As a direct result of sanctions on Russia, there is an overabundance of fruits and vegetables in France, Spain, Poland, and elsewhere in Europe. Basic law of supply and demand dictates prices of crops would fall.
And they did.
While most foolishly want to stick it to Russia, few actually are willing to pay the price if it affects them.
Here is another case in point: French Farmers Torch Tax Office in Brittany Protest.
French vegetable farmers protesting against falling living standards have set fire to tax and insurance offices in town of Morlaix, in Brittany.
The farmers used tractors and trailers to dump artichokes, cauliflowers and manure in the streets and also smashed windows, police said.
Prime Minister Manuel Valls condemned protesters for preventing firefighters from dealing with the blaze.
The farmers say they cannot cope with falling prices for their products.
A Russian embargo on some Western goods – imposed over the Ukraine crisis – has blocked off one of their main export markets.
About 100 farmers first launched an overnight attack on an insurance office outside Morlaix, which they set light to and completely destroyed, officials said.
They then drove their tractors to the main tax office in the town where they dumped unsold artichokes and cauliflowers, smashed windows and then set the building on fire.
The French protest underscores the stupidity of sanctions.
No one wins.
Russia does not get fruits and vegetables, but European growers lose income.
France actually the worst end of it, with a tax office destroyed and widespread discontent spreading. In Russia, support for Putin is at all-time high.
Sanctions will never work.
Mike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.