Posted on 08/14/2011 7:18:28 PM PDT by freespirited
Thursday at a Holland, Michigan plant, President Obama turned on his folksy charm and declared that he would work tirelessly to Git folks workin again (note to the prez Ive been to lovely Holland, MI several times and they dont talk that way, so there was no need to put on airs). He again terrified the markets by threatening to propose a whole host of new legislation to make sure the government provides everyone with a job. [Please, Mr. President, please, stay at Martha's Vinyard until 2012 and spare us any ideas you have rattling around in that oversize brain!]
One of the buzzwords that the president and his fellow Democrats have been floating this past week is investment in infrastructure as the solution to flat economic growth and high unemployment rates. Wednesday on Foxs The Five, leftist political analyst Bob Bechtel said that a National Infrastructure Bank would help put people back to work.
To be honest, I had never heard of the National Infrastructure Bank until I received an e-mail about it this week from my senator, Sherrod Brown (D-OH), the most liberal member of Congress. Brown proudly announced that he was trying to sell the scheme to business leaders in Cincinnati as a way to rebuild a crumbling bridge. Brown linked to an article in the Cincinnati Business Courrier that covered the meeting :
Ohio Sen. Sherrod Brown assembled a group of business, labor and local government officials in Cincinnati Tuesday to voice support for new legislation that would create a national infrastructure bank to finance big-ticket projects like the Brent Spence Bridge .Browns proposal calls for projects of national significance to receive financing as long as they as they can demonstrate an ability to repay the loan.
In an opinion piece in Thursdays Wall Street Journal, former PA Governor Ed Rendell and Mesa, AZ Mayor Scott Smith are pushing the rebuilding of our infrastructure via a National Infrastructure Bank:
It is also time we create new infrastructure financing options, including a National Infrastructure Bank. Many of these new programs, using Build America Bonds, for instance, can be paid for with a minimal impact on the federal deficit.
The governments continued neglect of infrastructure will consign our nation and our children to economic decline. Rebuilding Americas future cannot be a Democratic or Republican political cause. It must be a national undertaking.
Rendell and Smith write as representatives of Building Americas Future Educational Fund, which bills itself as a bipartisan coalition of elected officials dedicated to bringing about a new era of U.S. investment in infrastructure that enhances our nations prosperity and quality of life.
Alright, if by bipartisan they mean a collection of leftists and RINOs which includes the likes of Michael Bloomberg, Arnold Schwazenegger, Gavin Newsome, Charlie Crist, David Patterson, and Ted Strickland. The Director of the Board is Donna Cooper from the Center for American Progress. Notice theres quite a collection of out-of-work former Democratic office-holders on the list. Apparently their wives couldnt handle having them wandering aimlessly around the estates all day.
So what exactly is this National Infrastructure Bank? Various iterations of it have been tossed around for the past several years. The basic idea is that a government bureaucracy would be set up to lend (or give) money out to fund infrastructure projects. Obama had a version in his 2011 budget announcement. Remember that invest is a code word for deficit spending:
The Administrations six year plan would invest $30 billion to found a National Infrastructure Bank (I-Bank). The I-Bank would leverage this Federal investment by providing loans and grants to support individual projects and broader activities of significance to our Nations economic competitiveness A cornerstone of the I-Banks approach will be a rigorous project comparison method that transparently measures which projects offer the biggest bang for the buck to taxpayers and our economy. This marks a substantial departure from the practice of funding projects based on more narrow considerations.
Well, this all sounds very reasonable, doesnt it? We all want safe roads and bridges. We all have images of the Minneapolis bridge collapse seared into our brains and recognize that our nation needs upgrades in our infrastructure.
But as often has happened with this administration, Treasury Secretary Timothy Geithner reveals the real motives behind this plan:
Thats why the Presidents plan will reform our current system to promote merit-based investment by creating a National Infrastructure Bank, which will select projects on the basis of rigorous analysis. The National Infrastructure Bank will also draw private capital to invest in American infrastructure so that we can better leverage scarce taxpayer dollars. We will support projects that produce significant returns on our investment, allow Americans more choices in their modes of transportation, and improve the interconnectedness of our existing transportation networks to maximize the value of our current infrastructure.
Eighty percent of jobs created by investing in infrastructure will likely be created in three occupations construction, manufacturing, and retail trade which are among the hardest hit from the recession. Nine out of 10 jobs created in these three sectors pay middle-class wages. [emphasis added]
Once again, the central planners are picking winners and losers. Not only are three occupations being targeted for specific consideration (union jobs, of course), but the bank will choose which projects have merit and thereby which modes of transportation will produce significant returns on our investment, all under the guise of giving us more choices in our modes of transportation (code for the continued push to get us all to choose public transportation).
But again, this isnt necessarily all bad, until you actually read the legislation that has been proposed. It then descends into the usual Democratic pandering and central planning. H.R. 402, The National Infrastructure Development Bank Act of 2011, sponsored by Rep. Rosa DeLauro (D-CT) and 56 co-sponsors (all Democrats) was introduced in January and is currently in the subcommittee on Domestic Monetary Policy and Technology:
Establishment of National Infrastructure Development Bank- The National Infrastructure Development Bank is established as a wholly owned Government corporation
Oh no, here we go again. When you see the words government and corporation together beware. It brings to mind government takeovers of the banks, the auto industry and the student loan program.
