Dean Baker: Fun Accounting and the Export-Import Bank

The establishment types in Washington have become really worried in recent weeks because one of their major troughs, the Export-Import Bank, may not be reauthorized by Congress. The Ex-Im Bank has long been a favored source of below market loans for Boeing, General Electric, and other major companies. If these companies have to pay market interest rates on their loans, it will cost them tens of billions of dollars in profits over the next decade.

The problem became serious after Republican majority leader Eric Cantor's surprise defeat in a Republican primary. As a close ally of big business, Cantor could be counted on to push through re-authorization of the Bank before the September 30 deadline for the current authorization. However his replacement as majority leader, Kevin McCarthy, is more likely to give in to Tea Party demands to end this subsidy to big business.