Russian Crisis and IMF’s Role

Re “U.S. Is Looted, Russia Is Lost, Thanks to IMF,” Column Right, Aug. 30: Patrick Buchanan has this one right. The first IMF funds going into failing economies are used to bail out their big foreign lenders. Therefore, America’s large commercial (and investment) banks are motivated to lend with less scrutiny than they would give to a home mortgage loan application. In the case of Russia, the German banks are in much deeper than ours--about $50 billion.

The return of Viktor Chernomyrdin to power was virtually a coup d’etat by the corrupt, non-taxpaying industrial oligarchs and “mafias” which looted the IMF funds in the first place. If the IMF gains any further U.S. taxpayer support, it should be in the form of credits for U.S. farm goods and other imports critical to the Russian people and not to the Central Bank nor a dime to U.S. commercial lenders. Let the latter’s shareholders pay for their negligence and respond by cutting the bloated salaries and bonuses based on “profits” generated at the expense of U.S. taxpayers!

CARL G. HOKANSON

Encino

* The use of the term “experts” in James Flanigan’s article (“Experts Urge Cut in U.S Rates to Boost Russia,” Aug. 27) to describe the various economists he cites, along with their prescriptions for Russia, raises an urgent question.

After these economists 1) failed to predict or forecast the Asian crisis; 2) backed recommendations by the International Monetary Fund and Western governments for “reforms,” such as deregulation, “shock therapy,” austerity, etc., that is, programs which served to worsen the crisis; 3) were unable to foresee how these failed policies would lead to a spread of the crisis to Russia, Eastern Europe and Latin America, how can he still refer to them as “experts”?

And why should anyone take them seriously now?

HARLEY SCHLANGER

Los Angeles

* Re “Yeltsin Dismisses Reports He’ll Quit,” Aug. 29: I feel sorry for Russian people because they’ve suffered as long as they’ve lived. It is so obvious that Boris Yeltsin cannot rule the country. Under the current circumstances any leader in any other country would resign. What does Yeltsin do? He makes an appearance on national TV and says that he won’t resign. He blames every one except himself for what is happening. He’s been the president for about eight years. Lives of the Russian people have only gotten worse. They have lost their savings several times in the last eight years. He must resign and the sooner he resigns the better because I don’t know how much longer the Russian people can take this.

EUGINE GRINBERG

Los Angeles