 12 million), and acquire the largest foreign reserves of any country?
...Economists assume that the labor cost savings are passed on to the consumers in lower prices, but I have not experienced declining prices of Nike and Merrell sports shoes, of sheets and towels, of Brooks Brothers and Ralph Lauren shirts, of Apple computers, or whatever as a result of moving US production offshore. The labor cost savings go into profits, managerial bonuses, and capital gains for shareholders and is one reason for the extraordinary increase in income and wealth inequality in the US...
In other words, whether or not a US company is a manufacturer does not depend on its activity, but on its ownership of a brand name made for the company by a foreign manufacturer. For example, Apple iPhones made in China and sold in Europe would be reported as US exports of manufactured goods, and iPhones sold in the US would no longer be classified as imports but as US manufacturing output...
...As I have emphasized for years, the West already lives in the dystopia forecast by George Orwell...
Every sphere of Western existence is defined by propaganda. Consequently, we have reached a perfect state of nihilism. We can believe nothing that we are told by government, corporations, and the presstitute media.

We live in a lie, and the lie is ever expanding.

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