Spiraling Debt: City of Rockwall Bond Election

Just imagine you had $100,000 in personal debt. Your income only covers payment of $39,000 on that debt. Now, you write a check for $61,000 to cover the balance of debt. Now, imagine seeing the County Sheriff at your door with a warrant for your arrest.

“To preserve their independence, we must not let our rulers load us with perpetual debt.” – Thomas Jefferson

In our personal finances, we call this act ‘check kiting’ or ‘writing hot checks’.

Why is it we allow the federal government to do this under the label ‘quantitative easing’? When the Sheriff comes to your door, will he believe you’re just ‘borrowing’ $61,000?

According to a Wall Street Journal article,

“Last year the Fed purchased a stunning 61 percent of the total net Treasury issuance, up from negligible amounts prior to the 2008 financial crisis…This not only creates the false appearance of limitless demand for U.S. debt but also blunts any sense of urgency to reduce supersized budget deficits.” – Lawrence Goodman, former Treasury official and current president of the Center for Financial Stability

Read more: WSJ: Fed Buying 61 Percent of US Debt

Here in the City of  Rockwall, we will be voting on a huge capital bond package in May. I personally like all the issues, with some misgivings around the Downtown components.

Reality is simple: national debt is OUR debt. True, we read and hear stories about economic woes in other states like Michigan and California, thinking that’s their problem.

Fed Chairman Ben Bernanke recently stated before Congress, “We risk going over a massive financial cliff.” As you well know, “we” is the first-person plural pronoun that includes Ben Bernanke, you and me.

Chairman Bernanke went on to say, Under current law, on Jan. 1, 2013, there’s going to be a massive fiscal cliff of large spending cuts and tax increases.”

I strongly encourage City of Rockwall voters to vote ‘NO’ on all five propositions. Let’s allow Januray 1, 2013 to go by us before adding tens of millions of dollars of indebtedness to our property owners.

Open this link for details on capital improvement bond propositions.

Open this link to view official NOTICE OF BOND ELECTION.

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2 thoughts on “Spiraling Debt: City of Rockwall Bond Election

  1. Ken Dickson

    Cities, this nation over are going broke, foreclosures are all over our city, people are without full-time jobs, personal debt is high, etc….& the city of Rockwall wants to increase taxes by over 30%? We just had a mayor “term out” who is now running for commissioner who raised taxes from $.35 to $.50 per hundred & now we want to spend money for a “want list” that is absolutly ridiculas, from a park to view the “rock wall” to sprinkler systems on private property, to “astro-turf” ball fields, & On & On! It looks as if the inmates are watching the asylum!

    Now is the time to stop absolute madness or the city will default as they did during the depression on debt that is not needed!

    Reply
  2. JOHANNA RUNNELS

    As an ordinary citizen, when I look at a list of bond issues submitted for my consideration, I assume they are on the ballot because my duly-elected city council members have vetted these proposals and are recommending them to me as a good idea. This tacit endorsement is what concerns me.
    We, the city of Rockwall, are currently carrying a heavy debt–over $222,000,000 as of 8/11 (http://www.brb.state.tx.us/lgs_search.aspx?action=city ) which comes to $5922 for every man, woman, and child*. So if you are a family of four, that totals $ 23,686.
    But wait! There’s more! Our county debt is now $105,400,000 ($86,000,000 plus recently added $16.4 million issued in January) (http://www.brb.state.tx.us/lgs_search.aspx?action=county) which comes to $1345 per person**.
    And finally, our school district carries a debt of $707,729,600 (http://www.brb.state.tx.us/lgs_search.aspx?action=isd) which breaks down to $9,034 per person.
    And that does not even include the nearly $16,000,000,000,000 and climbing debt we carry on the national level which is currently at $50,000 per person.
    To summarize our current debt
    City debt $5,922 per person
    County debt $1,345 per person
    School debt $9,034 per person
    TOTAL $16,301 per person in debt in Rockwall
    Plus a national debt of $50,000 per person
    We will also see a personal massive tax hike come 1/1/13 when the Bush tax cuts end. That is going to send a lot of our ever shrinking disposable income to Washington for the (mis)use of the federal government.
    As a parent, if your family were personally in a boatload of debt, would you give your children a list of high ticket items to choose from to buy for them? Not at our house and likely not at yours. Now is not the time to increase our city debt load in Rockwall by 25%. Instead we should be getting our financial house in order by cutting spending and paying down our current debt. Vote NO to the bond proposals.
    *Based on the 2010 census date 37,490 people in the city.
    **Based on 2010 census data of 78,337 people in the county.

    Reply

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