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Thursday, April 23, 2015

Did coal kill the Export-Import Bank?

Roll Call reported the Export Import Bank likely will die on June 30 after 81 years of obscurity. The relic of FDR's socialistic government likely will not have its charter renewed, meaning the elimination of 402 government jobs. Well, that's a  start.

Blame politics. President Obama politicized the agency, which after its three-year renewal in 2012 decided not to finance any more coal export deals. This is part of Obama's war on coal mined from privately owned land (the public lands in Wyoming continue to boom). Frankly, this is why Jay Rockefeller called him the president he waited all his life for because Rockefeller sees coal as the only barrier remaining for socialism in West Virginia.

I suppose coal from government land does not produce carbon dioxide, just like the bags of potato chips the first lady eats don't add to the sie of her thighs.

From Roll Call:
It’s no surprise conservatives want to kill the bank, which has a charter that expires on June 30. But it was surprising just how confident members sounded that they would actually end the 81-year-old agency. Conservatives said they think the bank’s looming expiration is one deadline GOP leaders won’t cave on.
House Freedom Caucus Chairman Jim Jordan began the hour-long discussion by noting that the Republican committee chairmen with jurisdiction over Ex-Im have all come out against the export credit agency, which finances and insures foreign purchases of U.S. goods. Jordan noted that Majority Whip Steve Scalise and Majority Leader Kevin McCarthy had both stated opposition to reauthorization, and that GOP presidential candidates have also said the bank’s charter should expire. He even pointed out that, to end the bank, Congress just has to do nothing — “something Congress is usually pretty good at,” he said.
“When are the stars going to line up better for that position than now?” Jordan asked.
The Ohio Republican repeatedly called Ex-Im, with so much opposition and so little support, today’s “Bridge to Nowhere,” referring to the long-proposed Gravina Island Bridge in Alaska, a federal project that has come to represent the worst of pork barrel politics.
“Are you kidding me?” he said. “It doesn’t get any easier than this. So if we can’t do that much, for goodness sake, what good are we?”
Rep. Raul R. Labrador certainly wasn’t jumping to the bank’s defense. But he was willing to let the process speak for itself.
The Idaho Republican said if an Ex-Im reauthorization bill went through the committees of jurisdiction — mainly the Financial Services Committee, where Texas Republican Jeb Hensarling, who is staunchly against the bank, is the chairman — and if the majority of the GOP conference agreed with reauthorization, then at least leaders would be going through the process. “But if our leadership goes around the committees, then I think there’s going to be a problem,” Labrador said.
This agency has an impact of about 1/560th of the total jobs in the United States. But it meant just enough to the coal indutry to leet the Ex-Im Bank die on the vine.

2 comments:

  1. One think I worry about is that my employer, Boeing, is the largest US exporter by dollar value and the Ex-Im bank helps allow foreign purchases of aircraft. I was wondering why our stock went down after a good first quarter. Now I think I know. I am all in favor of eliminating crony capitalism. However, I'm not sure helping foreign buyers buy US-made goods qualifies as that. I think the impact of this will be more than just the few government jobs. Maybe a few thousand in Puget Sound and Peoria (Caterpillar) too.

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  2. Fort Stewart Bob SmithApril 23, 2015 at 8:05 PM

    Boeing and Caterpillar are international giants and members of the Dow Jones 30, if they are not able to sell their products without my tax money, then their management needs to be replaced. This is, and has always been, about making business kneel at the altar of government and cronyism. Speaking as an economist; Good Riddance!

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