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Cuba Calculates Cost of 54yr US Embargo At $1.1 Trillion

First time accepted submitter ltorvalds11 writes Cuba says its economy is suffering a "systematic worsening" due to a US embargo, the consequences of which Havana places at $1.1 trillion since Washington imposed the sanctions in 1960, taking into account the depreciation of the dollar against gold. "There is not, and there has not been in the world, such a terrorizing and vile violation of human rights of an entire people than the blockade that the US government has been leading against Cuba for 55 years," Cuban Deputy Foreign Minister Abelardo Moreno told reporters. He also blamed the embargo for the difficulties in accessing internet on the island, saying that the United States creates an obstacle for companies providing broadband services in Cuba. Additionally, he said that the area is one of the "most sensitive" to the embargo, with economic losses estimated at $34.2 million. It is also the sector that has fallen "victim of all kinds of attacks" by the US, as violations of the Cuban radio or electronic space "promote destabilization" of Cuban society, the report notes. The damage to Cuban foreign trade between April 2013 and June 2014 amounted to $3.9 billion, the report said. Without the embargo, Cuba could have earned $205.8 million selling products such as rum and cigars to US consumers. Barack Obama last week signed the one-year extension of the embargo on Cuba, based on the Trading with the Enemy Act of 1917, created to restrict trade with countries hostile to the U.S..

24 of 540 comments (clear)

  1. Ignorance is self-righteous posturing by src1138 · · Score: 5, Insightful

    "There is not, and there has not been in the world, such a terrorizing and vile violation of human rights of an entire people than the blockade that the US government has been leading against Cuba for 55 years,"

    Ha ha ha ha! Funny guy. He needs to read a history book - or even a current weekly magazine.

    Abretardo Morono - pushing the limits of ignorant hyperbole!

  2. I don't get it by Torp · · Score: 5, Insightful

    The righteous communists have a need to trade with the capitalist imperialists? Won't the ghost of Stalin provide for all?

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    1. Re:I don't get it by PolygamousRanchKid+ · · Score: 4, Insightful

      If Cuba had oil . . . the embargo would be over really fast.

      Cuban cigar smokers in the US don't have a PAC to push through changes. They're just not a big enough special interest group.

      --
      Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
    2. Re:I don't get it by AmiMoJo · · Score: 4, Insightful

      I don't think you understand how communism is supposed to work. Trade is desirable as long as the benefits are shared with the workers not just the private owners.

      How can you hate something you know so little about?

      --
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  3. $1.1 Trillion over 54 years... by NicBenjamin · · Score: 5, Insightful

    Works to something like $20 Billion a year. That's a credible figure. We do $650 billion with Canada in a year, and Cuba ain't that much smaller.

    The problem with their argument is that whenever a US President tries to reduce tensions, they do something to ratchet them back up. For example, Obama was inaugurated in Jan of '09, announces easing the embargo by allowing families in the US to visit and send money more easily in April, and by December some poor schmuck (Alan Gross) is rotting in a Cuban jail for bringing computer equipment in for Jewish groups. It's true that if you're an evil dictatorship stopping your local people from doing that is not unreasonable, and it;s true our government paid for it, but it's also true that you could easily stop him seizing his computers and deporting his ass. Now if Obama ever does anything nice for Cuba (such as sticking his neck out on ending the embargo) people supporting the embargo strongly have a trump card: why would we trade with a country that is holding one of our guys in prison for the crime of helping people access the internet?

    It would cost them literally nothing to let this guy go, but they insist on keeping him in prison where he can only prevent them from accessing that $20 billion a year export market.

    Which means most independent observers have long concluded the Castros like the embargo, because it allows them to claim everything that is wrong with the country is Evil Foreign Gringo's fault. Which justifies things like arresting guys for bringing in computer equipment.

    1. Re:$1.1 Trillion over 54 years... by Xest · · Score: 4, Insightful

      Right, but it's still an utterly stupid policy.

