Senator Kerry's Act is Defective

Senator John Kerry (D - Mass) has introduced a new version of the National Infrastructure Bank in Senate Bill 652. The 'short" title of the bill is "Building and Upgrading Infrastructure for Long Term Development" but the Senator from Massachusetts refers to it as the "Build Act".

The primary mechanism of this bill is the establishment of a government agency, euphemistically called a corporation, which is given the name "American Infrastructure Financing Authority." This agency is headed by a panel of seven presidential appointees (with the advice and consent of the U.S. Senate) not more than four of which can be from one political party. According to the text of the proposed legislation, five votes are necessary to approve funding for an infrastructure project. The purpose of this act is made clear on Senator Kerry's web page:

The BUILD Act is a bold solution that establishes an American Infrastructure Financing Authority (AIFA) - a type of infrastructure bank - to complement our existing infrastructure funding. This institution, which would provide loans and loan guarantees, would be both fiscally responsible and robust enough to address America’s needs. AIFA is independent of the political process.

Thus, Senator Kerry and his co-authors desire to short circuit the representative process set out in the constitution. The goal, get tax payers on the hook for money borrowed under the full faith and credit and doled out by this unelected panel. The bill authorizes this agency to spend $10 billion a year for the first two years, $20 billion a year for years 3 through 9, and $50 billion a year thereafter. Where is that money coming from?

Contact your Senator and ask them to stop Senate bill 652 dead in its tracks.

Obama Still Wants National Infrastructure Bank

This morning President Barack Obama introduced something he calls the "The American Jobs Act". The applicable portion of which reads:

The President is calling for Congress to pass a National Infrastructure Bank capitalized with $10 billion, in order to leverage private and public capital and to invest in a broad range of infrastructure projects of nationaland regional significance, without earmarks or traditional political influence. The Bank would be based on the model Senators Kerry and Hutchison have championed while building on legislation by Senators Rockefeller and Lautenberg and the work of long-time infrastructure bank champions like Rosa DeLauro and the input of the President’s Jobs Council.

Now is the time for all people interested in preserving representative democracy to ACT! Contact your Senators and Congressional Representatives and urge them to defeat the National Infrastructure Bank.

President Obama Fails to Mention National Infrastructure Bank

In what must be a significant blow to the Connecticut congressional delegation, and his old buddy Ex-Senator Chris Dodd, President Obama completely neglected the National Infrastructure Bank in his speech Thursday evening.

This is unlikely to mean that the measure will die in Congress, but let's hope vigilant citizens keep the press on their elected representatives to keep our Constitution promise. Our elected representatives represent our interest in Congress by deciding how, when, and where our tax money in spent. Not by delegating this responsibility to an unelected committee of bureaucrats.

PresidentObama Set to Resurrect National Infrastructure Bank

Tonight, President Barack Obama will propose a "jobs" package that is sure to, among other things, urge passing of the National Infrastructure Bank by Congress. Why won't the President let this bad idea die? As discussed elsewhere on this blog, President Obama was oblivious to this so-called bank until in a few day span in the spring of 2008, Senator Chris Dodd dropped out of the presidential race, Candidate Obama endorsed the National Infrastructure Bank, and the next Monday then Senator Obama was listed as co-sponsor on this otherwise dead piece of legislation. Despite that backing, the Bank was not included in the President's stimulus plan nor could pass on its own merits. The reasons are clear:

* It will not be a bank, but rather a government agency staffed with bureaucrats and political appointees.

* It will issue debt backed by the full faith and credit and of the United States, meaning that's our money their spending.

* It will result in infrastructure spending be allocated by an unelected committee rather than by the votes of our Representatives.

Please contact your elected representatives today. Urge them to block passage of this bad idea. Tell them you expect infrastructure spending by the United States Government to voted on in Congress by your elected representatives.

Huffy Post Stooges for Unconstitutional Bank.

Michael Likosky of the Huffington Post proves to be a cheerleader for President Obama and the National Infrastructure Development Bank. Writing in the Huffy Post, Dr. Likosky states:

...the Infrastructure Bank can relay the foundation of our economy through progressive long term projects that are synced up with a medium term business cycle - allowing firms to plan ahead, which is essential for retaining and creating good jobs. Investing in what will make America competitive, a job producer, a promoter of equal opportunity, and an ensurer of national security.

What an undisciplined argument this is. Platitudes without logical basis and specious cause and effect arguments. But it gets worse. Likosky continues:

On February 13, 2008, then-Senator Obama had first announced the Infrastructure Bank on the factory floor of the General Motors Assembly Plant in Janesville, Wisconsin as a campaign plank. The speech marked, at the time, a pivot by Obama away from the sole candidate to have opposed the Iraq War and toward positioning himself as the champion of America's economic recovery. In this landmark speech, Obama argued for redirecting our energies away from reconstructing Iraq and toward reinvesting in America.

This piece of revisionist history is beyond the pale. As reported elsewhere, this speech was a token gesture by then Candidate Obama in return for Senator Dodd (D - Connecticut) withdrawing from the Presidential Race. Soon after, then Senator Obama became an official sponsor of Senator Dodd's proposed legislation. The purpose of this bill should be obvious. It is an attempt by the delegation of Connecticut to get more funding for their very unpopular, federally subsidized railroad system. This was no landmark speech and the President was so committed to this proposal that his colossal stimulus bill, which contained nearly every other Democratic bill introduced since President Clinton left office, omitted the bank.

Don't believe intellectually dishonest people like Dr. Likosky. Urge your elected representatives to reject the unconstitutional National Infrastructure Development Bank.

President Obama Lights a Fire on Unconstitutional Bank

As reported in the New York Times, President Obama's new infrastructure plan includes a call to establish the unconstitutional National Infrastructure Development Bank. The Times' article made clear the intent of establishing this entity:

Indeed, some leading proponents of such a bank — including Gov. Arnold Schwarzenegger, Republican of California; Gov. Ed Rendell, Democrat of Pennsylvania; and Michael R. Bloomberg, the independent mayor of New York — would like to see it finance a broader range of projects, including water and clean-energy projects. They say such a bank would spur innovation by allowing a panel of experts to approve projects on merit, rather than having lawmakers simply steer transportation money back home.

So, we need to establish this bank because our elected representatives cannot be trusted to spend the money in the way that big state governors and big city mayors approve of. But, the constitution makes it clear that spending our money is the job of our Representatives, and this duty cannot be delegated to an unelected committee.

Contact your Congressional and Senate delegation today and tell them to stop the unconstitutional National Infrastructure Development Bank.

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.