The only problem is that current law precludes the extension of Commodity Credit Corporation agricultural export credits unless there is a reasonable prospect of repayment.
The Center for Security Policy calls upon the Commodity Credit Corporation to refrain from any action that would raise further questions about its management of taxpayer resources within its purview.
Evidence of its dilemma can be found in initial White House reluctance even to acknowledge publicly the full magnitude of Moscow's latest bid to tap U.S. taxpayer largesse via credits supported by the Department of Agriculture's Commodity Credit Corporation (CCC).
"This fall, we will almost surely be told by the Bush Administration that Eximbank and Commodity Credit Corporation loan guarantees are needed for U.S. firms and banks to compete with our allies in the Soviet market, " noted Roger W. Robinson, Jr.
Restrictions will be relaxed in sectors as diverse as civil aviation, construction development, industrial parks, petroleum and natural gas, commodity exchanges, credit-information services and mining.
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As liquidity gradually declines, we expect wider credit spreads, weak commodity prices and a moderately stronger dollar.
Bit by bit, the standard components of modernity were put into place, including stock, bond and commodity markets, asset management and credit analysis.
Political turmoil is nothing new in Ukraine, but when commodity prices were high and foreign credit cheap it had little impact on the economy.
Given the many economic headwinds facing the U.S. economy (high unemployment, low consumer spending, increasing commodity prices and the fear of tightening credit given the ongoing sovereign debt crisis in Europe to name a few) prospects for increased corporate earnings stemming from increased sales seem difficult.
If governments continue expanding money supplies, the cost of credit will not rise even as commodity markets do.
Stock markets sold off, a Credit Suisse report concluded that the commodity super-cycle underpinned by China has drawn to a close, and economists worried about the implications for the already slow economic recovery in the United States.
Putting some of that credit (high demand) into a commodity market (limited supply) will drive prices up.
He certainly deserves credit for being ahead of the curve, in warning of commodity inflation around the turn of the century, the dangers of the housing bubble and the dangers of excessive sovereign debt.
But Stein's book is fascinating (who knew there was an ostrich-feather bubble?) as well as prescient (over-reliance on credit, neglecting to diversify your assets, the belief that a commodity will never, ever lose value--sounds vaguely familiar).
In particular, by keeping interest rates too low for too long, the Federal Reserve under Ben Bernanke has underpriced credit and increased risk taking, fueling asset bubbles in the bond and commodity markets.
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This is the result of increased demand in essential, commodity-based assets that comes at the same time unemployment, stagnant wages and tighter credit cause consumers to put off big-ticket purchases.
The currencies of countries that are big on commodity exports, like Brazil and Russia, will likely decline in the days immediately following the US credit rating downgrade, Barclays Capital forex analyst Paul Robinson said in a note to clients on Sunday.
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