      If America had just allowed free trade with Cuba the inflow of US culture into the country would've long turned it into a pro-US state - it's the policy of isolation that's keeping it hostile in the first place.

      There's no way a country that small, and that close to the US could hold out as a communist nation in the face of unrestricted trade with the US - it'd become so utterly dependent on the US that it'd simply have no choice but to bow down to US wishes and culture.

      There are times where I do support the US (strikes against IS, stance on Ukraine) and there are times where I'll happily call it out as stupid (Iraq), this is one of those times where it's stupid, where the policy is wholly self-defeating, and where the only people that suffer from the policy are the largely innocent general populace of Cuba.

      The fall of the USSR was a prime opportunity to turn Cuba around, Russia facing bankruptcy withdrew almost all funding for Cuba and left it in the shit. Had the US taken that opportunity to drop restrictions, and normalise relations then Cuba would be as ex-USSR and as pro-USA as Poland is nowadays. Instead, the US continued it's bone-headed embargos such that now that Russia is becoming a resurgent pain in the ass Cuba is more than happy to take money to facilitate the reopening of the USSR's largest external listening base right off the coast of the US on Cuban soil.

      As foreign policy goes, the US' policy on Cuba is probably one of the single most stupid and short-sighted foreign policies there is.

    2. Re:$1.1 Trillion over 54 years... by Livius · · Score: 4, Insightful

      The purpose of the policy is not economic or ideological, it is to punish a country that chose to stop being an US colony and actually exercise the independence that was only supposed to be on paper.

      Cuba is hardly a model of economic progress or human rights, but that's not the reason.

      Very much like Iran.

    3. Re:$1.1 Trillion over 54 years... by dave420 · · Score: 5, Informative

      Scapegoating? That would imply the US's hands are clean, which it seems they probably are not, as the US supported the military coup against a democratically-elected leader, something South & Central America does not take too lightly, given the US's track record of destroying democracy in those regions.

    4. Re:$1.1 Trillion over 54 years... by isilrion · · Score: 5, Informative

      Did I get that totally wrong from this side of the Atlantic?

      Kind of. The embargo started two years before the missile crisis, so unless there was some time travel involved, the missile crisis did not cause the embargo. (Of course, it also didn't make it better.) It started also before the failed Bay of Pigs invasion that forced Cuba to fully ally with the Soviet Union, which paved the way to the missile crisis.

      The embargo was retaliation for the nationalization of american properties in 1960, which, to my recollection (but I hated history classes, so I'm probably wrong), occurred in response to the owners shutting down production to destabilize the newly formed government. During the missile crisis it briefly evolved into a full blown blockade. After the missile crisis, it has gotten worse ("due" to the continuing alliance with the soviets), until the fall of the Soviets... when it got even worse (Torricelli act, 1992).

      I.

  4. Re:RT.com? by Anonymous Coward · · Score: 5, Insightful

    Well, RT is about as reliable as Fox News. If you assume that everything said is complete lies and the few things that are true are extremely skewed then you are pretty close to the truth.
    With that said, the US embargo against Cuba has not exactly been beneficial to either of the nations. All this time since the cold war could have been spent bringing Cuba closer to the US. Just opening up a bit with regards to trading would have done a lot.
    A better Cuban economy would benefit the US (How about cheap manufacturing on Cuba instead of in China?) and having a trading partner that close instead of a potential enemy there is a pretty nice deal.
    In my opinion the stance US has towards Cuba is pretty retarded.

  5. Re:RT.com? by Anonymous Coward · · Score: 4, Informative

    RT is directly controlled by the Russian govern.. well, Putin. I would say that makes Fox News slightly more trustworthy.

  6. Re:US is... by Z00L00K · · Score: 4, Funny

    If you really want to mess up Cuba - drop the embargo and flood them with goods.

