and that's not my medications. that is >> tomorrow. repumingry powerful house and spec coming out of against the imports exports bank. >> something beard and remarkable is happening inw washington. more politicians are taking are a clear stance -- stand is corporate welfare. >> yes some of us do. >> it is wrong for the government to choose the winners descanted your money to the corporation and. >> that is what the import/export bank does for the new majority leader says the private sector could do that. >> they needed to be authorized. >> every other developed

nation in the world possessed clear and clean fight that is our show tonight. ♪ john: capitalism lets entrepreneurs raise money so they can scale up to get products and services with the competition those with the best ideas get more in the best and cheapest spread far and wide that is why capitalism is great but that there is crony capitalism or crapitalism that is when the party with politicians because they know who is most deserving of help or so they say. i call that corporate welfare 43.

the sba gets out creance the energy different -- a fervent but the biggest government supporter of business is the export-import bank here is what the bank says about itself. >> the financial products enable exporters of all sizes to increase sales lower the risk of international trade. >> export with confidence? who could object to that? the chairman of the house finance committee jeb hensarling 41. why? >> why? >> it is pretty a clear. there is up pretty clever term but it is corporate welfare at the end of the day. one out of 1,000 probably have not heard about that

but that substantially with the company's light ge '04 boeing than aix-les-bains they create american jobs the when that date helps boeing to sell a jet it hurts delta air lines their thousands of pilots blood dash pilots they cannot help also live in the import/export bank 18ge and others to build the oil refinery hurts the domestic industry. on and on for every job export import creates say kill with american jobs. >> what you are a pickenses

is you can see the jobs created as a boeing but maybe the guys with your example but the smaller companies don't know for what is happening to them. >> i think i know was the challenges are ahead of me i have put 1,000 lobbyists kids through college to go lobbied in favor of them but it just is not fair. but i have a small business in my district. i export. but yet it is my taxpayers' money sent to countries like china and russia and sudan? john: respond to the banks. >> with the import/export

bank from bustling city centers and local family farms cantor distant business possibilities into realities. international building systems makes prefabricated houses for exports they range from the swamps of nigeria to algeria and they were wary of extending loans that they felt reassured. >> they felt reassured. >> but it is the taxpayers' money on the line in not doing too diligence. it is not on their balance sheet but on the taxpayers the last i looked at national debt is 13 troy i keep the debt clock going i don't think the taxpayer once this on their balance sheets it is about the

insider economy the face in my state but the true beneficiaries is fortune 500 companies that could finance themselves or lobby efforts to keep this going to create a net new jobs with testimony from the of cbo that if access umbundu's mainstream accounting, they are losing money for the taxpayer. is not right or fair and it cost the taxpayer money we ought to end corporate welfare but then the only way to help exports is through subsidies? >> regrettably a bad number

of those that we help toolhouse inform their discretion or knowledge but why not have an alternative? with a higher corporate tax rates if we want a level playing field than bring down the corporate tax rate. john: thank you congressman jeb hensarling. all the free enterprise is moral. of but now let's hear from the other side brad sherman of the finance committee, a congressman you just listened to your committee chair. he is wrong? >> i know you oppose reauthorize the ex-im bank is to people on one side and one on the other but the argument for extending the ex-im bank is twice as good. we don't live in an awful of

ivory and you can look at "atlas shrugged" order the fountainhead but also in germany does not have an ex-im bank were either does japan or china sea but what we are talking but is unilateral military i watch fox a lot ic the unilateral disarmament this is the first time that republicans are so anxious to engage with it. if we don't promote exports exports, buyers are smart and not go for the best product with the best financing. john: so if they are jumping off a bridge we should also? >> it is not jumping off the bridge germany has the ex-im bank three times as large as ours. three times as large. john: it cost three times as much. >> their economy is doing

much better in manufacturing workers making more than ours and not running a huge trade deficit. jeb hensarling talked about the national debt they he keeps the clock:he wants to cut taxes then get rid of excess and bank? because it makes money for the taxpayer and returns of money to sit treasury -- to the treasury. john: the money made money to -- intelligence to make the difference is you have a reserve calculated by the cbo to put any risks assumed then over a period of time that the fees charged make a profit for a the taxpayer. every industrialized country in the world's say this is the way to get jobs.

