Jeb Hensarling

Stop Obama’s green energy cronyism: Kill the Export-Import Bank

Barack Obama and Solyndra

One of the Export-Import Bank’s main goal, as it appears stated on its “About Us” page, is to “provide[s] export financing products that fill gaps in trade financing,” and effectively support U.S. companies that export “primarily to developing markets worldwide.”

The noble mission of filling in the gaps in trade financing, working as if the institution exists to fill in for an all-seeing eye and making sure that the developing world is being coerced into purchasing American products, doesn’t seem all that noble once you explore what the agency has accomplished in the last 80 years.

While the export credit firm offers financial incentives that promote a few amongst the greats of American corporations so that poor countries can afford U.S. products, one of the agency’s least publicized but extremely essential functions is to pick winners and offer them a striving market that is ready for their subsidized – therefore artificially affordable at the final consumer level – goods.

According to a research published by the Mercatus Center, the Export-Import bank’s most pressing problem is its procedural favoring of politically-connected corporations, which ultimately undermines competition, offering a disloyal and unjust environment to other companies that are not even allowed to compete with the government’s protégé abroad.

One of the industries that have been recently picking up steam with the help of the Ex-Im Bank is the green energy and sustainability sector.

Ex-Im Is The “Face of Cronyism,” Says Jeb Hensarling

Crony capitalism is America’s disease and the real problem with the modern perception of capitalism that most of the left likes to use against capitalism itself, without discerning between what voluntary trade and free markets can accomplish and what crony capitalism actually is all about.

It’s very easy to find perfect examples of crony capitalism in the age of President Barack Obama.

One of these perfect examples has been relying on taxpayer money to subsidize financial incentives destined to foreign companies that purchase U.S. exports: the Export-Import Bank.

The agency’s charter expires in 2014, making now the perfect time for opponents of crony capitalism to raise their objections to the agency’s upcoming congressional renewal. Heritage’s The Foundry talked to Rep. Jeb Hensarling (R-TX) about the Export-Import Bank and why he thinks that the federal export-subsidy agency should not be allowed to stay in business.

“Super Committee” members named

All of the Members of Congress that will serve on the so-called “Super Committee,” the group created as part of the debt deal between the White House and Congress to find $1.5 trillion in “deficit reduction” in the coming months, have been made public:

The top Republicans in the House and the Senate appointed six more lawmakers on Wednesday to the bipartisan committee that is supposed to recommend steps to reduce federal budget deficits by at least $1.5 trillion over 10 years.

Speaker John A. Boehner chose three senior Republican House members: Jeb Hensarling of Texas, and Dave Camp and Fred Upton, both of Michigan.

Mr. Hensarling, who is chairman of the House Republican Conference, will be co-chairman of the new panel, along with Senator Patty Murray, Democrat of Washington.

The Senate Republican leader, Mitch McConnell of Kentucky, chose Senators Jon Kyl of Arizona, Rob Portman of Ohio and Patrick J. Toomey of Pennsylvania for the 12-member panel.

As noted, Sen. Patty Murray (D-WA), who hasn’t been one to restrain spending, was named by Senate Majority Harry Reid. She will serve with Sens. John Kerry (D-MA) and Max Baucus (D-MT). House Minority Leader Nancy Pelosi named her picks today:

House Minority Leader Nancy Pelosi (D-Calif.) has selected Rep. Jim Clyburn (D-S.C.), Rep. Chris Van Hollen (D-Md.) and Rep. Xavier Becerra (D-Calif.) for the so-called “supercommittee” on Thursday.

The GOP Shakeup Begins

Politico is reporting that the third ranking Republican in the House of Representatives, Adam Putman, has decided to resign his position. Putnam, 34, elected in 2000, has been viewed as a rising party star able to provide a young fresh face to party leadership. His most recent national point of importance occurred when he stood aside Bush surrogates and other Republican Party leaders attempting to sell the $850 billion TARP Bailout package to skeptical House Republicans.

So wondering how does this effect things? Won’t this neocon just be replaced by yet another neoconservative with little to no true conservative principles? Well the following is an interesting development-

Republicans are about to cave on the crony Ex-Im Bank, surrendering more ground to the Obama White House

After months of a very public debate over the future of the Export-Import Bank, House Republicans are poised to temporarily extend the life of the controversial New Deal-era agency to avoid any drama before the mid-term election.

The Ex-Im Bank has, rightly, been criticized by conservatives both inside and outside of Congress because it has become symbolic of cronyism, the marriage of big government and big business. The Bank has doled out billions of dollars in taxpayer-backed loans to some United States’ biggest corporations, including Boeing, Caterpillar, General Electric.

Despite the efforts of some members willing to take on cronyism, House Republicans are poised to reauthorize Ex-Im, albeit temporarily, instead of risking a big fight before the chamber, because, apparently, there’s never a good moment to get into a debate over bad policy:

Speaker John Boehner on Tuesday signaled the House will extend the Export-Import Bank’s charter, saying that one of the institution’s biggest critics is on board.

The Ohio Republican said he is working with Texas Rep. Jeb Hensarling, the Financial Services chairman, who “thinks a temporary extension of the Export-Import Bank is in order.”

