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

Tyler Durden's picture

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.

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sweet ebony diamond's picture

Fuck the Fascist Emanuel.

NoBull1994's picture

This is a stealth gift to Buffett, whose Burlington Northern railroad will certainly have first dibs on the newly expanded national rails' best routes.....

No Bull

ISEEIT's picture

Gee Wally, Uncle Warren is sure a smart investor huh?

Problem Is's picture

"...stealth gift to Buffett"

Excellent Point
All of Obummer's owners get largess... This ass hat needs to go.

Why the fuck does this joke of a spending bill need a bank? Why don't we just set up an Afghan central bank, have Wall Street loot it and bail IT out?

Oh, we did...

Cruel Aid's picture

Gift to Warren and all the other Dems who have their heads on the block. Where was this a year and half ago. Bullshit for sure.

Timing is everything. We're really moving now!! We'll all be dead by the time this thing gets off the ground. And I don't mean us personally, I mean collectively.

quintago's picture

Next to Wall Street, road construction is about as isolated of an economic cause one could find. The bonding requirements to rebuild bridges, roadways, airports, and railways are so big that it's generally a small group in each area that will compete for all the jobs.

And it's not something that requires a whole lot of trades, as opposed to building construction which spreads the wealth around a lot more.

 

Raymond K Hassel's picture

Very true - I have a client who does various asphalt type work - saw him just a few months ago and inquired as to whether he was seeing any trickle down from the last round of stimulus.  One, he'd need one or two full time contract clerks just to get to the point where he could bid for parts of the smallest contracts.  Two, the construction arms of the local asphalt distributor wind up bidding the total job cheaper than what they'd sell him the asphalt for - he can't figure out - they'd make more money selling him the asphalt to do it....but obviously there is obviously something bigger at work. 

tewkatz's picture

It may be just to cycle the money through two different business units to prevent/delay layoffs at your client's asphalt distributor.

RockyRacoon's picture

Money will be "spent" and not one cubic yard of asphalt will hit the ground.

Look at New Orleans and the money that trickled down thru the contractors to end up with the guy driving the roofing nails getting nothing.

QQQBall's picture

particularly if the steel is purchased from China. Just saying...

Henry Chinaski's picture

I heard about this, the new six-year plan.

Sounds a lot like a five-year plan.  This has been expected.

taraxias's picture

Oh why not, what's another $50 billion at this stage when Uncle Ben can create it in a nano second.

We're so fucked.

maddy10's picture

New roads, rails would help in a poor economy

What good is it if there are new industries to come up in the region-most infra projects in emerging countries are associated with SEZs

Just more money down the drain and roads to nowhere

LMAO's picture

Well obviously we are in desperate need of decent infrastructure to transport all these new and innovative goods we are producing. I mean this economy is booming and has virtually exploded due to the stimulus.

And when these infrastructural works are finished we will implement the next money-print subsidized programm where all US citizens will start to cut each others hair at the rate of $ 10,000.- per haircut, nobody will ever be poor again. We will not forget about the bold of course, they will receive a scalp massage at the same rate.

 

Mission accomplished!

 

LMAO

nmewn's picture

"Well obviously we are in desperate need of decent infrastructure to transport all these new and innovative goods we are producing. I mean this economy is booming and has virtually exploded due to the stimulus."

Bold leadership...unprecedented...historic even. (Sigh)

I'm thinkin golf course expansions...he can call them Pivot Divots so the media stays on message...LOL.

TooBearish's picture

Fukking awesome - should be good for a 2 point long bond rally

defender's picture

Sorry Rip Van Winkle, but this is 1984.  Each of these roads and stations will surely come with cameras, detectors, and guards.

CrockettAlmanac.com's picture

Good point. Although in a similar vein I'll defend the call of 1936 by suggesting that right about that time the phrases, "Your papers, please" and "Ve haf vays of making you talk" came into vogue. Fashion being cyclical these golden oldies are making quite the comeback.

Nihilarian's picture

This $50 billion will do the trick.

bronzie's picture

that's right, because it's different this time ...

Rick64's picture

 Lets compare 50B for infrastructure to the 185B AIG recieved, and thats just one of the many.  Talk about a slap in the face, and as the article states this will be another opportunity for the politicians and corporations to rip off the common man. Time for a tax revolt. 

 

NoLongerABagHolder's picture

To help absorb the hit to future generations, the administration is kindly sending all people born 2001 and later a free tube of K-Y.

Nihilarian's picture

And what is K-Y derived from? We're truly fucked.

bankonzhongguo's picture

Elvis has left the building.

Obama & Company pumping these kinds of fiascos is like throwing rocks into the Grand Canyon to fill it up.  That is the Goliath these creeps are just starting to realize exist in their world.  2 days of bond offerings to save November elections?  No wonder we should consider these Beasts in NY/DC to be no different than alien Vikings pillaging the lands.

