An MMT site bringing you dogma-free economics without the pleadings of self interest
Interesting:"Sec. 301. Loan Guarantees. (a) To reduce current or projected shortfalls of resources, critical technology items, or materials essential for the national defense, the head of each agency engaged in procurement for the national defense, as defined in section 801(h) of this order, is authorized pursuant to section 301 of the Act, 50 U.S.C. App. 2091, to guarantee loans by private institutions.(b) Each guaranteeing agency is designated and authorized to: (1) act as fiscal agent in the making of its own guarantee contracts and in otherwise carrying out the purposes of section 301 of the Act; and (2) contract with any Federal Reserve Bank to assist the agency in serving as fiscal agent.I believe the FRA allows Treasury to use the Fed as the 'fiscal agent' for the US so this butts up against the Federal Reserve Act in some way...Beowulf: Do you have a read on this thing????Resp,
World Net Daily's take:http://www.wnd.com/2012/03/executive-order-panic-martial-law-in-america/Housekeeping...
WND doesn't seem to think it is a very big deal.
Do a search on the executive order. The returns are mostly right wingers hyperventilating over impending martial law. That is already pretty much been legislated already in case of national emergency, and Gen. Tommy Frank said quite a while ago that another 9/11 would likely spark martial law in the US.But it is interesting that the Obama administration decided to float this now.
Maybe the crazies are right the Feds are just preparing for the upcoming 2012 Olympics bombing to blame on Iran and declare another national emergency power grab. Happy WW3 guys. Stay the course! 4 more Wars err years!
Matt,Again with these stupid loan guarantees. The gov't could just make payment directly to whatever vendors it needed to. Instead, let the banks profit on a national emergency.
Mike,I see what youre saying didnt really see that angle at first...Talking to my regional bank branch guy here in DC area, they are currently doing the most loans to Fed govt contractors who are getting "slow pay" from the Fed govt due to "debt ceilings" and other fiscal idiocy by the fed govt....It's also under an SBA program.So a small business Fed govt vendor takes their invoice to the bank say for $100. The bank will lend them $90 against the Invoice, and then qualify the $90 into an SBA guaranteed loan that the bank can either hold or package and sell.The vendor is happy because they can make payroll and the bank is happy because they are making 6% loans in this environment on paper that in effect is 2x govt guaranteed.In effect it is a double Fed guaranteed loan as the signed govt invoice means it's "money good" in the first place, and then when it is put in the SBA program, the SBA guarantees the the $90 to the bank again (and they have a 10% cushion built in).... so double Fed guaranteed paper at 6% (not bad!)To your point, all unnecessary if the govt would pay vendors in a timely fashion... to Tom's point that he makes often: A subsidy.resp,
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