Thomas Daschle: “the New York Times report this morning about the American job losses that may result from Mexico's currency crisis is…”

“the New York Times report this morning about the American job losses that may result from Mexico's currency crisis is sobering. The loss of jobs as the economy of Mexico responds to the peso devaluation is a price that will be paid by American workers and their families. The past 2 years of strong export sales to Mexico have helped create about 770,000 American jobs directly tied to that export market. When that market collapses, those jobs are placed in jeopardy. That is why we should recognize that the proposed loan guarantee to address Mexico's economic situation is in our national interest. The loan guarantee has been called a bailout and worse, but those who like to throw such terms around don't take into account that real working people's jobs are also at stake. The loan guarantee is not a foreign aid package. It is structured to avoid placing Government funds at risk. Mexico would be required to pay loan guarantee fees up front--before the guarantee took effect and before loans would be extended. Those fees would indemnify American taxpayers in exchange for Mexico's right to use our guarantee. In addition, Mexico would provide security in the form of proceeds from the state-owned petroleum company, guaranteeing that America would be repaid if the loan guarantees were ever activated. As a result, the extension of loan guarantees would not implicate any Treasury costs in taxpayer dollars.”