My California congressman lives in Maryland with his family full time.

Nobody is coming to help.

The ultimate protest will be burning the Federal Reserve Note like the Draft Cards of the 1960's.  I can already feel that sick feeling in my stomach.

midtowng's picture

Hey! You can't use the unknown comic! I claimed him first!

defender's picture

I wouldn't say that too loud if I were you.  You seem to be half the man that he is.

TexasAggie's picture

The First Teleprompter said that this will be paid for, yet does not give any specifics.  So how is the FT planning on paying for this $50B, Timmy back taxes?

deadhead's picture

They will whack out tax provisions favorable to multinationals according to what I have read.

 

Obama will position it with the tried and true "the fortune 500 companies will lose a few tax loopholes to put John Q. Public to work on Davis Bacon projects......"

 

Should be fun to watch the Repubs spin this as a midterm bribery of the public affair.

 

 

docj's picture

Should be fun to watch the Repubs spin this as a midterm bribery of the public affair.

It's not?

Calmyourself's picture

If it is not "midterm bribery of the public affair" then please tell me what it is exactly?  We spent $800B on stimulus, large portions of it going to road and infrastructure maintenance and improvements, unemployment went up.

If I remember correctly large portions of the original stimulus funds are yet to be spent.

Fred Hayek's picture

Another ironic part is that Barry O can either have this spent quickly or have it go through the usual bureaucratic channels and doled out only to unions but not both.  Let's see which he chooses.

TexasAggie's picture

how about giving it only to states wirth Rat governors and unions? This is to help Jerry Brown in CA, they can use the $$ to pay their unition workers instead of building new roads.

bugs_'s picture

And when you ask them, "How much should we give?"
Ooh, they only answer More! more! more!

TexasAggie's picture

The FT 2012 tax plan:

A.  how much did you make in 2012

B. How much did you spend?

C.  Difference between A-B.

D. Send Line A?  There, the $50B is paid for.

asteroids's picture

This only works if you put lots of men to work doing hard labour. Not 5 guys drinking coffee and eating donuts watching a guy in a big earth mover.

AhhhItBurns's picture

For road workers around here, I am almost certain there is a state mandated course on 'proper techniques for shovel leaning'.

LMAO's picture

 

"Construct and maintain 4,000 miles of rail"

Warren Buffet:

"Thank you Satan! now we're talking, I was afraid that you had forgotten about my all-in bet on American railroad"

 

"Rehabilitate or reconstruct 150 miles of runway"

The public: "WTF, aren't these runways up to standard....?!" 

 

The infrastructural worker: "Look dude this runway is brand new and doesn't need any rehabilitation."

The infrastructural chief of operations: "In that case reconstruct! The mandate says rehabilitate or reconstruct"

 

LMAO

 

Rainman's picture

Nothing beats another Uncle Sugar high. Since this is obviously another midterm elections salvage job, I assume Team Obama believes the voters will get all tingly over $ 50 billion pissed down the Build America rathole of kickbacks and inflated gubermint contracts.

At least we are accustomed to Big Fail and Big Con.

DavidC's picture

Tyler,
Is there a way of highlighting changes when posts are updated?

DavidC

tom a taxpayer's picture

New(er) Deal project priority #1 - Build a bridge to Hawaii.

The biggest roads, rails, and runway projects will be in China because of U.S. balance of payments with China and the Chinese giant vacuum sucking jobs out of U.S.

UGrev's picture

not enough "haha" 's .. You need a view billion more.. 

johngaltfla's picture

So the little boy who saw the economic tide go out and leave a wasteland thinks that peeing in the empty space will actually increase the size of the ocean?

This has to be one of the stupidest plans I have heard except for those union members who will be getting this handout from the taxpayers to boost spending for Democrat party candidates.

Classic Mussolini style thuggism at its best.

Calmyourself's picture

Not exactly Mussolini, he had better methods, this guy is more transparent.

The question is how do you stop Congress using public funds to backstop Union leadership who do not serve the membership but instead serve their masters in Congress.  You do not until the house changes hands we take it with a smile and hopefully this is a lesson to all those who ignored national politics over the last 25 years.

Dollar Bill Hiccup's picture

The InTrade numbers are what they are, it's Republicans in November.

Then the US starts a trade war w/ the mercantilists .... gold will be very shiny at that point, unless of course they come to take it away.

Repaired highways will be very nice when driving on your way to Thunderdome.

Beyond the sarcasm which has very real truths embedded in it, this is not going to be easy.

 

 

 

99er's picture

Chart: ES

Don't think the market will like this; it's Labor Day and it's September (finally).

http://www.screencast.com/t/MzUyMzFmN