MyFox
 

crony_capitalist's Blog

by crony_capitalist from All Over Memphis

Last Post 464 days, 17 hours Ago


The city has a surplus . . .during an election year.
Jul 31, 2007 | 6:00 AM
Category: News
Report This Post

Can you guys tell me how (or why) incumbents always manage to balance the budget and create surplusses in government during election years?

The middle years during their terms contain deficits, or manage to spend every dime alloted in the budget. But during election years, everything suddenly comes up sunshine & blue sky's. The politicians find fiscal responsibility.

So. It was revealed yesterday that city is in the green (black), by 30 million dollars. And this money is going to be put in the cities "rainy day" fund. (it'll probably rain a torrrent after the election). let me stop hating. Congratulations city managers, I bet you can't do a surplus 6 years in a row.

1-and how come taxpayers don't get a refund on surplus?

2-Who is the cities bank? What institution physically holds the 30 million on their balance sheet?

3-Who (real name, real individual) is the fund manager responsible for "investing" the cities money? What fees annually does he receive for this service? is it a percentage? or a flat rate?

4-What does the city invest in with the money? surely they don't just stick it in a mattress or stuff it in a can in the mayor's cupboard.

5-Are there any politics of money management? Do investment banks bid on government contracts, or is the choice of service provider somebody's sole discretion?

6-The great secret of wealth making is to use OPM (other people's money). I once heard a CEO of a Fortune 500 posit the question-why would he need to literally own a billion dollars, if he could CONTROL a billion dollars? His point was that in the world of finance, controlling an asset is as good as owning the asset. Citizens OWN the money, but a bank somewhere CONTROLS the money. I guess my question speaks towards the INVISIBLE GOVERNMENT. Who is profiting from Controlling the cities money. I mean a guy can do alot of smooth day trades with 30 million dollars on margin. The trader will get paid his fees, and the government will keep the profits accrued from investing the surplus. But the actual owners of the money will get dick.

7-Banks have strong lobbys. I presume the bank that holds the money of Memphis would lobby on the cities behalf. Who are they?

If any of y'all can help me with this, please do. I am curious. I just wanna follow the money.

I think I could feel better about the Invisible Government, if I could actually see the money. Maybe, the city should have a visitation day, where we (citizens, residents, tax payers) stroll through the bank vault like it's Graceland and marvel at our tax dollars at work.

5 Comments |  Add a Comment

Member Comments Total Comments: 5
Page 1 of 1
Morpheyous read my blog view my photos
Jul 31, 2007 | 2:35 PM

I would rather have the city either lower that surplus, or simply break even. The reality of that surplus should be realized with helping the city of Memphis grow, and stop waiting on the government to hand us some type of grant to help cure what ails us. We have enough impotent ne'er do wells in this city that at the very least we could reinstate some of the same programs that were canceled and have many of our youth being drafted for criminal activity.

The common sense of this realization is such that if our own leaders can't see it, then what are they truly doing in office.
citizen13 read my blog
Jul 31, 2007 | 3:56 PM

All we know is what we are told. Statistics and numbers can help someone lie if they know what outcome they want to represent.

If they want to raise property tax, we have a 10 million dollar deficit that nobody knows how it happened.

If they want to be elected, then all of a sudden we have a 30 million dollar surplus.

I balance my checkbook every month, if I didn't then I would get in financial trouble very quickly. Shouldn't the city do the same thing? Then there would be no surprises, ...or would there? Truth is stranger than fiction.

It's like the government takes our money, then turns around and shows us how much extra money they have, as if they are doing a fine job. This goes back to what CC says about controlling the money.

If I want to see a juggling act, clowns, or a magic act, I'll go to the circus.
TomG read my blog
Jul 31, 2007 | 4:27 PM

Memphis is bound to have a surplus. No money has gone to protecting the city, no money has gone to education and most of the crooks in city government are in or on their way to jail.
crony_capitalist read my blog
Jul 31, 2007 | 5:35 PM

Morpheyous: I would like to see the city "use" this money too or grow it to the point, where taxes could be lowered. It's funny to me how a corporation can multiply money but a municipality can't.

citizen 13: You are bang on about "voodoo economics." I wish complex issues like that could be made common so that people could actually understand the deception, and use the knowledge to keep them honest and the municipal profitable.

Tom G:You and I both know, they cut alot of services to save that money. What you say sounds like a black humor, but it's true
Vote4Change read my blog
Aug 1, 2007 | 2:59 PM

Yeah, they cut a lot of corners, but not the right ones. The mayor still has 400 appointees downtown who are making big bucks.

Just a gentle reminder: the last time we saw a balanced budget was after Willie held a mocked-up search for a new MLGW president & wanted Joe Lee. Once Lee was in place at MLGW, we found out the budget wasn't balanced. Ooops! We over-projected. I think "padded" would have been a better word.

And if we really are 'in the green' then I know of a certainty that there have to be a lot of neighborhoods just like mine that have been neglected by city services. There are 2 undeveloped areas just 2 streets over from me that haven't been cut back in over three and a half years--which was when we got annexed by the city of Memphis.
Page 1 of 1


Write your comment below:




crony_capitalist

Crony capitalism is a pejorative term describing an allegedly capitalist economy in which success in business depends on an extremely close relationship between the businessman and the state institutions of politics and government, rather than on free market competition, and economic liberalism. It may be exhibited by favoritism in the distribution of legal permits, government grants, special tax breaks, and so forth. Crony capitalism is believed to arise when political cronyism spills over into the world of business, and the relationships between powerful businessmen and powerful politicians form a kind of aristocratic social hierarchy, influenced by self-serving friendships and family ties, to the extent that it corrupts public-serving political and economic ideals.

Member Since: 7/23/2007


 

RSS: XMLWhat is RSS?