The Bank shall have a Board of Directors consisting of 5 members appointed by the President by and with the advice and consent of the Senate. [emphasis added]
The five members of the Board would have broad powers including:
To make loans and purchase debt securities; to issue and sell debt securities of the Bank; to issue public benefit bonds and to provide financing to infrastructure projects from amounts made available from the issuance of such bonds; to make loan guarantees; to borrow on the global capital market and lend to regional, State, and local entities, and commercial banks for the purpose of funding infrastructure projects; to purchase in the open market any of the Banks outstanding obligations at any time and at any price; to monitor and oversee infrastructure projects financed, in whole or in part, by the Bank.
The eligibility criteria for infrastructure projects receiving assistance from the bank must meet the goals of the Bank:
IN GENERAL- The Bank shall conduct an analysis that takes into account the economic, environmental, social benefits, and costs of each project under consideration for financial assistance under this Act, prioritizing projects that contribute to economic growth, lead to job creation, and are of regional or national significance.
And like nearly all legislation written by liberal Democrats, it rewards their special interest groups those with the preferred skin color and gender and of course, the red carpet treatment for the beloved Mother Earth. It also adds the lofty goal of inequality reduction, which every good engineer should have foremost in his mind when designing a bridge. Some of the factors considered for transportation projects:
Smart tolling, such as vehicle miles traveled and congestion pricing? Weve heard talk of car transponders that will be able to report our mileage to the government so those who drive too much can pay higher tolls or taxes. Is this what they have in mind?
The requirements are similar for energy and environmental projects. For telecommunications projects it also adds Obamas goal of internet access for all:
Once again, we have the federal government engaging in social engineering this time calling it infrastructure and telling us its about building roads and bridges and the smart grid. But if you read the text of the legislation, the priority seems to be picking the winners and losers and deciding who is deserving of this piece of the American Pie and who is not.
Best of all, this bill puts $5 billion in capital into the capable hands of Treasury Secretary Tim Geithner:
There is a similar measure percolating in the Senate, S. 652, Building and Upgrading Infrastructure for Long-term Development, sponsored by John Kerry (D-MA) and co-sponsored by six Democrats and Republicans Kay Bailey Hutchison (TX) and Lindsay Graham (SC). While not including the radical social engineering language of the House version, the 7-member Board, appointed by the president, has broad powers to approve projects which must meet:
any criteria established by the Board of Directors or chief executive officer in accordance with this Act.
Michelle Malkin summarized it this way:
How would it work, and who would pay? Unveiled at the radical leftist Center for American Progress in January, Kerry and Companys pipe dream would somehow leverage $10 billion in unidentified public funds into $640 billion in government loans and loan guarantees for union-exclusive construction and bogus green jobs projects. [T]he infrastructure banks would borrow more money the government doesnt have to dole out grants that wouldnt be paid back and dont require interest payments.
In addition to bailing out banks, auto companies and the student loan industry and propping up state and local governments with stimulus money, our lawmakers are now considering bailing out states and municipalities that failed to plan for the future. They now want to take out million dollar mortgages on roads and bridges they cant afford with money borrowed from the federal government that doesnt actually have any money and is borrowing it from China. To give everyone a job. You cant make this stuff up.
Sounds pretty socialist/communist to me.Also sounds like the best chance ever for government officials to reap huge bribes.
This could potentially finish Obama and the democrat party.
sounds like they’re taking over the whole economy.
This could potentially finish Obama and the democrat party.
If it gets the proper exposure.
Conservatives from the bottom up and especially the Rep. Nominee in 2012 must expose 0bama for what he is and how he’s out to destroy this country and keep hammering that home in such a way that people see it on a personal/individual level.
Strait up communism.
BAD idea, but ou know they’ll shove this thing down our throat, one way or another.
If that bastard comes over and hands me a shovel I will smack him with it.
The reason Obamunists like infrastructure in general and highways in particular is that they have a great funding kick back system for shaking down the private contractors who get those jobs. Its corruption that feeds the politico system, so the Obamunists want to keep oiling the machine.
So companies are going to be required to hire people not qualified for the tasks, and then be prohibited from firing them?
Maybe it’s time for the Bamster to take another vacation. His vay-kays, although arrogant and costly, likely cost less than the hare brain schemes he throws when he is on the “job”.
Past time to get rid of that illegal alien communist!!!!
Thank God we now have the members in Congress to block these centralized planning schemes.
So, where did all that money go? Anhd where will all this money go?
Good thing we can always print more.
Not to mention the fact that some 30% is skimmed off the top of highway funds before they even get around to paying for things like public transportation.
Pretty damn bad that highways are last in line to get the funds that are intended for them.
Our government collects enough money to fully fund constitutional government many times over. Its all the other crap that’s killing us.
LOL!! I grew up in Holland, where the phone book mostly runs from "Vander Aa to Vander Zee," and they definitely do not talk like that,
......though they might say something like "Ai-yai-yai-yai-yai! Obama's going to drive us off the clift, ain't so?"
I think you are right, this thing is DOA thanks to the Tea Party.
LOL.
Now thems some bus tires to kick iffen dare ever to maken sure da bus be safe to giton down da road.
A year or so back, ABC actually ran a positive piece on Holland and the Christian values that are so common there.
Bammy was definitely out of his element and too stupid to know it.
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