Here’s a a question: If tax dollars were being used to make prices cheaper for companies overseas while simultaneously forbidding American companies from enjoying the same luxury…would that be fair?

I would submit that it’s not and President Obama claimed to feel the same way at his State of the Union earlier this year:

… It’s not fair when foreign manufacturers have a leg up on ours only because they’re heavily subsidized.

Unfortunately, that’s exactly what is happening.  Let me introduce you to something call the Export-Import Bank.

The Export-Import Bank of the United States (Ex-Im) exists for the purpose of backing U.S. sold goods to foreign customers that are unwilling to take a credit risk.  Basically the agency, which was created in 1934 by those executive orders we all love so much, makes sure people in other countries buy our stuff and prevents things like “credit” from getting in the way.

One of the things that the Ex-Im currently does is provide foreign airlines loans at rates as low as 4% (vs. domestic carriers which pay market rates as high as 10.4%).  But remember, as great as these loan guarantees are, they are only available to foreign airlines, not U.S. airlines.  This is because of something called the “Home Market Rule.”

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss the potential merger of Delta and American Airlines, the credit downgrades of nine countries in Europe and the continuing crisis in Greece.

We’re brought to you as always by BigGovernment and Stephen Clouse and Associates. If you’d like to email us, you can do so at coffee[at]newledger.com. We hope you enjoy the show.

Related Links:

American Airlines could be takeover target
S&P Cuts Credit Ratings for Nine Eurozone Nations
Video: Greek PM on the Eurozone

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Despite a small glimmer of hope from last Friday’s unemployment rate drop to 9.1%, business leaders know nearly all other economic figures continue to point to an anemic recovery or worse, a double-dip recession.

In reaction to the jobs numbers, Home Depot co-founder, Bernie Marcus had this to say on Politico:

While some may be relieved at today’s jobs numbers, the reality is that our economy is struggling to recover. And a big reason for that is the federal government. The impediments that the government imposes are impossible to deal with. Every day you see rules and regulations from a group of Washington bureaucrats who know nothing about running a business. And I mean every day. It’s become stifling.

And this is a theme that business leaders continue to make: over-burdensome regulations from Washington are stifling the economy and preventing serious job growth while the Obama administration only continues to make the problem worse.

Lets take a look at the cold hard numbers. In the past few weeks, major American companies had to announce more layoffs:

- Borders – 400 stores will close, costing almost 11,000 jobs.

- Boston Scientific – Announced restructuring that will cost up to 1,400 jobs.

- Goldman Sachs – Will let go 1,000 employees, or nearly 3 percent of their workforce.

- Merck – Will layoff 13,000 workers to cut costs.

- State Street – Announced it will cut 850 jobs, in a second round of layoffs within a year.

With all of this going on, President Barack Obama is promising (yet another) renewed focus on job creation. But what is his administration doing? Contrary to Obama’s promised regulatory reform from earlier this year, the administration continues to say one thing and do another.

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Las Vegas CEO Steve Wynn drew attention for a boardroom rant denouncing the intolerable business climate fostered by the White House. He’s hardly the first. What’s happening is emblematic of a bigger problem.

On a Monday conference call, the casino magnate credited with revitalizing Las Vegas slammed President Obama, declaring him “[T]he greatest wet blanket to business, progress and job creation in my lifetime.”

Wynn’s statement was remarkable for two reasons: First, the hotelier has been a staunch supporter of the Obama administration from the beginning and still considers himself a Democrat. Even more remarkable, it’s historically out of character for CEOs such as Wynn to express their views in such blunt terms on political matters.

“A lot of people don’t want to say that. They’ll say, ‘Oh God, don’t be attacking Obama.’ Well, this is Obama’s deal, and it’s Obama that’s responsible for this fear in America,” said Wynn, “The guy keeps making speeches about redistribution, and maybe ‘we ought to do something to businesses that don’t invest or (are) holding too much money.’ We haven’t heard that kind of talk except from pure socialists.”

Business is being hammered, he said. “I’m telling you that the business community in this country is frightened to death of the weird political philosophy of the president of the United States.”

Let’s cut to the chase, shall we? Within the next several months (perhaps sooner), the odds are President Obama’s National Mediation Board will find that Delta Air committed unforgivable sins during multiple union election campaigns last fall, causing the unions to lose the elections.  As a result, employees at Delta will be subjected to more union elections until they—in the minds of union bosses—vote the right way (to unionize). It doesn’t matter what the facts are—Delta’s conduct could have been as pure as virgin snow—the NMB will rule that (at least several) of the elections must be rerun.

Why? Because that is the goal and has been the goal all along (at least since 2009). In other words, the NMB “investigations” into Delta’s conduct is nothing more than a show—a sham—a kangaroo court in the vein of Fidel Castro’s trials of political opponents before the firing squads.

Following last November’s defeat of the Association of Flight Attendants (AFA-CWA) attempt at unionizing Delta’s flight attendants (the third union failure in ten years), the AFA-CWA filed “interference” charges against the airline, alleging the carrier improperly influenced flight attendants decision. The Machinists union (which is currently in a pitched battle against the AFA-CWA at United) also alleged interference in the elections it lost at Delta.  In all, unions lost at least nine known elections at Delta in 2009. (more…)

Today, the national flight attendants’ union released its latest attack on Delta airlines, filing a lawsuit on behalf of a group of disgruntled former Northwest Airlines flight attendants now working for Delta after the two airlines merged. The Association of Flight Attendants (AFA) claims that the air giant did not include the former Northwest employees fully in its profit-sharing plan because they were unionized before the merger.

Of the charges, AFA President Veda Shook says, “Delta is punishing Northwest Flight Attendants for their long history of collective bargaining. Delta management’s actions are shameful and undemocratic.”

This frivolous lawsuit is only the latest AFA attack on Delta. After the merger with Northwest all Delta flight attendants – including those formerly unionized under Northwest – held an election to decide whether to join the union, and voted to remain non-unionized. The AFA immediately launched multiple election interference charges, which have not been found valid.

Apparently, the AFA only cares about preserving democracy when the election goes their way.

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