No wonder they call the Export Import Bank “Boeing’s Bank.” The company received a whopping 83% of the export loans in fiscal year 2012.
The Export-Import Bank is a federal agency on which Obama has leaned heavily in his “Export Initiative,” and his “new economic patriotism.” Known as “Boeing’s Bank,” Ex-Im is a perfect example of why Obama’s “economic patriotism” is just corporate welfare dressed in populist rhetoric.
Ex-Im’s primary way of subsidizing exports is through loan guarantees: a private bank lends money to a foreign buyer (such as a foreign company or government) who is buying an American good. Ex-Im guarantees the loan, meaning that if the foreign buyer defaults, U.S. taxpayers foot the bill.
In fiscal year 2012, Ex-Im issued $14.7 billion in loan guarantees. $12.2 billion of that money subsidized Boeing sales.
That’s right: 82.7% of all of Ex-Im’s taxpayer-backed loan guarantees benefitted one corporation.
Good grief, isn’t Boeing big enough to get by without loan guarantees from the broke citizens of the US?