Flip-flopper-in-chief: Barack Obama was against the crony Ex-Im Bank before he lobbied for its reauthorization

President Barack Obama used his weekly address to make a sales pitch for the Export-Import Bank, the New Deal-era agency that has come under fire from conservatives in Congress because of its taxpayer-backed loan guarantees to large corporations. Congress will take up the reauthorization of the Bank at some point next month, which could lead to a showdown between conservatives and the Washington political establishment:

President Barack Obama urged the owners and employees of businesses that rely on Export-Import Bank financing to tell members of Congress to “quit treating your business like it’s expendable” in his Saturday morning address.
[…]
Obama took aim at that characterization of the bank on Saturday.

“Its sole mission is to create American jobs. That’s it,” Obama said. “It helps many American entrepreneurs take that next step and take their small business global.”

The bank has been reauthorized 16 times before, “always with support from both parties” and under both Republican and Democratic presidents, the president said.

“This time around shouldn’t be any different,” he said. “Because the bank works. It’s independent. It pays for itself. But if Congress fails to act, thousands of businesses, large and small, that sell their products abroad will take a completely unnecessary hit.”

Obama must take a tougher stand against Russia, and he can do that by ending Ex-Im’s deals with Vladimir Putin’s cronies

With tensions boiling over in Ukraine as Vladimir Putin’s regime sends more weapons to separatists, House Financial Services Committee Chairman Jeb Hensarling (R-TX) is calling on President Barack Obama to stop the Export-Import Bank from doing deals with Russian businesses.

Hensarling says that Russia “bears responsibility” for the conflict in Ukraine as well as the “atrocity of the downing of Malaysia Airlines Flight 17,” in which 298 people lost their lives. The Texas Republican noted that Putin’s regime “is supplying the separatists with advanced weapons and encouraging their attacks on aircraft and on the people of Ukraine.”

“Russia’s actions are in direct conflict with our national interests,” Hensarling wrote in a letter to President Obama. “Yet, still, the Export-Import Bank remains open for business in Russia. In fact, total authorizations for deals between Ex-Im and Russia have increased nine-fold since you took office.”

The House Financial Services Committee recently noted that Ex-Im increased funding for Russian projects by 177 percent in FY 2013, translating to a $580 million commitment, a record level. These loans and subsidies are backed by American taxpayers.

Here’s how big government Republicans and Democrats are colluding to save the crony Export-Import Bank

Congress may avoid a straight up or down vote on reauthorization of the Export-Import Bank, according to Politico. The Bank’s supporters in Congress, Republicans and Democrats alike, are talking about attaching reauthorization to the upcoming Continuing Resolution, which would keep the federal government funded through the election:

High-level discussions between the two chambers are in their infancy, and senior aides caution there is no deal in the immediate offing. But there are forces in both chambers pushing to renew the Export-Import Bank and pass an extension of the Highway Trust Fund before the election.

The House will go first, and plans to extend the Highway Trust Fund sometime in the next two weeks, keeping the program funded until early 2015, Republican sources said. That would give Congress more time to debate a more permanent solution for federal highway funding.

Senate Majority Leader Harry Reid (D-Nev.) is considering attaching a short-term reauthorization of the Export-Import Bank to a continuing resolution that would keep the government funded past Sept. 30. It would be meant as a dare to House Republicans to shut down the government over the bank in the weeks before Election Day. House Republican leadership has discussed this possibility, but has not decided how they would react if Reid goes in that direction, according to senior House Republican sources. Reid and House Speaker John Boehner met Tuesday.

House Republicans have also discussed passing a so-called CR to keep the government open before August as a way to increase their leverage with the Senate.

“The private sector can do it”: New House Republican leader says Congress should let the crony Export-Import Bank expire

Kevin McCarthy

In his first major talk show appearance since being elected to serve as the next House Majority Leader, Rep. Kevin McCarthy (R-CA) told Fox News Sunday host Chris Wallace that he’s ready to end the Export-Import Bank, the reauthorization of which could hit the floor of the lower chamber in the next few months.

“Authority for the Export-Import Bank which…helps encourage the selling of U.S. products overseas expires in September,” Wallace noted. “Do you agree with conservatives who say that the Export-Import Bank is crony capitalism and it should be put out of business, allowed to expire?”

“One of the problems with government is they go and take hard earned money so others do things that the private sector can do,” McCarthy replied. “That’s what the Ex-Im Bank does. The last authorization with the Ex-Im bank directed the President and the Treasury secretary to wind down the Ex-Im bank, negotiate with other countries to wind them down so we have a level playing field.”

McCarthy noted that the House Financial Services Committee will hold a hearing this week on the proposed reauthorization of the Export-Import Bank.

Today in Liberty: House GOP set elect new leaders on June 19, gun control group caught lying about shooting numbers

“Governments constantly choose between telling lies and fighting wars, with the end result always being the same. One will always lead to the other.” — Thomas Jefferson

— House Republican leadership schedule for June 19: And they’re already taking shape. Majority Leader Eric Cantor (R-VA), who was dealt a stunning and overwhelming loss on Tuesday, will step down from his post at the end of July. That move is expected to open up two top leadership spots — Majority Leader and Majority Whip. Things are moving quickly, but current Majority Whip Kevin McCarthy (R-CA) and Rep. Jeb Hensarling (R-TX) seem to be emerging as two main candidates for Majority Leader ahead of the June 19 conference election. Whatever happens, however, House conservatives could be serious players in what is a delicate process, and that could be good news for Hensarling.


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