Here is a fair criticism of an ExIM bank critic... by an ExIm Bank client:
One cannot compete on quality. You would have learned this had you actually gone out and tried to build business without the ExIm boondoggle. Quality and service are standard offer items. The quality of your fertilizers are set to what the market wants, no more no less (as is service). Within an extremely narrow band, all players offer the same quality and service.
What builds markets for small business is design, the only place where small business can and need to compete. A fertilizer designed to produce a specific effect, solve a specific problem, as opposed to the standard fertilizer. Now for a uniquely beneficial fertilizer one may charge a premium price and have no problem finding customers who are ready willing and able to pay.
Indeed, the fact you admit the people with whom you deal are not able to pay means legally they cannot be designated customers. The legal definition of buyer is ready, willing and able to buy. You don't have a business, you are really a sort of government-funded NGO.
Why are your customers so weak that they need USA taxpayer loan guarantees before they can buy (or more to the point, before you will sell?) Why are taxpayers running the risk of default, and not your company? You say "look at the jobs" when we should look at your company. (The ExIm Bank now forbids this, hiding the list of names they finance, in this way we can no longer know when ExIM Bank deals go bad.)
Google reports variously 700 fertilizer exporters in USA... why is Merrill's the only one that needs taxpayer bailouts to continue (aside from the Koch brothers of course, welfare queens extraordinaire)? Why should you have an advantage over the some 658 others who sell and get prepaid for export sales, not USA taxpayer guaranteed funding? What about the employees of well-run companies who lose their jobs because overseas buyers who are perfectly capable of paying the other company agree to save money by buying from a USA taxpayer wealth transfer scam that your company mediates?
And what of the domestic producers in your target market? How are they to compete when you offer USA taxpayer subsidized product against the domestic product? EXIM Bank support has ruined many an overseas producer, adding to the hatred of USA.
Businesses on running-bailout need not concerns themselves with competing in markets. For all that ExIm bank is used by almost no one in business of international trade.
If a country is effectively subsidizing its exports, then trade in that country's subsidized product until that bad policy breaks them. Get rich off their folly. It is how Dow Chemical got started.
It's not the cards you are dealt, it is how you play the hand. There is no judging a man as to how he plays his hand, if he wants to pursue being on the dole, that is his choice. Indeed, when I lecture I advise on a strategy of raiding the dole meant only for big business judiciously to advance a small business advantage. But when he wants me to believe his choices are a good thing for everyone, then that is insulting and abusive, expecting me to go along with his pretense. In life, NEVER believe your own PR.
Merrill actually starts out with the best quote:
I never get tired of criticism. It is either not true, or where true, I readily admit it. I get media rate, a huge subsidy, on the books I sell. Why should taxpayers subsidize delivery to my customers? Why, indeed? I don't advocate it continue, I say get rid of the USPS. Let private companies run it. Until then, I rock the subsidy. But if they get rid of the subsidy, I won't go away, because the subsidy is not critical to my success. By defending ExIm bank, you are expressly stating you cannot survive without it.
Don't worry, the ExIM bank will not end until the USA ends (and the USA will end because such as the ExIM bank cannot be ended). But you can join the other 659 or so USA fertilizer exporters and offer a product people actually want to pay for. But you have to compete on design, not taxpayer guaranteed low price.
Feel free to forward this by email to three of your friends.
She and others like her pontificate from behind a desk, using theory and political rhetoric rather than considering how their words can impact American jobs. By contrast, employees with our U.S.-based company happen to work face-to-face with product distributors and with farmers in fields all around the world. Our company is based in Gilbert and we began using the Ex-Im Bank nine years ago. Alan J. Merrill is executive vice president of Bio Huma Netics, a Gilbert-based company that manufactures fertilizer and wastewater solutions.Yes, theory against experience pales. So let me reply to Merrill who claims to have been on EXIM Bank life-support for nine years in business, from someone who already had ten years experience of dealing with buyers and sellers face-to-face around the world, before being self-employed for thirty years. Ready?
Our competition includes some of the largest agriculture companies in the world. Many of them receive support from their home governments. The Ex-Im Bank helps level the playing field so that we, as a small business, can get our product overseas and compete on quality, not financing.Well, which is it? There is an internal contradiction to say you need financing, so you don't need financing. How can you possibly control for the variable of EZ cheap credit when trying to assess whether quality is a factor in a sale? You can't. So here is what you have missed by being a welfare queen, instead of a entrepreneur:
One cannot compete on quality. You would have learned this had you actually gone out and tried to build business without the ExIm boondoggle. Quality and service are standard offer items. The quality of your fertilizers are set to what the market wants, no more no less (as is service). Within an extremely narrow band, all players offer the same quality and service.
