As explained in Foreign Policy, an export import bank is a policy tool used by most countries to facilitate exports. China, for example, is expanding its use of export credits. In America, the use of an export import bank helps level the playing field against foreign competition. But the Koch Brothers and other free market theorists smell heresy, and have embarked on a campaign to end this lender. Scott Garrett, who was nominated by Donald Trump to run this bank, has been one of its fiercest critics.
According to Dent, the Export-Import Bank is unable to provide financing for many investment deals. Its Board of Directors lacks a quorum to move forward with economic investment deals greater than $10 million dollars. Dent estimates that $30 billion in pending deals is in limbo.
"Our bill streamlines the Bank’s loan approval process, eliminating artificial barriers created by political gridlock and putting our country’s businesses back on a level global playing field," explains Lucas. "The bank is a critical lifeline for many manufacturers, large and small, in maintaining their competitiveness in international markets and it is past time that its doors are open” added Dent.
18 comments:
If President Trump believes it is a good thing to terminate this agency/bank, I support his decision 100%. Get use to him being right.
Why is Dent playing politics with the President? The President is a businessman who knows what is best for the country and its economy. The people of America voted for President Trump no Dent.
It's called governing, not politics. Governing appears to be an alien concept to the Donald and his minions.
ExIm is very political. It fosters crony capitalism and helps foreign companies compete against American companies. We have no shortage of private export funding and subsidies are terrible for competition, as they pick winners and losers through cronyism. Charlie is likely heading off to one of ExIm's crony winners. It's no surprise he wants to pump up that which should be eliminated.
It would be good to explain exactly what the export import bank does. It is my understanding that it is a federal government institution that loans money to those that want to purchase things in international trade, but may not be able to get regular credit. So it can enhance the sales of those companies who are making the sale, either here or abroad. What is the risk to U.S. taxpayers? Why cant they get regular credit? Should the U.S. government be in the banking business when we have seen what has happened to Fannie May etc.? I am not assuming to answer these questions, but neither is Dent explaining why it should be done. The days of just endorsing things without a good reason should be over.
Is the bank making money or giving it away.
Take another sip of your Kool aid
"ExIm is very political. It fosters crony capitalism and helps foreign companies compete against American companies."
This is sheer nonsense. It makes it possible for American business to compete.
How does it make American business's able to compete? what interest is charged and to whom?
If this bank is stuck, who is responsible for the loss? Is the seller ? the buyer? or the taxpayers.
The Export-Import Bank of the United States (EXIM) is the official export credit agency of the United States. EXIM is an independent, self-sustaining Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services.
When private sector lenders are unable or unwilling to provide financing, EXIM fills in the gap for American businesses by equipping them with the financing tools necessary to compete for global sales. In doing so, the Bank levels the playing field for U.S. goods and services going up against foreign competition in overseas markets, so that American companies can create more good-paying American jobs.
Because it is backed by the full faith and credit of the United States, EXIM assumes credit and country risks that the private sector is unable or unwilling to accept. The Bank’s charter requires that all transactions it authorizes demonstrate a reasonable assurance of repayment; the Bank consistently maintains a low default rate, and closely monitors credit and other risks in its portfolio.
This is from the web page of the export bank. take notice that it arranges loans for those that normally could not qualify for loans. This raises serious questions in my mind.
Here's an explanation.
http://www.exim.gov/learning-resources/video-gallery/how-it-works-ex-im-bank-working-capital-loan-guarantee
http://www.pbs.org/newshour/making-sense/stop-pretending-know-export-import-bank/
The cost and effectiveness of the bank are controversial. While the Ex-Im Bank projects will earn the U.S. government an average of $1.4 billion per year for the next 10 years, an alternative analysis from the Congressional Budget Office found that the program would lose about $2 billion during the same period, partly due to discrepancies in how credit risk is accounted for. Both conservative and liberal groups have been critical of the bank, and some continue to demand its termination.[
donnie two scoops seems to listen to the last person he talks to.
"Trump on the Export-Import Bank: “I was very much opposed to Ex-Im Bank, [but] it turns out that, first of all lots of small companies will really be helped….So instinctively you would say it’s a ridiculous thing but actually it’s a very good thing and it actually makes money. You know, it actually could make a lot of money.”
so donnie flip flopped again
A good example of the use of this bank is the Boeing Iran aircraft deal. Iran agreed to purchase 20 Billion in planes, but most banks are fearful of getting involved, due to sanctions and the fact that Iran is not a signer of the Capetown agreement on countries defaulting. No financing, no deal, but if the U.S govt is really financing this deal would it give Iran undue influence, just as the airplane deal might. There is still no disclosure of who is financing this plane purchase. There might be a good purpose of this bank, but one has to wonder of the complicated behind the scenes deals.
3.50 this may be correct ,Bernie's article say that loans of up to 10 million are being approved, you have stated that Trump sees the bank as a positive for small buiness, this is not a contradiction.
Maybe Charlie is practicing for when he is officially a lobbyist for other big money interests.wont be long now.
Just got back from drinking the orange kool-aid. There was absolutely no collusion with the Russians concerning the election. One down and another 99 bull shit lies to deal with. Democrats, reporters, libtards, Bernie all disgust me. Oh and a bunch of RHINOs as well bye bye Dent.
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