August 19, 2008

Japan's embargo on Cuba

I know this item was posted already but one line jumped out at me:

The Central Bank of Cuba's failure to pay for Japanese imports by agreed dates is behind the decision, the Nikkei said in a report on its website.

It means that almost all exports from Japan to Cuba will come to a halt for now, it added.

Like I have been saying since my second ever post at Babalu, Cuba's attempts to have the embargo removed are based solely on trying to find the next in a long line of suckers.

The article notes that the Japanese government (therefore the Japanese people) are on the hook for castro inc.'s debt because the trade insurer is government-backed This is exactly what many embargo opponents want, U.S. subsidy of the castro regime. The others are too dumb to realize that it's exactly what would happen.

Posted by Henry Louis Gomez at August 19, 2008 12:46 AM

Comments

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Posted by: Laz [TypeKey Profile Page] at August 19, 2008 11:12 AM

that is why I don't have a problem with our current situation. We don't buy anything from them and they have to pay for our stuff in cash. I would love to sell them everything for cash. This would keep the businesses that want trade quiet. if Cuba is such a great place then let them pay up front for the product. we all know that the Cubans tried to spread their purchases around to maximize their investment so can you imagine them trying to get enough cash to buy something from each of the 435 congressional districts? Well maybe 431.

Posted by: theCardinal [TypeKey Profile Page] at August 19, 2008 10:23 PM

Cardinal,

The whole remove the embargo movement has less to do with the embargo than it does with trade credits. Let's say that tomorrow we dropped the embargo completely and said the only requirement is that Cuba has to pay in cash. The next thing would be "to get rid of that onerous restriction". The reason Cuba spreads its purchases around is to buy influence to get the greater embargo removed. The embargo (like the welfare state we were talking about in the other thread) is a tug-of-war. If you aren't gaining ground you're losing it.

Posted by: Henry Louis Gomez [TypeKey Profile Page] at August 19, 2008 10:33 PM

That's the point I was making with them trying to spread the love around the country by making purchases everywhere. I'm not for dumping the embargo tomorrow - just want to make it clear, I was just following my train of thought to its natural conclusion. I agree with you to an extent - but we're talking hypotheticals so who knows? My feeling is that the onerous provision of cash only purchases can be easily justified and defended on nativist and populist concerns that could easily appeal to Republicans and Dems - insisting that we don't want corporate welfare and that American taxpayer dollars should not go to support companies dumb enough to give credit to a deadbeat nation. Fiscal conservatives and corporate haters would go for it I believe.

Posted by: theCardinal [TypeKey Profile Page] at August 20, 2008 08:28 AM


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