Obama making his hand outs to his friends a cabinet post position (See addendum)
Posted November 17, 2012on:
Oh yes please do appoint a Secretary of Business so that you can find more Solyndra’s Mr. President! In case you missed the interview I thought my reader’s might find this article interesting. And you might want to go to the Heritage Foundation’s Blog site “The Foundry” for more information. In fact, subscribe to the Heritage Foundation on your home page. And please see the Addendum below as it will make you spit nails or cry. BB
America Doesn’t Need a Federal Department of Subsidies
October 30, 2012 at 6:00 p
Politicians too often confuse “free money” with “free markets”—that is, they consider themselves pro-business when they work deals that make some businesses happy, even though it usually comes at the expense of the overall economy. So it should be no surprise that President Obama claimed in a Morning Joe interview that he would appoint a Secretary of Business in a second term.
If he truly understood what has been keeping businesses from creating more new jobs, he would task this new Secretary with eliminating red tape, cutting the most burdensome and useless regulations, opening access to the resources we already have, and stopping his own President from pushing for higher taxes.
Instead, the only problem the President came up with was that with nine departments, the process for distributing small business loans and export subsidies was too complex.
Got it? It’s too hard for the government to give money away with all these different departments. Why not just have one for doling out the cash to businesses?
Was it too hard for Solyndra to get the half-billion dollars it took from taxpayers—a half-billion the taxpayers will never get back? Was it too hard for A123 to qualify for a $250 million loan from the government—$130 million of which it used up before declaring bankruptcy? Was it too hard for Goldman Sachs to figure out Wall Street? Should there have been an easier way to get it the $90 million guaranteed loan for its subsidiary Cogentrix of Alamosa?
For those who believe that it is already too easy for crony capitalists to get their hands on hard-earned taxpayer dollars, creating a Secretary of Subsidies is the wrong way to go.Tags: A123, bankruptcy, business, businesses, Cogentrix, free market, Loans,regulation, Solyndra, Subsidies, taxpayer dollars
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Addendum: This is just too damned much! Again I could spit nails over Obama and his Administrations stupidity. Or, maybe it is all planned to break the bank as soon as possible! How half the people in this country could vote for that beast is beyond me. BB
The Department of Energy’s clean energy grant-making program delivered a reimbursement to ailing battery maker A123 approaching $1 million on the same day the company filed for bankruptcy, according to Reuters:
The company, which makes lithium ion batteries for electric cars, filed for Chapter 11 bankruptcy protection last month after a rescue deal with Chinese auto parts supplier Wanxiang Group fell apart.
That same day, October 16, A123 received a $946,830 payment as part of its $249 million clean energy grant from the Energy Department, the company said in a letter, obtained by Reuters, to Republican Senators John Thune and Chuck Grassley.
In the letter, dated November 14, A123 said the October payment was the most recent disbursement it had received from the government, with an additional $115.8 million still outstanding on the grant.
Thune and Grassley have pressed the Energy Department for more details about its funding of A123 as the company has faltered.
“The Department of Energy needs to answer for why it appears to put federal grants on auto-pilot to the detriment of U.S. taxpayers,” Senators Thune and Grassley said in a statement. “This can’t stand.”
DOE officials told Reuters that the grant program reimbursements issued by the department continue to flow to the grant recipient for “work they complete toward the goal of the project.”
A123’s bankruptcy filing in mid-October came after 14 straight quarterly losses and an attempt to jumpstart the company with an infusion of cash from China outlined in a “memorandum of understanding” with the aforementioned Wanxiang group in August 2012.
Any potential deal with the Chinese firm might hold up grant reimbursements, as DOE officials assured Reuters that facilities placed abroad would not be eligible for grant monies.
In a letter obtained by Politico Pro, A123 also gave assurances to Senators Thune and Grassley that “A123 would continue to comply with applicable industrial security and export control regulations” regarding any sensitive Department of Defense data. The bankruptcy filing largely negated any previous pre-bankruptcy arrangements initiated with Wanxiang in August.
A123’s final disposition of assets “will not be known until December 11, 2012” when the auction and sale process portion of the bankruptcy proceeding concludes, A123 said.
As of November 14, $115.8 million of the A123’s grant remained outstanding.
A Heritage Foundation review by Rachael Slobodien and Elinor Renner estimated A123’s “bad bet” cost for government—and taxpayers—at $377.1 million, including “state and federal tax credits, grants, loans, and incentives not listed.”
A copy of the letter from A123 to Senators Thune and Grassley obtained by Politico:
A123 Response to Sen. Thune and Sen. Grassley