In the March 6th letter to Representatives and Honorable Senators, Governor Deval Patrick requested consideration in a bill entitled: "An Act Financing Improvements to the Commonwealth Transportation System." House bill 3979: (See here http://www.mass.gov/legis/journal/desktop/Current%20Agenda%202011/H3979.pdf
This bill includes:
- Establishment of a State Infrastructure Bank, a new program to provide additional project financing options.
In the last paragraph, on page one, he states, "Approximately one year from now, the Administration intends to file a new five-year bond bill to provide long term, sustainable financing for our roads, bridges, highways, subways, buses, and airports."
Ladies and Gentlemen:
A new five-year bond bill can ONLY mean MORE DEBT! This financing is neither long-term nor sustainable!....NOR HONEST! Let me explain!
I'm guessing about $15billion in loans! These $$$$Billions means HUGE interest payments to banks or bank shareholders from the revenue of the tolls on roads, to the airports and the increases in subway and bus fares. (Note: Anybody remember that the Administration pushed the BIG DIG debt onto the MBTA to the tune of $1.7 billion: For more on the BIG DIG debt! http://www.businessweek.com/ap/2012-04/D9U10DT00.htm
As I see it, House Bill 3979 is the current Administration's desire to control, over the next 5 years, the commonwealth's future through the placement of friendly individuals and wealthy investors via the establishment of a State Infrastructure Bank, which would continue to finance their projects with MORE DEBT MONEY paid by the increased rate hikes, like we have just seen by the MBTA over the HOWLS of the riders! (Which, by the way, I don't think Governor Patrick heard!). The Borrowing CAN STOP!
I sincerely believe that interest on the State's past, present and future loans is the automatic transfer of wealth from the workers to the wealthy! This MUST CEASE!
But HOW? ". There is a well established MYTH! "The Money has to come from somewhere." We either work for it or we borrow it!
We hear it all the time in budget preparation and politics in our homes and on the local, state and federal level. "We just don't have enough money to do this or that"If we spend here, we can't spend there!" And when there is not enough, we borrow! We borrow from banks because we think "THEY" have it! We create more debt! And, of course, we pay later"or go bankrupt!
THIS IS UTTER NONSENSE! There is an unlimited amount of money or CREDIT! However, our thinking must change from being borrowers constantly in debt with austerity measures because of interest to creditors in prosperity without interest or usury! IMPORTANT NOTE : Banks do not have money to lend, per se"..of course, we all think they do, like Jimmy Stewart in "A Wonderful Life""but that is the illusion! " a well established illusion"..And many of us LOVE THE ILLUSION"..BUT".The reality is:
THE BANKS LEND US OUR CREDIT! And we pay them interest!
Let me repeat that: Banks lend us OUR CREDIT" and we shouldn't have to pay a dime in interest for that! "Maybe a small transaction fee or a maintenance fee...but no more! We need to understand that and begin to create money for projects that we want, that are near-interest free and debt free"..Much like going to a "Free" Library and getting a book for free".It's not really free"..We do bring the book back.
Let's bring back the reality of honest money! Let's start a 100% public bank, ".owned and operated ". TOTALLY ".by the public"for the public.With the Private sector clause in there, you will have private incentive to MAKE MONEY rather than provide public service! This would be plutocracy at its height! Hidden corruption and greed will prevail with the private sector! Dare I say""It's human nature!" This will be done with Excessive loans, Oversights and Extensions"and will create bigger and bigger loans. Bigger and bigger loans means bigger and bigger interest payments! Think TEN times the BIG DIG! ALSO there is a HUGE benefit to being a bank as I have said before! Banks extend CREDIT! The billions needed to finance the long-term projects comes from the full faith and credit of the people of the commonwealth! It DOES NOT COME from the bank's deposits! We need no private investors in a PUBLIC BANK for the commonwealth. In fact, with private investors in there, as I have said before, it will become totally corrupted!
I'm wondering who the private investors will be for this Bank? It would be such a windfall! One-half of ALL the millions of dollars collected would go to the investors of the Bank! For every Billion dollars in loans there would be $50,000,000 in interest payments! One-half of that " Every year until 2047".$25,000,00 to bankers for doing Absolutely NOTHING!
One more time: With the billions involved, the State Banks could operate with a 1% interest rate to cover the cost of administration!