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The
Red Sea
 Well
over ninety percent of New York State’s debt is generated
by public authorities, like our control boards. Public authorities
are quietly dominated by those who have a vested interest
in the financing of public debt, namely bankers and developers.
In
our last issue we predicted that the accountants brought in
by the County’s new control board would come up with
exactly the same solution already called for by said control
board. Unfortunately, we were right. The ethically challenged
firm of PFM reached the same conclusion: Erie County needs
more debt. Are we clairvoyant, lucky or just used to swimming
in horseshit? Well, if we were either clairvoyant or lucky
we’d be professional gamblers. What we do know is that
it only cost the County around a million for this advice.
No
one is asking why the Erie County Control Board is campaigning
heavily for the County to increase its public indebtedness,
despite the fact that we have the third lowest property tax
burden in the State. If you represent lenders, you must convince
people of the need to borrow – even if that need doesn’t
exist.
What
Buffalo’s power brokers are doing here is quite similar
to what the World Bank and IMF do to third world countries:
give them massive loans they can never pay off, and then privatize
all of their assets. Schools, hospitals, etc.—think
about it: if we had the money, would we ever be okay with
closing libraries and fire stations? No. The debt is necessary
to enable a small-government, low-service agenda.
More
Briefs:
1. Some People Have Spoken
2. ...But Who's Counting?
4. Bass Pro: Smell the History
5. Slaughterhouse Jive
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