with germany has one of the largest surpluses we have the largest deficit. >> the ex-im bank is not subsidized it is the loss of the treasury. >> i think it should read again a bit bigger but not a lot. john: why not make it bigger? >> but the only way to go into the armaments is with arms you don't disarm first then saying then dig the

other side to disarm. not even george mcgovern propose that. controlling the efforts of foreign governments to subsidize exports. >> then maybe we could get rid of there's? >> we're in debt negotiations now to downscale and eliminates authorities of this type and it will be difficult but if we throw away xm before the negotiations and then you can guarantee that alcon. john: what about us side effects with boeing sells to an airline that gives of break and that hurts americans to work for delta in here is what he said. >> of prime example is eric india of government-owned subsidized airline that drove us out with $1 billion

of ex-im bank financing that cost about 1,000 jobs. >> stick if i could get a word in the delta gets benefits from the canadian ex-im bank to buy canadian aircraft when it decides to the to buy canadian aircraft worth the european day look for the best package. how can resell abroad if even delta air lines looks for export financing? they did not tell you that. john: is crony capitalism. >> it is not a perfect world. >> one what do sync? keep the bank? tweet me and accused of #x. m bank.

coming up, it is so great save the cronies. >> that is why they are standing by to help build legislators like you to make the right choice. >> we all made a big mistake >> it appears that some loan officers took bribes but this congress woman says that happens everywhere. >> that is the way the system works anybody that understands business people will always try to rig the system. when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology.

shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.

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if you make an appointment, you can check out the status here. you can pay the bill, too. but don't worry about that right now. okay. how do i look? ♪ thanks. [ male announcer ] troubleshoot, manage appointments, and bill pay from your phone. introducing the xfinity my account app. >> eidetic, the loans are actually subsidies for big corporations. >> that is right. when it comes to picking winners and losers, who has more experience? john: it is a government, of course. and the group that made the cartoon is at best that it steals opportunities for myung younger people like them. picking winners is something that many americans want their elected politicians to do. someone needs to decide which industries deserve american

support. so we can analyze every company to decide which is were they. that is why we elect politicians. so what is wrong with this logic? was asked the economist who congressman pence shilling says he sometimes quotes. so i have a life, i can't decide what companies are better and should get some export support. >> it is the free market's job. the direction of resources is determined without consumers spend their money and competitions work it all out. they do it much better and they do it with a lot less favoritism. >> but the politicians, both of them saying look at how all of these people have been helped. >> because without costing jobs over here, you're taking money

from over here and it's easy to see that. >> these people pretend the lawsuit doesn't exist. john: and what you don't see the money taken. >> that's right come you have some american firms that are not able to expand. you can point to those. >> they will lose the business to this european company which subsidizes even more. >> other american firms gain business and the resources will be allocated and it will direct how the resources the expense.

>> the cartoon video points out that the bank has been going on for 80 years. >> is giving a helping hand out for some great american companies. >> no vote could mean fewer contributions to the next election campaign to i had not thought of that. >> that is a big part, that those companies give money to the politicians who supported. >> yes, it is crony capitalism. john: "crapitalism" is my word. >> i like that word. >> paying foreigners to consumer products. >> it creates jobs and housing cost america a penny.

>> we should find it using better accounting methods. john: but they get to use this phony accounting method. >> yes, that is true. >> other companies subsidize exports. but they probably say, if other kids jump off the bridge, would you do? they heard those economies. and it is inflicting wound on ourselves. >> as you mention, willingness have the money by far. write down the list is ge.

>> the u.s. government can really go out there and support u.s. companies as they support american workers. >> at the end of that, your imagination at work. >> way that the politicians in washington choose. that's not a good thing to imagine. >> they don't each have a lobbyist making the case. >> that is right, they don't, but boeing doesn't he does. >> they believe in us. they say this is my job, to support american people.

>> i don't doubt that it's good for their jobs. >> next, coming up. corruption at the ex-im bank. unlimited cash back. let that phrase sit with you for a second. unlimited. as in, no limits on your hard-earned cash back. as in no more dealing with those rotating categories. the quicksilver card from capital one. unlimited 1.5% cash back on everything you purchase, every day. don't settle for anything less. i'll keep asking.

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john: taxpayers should not have flown $140 billion to politically connected companies. it's just wrong. government is lousy at picking winners and losers, but free market does it much better. more important than efficiency, it is immoral. government has no business taking your money and giving it to certain companies. the ex-im bank should be killed certainly because it's wrong in principle. however, this week they gave politicians another reason.

"the wall street journal" reports that bank officials are being looked into for taking bribes and kick ax. it often happens when government agency ends out big money. reporting on that, we have cam. start with the latest washington examiner column. saying that there is a petri dish of corruption and graft. >> i don't think that they are full of a bunch of white collar criminal is. but i think it is the nature of the bank when you provide government power and private property. and you are you're asking for corruption to happen. >> in this case, a bank employee took cash to help a florida company get alone to send construction equipment to latin america. >> we also have three other unnamed officials for things like taking gifts from companies

who are getting subsidies. we know in one case they gave plane rides to officials with where they went ahead and got a subsidy from the export import bank. >> so you say it's not just the bank, but they did take a survey of the employees in 2013. so what about leaders maintain standards of integrity. 42% disagree, 29% agree. >> we end up in a situation where a bunch of people are handing out money. every player gets the subsidy. only less than 2% get a subsidy. so you're going to get questions about honesty and integrity and there will be such an opportunity for kickback.

