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Investing our tax dollars — in Chile

July 10, 2014

President Barack Obama’s administration has slashed hundreds of millions of dollars out of research programs to find ways to burn coal more cleanly at power plants....

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JReader

Jul-10-14 10:30 AM

I also read up on OPIC's web site:

"OPIC’s source of funding for these transactions is the U.S. Treasury. The interest rate is a fixed rate based on the cost of U.S. Treasury obligations with a similar tenor at the time of disbursement plus a risk premium."

"To fund these transactions, OPIC issues Certificates of Participation (“COPs”) in the U.S. debt capital markets. COP holders are guaranteed payment by the full faith and credit of the U.S. Government."

Kind of sounds like the same scheme they used to fund Fannie & Freddie. Only on a global scale to fund "feel good" projects. It worked to well to finance housing in the U.S. we might just as well finance solar plants in Chile.

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housafire

Jul-10-14 8:12 AM

A2: OPIC’s operations are profitable. The users of its services—U.S. companies—pay interest and fees that more than cover the cost of its operations and allow it to set aside substantial reserves. Thanks to this approach, Congress and the U.S. Treasury do not need to borrow money to fund OPIC; instead, Congress authorizes the agency to spend a certain amount of its own funds for administrative needs. As we’ve reached the end of the bull market of foreign assistance, this is a particularly important point to note. OPIC’s profits sit in the U.S. Treasury, and to date, the U.S. Treasury has accumulated more than $5 billion in reserves over the 40 years of OPIC’s operation. For fiscal year 2011, for instance, OPIC’s budget request was $189 million after an income of $259.9 million, and for the 33rd year in a row, OPIC returned money to the U.S. Treasury.

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mrbilly

Jul-10-14 7:48 AM

None of the above comment(s) make a difference. There is nothing Obama would\could do that would earn even a modicum of praise from the journal....

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housafire

Jul-10-14 6:55 AM

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported more than $200 billion of investment in over 4,000 projects, generated an estimated $76 billion in U.S. exports and supported more than 278,000 American jobs.

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