    --
    If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
  7. Re:US is... by drfred79 · · Score: 4, Insightful

    ... a fucked up country full of paranoid war hawks and religious whack-jobs, that's about what you'd expect from america.

    Happy September 11th. If I wished to say those things about the United States I'd even be able to do so as a citizen. If you're an American then congratulations, you're in one of the only countries that you can do that. If you're not American I don't intend to stifle your freedom of speech, I just dare you to say that about you're own country.

  8. Re:RT.com? by Anonymous Coward · · Score: 4, Insightful

    I think you will find that far fewer Ukrainians have died because of Rupert Murcoch.

  9. Value of nationalized assets? by swb · · Score: 5, Interesting

    I wonder what the value of American-owned assets nationalized by Castro would be worth today had they never been nationalized. My guess is that it has to be at least Cuba's "cost" or worse.

    It'd also be interesting to know the value of the lost productivity imposed by Cuba's communist economics.

  10. Re:RT.com? by silentcoder · · Score: 5, Insightful

    >Communists in power don't force people to drink vodka & eat borscht you sniveling coward, they confiscate all your belongings, outaw dissent & condemn people to hard prison or insane asylums without fair trials.

    No... that's what TYRANTS in power do. Just because we've had a lot of communist tyrants does not mean communism REQUIRES Tyrants (it doesn't) or that Tyrants are always communist (they aren't - in fact three of the worst tyrants of the 20th century were not - two were fascists [a form of capitalism] and one was a free market fundamentalist: Pinochet !)

    There are variations of communist philosophy that are forms of anarchism - such as Anton Pannekoek's "Council Communism", Robert Hahnel's Parecon, Noam Chomsky's brand of Anarcho-syndicalism or the kind of libertarian socialism practised in Andalusia (Southern Spain) during the first 20 years of the last century - and would probably still be there if the scale of the world wars hadn''t overwhelmed them and gotten all of Spain under a different tyrant (Franco) with yet another economic philosophy that was fairly unique (close enough to capitalism for Spain not to be targeted during the cold war, close enough to communism for the Russians not to target them either - somewhat like facism but not enough for either side to care).

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    Unicode killed the ASCII-art *
  11. Re:RT.com? by dave420 · · Score: 4, Insightful

    Why is this +5? Yes, RT.com frequently publishes propaganda, but this story is available on any number of alternative news sites, and is based entirely on a report from the Cuban government itself. Unless you are suggesting RT.com has made the Cuban government write & publish this report, your comment is a fine example of an "ad hominem", and should be ignored as such.

  12. Re: RT.com? by Chrisq · · Score: 4, Funny

    My conclusion is that Canada sucks as bad as the USSR.

    Its a close call. Invading the Ukraine vs those stupid "Mountie" uniforms.

  13. Re:Free Alan Gross by nbauman · · Score: 4, Informative

    Gross was a saboteur, trying to overthrow the Cuban government. His wife finally admitted as much, as I wrote above.

    He was getting money under the Helms-Burton Act. The purpose of the Helms-Burton act was to overthrow the Cuban government. They were paying him to try the unworkable idea of setting up an alternate Internet, to help the Cuban Jews overthrow the Castro government. The Cuban Jews actually got along very well with Raul Castro.

    The Cubans want to exchange Gross for 3 Cuban intelligence agents who are in prison right now. They came to the U.S. as undercover agents to monitor the Miami Cubans who were committing acts of terrorism against Cuba, such as blowing up a Cuban plane, and bombing tourist spots.

    The U.S. has refused the exchange. The anti-Cuban hard-liners would rather leave Gross in prison than improve relations.

  14. Re: RT.com? by Anonymous Coward · · Score: 4, Insightful

    Wrong. Full blown communism requires tyrants. How else are you going to confiscate all the private property, and constantly suppress voluntary economic interactions?

  15. Re:US is... by silentcoder · · Score: 4, Interesting

    Well our constitution was written much later - with a lot of inspiration from the US - which is why our bill of rights and the US one is very similar.
    However there is also one or two items from more recent sources (for starters the entire International Convention on Human Rights).

