Archived posting to the Leica Users Group, 2011/03/13
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]Actually, yes you go ahead and build that school..... ... you float a bond....at least that is what the politicians do right now..... Anyway, it is not a first time event.... if the question were..... "Assume we agreeD to REPLACE AN EXISTING school for our kids and hire MORE teachers to put into it." And we have no money coming into the coffers...... We can decide to make the tough decision to NOT build the new school until fiscal position allow us to do it... or we float a bond..... The problem with bonds is they garner interest ( we have no money.....) and put off the inevitable repayment.... inevitable being the operative word..... Don't spend what you don't have......and if you find yourself suddenly in the position of not having, then don't spend what you expected to spend.. cut back..... Then go find a new source of revenue... second job, raise taxes, etc...... The LA Times had an article today about the Governor ( we got a new one too!).... is planning to cut new forms of redevelopment, but would support existing programs that already have bonds set against them. ( Redevelopment is based upon loans. Payback is generated by selling the improvements or by taxes and employment generated by the fruit of those projects). So what did the local municipalities do? Went out and got $700M in loans ( bonds) in the first 2 months year.... last YEAR they only took out $1.2B in new bonds.....so they could beat the Governor's coming plans.... BTW, the average ( I think it was an average) interest on these bonds was 7%. Try getting 7% at your local Savings bank...... Bonds are a danger.....but then again, so are politicians..... Frank Filippone Red735i at earthlink.net -----Original Message----- From: lug-bounces+red735i=earthlink.net at leica-users.org [mailto:lug-bounces+red735i=earthlink.net at leica-users.org] On Behalf Of George Lottermoser Sent: Sunday, March 13, 2011 4:16 PM To: Leica Users Group Subject: Re: [Leica] IMGS: check out Keith Wessel's photographs 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 _______________________________________________ Leica Users Group. See http://leica-users.org/mailman/listinfo/lug for more information