Revenue Anticipation Notes.<\/p>\n
California is already using them, and they aren’t the only State that using this legal trick to bypass Constitutionally mandated balanced budget requirements.<\/p>\n
Revenue Anticipation notes are similar to “factoring” in the private sector. In order to balance this year’s budget, you sell to a third party (PIMCO comes to mind, or the Federal Reserve) the “Right” to receive future revenues when they arrive. It’s kind of like a payday loan, but for billions of dollars. When the taxes due finally come in, the check is already signed over to the loan sharks. The only way it becomes a hard liability of the state is if the revenue doesn’t come in.<\/p>\n
They’re not actually “borrowing” if you are willing to play semantic legal games – and nobody in the government wants to actually balance the budget by cutting their spending and power, so everyone plays along – knowing the “little people” will never catch onto their games – as long as you tell them you’re taxing the rich so they don’t have to pay taxes and get lots of free stuff, they’ll be happy and stay at home watching TV<\/p>\n","protected":false},"excerpt":{"rendered":"
Revenue Anticipation Notes. California is already using them, and they aren’t the only State that using this legal trick to bypass Constitutionally mandated balanced budget requirements. Revenue Anticipation notes are similar to “factoring” in the private sector. In order to … Continue reading