bc10d232   
   XPost: soc.culture.baltics, soc.culture.czecho-slovak, soc.culture.russian   
   From: ddfr@daviddfriedman.nopsam.com   
      
   In article ,   
    holman@mappi.helsinki.fi (Eugene Holman) wrote:   
      
   > In article , James A. Donald   
   >  wrote:   
   >   
   >    
   > >   
   > > That would be a classic model of economic colonialism if   
   > > the Finns were paid with real money instead of entirely   
   > > worthless rubles.   
   >   
   > Why do you keep repeating this nonsense, and why would the Finns have been   
   > stupid enough to continue trading with the USSR if their hard work was   
   > compoensated with worthless rubles?   
      
   Presumably, in James' view, because the alternative was being invaded.   
      
   > Finnish-Soviet trade was based on BARTER and clearing accounts. Barter   
   > means that you give a product or service a stipulated monetary value that   
   > is recorded in a clearing account. At that time a barrel of oil might have   
   > cost $15 on the world market, and the USSR supplied to Finland at a   
   > discount, say $13.50. The Finns used the barrale of oil to make plastic   
   > bags, one barrel making 500 bags, the fair value of which would have been   
   > say $0.10/bag.   
      
   By "the fair value" do you mean the value the Finns could have sold   
   those bags for on the world market?   
      
   > Thus the amount made from a barrel of oil was worth $50.   
   > The Finns took an additional 50% profit, thus we get the clearing price   
   > for the bags being $75.   
      
   And why, in your view, were the Soviets willing to exchange a barrel of   
   oil  for $13.50/$.15 = 90 bags, when they could have sold the oil on the   
   world market for $15, bought the bags on the world market for $9, and   
   had $6 left over to buy other things? On your account, the Soviets would   
   have done far better for themselves trading on the world market.   
      
   Is your argument that the Soviets were too stupid to realize that, or   
   that the Soviets were not extorting the Finns but bribing them, or what?   
      
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