Increasing Our LSAC Debt by Leaps and Bounds

This excerpt was recently shared with me by one of our LSARA Directors. 

"I have often pointed out the fate of the city of Mainz"

They had their technological boom with the invention of the printing press there. The politicians couldn’t wait to spend tax money assuming the business cycle would never end. So they spend the money before the taxes were due and borrowed against future tax revenues. The debt quickly became a Ponzi scheme issuing new debt to pay off the old as we are doing today. The interest kept rising so they just raised taxes. The rich began to leave and the city was quickly left with the people who didn’t really pay taxes. The bubble burst when they could not sell the next new issue of debt to pay off the last one.

The city defaulted. The Pope excommunicated the politicians. And eventually the city was simply sacked and burned to the ground.

Politicians are the scourge of human society. They are the great destroyers of civilization and the instruments of war. People champion gold standards as if this would solve anything. The common fault is not what we call money, it is always, and without exception, those who we put in charge of it.

Meanwhile, Moody’s and S&P have both downgraded the general obligation debt of the state of Illinois as of June 1, on a combination of a state government budget impasse and a seemingly unstoppable unfunded pension obligation that has now ballooned into at least a $130 billion shortfall. You better get out of the State before it is too late. Property values will decline further because of the tax burden.

Welcome to the Sovereign Debt Crisis. "This one is going to be a-real–doozy."

Do you see any parallels here? We are increasing our LSAC debt by leaps and bounds with no projection on how it will be paid other than on the backs of the Ratepayers. 

Our Council and Administration have the idea they can short term ( 5 years or less) anything the Ratepayers may oppose so it cannot be petitioned. 

Who is ready to run for Council and provide accountability, cooperation and communication with the Ratepayers? 

Let the campaigns begin!