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February 24, 2006

On the selling of America, Fri., Feb. 24, 2006, 10:39 AM

As other people in the world grow wealthier than Americans, some will want a bite out of the apple. They will want to buy the ports, and then the highways.

A reader responded to my article last evening about this problem:

"On selling US assets -- don't forget Mitch Daniels' attempt (R. Gov.) to privatize Indiana's Interstate 69 by selling it to a foreign corporation."

Actually I'm waiting to see the McDonald's of South Bend post the price of hamburgers and shakes in Yen, or the prices at Wal-Marts in Yuan. I don't know how they can make a profit in USD.

p.s.,

Another reader sent mail to me directly: "Bill, the state of Illinois is deeply in debt and so is Chicago, but the state was one of only 3 out of 50 that didn't go deeper into debt in the last 3 years thanks to its governor. Btw, the CITY of Chicago sold the Skyway toll road about 2 years ago to a French entity for about 2.5 billion dollars. So now, when Chicagoans, et al, use that toll road, which is heavily traveled, they are paying their tribute to France, i.e., a nation of sharecroppers, as Warren Buffet would say." /A


Posted by Posted by Bill Cara on February 24, 2006 10:39:12 AM | Category: Economics

Discourse

Short oil. April at 62.55
Hype. Sell into strength.
Disclaimer: (The usual boilerplate)

Posted by: FirstConsul [TypeKey Profile Page] at February 24, 2006 12:00 PM [link]

Let me correct the reader who linked to my post on Mitch Daniels' plan to privatize operations of the Indiana Toll Road: the Toll Road is not I-69. It's I-90 in the Lake County, and I-80/90 from Porter County eastward. ( Link to pdf map: http://www.in.gov/dot/motoristinfo/pdfs/tollroadmap.pdf )

What Daniels hopes to do is to use the revenue from the 75-year lease, an expected $4.5-5 billion, to build an extension of I-69 from Indianapolis to Evansville.

My problems with Daniels' plan?

* the length of the term in relation to the revenue
* his plans to use a huge chunk of the revenue for the I-69 project
* turning over operations of critical infrastructure to foreign interests.

The Indiana Department of Transportation's i-69 plans can be found at http://www.i69indyevn.org/

COUNT US!, an opposition group, operates here: http://www.i69tour.org/

And as is the case with the Dubai Ports deal, what Daniels wants to do (and what Daley did in Chicago with the Skyway) is to turn over "operations" - not an outright sale. I oppose the deal but with Republican control of the Indiana legislature Daniels' plan ( http://www.in.gov/gov/majormoves/ ) is pretty much a lock.

Posted by: wanderindiana [TypeKey Profile Page] at February 24, 2006 12:43 PM [link]

One more thing: I should have recognized that Daniels has, indeed, suggested privatization of the existing stretch of I-69 as well; however, his Major Moves plan and the related bills only deal with the privatization of the Indiana Toll Road.

Posted by: wanderindiana [TypeKey Profile Page] at February 24, 2006 12:53 PM [link]