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?
I’m afraid that this one is a bipartisan shafting of the taxpayers.
SC governor Nikki Haley supports the Ex-Im Bank, because it’s helping Boeing sell those Dreamliners that it is manufacturing in her state.
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