President Obama said he would open public infrastructure projects to private investments in roads, bridges and ports.
The focus on private money for road projects marks a shift for the administration, which had previously resisted efforts to seek commercial resources for highways and other pieces of the country’s transportation system. The result may be more tolls for drivers as companies look to make profits by operating roads and bridges.
President Obama continues his Bush imitation on public infrastructure and energy exploration. Bush's Transportation Secretary Tyler Duvall supported the move.
“It’s exactly what these long-term investors have wanted for years.” Duvall cited access to credit, the demographics of the U.S. and a stable economy and legal environment.Long term investors are private equity firms. They love predictable government guaranteed revenue streams and government enforced franchises. Credit is cheap federal credit.
Obama followed this up by opening up the East Coast to offshore energy exploration, a process that involves the use of sound canons.
The Bureau of Ocean Energy Management acknowledged that thousands of sea creatures will be harmed but ultimately decided to approve this exploration in the outer continental shelf from Delaware to Florida. Energy companies need the data as they prepare to apply for drilling leases in 2018, when current congressional limits expire.
Ironically, Obama went from announcements to meeting with high dollar donors, the kind that have billions on the sidelines ready to put to work.
The president traveled to New York City to headline fundraisers for the Democratic National Committee and the House Majority PAC, a super PAC supporting Democratic congressional candidates. The events were closed to media.
Thirty supporters, who contributed $32,400 each, participated in the roundtable discussion at a private home for the Democratic National Committee, according to a DNC official.
I reviewed the list for who might profit from Obama's actions. Two PEUs were represented, Insight Venture Partners and Sparring Partners Capital. Also in attendance was Libra Group's George M. Logothetis, sponsor of the Concordia Kids who landed George W. Bush for their initial confab.
Obama has done a fine job of imitating his predecessor. He will be richly rewarded for his service.
