Wednesday, April 20, 2011

Broke but we can still give it away

This Morning I han an email from Reality Check 4 Eve titled

This is what I am grumpy about today, and a line that read, "I hope you don't mind me borrowing your line Grumpy", followed by this link:

No Reality Check, I don't mind you borrowing my line at all, I do mind the Our Government, borrowing money in our names to loan to State Owned Companies in other Countries to produce a product we need domestically and are capible of producing right here at home. 

The article U.S. Gov't Agency Plans $2.84 Billion Loan for Oil Refinery—In Colombia by Terence P. Jeffery started off like this. - The U.S. Export-Import Bank, an independent agency of the federal government, is now planning a $2.84-billion loan for a massive project to expand and upgrade an oil refinery--in Cartagena, Colombia.

The money would go to Reficar, a wholly owned subsidiary of Ecopetrol, the Colombian national oil company.

This is part of a $5.18 billion refinery and upgrade project in Cartagena, Colombia supplying petroleum products to the domestic and export markets,” the Export-Import Bank said in a statement

I'm thinking Foreign Aid by any other name is still Foreign Aid.  Wasn't it just yesterday that Standard and Poors downgraded America Debt rating to Negative?  We borrow 40% of the everyday costs of our own government.  If we can't pay our own bills with our own money, were do we get the money to loan to other countries...

I figured the answer must be somewhere in the article, and it was, at least it was if you understand government logic.. I don't, but I found an explanation of sorts..

"The public-policy rationale for the $2.84 billion loan for the Colombian oil refinery project is the same as the rationale for all Export-Import Bank loans to foreign interests: to create jobs in the United States
“The transaction will help create or sustain over 15,000 American jobs for a total of four years,” says the bank’s statement about the loan.
Spokesman Cogan says the bank calculates the jobs created or sustained by a loan or loan guarantee by using a formula that estimates how much money spent buying U.S. exports in a particular industry it takes to create a job.

If the $2.84 billion loan to Reficar to expand and upgrade its Colombian refinery creates or sustains the 15,000 jobs in the United States that the bank believes it will create or sustain that would work out to $189,333 per job
If can be a big word. What if they don't import anything from the US?  

Something about the numbers struck me.  Yeah, let me see, off the top of my head you get 20,000 jobs at $50,000 per year, per billion..   Hmmm 2.84 Billion, thought so, damned if the math didn't work out perfectly 2.84 billion/15,000 job= 189,333 each or 47,000 per job.. if all goes as planned by the U.S. Export-Import Bank.  Exactly the same amount as the loan..   Looks like another government stimulus program.

 Presidents Stimulus Plan didn't work when he tried it here..  The Federal Reserve Quantitative Easing scheme didn't get the banks to loan money to US Firms.  Instead they invested in Treasuries.. Other Countries and Oil Future Speculation.   Meaning they got our money at .25% and loaned it back to us and out competitors at 3% or more.  Now we're going to offer foreign companies the exact amount of borrowed money government bureaucrats figure we might get back in wages and hope that works better

It's not like the oil companies are poverty stricken, if they want new gasoline refineries in other parts of the world, let them pay for them.  Then we could loan that 2.84 Billion, we have to borrow, to an American Company so they could build something here.  

Or maybe we don't loan it at all, that way we don't have to borrow it.


  1. "Broke, but we still give it away" sounds like a title for a country Western song. If there isn't one already, it might be timely that one is written.

  2. The country folks used to say "Charity begins at home"

  3. Didn't Mr. Owebama just loan $2.2 Bbbillion to Brazil a few months ago? Aren't they going to drill off-shore of Florida. What is going on here?

  4. He seems pretty intend on having our oil and gasoline coming from elsewhere


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