[Leica] IMGS: check out Keith Wessel's photographs

[jayanand at gmail.com (Jayanand Govindaraj)]

George,
You take a loan (in the USA a municipal bond) to build a school (it is an
asset, not an expense), and charge the fees required to pay for expenses and
pay back the bond, just like a business entity will do. If there are
negligible or subsidized fees, then you have to have higher taxes - you
cannot run these things on a deficit indefinitely - in cash flow terms, this
is called "diversion of funds' or a 'funding mismatch' - it will definitely
lead to bankruptcy at some point.
Cheers
Jayanand

On Mon, Mar 14, 2011 at 4:45 AM, George Lottermoser <imagist3 at 
mac.com>wrote:

>
> On Mar 12, 2011, at 7:11 PM, Frank Filippone wrote:
>
> > The only way to balance the budget is to first cut spending, then
> increase
> > taxes, temporarily.
>
> I don't think which comes first (chicken egg) scenario has anything to with
> what's going on.
>
> Let's start from scratch.
> Assume we agree to build a school for our kids and hire teachers to put
> into it.
> How will we pay for that?
> By cutting spending first?
> Does not compute.
>
> YMMV
>
> Regards,
> George Lottermoser
> george at imagist.com
> http://www.imagist.com
> http://www.imagist.com/blog
> http://www.linkedin.com/in/imagist
>
>
>
>
>
>
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