john: one congressman about kabul is william jackson. what did he do? >> he was william jefferson, he was caught with $90,000 in his fridge. he had a 13 year sentence on bribery charges. one of the things he did was demand bribes from a nigerian company and from u.s. company and he brought them together as part of what they were paying them for. so when that deal fell apart, he found another company and product together again taking bribes at the ex-im bank. >> they got to the bank. because they were indicted for taking this bribe, and she worked at the bank. >> yes, that's right. there was a bank official. she just got wired $100,000. the nigerian businessmen said this is a facilitation payment for helping us get money.

john: but yesterday the congresswoman carolyn mccarthy said some corruption is no surprise. >> they did the investigation and they let him go. that is the way the system works. anybody who understands any business, there are always going to be people who will try to break the system. >> that's the way the system works when you have the government involved and bureaucrats providing profits to private players. sometimes you need a certain standard and you get the tax break. but those don't provide the opportunity for corruption at the export import bank. politicians and bureaucrats are picking winners and losers deciding who gets a subsidy and who doesn't. john: fannie and freddie provide the opportunity as well.

an executive was fired for taking kick ax and you wrote about that. >> yes, in 2013, an executive was let go in there was a criminal scheme were some of the middlemen who got involved it was another one of these situations where there is a government owned business was playing with other people's money and once you're doing that, you are handing out someone else's money and you're putting the person in position to demand this bribe. >> every time the bank is reauthorized, there is the promise of reforms. we're going to stop giving all of our money to the 10 big businesses order to stop with manufacturers and they never really successfully follow

through and it doesn't do what they want. if you want to get rid of the corruption in the opportunity for the kick ax committee only way to do it is to justify it until the export import bank. john: i hope that they do. when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.

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>> the ex-im bank finances by wealthiest and most profitable airlines in the world with huge amounts of our treasury dollars. john: that was the ceo yesterday saying that the government rips off taxpayers.

he is one of the few corporate executives want to speak against the bank. all that delta lobbied orient. and this should come as no surprise. this is a principle of concentrated and if it's versus diverse costs. and it pays to spend money to lobby, but it might when you are a multimillion dollar loan. but when you pay for the, may be a few hundred dollars, it's not worth it. hence we get the lobbyist industrial complex in government hands out money. that will create an industry of those devoted to grabbing the money in one of those people is john hardy. employment through expert. it's a great sounding name. you are number five on this list of lobbyist between or blogger

company and bankers. and so why is this a good thing, what you do? you are a pierside feeding off the taxpayer. >> these are companies that are facing severe competition overseas areas it levels the playing field. >> you have export credit agencies from all of the major companies with which we compete. the only way in which we can lower the financing plainfield is by enabling the xm to provide comfortable financing so that the buyer can focus on the quality. >> the buyers pay for the financing that is available.

>> more recently returned to the treasury. >> since 2006 the bank has returned this. >> my federal flood insurance made money until they didn't know they are $20 billion in the red. >> it is conservatively managed. it is point to 3%, less than one or 1%. >> the private sector, after the financial crisis is now in a situation that is subject to new regulatory constraints and they simply don't have the liquidity and what liquidity they have is far more expensive. because they now have additional capital reserve to provide and at the same time we are in a situation where these markets

are exploding and we have elion's of new people moving into the middle class and there are tremendous opportunities there. >> with a private bank, i would think they would fund it. boeing has 4 billion and its finance. >> one of the dilemmas is a tie on liquidity and low in return. so the bottom line is that commercial banks will not be effectively investing is not a have to make more of a return to their shareholders. >> this regulation meant to protect us, we have to suggest more companies? >> we are not subsidizing. they are operating consistently with this arrangement. >> the one agreement with the

other agencies are now working under to provide is established conditions. >> the one argued against it, that is delta airlines. here's more with the ceo said yesterday. >> i have had many conversations with the ceos of the most profitable airlines in the world. and they tell me, look, i really don't need the financing, but it's so cheap, i might as well take it. this is effectively a free airplane. all i want is a level playing field. john: he's taking with a level playing field. >> we are not subsidizing the competition. the reality is that there is a new international agreement on aircraft, which is made for financing, it's made it a better credit airline. far more extensive. and the reality is that it is now less expensive to get it

financed through the private sector than it is to users. but there's one problem that i mentioned before. there is no liquidity because the commercial banks are not prepared to invest the magnitude of capital. and we are talking about widebodied aircraft. >> i'm glad you raised this issue. there is always another party on the other side of the table. they have export credit agencies. they are very aggressive and more aggressive. john: if they throw money off a cliff, we should throw money off a cliff. >> but are we in a position where you actually want this to actually sell aircraft? john: they say that they will

keep going. >> it's not just about them, but the whole spectrum of top-tier manufacturers in the united states trying to compete in market places all over the world in major export credit agencies without government, so that is my opinion. john: thank you so much. so the lobbying odds are stacked. there are a few free-market groups that lobby back and punish politicians that support this. we will talk about that coming up next. ♪ my mother made the best toffee in the world. it's delicious.d her toffee into a business.

