Addendum to the Green Bank idea

There is a problem with the green bank idea.

How do you loan out money at a discounted rate when you are already on the hook for well over 10,000,000,000,000$ ten trillion dollars. The best way to loan out money at a rate not controlled by the markets is to front the money with out outside financing. This way you are loaning out money you already have and are able to avoid the market rate, because this money is not going through the market.

I.E. If your uncle has a bunch of money and you ask for a loan he can set what ever interest rate he wants for it because it is money he actually has, but if your uncle had to borrow the money to loan to you then suddenly he has to make sure the rate he charges you is at least the rate the market charged him.

This green bank is the same issue. The government is in the hole by well over ten trillion dollars so obviously they can't front the money without still having to pay the market rate on what they owe. In a way that has us, the tax payers, subsidizing the loans this green bank makes, in the form of interest payments on the national debt while the money we have loaned receives a poorer return on investment.

Of course this argument really doesn"t mean shit since the jobs and wealth that could be created by encouraging growth in eco-friendly industry would most likely outweigh the cost. What I am really trying to say here is that the national debt being at the size it is makes things harder to do...

..and by the way stop blaming Obama's spending programs for the deficit. Bush inherited budget surpluses and a red hot economy, and then handed out irresponsible tax cuts during war time and spent us in to oblivion on the war of aggression in Iraq.