Monday, September 6, 2010

Obama To Unveil A New(er) Deal: Here Comes $50 Billion For Rails, Roads And Runways

source: Tyler Durden...

The New Deal cost America $50 billion in 1930s dollars. How the times have changed - today the White House will announce a new and improved New(er) Deal, which will invest $50 billion in a 3Rs sequel - road, rail and runway, infrastructure developments. It will have roughly one thousandth the impact of the Roosevelt plan, demonstrating once again that in 80 years the only thing that has actually worked in America is the ongoing devaluation of the dollar. But don't call it failed fiscal surplus infinity +1, that would certainly not help the Democrats' InTrade odds this November. But since ARRA has now failed and GDP is stalling, and the Fed is pretty much powerless to create anything except a huge spike in gold prices once it goes full retard on monetary policy, what does one expect the president to do (aside from the obvious which is whatever the teleprompter tells him)? At least Paul Krugman will be giddy: there go two more $25 billion bond auctions to spike the economy for one or two days, only to cause another output vacuum shortly thereafter. And since no Obama plan could be complete without the creation of a czar or a bank to act as chief administration of fund misappropriation and embezzlement, the plan will also see the creation of an "Infrastructure Bank" which Wall Street is already actively plotting how to frontrun and to vicious rob blind at the expense of future generations. So congratulations America: ten days of total tax revenue were just washed down the drain to keep a few road workers busy: we'll skip the obligatory "Change you can..." jokes at this point. We also won't mention the imminent receipt of Warren Buffett's "thank you" card by the administration - that's a given.

More from Politico:

Seeking to bolster the sluggish economy, President Barack Obama is using a Labor Day appearance in Milwaukee to announce he will ask Congress for $50 billion to kick off a new infrastructure plan designed to expand and renew the nation’s roads, railways and runways.

The goals, according to the White House: “Rebuild 150,000 miles of roads — renewing our commitment to the backbone of our transportation system … . Construct and maintain 4,000 miles of rail — enough to go coast-to-coast … . Rehabilitate or reconstruct 150 miles of runway — while putting in place a NextGen system that will reduce travel time and delays.”

The measures include the “establishment of an Infrastructure Bank to leverage federal dollars and focus on investments of national and regional significance that often fall through the cracks in the current siloed transportation programs," and “the integration of high-speed rail on an equal footing into the surface transportation program.”

“To jumpstart job creation, this long-run policy front-loads — through a $50 billion up-front investment — a significant share of the new infrastructure resources,” the White House said in a fact sheet. “As with other long-run policies, the Administration is committed to working with Congress to fully pay for the plan.”

White House chief of staff Rahm Emanuel has been pushing an infrastructure plan in West Wing meetings for weeks. But with the November midterms looming, officials were having trouble finding a way for the effects to be felt immediately.

A White House official said: “Today in Milwaukee, Wisconsin, President Barack Obama will announce a comprehensive infrastructure plan to expand and renew our nation’s roads, railways and runways. This proposal is among a set of targeted initiatives that the president will outline in Cleveland on Wednesday to support our economic recovery and ensure long-term sustainable growth.

“The plan builds upon the infrastructure investments the president has already made through the Recovery Act, includes principles the president put forth during the campaign, and emphasizes American competitiveness and innovation.”

At 3:10 p.m. Eastern time, Obama is to deliver remarks on the economy at Milwaukee Laborfest, in Henry Maier Festival Park.