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john: not every lobbying group lobbies to get them for themselves. but if you just believe in something. one of them defends economic freedom. they oppose all special favors to business and all mail outs.

and later the obamacare backs his opponent who eventually became a senator. >> we know that it is important. the club supporting marco rubio, and now they are fighting the ex-im bank. barney keller works for the club. and i admit that i have been a fan of you guys for a long time. i've attended them of your meetings. so might this really be a turning point when republicans stop feeding at the top and say enough already? >> you know, it's a little known agency that has become the

symbol for crony capitalism in america. i think that people are turning to realize that there's a difference between being pro-business and pro-free market. those two things are not always the same and we have seen this in the debate. on one side you have the chamber of commerce for crony capitalists that has supported the stimulus and "the wall street journal." >> they also do some good things >> yes, but they also support big government programs a lot of times. and on the other side you have the pro-free-market side that believes that this leads to wealth prosperity for all americans. and that's why we have to stop things like this, the export import bank. john: exxon mobil got funded after paying for a trip for some employees. >> yes, it's just another example what everyone hates about washington. people with well-connected lobbyist, they can go there and hire someone like that and they can get a loan or a subsidy from

the government that isn't available to you and me. >> government workers ran of $97,000 traveling in the south pacific. eleven months later they approved 3 billion in financing. the biggest gift loan in the agency's 75 years. >> yes, ebony% goes to boeing, they are the company that is lobbying most to keep the bank. that's what is wrong with washington. that's why americans, part of why they don't trust politicians anymore. >> one more example that you can talk about. it's harder to see the jobs lost. it hurt iron ore miners in america. >> basically would have been if they wanted to send money at

them into the richest woman in ostrow the. so they provided these loan guarantees a $700 million. exactly. and these miners are saying, where's my hand out, now you're making it one competitor with us. so why are we the ones -- one of the ones getting the subsidies. >> so they don't have lobbyists. >> they don't have good one's. john: thank you so much. barney keller. we appreciate you being here. coming up next, why i think this is a remarkable turning point. more politicians realize there's a difference between capitalism and "crapitalism."

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john: the ex-im bank is one of several bureaucracies they give you money to favor business. sometimes we hear about it. when the money is squandered. sometimes we hear that the energy department lost $500 million on slender. but we hear little about the other losses like the triad ethanol plant, and so on, the list is long. and then we tune out and people get scandal fatigue. but even when there isn't a

scandal, government has no business handing out loan guarantees to companies. it's just wrong. corporations should pay their own way. the ever caught her department gives $200 million to the pet food institute, the wind institute, in return, politicians get campaign contributions. it's disgusting. even a small business in an ration is an embarrassment and they loaned a million dollars to a dealership that them close and 3 million tulip rolex dealer. and this is where your tax money should go? but the name small business administration, it just sounds -- the government says the situation existed protect the interests of small business. how can i argue about? does america need a small business policy and an export

policy and so on? well, no, we are to he one, it's called the market. it's great at determining which exports are worthy and which are not. those that attract customers and work and make a profit and e mason for themselves. some of us need not be involved, especially in this sense. there is a bureaucracy called the economic development association that gives out 3 million a year. spending your money on so much economic development that they even pay for things like a wine tasting room and a gift shop. really. one fiscally conservative congressman came on the show a few years ago to complain. >> the economic development takes about $400 million a year from you, the taxpayer, bring the money to washington dc. and it is part of economic

development. >> they are political animals. john: they are, and they shouldn't exist. the congressman said that he try to kill it, but he failed, he didn't even come close. and check out this other politician who promised that he put it into both them and the epa. >> i don't believe we should defend every government program just because it's there. there are some that don't work like the ex-im bank that has been a little bit more than a fund for corporate welfare. john: now, instead of getting rid of it, the president wants the bank to loan out even more of your money. give me a break. once they get to washington and breathe and all the money and power, politicians love spending other people's money. except maybe, just maybe, the tea party changed things.

if they do kill the export import bank and then stop other corporate welfare, it's a first step to saving america. that is her show and we will see that is her show and we will see you next week [ dave gentry ] hello, i'm dave dave gentry. welcome to "small stocks, and big money" [ intro music ] [ intro music ] [ intro music ] for all of our new viewers its nice to meet you. and for those of you who are already members of the redchip nation, thank you for being part of the fastest growing community of small-cap investors in the world. now first, our quote of the week, from my forthcoming book "microcap superstars" and i quote, "higher returns of course come with more