Rheo Posted February 18, 2012 Share Posted February 18, 2012 American Thinker: Acting without any legal authority, President Obama has overridden the federal charter of the Export-Import Bank, and turned it into a competitor for domestic loan business, in utter defiance of the law. Hardly anyone has noticed or seems to care. Speaking at a Boeing assembly plant in Everett, Washington Friday, President Barack Obama announced a bold new plan to help American exporters: he would broaden the services of the Ex-Im Bank to help grow our exports. Now, that sounds good on the face of it. The Ex-Im Bank is chartered as an export-funding source with a very narrow, specific charter. It exists in an odd area of commerce that requires some background. When a US manufacturer wants to sell to a foreign country, the local banking regulations and currency controls of that destination government sometimes make it difficult or impossible for the buyer to pay a US vendor promptly. Local interest rates may be too high; the local banks may be untrustworthy or otherwise unable to cooperate smoothly with a US bank; the destination country may simply have rules that only allow payments occasionally, so the timing of the shipment may cause the customer to be unable to pay for a year or two, or ever. In view of this problem, many foreign countries have their own export finance banks -- government-chartered agencies that produce short term financing on good risks -- only on good risks -- so that the peculiarities of the (usually third world) destination country don't kill a good transaction. Sometimes they're paid immediately, sometimes in six months, or a year or two... the idea is that the government is better off if its manufacturers are not scared out of exporting to such countries by banking issues. And again, barring unforeseen revolutions or currency collapses, these deals should only be about good investments. Poof! goes the charter... Misrule by Mismanagement This administration is abusing government, by using agencies for purposes other than their constitutional or statutory functions. This government by executive fiat grows ever more random, ever more disconnected from the reality of the legislation that chartered these departments and agencies as they wander ever farther afield. Link to comment Share on other sites More sharing options...
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