Letters of credit are needed in international trade, that is, trade between companies in different countries. These letters of credit have been utilized in international trade for centuries. Letters of credit issued from the issuing bank act as a substitute for the credit of the purchasing company. Once the buying company provides a commercial letter of credit to the seller, via a bank, the seller, known as the beneficiary, can be assured of payment from the issuing bank. If the bank is trustworthy, the seller can expect, if the conditions of the contract between the two parties are met, to receive payment. The use of commercial letters of credit reduce risk between to contracting entities, and facilitate international trade.
Before a seller of goods in one country ships goods to a company in another country, the seller wants to be sure of receiving payment for the goods shipped. That is where banks come into play. These banks act as intermediaries between the two companies in the different countries. The banks involved in the transaction provide guarantees to the two parties that the goods shipped are the goods ordered and that payment is made once the goods arrive the destination country.
The problem now is that banks – due to the current financial crisis – are either refusing to issue letters of credit or raising the fees they charge for their issuance – creating havoc in international trade. Shipments are “sitting on docks, in warehouses, or in the cargo holds of ships, orders are being canceled, or not even placed. The global supply chain which connects producers with consumers is breaking, and the consequences will be dire indeed.” Financial Crisis-Shutting Down World Trade
Having lived in Thailand for several years, I’ve grown to like Thai jasmine rice, considered by many to be the world’s finest rice. Recently, I tried to purchase Thai jasmine rice and was told that Thailand has suspended shipment of Thai rice to my country of residency. My guess is the unavailability of Thai rice is due to the failure of the commercial letter of credit system between the suppliers of Thai rice in Thailand and the buyers of rice here.
I asked myself, “What will the restaurants that serve Thai rice do now? The other rice available is not the same quality nor does it taste like Thai jasmine rice. How is a Thai restauranteur going to call itself a Thai restaurant when it can not offer Thai rice on its menu, when rice is a staple in most Thai meals? And what other genuine Thai products are also not available?”
What about other products, like aluminum for automobile manufacturing, wheat flour and sugar for baking, wood products for furniture making, silver for electronics, iron ore for steel, etc. The list goes on ad infinitum.
This international trade breakdown, which will have worldwide catastrophic consequences if not resolved, is just another crisis brought to us by our Jewish Wall Street banker criminals. Action must be taken against these psychopaths, immediately. End the Fed