Obama’s $50 Billion Stimulus Will Create An Infrastructure Bank

Obama wants to spend another $50 Billion of our sweat, but this time with a twist, (and no mention of what the Federal Reserve Mafia thinks of this idea).

From ABCnews.com

Another Bank? President Obama Pushing National Infrastructure Bank

White House Wants Government-Run Bank to Handle $50 Billion Transportation Rebuilding Plan

If the plan is approved by Congress, the projects would be financed by a government-run bank, known as an Infrastructure Bank. According to the White House, the Infrastructure Bank would “leverage federal dollars and focus on investments of national and regional significance that often fall through the cracks in the current siloed (sic)

Of course, Chris Dodd thinks this is the cat’s meow:

Said Senate Banking Committee chairman Chris Dodd, “A significant investment in our ailing national infrastructure will create jobs, boost long-term economic growth, and improve safety. With a National Infrastructure Bank we could leverage state, local, and private funds to ensure our infrastructure systems are equipped to meet the demands of the 21st century.” (emphasis mine)

And progressive globalist think-tank; Brookings Institute weighed in:

William Galston, a senior fellow at the Brookings Institution, praised the administration’s proposal, saying that it “offers a welcome new direction in an increasingly shrill and decreasingly productive economic debate. It shifts the focus toward the kinds of public action that can help build a more efficient and competitive economy in the long run.”

What I find eerily similar is the Iraq Central Bank’s beginnings:

History of the CBI

When Iraq was part of the Ottoman Empire, a number of European currencies circulated alongside the Turkish pound. With the establishment of the British mandate after World War I, Iraq was incorporated into the Indian monetary system, which was operated by the British, and the rupee became the principal currency in circulation, at a rate of 1 dinar = 13⅓ rupees.

1930 – 1950

In 1931, the Iraq Currency Board was established in London for note issue and maintenance of reserves for the new Iraqi dinar. The currency board pursued a conservative monetary policy, maintaining very high reserves behind the dinar. The dinar was further strengthened by its link to the British pound, which was pegged at par with the British pound until 1959.

In 1947 the government-owned National Bank of Iraq was founded, and in 1949 the London-based currency board was abolished as the new bank assumed responsibility for the issuing of notes and the maintenance of reserves. The National Bank of Iraq continued the currency board’s conservative monetary policy, maintaining 100 percent reserves behind outstanding domestic currency.

Initiated during the last years of Ottoman rule, commercial banking became a significant factor in foreign trade during the British mandate. British banks predominated, but traditional money dealers continued to extend some domestic credit and to offer limited banking services. The expansion of banking services was hampered by the limited use of money, the small size of the economy, and the small amount of savings; banks provided services for foreign trade almost exclusively. In the mid-1930s, the Iraqi government decided to establish banks in order to make credit available to other sectors of the economy. In 1936, the government formed the Agricultural and Industrial Bank. In 1940, this bank was divided into the Agricultural Bank and the Industrial Bank, each with substantially increased capital provided by the government. The government established the Rafidayn Bank in 1941 as both the primary commercial bank and the central bank, but the National Bank of Iraq became the government’s banker in 1947. The Real Estate Bank was established in 1948, primarily to finance the purchase of houses by individuals. The Mortgage Bank was established in 1951, and the Cooperative Bank in 1956. In addition to these government-owned institutions, branches of foreign banks and private Iraqi banks were opened as the economy expanded.

Spooked enough yet?

(H/T KG)

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