|By Bill Reinsch - September 16, 2015|
Tuesday’s news featured two entirely expected developments, both noted in POLITICO:
1) “General Electric announced today that it is moving 500 U.S.-based jobs to France, Hungary and China in order to secure export credit financing from foreign export credit agencies, pointing to the expiration of the U.S. Export-Import Bank as the crucial factor.”
2) “Boeing said it was informed by a Singapore-based broadband satellite operator that it can’t consider the U.S. aircraft maker’s bid on a satellite contract without Ex-Im financing.”
These were not the first such announcements, and they won’t be the last. It should be becoming apparent to everyone that the United States is going to suffer enormous economic damage from a self-inflicted wound – the expiration of the Export-Import Bank’s charter. The Bank’s opponents have argued that its services are redundant and that the private sector will step in to finance the exports formerly backed by the Bank. We are now faced with tangible evidence that that is simply wrong.