Look how the Export-Import Bank is using your tax money

posted at 8:31 am on July 12, 2014 by Jazz Shaw

This isn’t a new subject for long time readers, though it barely ever gets a mention in the mainstream media. We’ve been talking about the potential upcoming renewal of the charter of the Export-Import bank for quite a while now, and this is no time to let up the pressure. This taxpayer funded entity, beloved by big spenders in both parties as well as the President, may soon get another fresh injection of blood to continue its rather ambiguous mission for years to come. But before that happens, lawmakers should be made aware that voters are up to date on this gimmick and have all the details in hand.

With that in mind, Congressman Jeb Hensarling of the Financial Services Committee is releasing a list of Egregious Ex-Im Deals of the Day for our edification. They are well sourced, and the first one is a doozy.

Hardworking American taxpayers, who are paying more for gas (“Gasoline prices at six-year high – AAA”) and “more for almost everything this year” (CNBC), might be wondering why President Obama refuses to approve the Keystone Pipeline but is using their tax dollars to finance foreign corporate welfare — like the nearly $5 billion in direct loans to help build a venture developed by Saudi Aramco, Saudi Arabia’s state-owned oil company.

This is the same Saudi Aramco, by the way, that one report this week said is “pulling the rug out from under the U.S. gas industry” and has announced plans to spend its money to build 11 45,000-seat capacity stadiums by order of King Abdullah.

In case you’re thinking you couldn’t have read that correctly, you did. The “bank” – which is supposed to provide low interest loans to small businesses so they can afford to to purchase American goods – gave a US assured loan of nearly $5B to the state operated oil company of Saudi Arabia. That’s not exactly the type of business entity which comes to mind when one thinks of struggling small business owners.

The “Boeing Slush Fund” has clearly outlived its usefulness, assuming it ever had any. It is conceivable that if this “bank” was actually focusing on American small business job creators and facilitating sales to smaller buyers overseas who couldn’t qualify for the capital funding to do business over here otherwise, it might be worth discussing an extension of their charter. But this is just massive corporate welfare being taken to a global scale. And it’s high time for the Ex-Im bank to go.


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What, now the banks are not being honest…why who would have ever thought that giving billions away, would cause dishonesty…I am just flabbergasted.

I thought sure there wasn’t a smidgeon of corruption with the governments giveaways…

right2bright on July 12, 2014 at 8:34 AM

I went to the EXIM conference in 2012. The whole thing was a palacial justify my existence commercial with Bill Clinton, Rahm Emmanuel, CEOs from some big companies, John Hunstman and 100 percent liberals from around the world and around Washington DC in a self-congratulatory, opulent, expensive, let them eat cake, fest.

They had professionally produced videos of a few token small business owners, like some aircraft parts person from Texas (clearly just a phone call to Boeing to find one of their suppliers)and they actually took shots at Congress for even considering cutting their funding.

Dude, it was my first taste of the alliance of crony capitalists and their political allies.

timoric on July 12, 2014 at 8:42 AM

One of the participants and I struck up a conversation about Africa. The clueless French woman who wrote a paper about electric production facilities in different countries and how many megawatts they produced, actually said Africa’s economic problem was too much capitalism. Yeah right, that is it.

timoric on July 12, 2014 at 8:43 AM

which is supposed to provide low interest loans to small businesses so they can afford to to purchase American goods

Check out all the loans they give to wealthy countries to buy major US weapons systems. It’s a scam the taxpayers pay for. Virtually all these sales would be made with or without the ExIm.

Aplombed on July 12, 2014 at 8:46 AM

Misusing taxpayer money. What else is new.

crankyoldlady on July 12, 2014 at 8:55 AM

There has to be more to the story than the article suggests.

The IM/EX bank makes 5 billion a year. It doesn’t cost the taxpayer.

aniptofar on July 12, 2014 at 8:55 AM

Remember when the Ex-Im Bank loaned a couple of billion dollars to Petrobras in 2009 to buy offshore drilling equipment from US companies? It was so controversial that they put out a news release about it, answering charges of political influence in the loan grant.
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I also remember that G. Sore-ass made an investment in Petrobras soon after the loan was granted. That was sure fortuitous for ole Georgie, won’t it?

ExpressoBold on July 12, 2014 at 9:08 AM

It comes back in the form of paid speeches to folks like the Clintons.

