TexasGOPVote Blogger Endorsements: The Export-Import Bank: A Lesson on Why We are Broke and Need to Clean House in Congress

Last week, in a little publicized vote, the U.S. House defied financial common sense, the clear will of the people to stop crony capitalism (which is not capitalism), and even the conservative Wall Street Journal. The House voted 330-93 to reauthorize and expand the Export-Import Bank, often known as the “Ex-Im” Bank. 100% of the Democrats (183) voted with over half of the GOP (147) for this distortion of free enterprise. Ninety-three courageous GOP members rightly voted “no”. Zero democrat members voted “no”.

So just what is the Ex-Im Bank? It is yet another sad example of “pork barrel” politics in Washington, (the city that Congressional District 8 candidate Larry Youngblood often describes as “debt city”.) In a scheme only “debt city” lobbyists could love, the US Congress sends taxpayer money into this black hole (the Ex-Im Bank). Bureaucrats in other countries then use it as their personal piggy bank to bankroll overseas purchases, guaranteed by, you guessed it, the US taxpayer. Some of the money makes its way back to US manufacturers, (the largest portion to Boeing—not exactly a company without access to private financing for their products), after the bureaucrats and lobbyists and overseas interests take their cuts. I like Boeing but they don't need guarantees like this and regardless of how good one might think the idea is, the federal government is broke!

The Wall Street Journal editorial writers, not exactly enemies of business interests, even strongly recommended eliminating it, clearly telling the House to “Vote against the reauthorization and expansion of the Export-Import Bank on Wednesday.”

Nonetheless, the House EXPANDED the so-called bank’s potential liabilities from a measly $100 Billion to $140 Billion, a whopping 40% INCREASE in spending and exposure to the US taxpayer!

Sadly, Texas' Congressman Kevin Brady turned his back on taxpayers and voted with Nancy Pelosi, Sheila Jackson Lee and the rest of the Democrats to expand the Ex-Im Bank. This is not too surprising; given his long history of voting for larger and more bloated government, including the debacles we call now call TARP and bailouts. The irony is that just a day or two after he so voted, he was back in campaign mode, claiming to be a fiscal conservative and hypocritically preaching that states put their financial house in order.

The Congressman has Potomac Fever. Almost all of them get it if they stay in “debt city” too long. He definitely has been there too long.

It is time for new blood in Congress. I suggest a good place to start is with Larry Youngblood, who I enthusiastically endorse.


Disclaimer: The views of individual TexasGOPVote bloggers do not necessarily reflect those of TexasGOPVote.com.

Comments

Mr. Ramsey,

Where on earth do you get your facts?  You write that the US Congress sends "taxpayer dollars into a black hole"...  and call Ex-Im Bank "a lesson on why we are broke".

Sir, Ex-Im Bank doesn't get any taxpayer dollars as it is self-funding... in fact, in generates revenue for the taxpayer, having earned about $4 billion in profits in the past six years.

While ultimately the taxpayers would, indeed, have to pay claims if the Bank's reserves weren't enough to pay claims, that has never happened.  The bank pays for all of its operating expenses and claims out of the fees and interest that it charges, and still earns a profit for taxpayers.

Because of this, getting rid of Ex-Im Bank would immediately add to the deficit, not reduce it. 

Also, you might be interested to know that there are countries where there are customers that want to buy American, but can't because there are no banks willing to loan money to support their purchases.  80 countries have Ex-Im bank type institutions to help their companies make the sale.  Without Exim bank the U.S. companies would not only have to compete any foreign companies, they'd have to compete against foreign countries.

Many times the sales aren't risky, but they are in countries where banks have restricted the amount of money they're willing to loan in the country or region. 

Exim's financing keeps Americans working by making what the world wants... items with the Made in USA label.  What's wrong with helping companies stay in business, hire and maintain workers, and contributing to the U.S. Treasury?

Exim is the antidote to a distorted marketplace that already exists.

Nice try.   What capitalism ISN'T is "free enterprise."  That is the term the banker-stooges running this party want to play bait-and-switch with.  Capitalism means banks ruling - they have the capital and in our RIGGED system always will.
 

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