Monday, May 24, 2010

Are Municipal Bondholders Consulting Robert Vesco in the Netherworld?

Lila Rajiva deconstructs Ellen Brown's piece at the Huffington Post which exposes vast amounts of money squirreled  away by State and Municipal governments as "rainy day" or emergency funds. The same governments that have to cut non-essential services (read - services that actually provide value to citizens but are high profile enough to show that the government is serious about cuts but without actually inconveniencing any public employees, at least any highly-paid ones). The same governments that are borrowing billions at X% while keeping the slush funds in essentially checking accounts earning .01X%. My county, Fairfax, VA, has had a strong stench of corruption for years as one of the richest, if not the richest in the country, yet has to borrow and roll over  a mountain of debt continuously while voters approve every bond issue put before them. None of this has ever made sense to me
Another big piece of the puzzle falls into place. Thanks to Lila for reading, so we don’t have to, the otherwise horrible HP for any crumbs of actual useful information that might flow from that sewer of PC babble.
I’ve been (halfassedly) researching State banks since I first heard about the Bank of ND and wondering why such banks might not be a weapon against the FED and why there doesn’t seem to be any discussion in Austrian fora. I’ve concluded that there must be some theoretical meta-objection along the lines that a State bank would still be a state bank, i.e. 50 mini-Feds, or that there would be too much opportunity for populist shenanigans. The possibility, as Occam’s razor would suggest, that the monster banks would smother any such discussion in order to extend the lucrative status-quo is strongly implied.
Virginia State Delegate Bob Marshall had introduced legislation that quickly went nowhere, to establish a Virginia state bank, and when I requested more information from his staff, not only received no answer, but was evidently dropped from his spam list as I went from 3-5 emails per week to none. I can only assume that he was well instructed to drop this line of reasoning and return to moaning about abortion and gun-control.
When it comes to the examination of state and local financing schemes there is a great bi-partisan well of don’t-go-there. I guess taxpayer ignorance really is bliss, but the bliss is that of the bond holders. Full disclosure: I’m long on torches and pitchforks.

1 comment:

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