tag:blogger.com,1999:blog-2761684730989137546.post9004233541246656049..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: Katelyn Fossett — U.S. Eyes Pension Funds to Renew Crumbling Infrastructuremike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-2761684730989137546.post-61675907962521257822013-03-31T09:37:10.068-04:002013-03-31T09:37:10.068-04:00If this 'bank' is publicly owned, then ...If this 'bank' is publicly owned, then 'profits' would probably be returned to the Treasury for 'deficit reduction' and a nice 'profit for the taxpayers'... ie a tax increase.<br /><br />I'd imagine revenues would come back from the states via tolls and bus fares that local TAs would charge...<br /><br />The amount of subsidy this would create for 'investors' depends on what IR they issue the bonds at. I'd assume if they are Federal guaranteed it won't be much more than USTs... Which is near zero.<br /><br />This scheme looks like mostly a bonanza for the BDs... <br /><br />RSP,Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-13574322237593349512013-03-30T22:53:45.933-04:002013-03-30T22:53:45.933-04:00National Infrastructure Reinvestment Bank
The cre...<a href="http://en.wikipedia.org/wiki/National_Infrastructure_Reinvestment_Bank" rel="nofollow">National Infrastructure Reinvestment Bank</a><br /><br /><i>The creation of a National Infrastructure Reinvestment Bank was first proposed by United States SenatorChristopher J. Dodd and Senator Chuck Hagel in 2007. However, several other iterations of a National Infrastructure Bank have been proposed and considered[1] and it is likely that implementing legislation for the Bank will look quite different from that which was proposed in the original legislation.<br /><br />Barack Obama backed the proposed legislation in February 2008 and repeated his call in September 2010, although he did not provide specifics about how the Bank should operate....<br /><br />The Bank would complement existing federal programs to fund infrastructure, such as the Highway Trust Fund or State Revolving Funds. It is expected to invest primarily in surface transport infrastructure, which is likely to include highways and mass transit.....<br /><br />The original proposed legislation states that the "Bank" is actually "an independent establishment of the Federal Government, as defined in section 104 of Title 5, United States Code."[3] As explained in 5 US Code 104, an independent establishment of the Federal Government is "(1) an establishment in the executive branch (other than the United States Postal Service or the Postal Regulatory Commission) which is not an Executive department, military department, Government corporation, or part thereof, or part of an independent establishment; and (2) the Government Accountability Office."[9]<br />According to the proposed legislation, the "Bank" would be administratively similar to the Federal Deposit Insurance Corporation (FDIC).</i>Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-66678550772023462732013-03-30T19:56:59.164-04:002013-03-30T19:56:59.164-04:00I think Dan Lynch is right. The "infrastruct...I think Dan Lynch is right. The "infrastructure bank" is a classic idea of neoliberalism. The public puts up part of the cash to help private companies build infrastructure that the public then has to rent back from the owners.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-53944910704065220542013-03-30T13:19:00.680-04:002013-03-30T13:19:00.680-04:00Dan has the right idea.
Michael Hudson discusses...Dan has the right idea. <br /><br />Michael Hudson discusses this concept wrt finance capitalism:<br /><br />http://www.youtube.com/watch?feature=player_embedded&v=hkUNaO4T6gI<br /><br />Obviously, those of the elite, who have captured the Executive Branch (whose Department Heads running the Treasury and Justice Depts publically assert that the big banks are TBTF), can surely dream up ways to further the scams to enrich themselves. What better scheme than to simply convince the American citizenry that, because the budget must be balanced, it will be necessary to simply offer public-spirited millionaires/billionaires various opportunities to participate in maintainence of this nation's infrastructure so that the toll-booth economy can go forward? After all, they have already managed to convince their expediters in Congress and the Executive Branch that it was necessary to deplete many of the major pension funds to save those fraud-infested corporations.wilwon32https://www.blogger.com/profile/00601484708970709806noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-14246973626689474652013-03-30T11:55:16.873-04:002013-03-30T11:55:16.873-04:00The article mentions a CAP article on this topic. ...The article mentions a CAP article on this topic. As always, be aware that CAP is funded in part by Pete Peterson. Dan Lynchhttps://www.blogger.com/profile/11189866002273597534noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-46512985520003164382013-03-30T11:52:37.665-04:002013-03-30T11:52:37.665-04:00The question is who will be doing the borrowing ? ...The question is who will be doing the borrowing ? Some of this "public-private partnership" stuff makes me think in terms of for-profit toll roads and toll bridges. Why else would private companies borrow money for infrastructure ?<br /><br />As for state and local governments borrowing to pay for infrastructure, they already have the ability to do that, the only thing this might do is lower their rates. And I believe the Fed already has the authority to buy state and local bonds ?<br /><br />My take is that this is a privatization scheme camouflaged as a jobs and infrastructure scheme. I wouldn't touch it with a 10 foot pole.Dan Lynchhttps://www.blogger.com/profile/11189866002273597534noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-48263978745126787172013-03-30T09:09:00.339-04:002013-03-30T09:09:00.339-04:00This is worse than a slippery slope. It's a st...This is worse than a slippery slope. It's a steep cliff if executed.Malmo's Ghosthttps://www.blogger.com/profile/01072599785196733846noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-70482663408212080952013-03-30T08:46:00.082-04:002013-03-30T08:46:00.082-04:00This is yet another lever for privatizing retireme...This is yet another lever for privatizing retirement systems.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-78171216092524124012013-03-30T07:28:25.574-04:002013-03-30T07:28:25.574-04:00Watch they will probably issue them at the same ra...Watch they will probably issue them at the same rates as Treasuries.<br /><br />ie no help for current savers, just some orig. fees for the Dealers...<br /><br />RspMatt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-25815677399250201382013-03-30T05:30:24.940-04:002013-03-30T05:30:24.940-04:00This is slightly off topic, but I never stop falli...This is slightly off topic, but I never stop falling about laughing at the numerous household name economists who keep claiming that now is a good time for government to borrow and invest in infrastructure because interest rates are low.<br /><br />The flaw in the latter argument is that it’s only relatively short term rates that are currently low (5-10 years). In contrast, infrastructure projects last 20 – 100 years. Thus the relevant rate is the 20 or 30 year rate. And that rate is scarcely influenced by recessions or by central bank attempts to deal with recessions by cutting interest rates.<br /><br />Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.com