CWB loan sharks

[TOM4CWB]

Vader;

You and sawfly are proud of the racketeering the CWB is in.

If it were your neighbour doing it to you, what would you feel like?

What do Russians tell the rest of the world about the CWB? Canadians are a bunch of greedy rats?

Here is what King Solomon had to say!

Proverbs 28: 8

HE WHO INCREASES HIS WEALTH BY EXORBITANT INTEREST

AMASSES IT FOR ANOTHER, WHO WILL BE KIND TO THE POOR.

28: 9

IF ANYONE TURNS A DEAF EAR TO THE LAW,

EVEN HIS PRAYERS ARE DETESTABLE.

28: 10

HE WHO LEADS THE UPRIGHT ALONG AN EVIL PATH WILL FALL INTO HIS OWN TRAP,

BUT THE BLAMELESS WILL RECEIVE A GOOD INHERITANCE.

REFERENCE FOR This Topic.


-----------------------------------------chaffmeister posted Feb 10, 2006 0:41
---------------------------------------
Vader – if the Russian government is rich with oil, why is it only paying the interest? Why isn't the CWB pressuring it to pay off the principal?


-----------------------------------------Vader posted Feb 10, 2006 21: -------------------------------------
Russia has requested that it be allowed to pay off the prinicpal.

The offer was politely declined.

-----------------------------------------chaffmeister posted Feb 10, 2006 9:08--------------------------------------
Why would it be declined?



-----------------------------------------chaffmeister posted Feb 10, 2006 9:19 ---------------------------------------
I have thought for some time now that the CWB is anxious to keep these debts hanging there - time and again the repayment schedules have been extended. As long as this debt is outsanding the CWB picks up the spread between the "commercial" interest rates its charging on the debt and the govt backed rates at which it borrows - somewhere between 1 and 2%. For every billion outstanding thats about $10 million in "free"revenue. I guess I'd want to keep that gravy train going as well.



-----------------------------------------Vader posted Feb 10, 2006 18:09 ---------------------------------------
Chaffmeister, this "gravy train" as you call it has put between 50 and 90 Million dollars a year into the pockets of farmers. Sounds like you and Tom believe that is somehow wrong.



----------------------------------------TOM4CWB posted Feb 10, 2006 23:35 ----------------------------------------
Vader;

I am astounded, the CWB refused to allow the loan to be paid out?

This are astounding.



-----------------------------------------agstar77 posted Feb 11, 2006 8:43 ---------------------------------------
Astounding , but do you agree with this decision or not T4? If you agree give them credit, if not maybe you would like to give your share back to the pool,lol.


AGSTAR

I AM NOT LAUGHING OUT LOUD.
TRJ

[parsley]

Glad you read it incognito.

Those licensing-costs TOTALS, (costs that are consistently deducted from the pooling accounts),continues to slowly balloon.

There are more feed mills. Every one of them needs to be licensed, and their agreements need to be reviewed, and renewed. Paid for by farmers. New contract forms. Meeting with Customs. Aligning with Gov't depts.

There are new border terrorist concerns. They are a licensing issue, are they not? Did anyone in the CWB have a meeting or two, about licensing-safety issues? If not, why not? Who paid for the meetings and staff? Farmers! Yet, Licensing is a national gov't expense.

If farmers do not tend their money, someone else will gladly take it.

All the Licensing staff, their pensions,(licensing policy-makers too); in other words, anything to do with national licensing is repayable to the pooling accounts.

And that includes licensing in the DA.
Western licensing costs are a Federal Government responsibility.

Quite a TOTAL sum, wouldn't you agree, incognito?
Parsley

[cowman]

I find this incredible! I've never heard of any bank refusing to take the principal! Maybe the CWB threatens the Russians with broken kneecaps or something?
Is Ken Ritter like Tony Soprano or something?

[Vader]

Lots of mortgages have prepayment penalties.

I hear today that Russia will be liquefying their natural gas and selling it to Canada.

[chaffmeister]

Afraid I haven’t kept up with all these postings as I would like to. I didn’t notice that Vader had said “this "gravy train" as you call it has put between 50 and 90 Million dollars a year into the pockets of farmers. Sounds like you and Tom believe that is somehow wrong.”

First off – a definition of “gravy train”:

noun: income obtained with a minimum of effort [synonym: easy money]

I think the term fits here – although I don’t remember saying anything was “somehow wrong” as you suggest. There’s nothing wrong with the financial arrangement as far as I can see – just a little uneasy about the refusal by the CWB.

Vader – has Russia been paying interest only? Or are these loans structured like a mortgage – as I think you're suggesting? Are you saying that if Russia were to pay off (or pay down) the principal, that it would be a “prepayment”? Is there a penalty involved?

It sounds from your posts that the reason the CWB refused (politely) Russia’s request, was to keep the interest play going. Is that true, or was there another reason?

If this was indeed a mortgage and it was me instead of Russia and a bank instead of the CWB, and this bank refused to allow me to pay off my debt so that it could keep earning interest revenue from me, I’d be pissed. And Id never deal with that bank again.

[TOM4CWB]

Chaff;

I think you hit it dead on.

Industry standards for us; are that farmers can repay any loan; at any time... at least all the loans we have on our farm.

Now what exactly could these folks do... if they didn't have the money to repay the principal before?

No funds...

means no negotiating power...

which means the CWB could set what ever terms they wanted.

This is exactly the way racketeers and loan sharks work.

I hope we as Canadians will resolve this situation.

[TOM4CWB]

Incognito;

I understand we have the right to go to federal court and have this issue dealt with. 3 years to have the court say we can go and have this issue resolved.

Talk about Liberal and CWB stalling tactics!

[sawfly]

sounds like their good money managers

[sawfly]

if ADM or cargil had a simmilar deal, First youd never hear about it and secondly the farmer would never see a nickel of it.

again if it was any ADM or Car.,You would call it good business savey.

Its the board so its racketering.I thought everyone wanted the board to be more bussiness like.

[charliep]

ADM and Cargill would consider risk (likelihood of default) and where their money is best used. Their management is accountable to both.

I note the taxpayer is on the line for this debt so the risk is to the taxpayer and the interest spread benefits to the CWB participants.

I guess the question is whether this is an appropriate way to provide farm income support.

[chaffmeister]

Sawfly:
Afraid you mised it on two points:
1. The only reason the CWB has this play is because of govt-grade borrowing (lower interest rates). Not available to ADM or Cargill. Also, remember, if the Russian doesn't repay the principal later on (for whatever reason) the CWB isn't hit - the Canadian government is (taxpayers). But a Cargill or ADM would.
2. Cargill or ADM or any other commercial entity would of course accept the payment - it's only good common sense. You never turn down someone paying off a debt - it could be the only time you see the money.

[chaffmeister]

I hadn't seen Charlie's answer until after I wrote mine. It says the same thing but I like his better.

[cowman]

So in reality the CWB are ripping off the Canadian taxpayer? "Good money management" for the CWB with the Canadian taxpayer taking the interest hit plus taking quite a risk of never being paid back? I mean, come on, how stable is Russia? The whole darned country could default tommorrow.
Remember Poland.

[cowman]

One more thing: How much is the principal of this little loan sharking game? Could that money be used better somewhere else?

[charliep]

The debt is all outlined in the CWB annual report (page 64 2003/04). The total debt guaranteed by the government of Canada on July 31/04 was Cdn $5.3 bln. Of this Cdn $4.45 was scheduled debt (the countries are listed) and Cdn $772 mln arrears.