Skip to comments.Here Comes Congress' Next Big Economic Crisis, And It Could Be Even Worse Than The Fiscal Cliff
Posted on 05/18/2014 9:00:08 AM PDT by blam
Here Comes Congress' Next Big Economic Crisis, And It Could Be Even Worse Than The Fiscal Cliff
May 15, 2014, 10:51 AM
We survived the fiscal cliff and the government shutdown. But there's another big battle brewing this summer between Congress and the Obama administration with dire economic consequences that could cost the country hundreds of thousands of jobs.
And even though politicians on both sides of the aisle agree this disaster is "completely avoidable," all signs indicate we're on a collision course with crisis.
On Wednesday, President Barack Obama gave his first formal warning about this impending self-inflicted disaster the Highway Trust Fund, a transportation and infrastructure fund financed by gasoline taxes, is set to run out by the end of the summer.
Thus far, Congress has not come up with a solution, and both sides are beginning to dig in. By July, thousands of projects and contracts could be put on hold amid the uncertainty right in the middle of summer construction season. In one economic analysis released last week, the Obama administration warned 700,000 jobs tied to the fund and its uncertain future are at stake.
"Right now, there are more than 100,000 active projects paving roads and rebuilding bridges, modernizing our transit systems," Obama said Wednesday in remarks near the Tappan Zee Bridge in Tarrytown, New York, where a $3.9 billion effort to replace the current aging structure is underway.
"States might have to choose which ones to put the brake on. Some states are already starting to slow down work because theyre worried Congress wont untangle the gridlock on time.
(Excerpt) Read more at businessinsider.com ...
Here's our latest "it's worse than the Fiscal Cliff" crisis.
Bhoner and McConnell will cave, on cue, when the Caliph tells them to.
Why are they going to run out of money - have people stopped buying gasoline? Just think how much money could be saved if the government would hire non-Union workers!
Another “crisis” to rationalize more extortion from the government.
Yes, the Democrats have been once again touting shovel ready infrastructure projects, like the Seattle Big Dig. This time, they are dropping the “shovel ready “ line though, in favor of more honesty. They are pushing for infrastructure projects that support the multi- modal transportation projects, known as Gateways.
Gateways are part of the world wide One World Government project that connects ports and urban areas around the world, through rural areas, limiting human incursion into the rural areas.
Now, I am not saying that all Gateways are bad, I am saying that the left has a hidden agenda behind their system of Gateways and the multi-modal transportation projects. Think Warren Buffet and his trains. Think Obama’s goal of shifting trade away from the Mississippi to the West Coast as part of his pivot toward Asia.
Patty Murray has written the bill to allocate the money for the Gateway projects but it has been stalled in committee for about three years. The problem is not with Republicans, but with the Democrats, who hate oil trains and coal trains.
I believe the amount skimmed off the top of transportation funding is at 40% now. That’s before they start wasting it on transportation related things like keeping empty AMTRAK trains moving, paying to keep bus lines afloat, bike trails etc.
If that money were kept where its actually intended for and needed, there would be more than enough to take care of interstate roads and bridges.
Nope, this was all solved five years ago. Billions of dollars of “stimulus” deficit spending for thousands and thousands of infrastructure projects which created tens of thousands of “shovel ready jobs”.
The govt can start a Road Bracero Program. Open it up to all the illegals with the understanding that after 7 years as a Road Bracero, the illegal would get a Green Card.
It wouldn't cost much. Payem a couple a bucks and hour and feedem beans and tortillas.
You hit that nail on the head. All the union workers, the environmental and other studies, etc. is making road repairs way too expensive. CA is a good example of that.
dip-idiot O’bummer was just here (St.Paul)
$150-Million for a train hub- -AMtrack train
Was 90 minutes LATE!-
A $1.2 billion 11 mile section to mpls.
The original link -$1.5 Billion! from airport to mpls
$150 Million JUST to run on EXISTING rails to St. cloud-!
This is ALL about providing the UNION jobs-
Private companies Would not do this
Its not even about providing union jobs. Its about giving unions money for nothing.
The next real assault on the dollar begins July 1,2014 when H.B.2847 becomes law. I recommend all freepers get up to date on this as soon as possible.
