By Pete the Banker

The Republicans Pledge To America stated that they would,

“Cut Government Spending to Pre-Stimulus, Pre-Bailout Levels: With common-sense exceptions for seniors, veterans, and our troops, we will roll back government spending to pre-stimulus, pre-bailout levels, saving us at least $100 billion in the first year alone and putting us on a path to begin paying down the debt, balancing the budget, and ending the spending spree in Washington that threatens our children’s future.

End Government Control of Fannie Mae and Freddie Mac: Since taking over Fannie Mae and Freddie Mac, the mortgage companies that triggered the financial meltdown by giving too many high risk loans to people who couldn’t afford them, taxpayers were billed more than $145 billion to save the two companies. We will reform Fannie Mae and Freddie Mac by ending their government takeover, shrinking their portfolios, and establishing minimum capital standards. This will save taxpayers as much as $30 billion.”

Included in the details of their promises were specific alternatives promising to eliminate Build America Bonds program (From A Thousand Cuts, Sept 22, 2010) In December in conjunction with the Tax Bill Debate, Republicans became firm, “Congressional Republicans will block any inclusion of Build America Bonds, a taxable bond program popular with states, cities and other muni issuers, in the tax deal they clinched with President Barack Obama, a Republican aide said on Tuesday. “We have a very firm line on BABs — we are not going to allow them to be included,” a congressional Republican aide said.

However now with the new Republican majority now taking control of Congress, they have suddenly developed amnesia forgetting their electoral promises and the responsibility instilled in them by the voter mandate on November 2, 2010, which entrusted them to adopt fiscally conservative budget policies and solve the GSE problem. Republicans are now planning to scale back their plans for cuts in Federal Spending. “Republicans scaled back plans for deep cuts in U.S. government spending as they took power in the House of Representatives on Wednesday, diluting a key promise that helped them to victory in November’s election.“

Eric Cantor the House Majority Leader said, “The party pledged to return discretionary, non-defense related spending to 2008 levels but have since said an initial $100 billion target for cuts may not be reached.”

“One House Republican aide said Wednesday the proposed spending cuts could be “considerably less” than $50 billion.”

This despite the specific promise outlined in the Republican pledge.

Scott Garrett, Chair of the House Financial Services, Capital Markets and GSE Committee and apparently Spencer Baucus, Chair of House Financial Services Committee are now planning to stall Freddie and Fannie reform. “‘We recognize that some things can be done overnight and other things can’t be,’ said Rep. Scott Garrett (R., N.J.), incoming chairman of the House Financial Services subcommittee, which oversees Fannie and Freddie. ‘You have to recognize what the impact would be on the fragile housing market as it stands right now’.”

And just as the Democrats and Barney Frank have orchestrated inaction over the past two years, the Republicans are suggesting little or no immediate action and relenting on their specific promise.

Perhaps most egregious is the move by John Mica, Chairman of the House Transportation and Infrastructure Committee to resurrect Build America Bonds which States like California, Illinois and New York have abused to the tune of nearly $200B since 2009, supplementing their cash flow without paring State spending and ultimately using it to subsidize their budget deficits. “Representative John Mica, who becomes House Transportation and Infrastructure Committee chairman in January, plans to introduce a “reincarnation” of the Build America Bonds program, set to expire Dec. 31. “I can almost guarantee a reiteration of the Build America Bond program,” Mica, a Florida Republican, said in an interview in Washington today. “We’re working to find a reincarnation’.”

So again the promised budget cuts on wasteful spending in the pledge where apparently simply a gimmick.

It’s time that Republican leaders like Boehner, Cantor, and Kevin McCarty, the new Republican Whip, together with others to deliver on their campaign promises. Failure to perform is unacceptable. We received deceitful promises of “Hope” and “Change” from the Democrats only to face economic despair and stasis. If Republicans expect our continuing support then they need to deliver on promises contained in their Pledge delivering expected results based on a real change in Washington DC’s “business as usual” mentality!