DeLauro Makes Unconstitutional Intent Clear

In her testimony before the House Ways and Means committee on May 13th 2010, U.S. Representative Rosa DeLauro (D-Connecticut) outlined and summarized her plans for the National Infrastructure Development Bank. Read the prepared remarks here.

In her testimony, DeLauro highlights that the Bank would be capitalized by $25 billion in five annual $5 billion appropriations and "An additional $225 billion would be available at the call of the Treasury Secretary to meet bank obligations if necessary."

Oh, and don't be fooled, because Representative DeLauro certainly intends that it be necessary. In fact, she opined that "With a conservative leverage ratio of 2.5 to 1... ... the Bank could potentially issue up to $625 billion in bonds."

Conveniently, Representative DeLauro ignores the fact that this scheme delegates congress' duty to spend tax revenue by appropriations to an unelected committee who can pick and choose the projects to invest in.

Representative DeLauro also fails to draw the lessons of Fannie and Freddie. Similar schemes that have wreaked havoc on the economy and the government's budget.

Please contact Representative DeLauro, and the Representative for your congressional district, and urge that this unconstitutional bill be dropped from consideration.