Green New Deal: Finance Plan with Credit from Federal Reserve, ‘New Public Banks Can Be Created’ – IOTW Report

Green New Deal: Finance Plan with Credit from Federal Reserve, ‘New Public Banks Can Be Created’

Breitbart: The Democratic plan to bring about a “massive transformation of society” known as the Green New Deal would also require a radical transformation of the American financial system to finance its ambitious plans.

Rep. Alexandria Ocasio Cortez, D-NY, and Sen. Ed Markey, D-Mass., introduced a resolution outlining a 10-year plan to address climate change that also promised guaranteed jobs to those who want to work, economic security to anyone unwilling to work, and “a just transition for all communities and workers.”

The plan is unaffordable under ordinary means, Cortez and Markey admit.

“The level of investment required is massive,” they wrote in a summary of the plan. “Even if every billionaire and company came together and were willing to pour all the resources at their disposal into this investment, the aggregate value of the investments they could make would not be sufficient.”

So how would the plan be funded? Through the creation of a New Green Deal financial system.

“The Federal Reserve can extend credit to power these projects and investments and new public banks can be created to extend credit,” they write

Cortez and Markey claim, erroneously, that this is no different from the way we paid for “the New Deal, the 2008 bank bailout and extended quantitative easing programs. The same way we paid for World War II and all our current wars.”

In fact, the 2008 bank bailouts were paid through by money appropriated by Congress that came from the U.S. Treasury’s general fund. The New Deal was not financed by the credit extended directly from the Federal Reserve. Neither was World War II or any subsequent war.  The costs of these added to the U.S. deficit and were financed through government issuing bonds to investors.  more here

29 Comments on Green New Deal: Finance Plan with Credit from Federal Reserve, ‘New Public Banks Can Be Created’

  1. What could go wrong? Actually, I kinda like the ideal of living the early 1900’s life style because that is what we will be living if this nut job gets her way.
    Problem is we would be the only country on Earth living this way so…… Amish least hardest hit.

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  2. Borrow and spend, borrow and spend, borrow and spend.

    The way of the Democrats and their leftist Republican allies.

    None of them understand the concept of fiscal responsibility, no more than someone with a hundred grand in credit card and student loan debt while they were getting into that financial condition.

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  3. Why even bother with all of this. If she and the Democrat party want us to go back to living in the 1800’s, just simply detonate a couple of bombs in the atmosphere above the country for the EMP to destroy everything electronic. It would be far cheaper than their 10 point plan to destroy the country.

    Though I imagine the animal rights people would complain about having to go back to using horses for our means of transportation.

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  4. An economics degree doesn’t mean you actually know something about finances and financial matters.

    As “economists” constantly demonstrate with their obviously faulty economic predictions.

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  5. This is the type of financial advice you usually get from a bartender – although usually it’s at closing time in a honkytonk and not on Capitol Hill.

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  6. “The level of investment required is massive,”

    “Investment?” And what’s the return? As in Return on Investment?
    I don’t think that word means what you think it means.
    Politicians use that word kind of loosely. “Investing” in bridges and “infrastructure” for instance, without bothering to offer explanations of what that means, and what the return may (or may not) be. Same bullshit as “paying taxes is an investment in the future.” Huh? Really? You gonna return me, say, 6.5% per annum? No? Then get specific. Be specific.
    Show me the cost and the return – in dollars and cents. Save the “pie-in-the-sky” bullshit for toddlers. Show me how much will accrue to MY bank account and leave the generalities out of it.
    Yeah – that’s what I thought – typical con.
    Same old lie: give me power – give me money – and maybe something will happen that may – perhaps – not be an abysmal failure – and you may survive it! Maybe not – but I’m willing to risk YOUR life and YOUR fortune!

    Are we really THAT fucking dumb?

    To ask is to answer – how else did they obtain elected office?

    izlamo delenda est …

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  7. It’s cosmic investment, yo.

    You are supposed to measure a 7% compounded annual rate in bluer skies and cleaner water.

    There were 3.5% more birds singing at a 40% improved hertz in harmonies.

    It cost $50 trillion dollars but you’re welcome, Mr. Cold Hearted Ingrate.

    I wouldn’t expect money changers to understand. *sniff*

    Sandy wants to be Evita but her plans are only going to produce government Velveeta.

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  8. Mighty Mojo – AOC has an economics minor, her bachelors was International Relations or some such nonsense. I assume she can speak Spanish well enough to not have to study too hard to get college credits and probably most of the requirements for her major.

    Her Brown U graduation ceremony is posted online if you want to double check. Her congressional website doesn’t provide specifics on her major or minor.

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  9. So, we’d go from just the world’s leading ‘fiat currency’ with all of its destructive corruption to a ‘SUPER-DUPER FIAT CURRENCY ON STEROIDS.’

    That would be about the equivalent of the Sweet Meteor Of Death (SMOD).

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  10. Somebody ought to take her and the oyher idiot that cosponsored the bill (and maybe all the presidential wannabe’s) drag them into a theatre, tie them to chairs, lock their heads in place and tape their eyes open (hat tip to “A Clockwork Orange”) and make them watch film of the German Weimar Republic as inflation destroyed the financial system and political stability and ushered in the NAZI party. Follow the price of a loaf of bread that cost a bag of 1000 mark notes in the morning to a wheelbarrow full in the evening. Show film of Argentina where they recently went through the same or maybe Zimbabwe (Africa’s socialist paradise). There’s an awful lot of them out there and this plan could actually stand head and shoulders over the others in terms of sheer misery and death it would cause among the citizens while failing miserably at it’s goal. Oh, and no popcorn for any of them and 49 hours non stop should do it.

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  11. Isn’t that kinda how the real estate bubble burst?
    Largely by people getting bank mortgages they could never hope to service for the duration of the loan, then bailing out when they lost a job, adjustable rate went up, balloon came due, etc.
    Leftist never learn, and wise people are never leftists.

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