What builds markets for small business is design, the only place where small business can and need to compete. A fertilizer designed to produce a specific effect, solve a specific problem, as opposed to the standard fertilizer. Now for a uniquely beneficial fertilizer one may charge a premium price and have no problem finding customers who are ready willing and able to pay.
Indeed, the fact you admit the people with whom you deal are not able to pay means legally they cannot be designated customers. The legal definition of buyer is ready, willing and able to buy. You don't have a business, you are really a sort of government-funded NGO.
Why are your customers so weak that they need USA taxpayer loan guarantees before they can buy (or more to the point, before you will sell?) Why are taxpayers running the risk of default, and not your company? You say "look at the jobs" when we should look at your company. (The ExIm Bank now forbids this, hiding the list of names they finance, in this way we can no longer know when ExIM Bank deals go bad.)
Google reports variously 700 fertilizer exporters in USA... why is Merrill's the only one that needs taxpayer bailouts to continue (aside from the Koch brothers of course, welfare queens extraordinaire)? Why should you have an advantage over the some 658 others who sell and get prepaid for export sales, not USA taxpayer guaranteed funding? What about the employees of well-run companies who lose their jobs because overseas buyers who are perfectly capable of paying the other company agree to save money by buying from a USA taxpayer wealth transfer scam that your company mediates?
And what of the domestic producers in your target market? How are they to compete when you offer USA taxpayer subsidized product against the domestic product? EXIM Bank support has ruined many an overseas producer, adding to the hatred of USA.
Businesses on running-bailout need not concerns themselves with competing in markets. For all that ExIm bank is used by almost no one in business of international trade.
If a country is effectively subsidizing its exports, then trade in that country's subsidized product until that bad policy breaks them. Get rich off their folly. It is how Dow Chemical got started.
Without the bank, we would not have access to financing alternatives, and as a result, would not be able to export to many of our current customers. But opponents of the bank suggest that the private sector will step up to meet the needs of small businesses like ours should the bank's charter expire.No, opponents say if your parroting of false EXIM claims of profitablity were true, then a bank would do the business. But you can only get financed when a bank says you'll fail otherwise. What does that say to the rest of the taxpayers funding you?
Small businesses here in Arizona and across the country can tell you that without Ex-Im there is no other option. The private sector can't step up to meet our needs because commercial banks are most often unable or unwilling to finance or insure the international deals we conduct. Without financing or insurance, these American businesses and jobs will be put at risk.Well, yes. The jobs at risk are all false economy jobs. Merrill parrots EXIm's well documented lies about turning a profit, a point that is prima facie nonsense because if so banks would do the loans. Yes, these jobs exist because of misallocation and malinvestment, provided by ExIm Bank. And the same misallocation and malinvestment is crowding out real economy jobs.
It's not the cards you are dealt, it is how you play the hand. There is no judging a man as to how he plays his hand, if he wants to pursue being on the dole, that is his choice. Indeed, when I lecture I advise on a strategy of raiding the dole meant only for big business judiciously to advance a small business advantage. But when he wants me to believe his choices are a good thing for everyone, then that is insulting and abusive, expecting me to go along with his pretense. In life, NEVER believe your own PR.
Merrill actually starts out with the best quote:
Be it President Barack Obama, lawmakers or D.C.-based think tanks, we tire of being told how to run our business.Hilarious. Typical republican. Barack Obama has put the ExIm bank on steroids, making your gig possible. Like most welfare queens, he wants his EBT card but bristles when people suggest he get a job. It is HARD being a welfare queen! People want accountability for what you do with their money! Soooo tiring!
I never get tired of criticism. It is either not true, or where true, I readily admit it. I get media rate, a huge subsidy, on the books I sell. Why should taxpayers subsidize delivery to my customers? Why, indeed? I don't advocate it continue, I say get rid of the USPS. Let private companies run it. Until then, I rock the subsidy. But if they get rid of the subsidy, I won't go away, because the subsidy is not critical to my success. By defending ExIm bank, you are expressly stating you cannot survive without it.
Don't worry, the ExIM bank will not end until the USA ends (and the USA will end because such as the ExIM bank cannot be ended). But you can join the other 659 or so USA fertilizer exporters and offer a product people actually want to pay for. But you have to compete on design, not taxpayer guaranteed low price.
Feel free to forward this by email to three of your friends.
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