Australia’s Richest Person and America’s Export-Import Bank

Australian press is buzzing over the strange nexus between the country’s richest person and American taxpayers.  The headline in The Australian Financial Review even invokes the phrase “welfare queen.”

How Australia’s richest person, mining heiress Gina Rinehart, secured a $US694 million ($764 million) loan from American taxpayers is surely one of the great ironies of the capitalist system.

The case is the latest example of a flaw in the United States political economy: what some see as crony capitalism.

Rinehart’s mining group, Hancock Prospecting, last week signed off on a $US7.2 billion debt package for her highly anticipated Roy Hill iron ore project in Western Australia’s Pilbara region.

Why are American taxpayers subsidizing a financial transaction involving an Australian billionaire’s iron ore project?  

The Australian Financial Review explained “Government export credit agencies including the Ex-Im Bank in the US, as well as Japan and Korea, were crucial in helping the massive debt-funding deal over the line” because “Commercial banks and bond investors were reluctant to shoulder all the risk.”

When announcing the deal, U.S. Ex-Im Bank downplayed the risk, instead touting the “$694.4 million loan to Roy Hill Holdings of Australia [was] contingent upon the purchase of U.S. mining and rail equipment from Caterpillar Inc., GE, and Atlas Copco.”

So taxpayers have two plausible, though not mutually exclusive explanations for guaranteeing a $700 million financial deal with a woman reportedly worth $17.7 billion.

  1. Commercial banks wouldn’t take the risk; or
  2. U.S. companies worth hundreds of billions of dollars combined required taxpayer help.

The Australian Financial Review reminds us:

In 2008, an upstart senator named Barack Obama campaigning for president labelled the Ex-Im Bank “little more than a fund for corporate welfare”. Remarkably, the Obama administration now regards the agency as an important part of its drive to increase exports.

As Congress considers whether to reauthorize the Ex-Im Bank later this year, lawmakers should ask a simple question: do they agree with then-Senator Obama?

How did your Representative vote in 2012?

How did your Senators vote in 2012?

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22 thoughts on “Australia’s Richest Person and America’s Export-Import Bank

  1. Well, we haven’t been a “capitalist” nation since we got off the gold standard…thanks to the Gutless Old Party and Nixon. Everyone in politics is on someone’s payroll, and until that joke called “we the people” have the gumption to get off our duffs and spend less time trying to figure out how to get in on the gravy train ourselves and more on how to save the carcass of this once great nation we will continue to be pawns of the elite and the police force of the banksters.

    • I just can’t seem to spread that message fast enough. Sadly no one seems to listen in this area. I suppose it’s due to all the welfare sheep that occupy the entire city. Though it is nice to see that at least some people can see past the hype and lies and find the real issues. First would be the Federal Reserve with its pyramid scheme and fiat money with nothing to back it but “we the people”. Not to mention there’s just to many mouths to feed, and not enough work to satisfy everyone. Soon enough it won’t matter anymore because there won’t be enough resources to spread out for everyone even if they have money. Guess who gets the short end on that stick.

      • Yeah, I’ve been talking about parts of it since I served in Viet Nam. I once explained the “national debt” to a group who’s average IQ was north of 130. Out of the 20 or so there was only 1 person that listened. He went out that weekend to prove me wrong, thought I was a “right wing fanatic”. Came back on Monday and said “its worse than you said”. I told him that was true, but would he have even looked if I had told him just how bad it really was……and this was around 1982. He asked me what we could do, I said all we could do was tell people. But the elites know that all they have to do is ignore it and “we” will go away. Look at the current administration. They act like we don’t even exist. Really couldn’t care less what any American thinks because they know we don’t think much, and then not for long. Look, the banksters have centuries of doing this. They are masters of propaganda. They have one goal in mind, and they continue to go after it. “We the people” on the other hand have no goal, no history, no understanding, heck, we’re one step higher than dogs….well, maybe apes. check out the “ I think you’ll like it.

  2. Pingback: Confounded Interest | Cronyism on Parade! Australia’s Wealthiest Person Gets Taxpayer-Backed Loan From US Export-Import Bank

  3. The Jews are connected all over the world. A sneeze in Australia is heard and felt in America. The Tribe takes care of one another.

  4. Annabella Pettyjohn,
    Your comment that “the Jews are connected all over the world” has nothing to do with Dan Holler’s article on Gina Rinehart: “Australia’s Richest Person and America’s Export-Import Bank.”

    Furthermore, Wikipedia portrays Gina Nichols Hancock Rinehard as a Christian, schooled at a “boarding at St Hilda’s Anglican School for Girls in Perth” Australia. Why all the snyde comments here about Jews “tribe taking care of one another”?

    Have you forgotten that the US Export-Import Bank was chaired by former CIA director Bill Casey when Casey worked for President Nixon? Neither Nixon or Casey were known to be friendly towards Israel.

    How is it that members of the Heritage Foundation tollerate such radical anti-semites, posters who hate successful capitalists businessmen and women?

    Let’s look at the biggest network of banks in America and Great Britain financing the Bolshevik Revolution, the Harriman Brothers and Brown Brothers, who seemingly go unmentioned in history books. Averill Harriman, a Christian banker from Upstate New York, was second in wealth to John D. Rockefeller.

    I strongly suspect that the Australian iron mining industry is of great significance to the military armaments of Japan, Australia, Korea and other US allies in the Pacific while the PRC is expanding its military bases throughout the Figi and Indonesia islands.

    Furthermore, most of the American banks that are “too big to fail” were bailed out by TARP money and then replenished with funny money by the Federal Reserve with inflated “counterfeit” and then loaned right back to Congress, nothing left for industry.

    I’d be more worried over the Federal Housing Authority Banks and the Federal Reserve than Mrs. Rinehart’s mining ventures. She certainly is less risky customer than President Obama, Harry Reid and Nancy Pelosi accruing the largest national debt in world history.
    I think your comments are unfounded.

    • I don’t like the racist comments by Annabelle either …. but, when should we allow the American taxpayers and their tax dollars to be used for any slush fund loan to anyone … let alone foreigners?

  5. Now I am certain that I do not pay enough in taxes, surely there are at least two more people in the world who make less that a thousand times my annual income and need my money much more than I do. Pass the Fair Tax Now!

  6. Pingback: Australia’s Richest Person and America’s Export-Import Bank

  7. Pingback: On Ex-Im Bank, the Democrats Are the Real Corporate Shills | TKG News

  8. Pingback: On Ex-Im Bank, the Democrats Are the Real Corporate Shills - Freedom's Floodgates

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