    There is also a few liberties we've taken from things like the German constitution - which deal with the realities of countries that had experienced gross human rights abuses - such as a right to dignity.

    The right to dignity for example has several clauses - such as a positive obligation placed on the government to ensure there is quality housing for all citizens and a requirement that evictions can only be done with a court order. Another impact is that it informs the right not to be discriminated against - here a business cannot deny service to anybody on discriminatory grounds. Recently a wedding venue wanted to refuse a gay couple the right to marry there on religious grounds and lost their case - the constitutional right not to be discriminated against on sexual orientation means that if you operate a business you MUST serve ALL sexual orientations. There's no obligation to approve of gay marriage, but you cannot as a business discriminate against it (a church could refuse to host a service, but a church is not a business).

    Not everybody thinks these are freedoms, some people would say the above example reduces the business owner's freedom for example - and it's true that this is a trade-off but the right not to be discriminated against protects freedoms (such as freedom of association and movement) for many, many people - if a small minority has a very slight decrease in freedom (while making money out of the people they aren't allowed to mistreat) then this is a worthwhile trade-off in my mind.

    In some regards the fact that our constitution is only 20 years old has been advantageous - it means that we have all the rights the US has - most of which were not in their original constitution (Everything with "amendment" in it) right in the basic document, and we still have the option of future amendments if we need them.

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    Unicode killed the ASCII-art *
  16. Re:RT.com? by Jesrad · · Score: 4, Interesting

    one was a free market fundamentalist: Pinochet

    Repeating a lie often enough does not make it true.

    Pinochet was resistant to free market, through most of 1974 his own style of handling economic problems left in the wake of Allende meant putting the army in charge of alleviating penuries through requisitions, rationning and distribution, and it was a complete failure. Chile kept printing money just like under Allende, leading to 300% inflation in 1974 and 1975.

    If Pinochet was, as you put it, a "free-market fundamentalist", then explain why did oil and copper industries remain state-owned all through his regime, and why did the fishing and forestry industries remain syndicate-run (CORFO) ? Why did he keep in place many programs of subsidies ? Why did he have several failing corporations bailed out (like the Osorno bank) ? Why did his constitution of 1980 keep copper resources as irrevocably public property ? Why was the Peso pegged to the USD, chinese-style, in the early 80s (leading to a monetary crisis and recession), instead of maintaining a free-floating exchange rate like Friedman advocated in his speeches and books ?

    Oh, right: that's because Pinochet was NOT a free-market advocate. He was not even right-wing either - his wife was a senator in the Radical Party, an ally of Allende's Unidad Popular, and he was a close collaborator of Allende until the coup d'état. Instead, his pragmatism at least let him put people who mostly were free-market enthusiasts in charge of some of his government's economic policies. He, himself, had no such convictions, he was just an autoritarian voluntarist. But I guess that makes for an insufficiently romantic narrative to convince you.

    Sergio de Castro Spikula was one such free-market enthusiast in Pinochet's government, and he had to bitterly fight (there even was one incident with a gun) with other members, like General Gustavo Leigh, Admiral José Toribio (president of the government's economic committee), or Raul Saez (the man who was responsible for planning the economy of Chile in the Junta), in order to get the reforms done.

    --
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  17. Re: RT.com? by VTBlue · · Score: 4, Insightful

    You mean like economic sanctions that prevent me from buying Cuban cigars in a voluntary economic transaction?

    *see what I did there?* :)

  18. Re:RT.com? by Jesrad · · Score: 4, Informative

    Please. Fascism is NOT a form of socialism. It's incompatible with marxist doctrine, through and through. Rather it's the fabled "third way" that is neither free-market nor communism. People who conflate fascism with socialism are just as wrong as those who conflate it with capitalism.

    --
    Maybe we deserve this world ?