The feds mismanaged the funds but blame is already being shifted to the states. Nothing to do with forced CAFE standards or the push for hybrids. Nothing to do with Davis-Bacon. Nothing to do with 5 union guys for every sub contractor doing actual work.
If you really want to see blatant corruption on road spending come here to Oahu. They don’t even try to hide it.
Remind yourself at all times that this Bozo was tutored on how to break down a government by Cloward and Piven. He wants failure on a grand scale. So grand that the people demand government to save them from the mess that government has created in the first place. IOW they will demand full blown Marxism.
When the dollar loses it’s position as the world’s reserve currency,then we will see the “It’s worse than the Fiscal Cliff” crisis.
YAAYYYYY BIKE PATHS? How many road taxes to bicycle riders pay for their luxurious paths? Rhetorical of course.
When I was a kid we didn’t have bike paths unless you counted the ones worn into the dirt by years of kids before us.
Problem: one (1) prima donna on Pennsylvania Avenue and 535 Capitol Hill critters, all like Paris Hilton on Rodeo Drive, all with Dad’s platinum card.
What have they done since the last `fiscal crisis’?
They’ve borrowed more money from China and spent it.
The Pacific Northwest cities are wasting massive amounts of transportation funds on bike paths, to the exclusion of expanding lanes for cars and trucks. The libs feel good about themselves when they do this, even though most of them don’t ride bikes. Mass transit and bikes for the little people. For the common good. Unless you are a Party elite.
I seem to recall that in Bush’s first term (early 2000s) the issue of falling bridges, poor roads, etc. came up and the “fix” was to open the spigot from this fund. The previous administrations had been collecting and not spending any money on infrastructure. The fund was reported to be “Overflowing” at the time. I remember signs popping up all over the place touting this spending.
I suspect the truth of the matter is that the “overflowing” money pot was a bunch of IOUs (Treasury Certs.)like in the Social Security “Trust Fund”. Congress had already raided it! Now they don’t have income to cover the IOUs anymore.
I may be off-base here, but some how I doubt it....
The problems with the Federal Highway Trust Fund are:
1. A disproportionately high amount has been diverted to support of public transit (light rail, busses, etc.).
2. The porkers in Congress prefer to fund new projects (new bridges and highways, etc) rather than maintenance and repair. Makes for more ribbon-cutting opportunities.
3. Improved mpg and a stagnant economy have resulted in lower tax collections.
The solution, of course, is to use the fund for what it was originally designed to fund: first, maintenance and repair of the existing plant, then new highway projects as needed. Public transit should be funded separately...to the degree justified.
Which is a solution that will never happen...
There are more than 6,000 bridges and tunnels on the American engineers “in need of critical repair” list and (1) the majority of them are in handful of states and (2) the majority of them are not mission critical to intra-state or interstate commerce, and so of what “national priority” ate most of them? None. Then what is the real problem? The real problem is the highway trust fund is used as a national slush fund that tries to allow states to NOT adopt highway and infrastructure priorities.
Canada is willing to pay the full cost of building a new bridge across the Detroit river to east the trade bottleneck. (Its the second busiest freight crossing on the continent) We still need to pay $250 million for buying and razing buildings, customs plaza, and of ramps etc. Unfortunately Obama refuses to release the money without $100 million being given to union pension funds.
again, the real issue is not vital and necessary infrastructure spending but priorities
for Congress the only priority is “what’s in it for my state politicians and for my buying votes back home” and for the state politicians the only priority is in “what’s in it for me” which includes “I need to tell the folks back home I’m not raising their state taxes I’m getting their federal reps to bring free gifts back from uncle sam”
the end result?? power shifts to washington d.c. and that is all that is accomplished
I’m usually opposed to spending on things like new bridges but this is a case with an existing need unlike the cargo cult thinking that builds high speed rail.
Unfortunately our governor is one of those cargo cult thinkers who can’t let go of his dream to fund what we actually need.
So administrators and contract bosses sucked up all of the dough again, and many foreign nationals will cease receiving their temporary ghetto pay without benefits.
The real solution is to abolish pork (federal funding to state and local governments). That would make politics a whole lot quieter and more civil besides being more affordable.
Oh my gosh, we’re all going to die!
At Obama’s discretion, will DOT put up barricades to keep public off roads like Parks Service kept veterans away from Vietnam & WWII Memorials?