Monday, 8 March 2010

Sarah Palin's Dairygate - Business 101

Dairygate rears its head again...

As in all Dairygate things, it makes your head spin. The creamery, whatever they call themselves these days, have just received another loan of $200,000 from the state, which they're going to use to pay an older loan and the milk producers.

I don't have a head for business and my ideas may be naive, but the way I understand it, a business pays the suppliers with money classed as profits, no? If a business has to borrow money to get started, they invest it in the business, produce whatever their industry is about, sell their product, make some profit and pay their debts, be it loans or what they owe their suppliers.

Our Dairygate friends are in a different business. It appears to me that the only purpose of this industry is to raise money, then more money, and just in case they didn't raise enough of it, they ask for some more money.

They get their money from the Agriculture Revolving Loan Fund. It's revolving alright.

re·volv·ing (r-vlvng) adj.
1. Tending to revolve or happen repeatedly.
2. Available at regular intervals.

Here's a breakdown of all the money received by this thriving business so far:

$600,000 - August 2007
$200,000 - December 2007
$624,000 - March 2008 (this money was juicy pork from uncle Ted Stevens)
$630,000 - September/ November 2008
$200,000 - March 2009

Sarah Palin is very proud on her achievement in privatizing a failing state business, as she stated in her quitting speech:

"We took government out of the dairy business and put it back into private-sector hands - where it should be."

Yes, she put it right into the greedy hands of her cronies.


Please read the previous Dairygate posts. Two of them, written on 26 February and 18 July 2009 give the names of these highly competent business people and will help you understand the background to this sorry saga.

(H/T to so_many_unanswered_questions)

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