Sir,
I enjoy your newsletter. However, I would appreciate more critical reporting rather than a rehash of public announcements.
For instance, your recent article on extension of agricultural loans to Korea can only be described as bizarre. You report that the GSM program is authorized to extend loans to countries for purchasing US agriculture where local finance would not be available.
Yet you report that a government spokesman stated the loan was a reflection of the assessment the Korean economy is improving. Which is it? Was the loan granted because Korea is in dire straits or because they are in good shape?
Moreover, you report that the CCC [Commodity Credit Corporation] loan underwrites a credit on behalf of Seoul Bank. This is a nationalized bank. Has the US government made the determination that the Korean government is not creditworthy?
Moreover, you report that larger guarantees will be issued soon for China. All "big four" banks in China are nationalized. China has tapped the international credit markets several times in recent years with no difficulty. The country has about $160 billion in forex reserves, second only to Japan.
Hong Kong is also mentioned as qualifying for assistance and likely to receive guarantees. Hong Kong has a strong international international credit rating, a relatively wealthy population, and $100 billion in forex reserves! Who is next in line, the Sultan of Brunei?
From all appearances, this program purely exists so that US farmers receive a subsidy from US taxpayers. Yet no mention of this is found in your reporting.
Bill Kaye, senior managing director, The Pacific Group