BL@KBIRD on July 12, 2014 at 9:21 AM

The IM/EX bank makes 5 billion a year. It doesn’t cost the taxpayer.

aniptofar on July 12, 2014 at 8:55 AM

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What do you mean? Where does Ex-Im get its funds to guarantee loans? They are asking for their “exposure cap” to be increased to $160B. If they generate only $5B in loan repayments annually, how can they have need of a loaned funds level of $160B?
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The mission of the Ex-Im Bank is to generate business for small businesses, not well-established cash-rich corporate entities who already do massive business with governments. In addition, they have a restrictive carbon policy which would make that single loan guarantee to Petrobras (state-owned and state-operated by Brazil) questionable. There is a lot about the use of the Ex-Im Bank by the Feds that is hidden, not stated and probably off its mission statement.

ExpressoBold on July 12, 2014 at 9:33 AM

There has to be more to the story than the article suggests.

The IM/EX bank makes 5 billion a year. It doesn’t cost the taxpayer.

aniptofar on July 12, 2014 at 8:55 AM

If it is such a profitable venture, why aren’t private lending organizations lining up to get in on the deal?

Grammar Nazi on July 12, 2014 at 9:49 AM

Time to write your thieves in Washington. For what it is worth.

Cindy Munford on July 12, 2014 at 9:50 AM

Old and Busted: Slush Fund

New Hotness: Slush Bank

ROCnPhilly on July 12, 2014 at 9:58 AM

Somebody get Art Vandelay on the phone!

thebrokenrattle on July 12, 2014 at 10:07 AM

This is another way Democrat Obama is “redistributing” wealth – that is more of our money to rich non US countries.

Redistribution, break America, put us down. Horrendous.

MN J on July 12, 2014 at 11:16 AM

Remember when the Ex-Im Bank loaned a couple of billion dollars to Petrobras in 2009 to buy offshore drilling equipment from US companies? It was so controversial that they put out a news release about it, answering charges of political influence in the loan grant.
.
I also remember that G. Sore-ass made an investment in Petrobras soon after the loan was granted. That was sure fortuitous for ole Georgie, won’t it?

ExpressoBold on July 12, 2014 at 9:08 AM

.
Pure, unadulterated coincidence … nothing to see here, move along !
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However, I do like that monicker “G. Sore-ass” … : )

It totally fits.

listens2glenn on July 12, 2014 at 11:19 AM

Last year the Import/Export Bank granted a multi-billion dollar loan to the Brazilian national petroleum company so it could drill off the coast of Brazil.

Yet, the U.S. Chamber of Commerce is fighting to preserve the Import Export Bank.

bw222 on July 12, 2014 at 11:25 AM

However, I do like that monicker “G. Sore-ass” … : )

It totally fits.

listens2glenn on July 12, 2014 at 11:19 AM

.
:-;

ExpressoBold on July 12, 2014 at 11:41 AM

:-;

ExpressoBold on July 12, 2014 at 11:41 AM

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Wow – my emoticon made no sense…. apologies.

ExpressoBold on July 12, 2014 at 11:42 AM

Are these loans ever repaid? The answer is obvious by the continual budgetary request.

pat on July 12, 2014 at 12:46 PM

Corporate welfare, shredding VA appointment waitlists, IRS targetting voters, DOJ arming mexican drug dealers, DOJ wiretapping journalists, NSA spying on citizens, immigration laws obstructed, using tax dollars to fund the invasion of alien children and gang bangers…

At what point do Americans say “enough, not a penny more to this corrupt establishment that ignores the rule of law at a whim”?

At what point do the people either actively rise up or quietly change their W-2′s and quietly stop paying taxes to fund this nonsense?

azpatriotsdotcom on July 12, 2014 at 1:27 PM

Just once every 20 years or so, we should round up those who rip off the taxpayers and hang them along the Potomac River. Leave them swinging for a few days as a warning to others.

~

Somebody get Art Vandelay on the phone!

thebrokenrattle on July 12, 2014 at 10:07 AM

I heard he was concentrating on the importing and getting out of exporting.

Adjoran on July 12, 2014 at 2:01 PM

At what point do the people either actively rise up or quietly change their W-2′s and quietly stop paying taxes to fund this nonsense?

azpatriotsdotcom on July 12, 2014 at 1:27 PM

Yeah, I guess some day, somewhere a monkey will say “No”…but I wouldn’t count on it.

Dr. ZhivBlago on July 12, 2014 at 3:39 PM

:-;

ExpressoBold on July 12, 2014 at 11:41 AM

.
Wow – my emoticon made no sense…. apologies.

ExpressoBold on July 12, 2014 at 11:42 AM

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NOPE, sorry … gonna hafta hold that against you for a couple of days.

listens2glenn on July 12, 2014 at 9:41 PM