Multi-giant industrial conglomerate GE is at it again, tossing its considerable weight around in the Export-Import Bank controversy.
Just to refresh, EXIM was originally created to help US small and medium sized businesses sell their products overseas by extending credit to foreign buyers. Now what part of behemoths like GE and Boeing do you consider small or medium sized?
If you detest crony capitalism, you got to detest this handout. What's caused some of the controversy is a recent study at George Mason University showing that just "10 US companies receive three-quarters of ExIm financing, with GE among the main beneficiaries."
Still another part of the controversy this week stems from what we mentioned last week about US-African trade. The US apparently has fallen behind India, China, Brazil and others in investing there. As we pointed out much of this problem can be placed at the door stoop of the current administration
A question we've posed before and will again: Is there any party this administration isn't late to?
That's just one of the ironies of the tale. Another is GE and it CEO Jeffery Immelt who are one of the 'biggest participants," according to the Financial Times, '"in the Obama administration's Power Africa initiative to provide $7bn backing for energy projects there over the next five years."
Energy is GE's business. Big power wields big influence. Just last month Standard & Poor's issued a warning that killing off ExIm would negatively effect another big slopper at the trough, Boeing, "the commercial aircraft maker that receives more than a third of the bank's credit."
Now this is just an idling question, you don't suppose GE ever floats any of its paper debt assets through the big rating agency do you? We didn't think so, either.
MSM and the administration is trying to color this as a hate-based, radical idea from conservatives and Tea Party folks. We don't know anyone in the TP, have never met one and have little or no inclination to do so to know this deal is a crony capitalism ringer of the first degree.
If you have an opinion don't let it just idle.
t. man hatter
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