7.013.0501 / Can You Keep Up With Your Own Money ? .. “Who’s On First”

7.013.0501 / Can You Keep Up With Your Own Money ? .. “Who’s On First”

7.013.04 .. 02

Can You Keep Up With Your Own Money ?  …

This is the 2nd article in our series on the deceptive use of Special Tax Districts (STD) & Municipal Bonds.  It is also about one of the most successful ways Marxists in our midsts are using Your Tax Dollars to fund the growth of government & Communism.  More specifically, this article is about the lack of accountability & transparency in county government.  Operating with accounting systems designed for bureaucrats, and not people, there are no real checks & balances in Texas’ county governments.  In an age filled with out of control political corruption, on all levels of government, dishonest politicians & king pin bureaucrats (KleptoCrats), Tax Payers are being asked to trust KleptoCrats even more.  Is this wise, when many STD MuniBond Proposals too often include Political Arrogance, Corruption & Greed ?  Such proposals are prescriptions for long term multi-decade grand theft & Constantly Increasing County Tax Bills.  

Bonds ..

.. are Tradeable Serialized Promissory Notes.  They spread risks associated with raising large amounts of money (capital) across thousands of smaller investors.  In exchange for making a smaller loan for a defined period & at a defined interest rate, each person that buys one of the promissory notes (bonds) is guaranteed regular payments that include both principal & interest until the entire loan is paid in full.  When corporations issue bonds, they repay the corresponding debt from their operating earnings :ie; out of their own pockets.  When government bureaucracies issue bonds, they repay the corresponding debt with the tax dollars county property owners like you are kind enough to donate.  These bonds are called .Municipal Utility Bonds.

STD MuniBonds Are The Preferred Way To Raise Large Sums Of Capital For Public & Private Capital Projects ..

Raising Capital & Spreading Risks ..

Bureaucracies & Private Investors always want to raise large amounts of capital to finance growth.  STD MuniBonds are often the preferred financial tools.  They allow Other People’s Money (OPM) to be used as the capital for public & private capital projects.  Huge sums of private capital & huge risk are always involved with large sums of money.  In order to spread the corresponding risk across as many people as possible, serialized transferable promissory notes, that represent fractional shares of the total amount of capital needed are sold to institution, corporations & private investors.   The sale of these Municipal Bonds (MuniBonds) is handled by the Chicago Mercantile Exchange (CME) in the counter (OTC) trading market.  Qualified sellers are allowed to divide the total amount of money they want to borrow into smaller promissory notes called bonds.  Added together these fractional promissory notes (bonds) raise large sums of capital.  Bonds are often sold in $1,000, $2,500, $5,000 or $10,000 denominations  Qualified Buyers purchase & hold bonds or purchase them for trade.  On the day a bond seller is to issue a scheduled payment, each bond holder of record receives the corresponding payment(s).  These payments include the agreed prorated share of both principal & interest.  At the end of a bond’s life span (term), those who own bonds will have received all of the money they loaned to the bond seller as well as the agreed amount of interest.  During the a bond’s term, bonds are often traded.  

The Global Bond Market ..

.. was a ~$82,200,000,000,000 Global Debt in 2009.  This market was 300% Bigger than the entire ~$39,009,000,000,000 2017 Global Sock Market.  It should be noted that the US Bond Market represents a dominating 47% of the total global bond market.   

The USA’s Entire STD MuniBonds Market ..

.. equaled ~$3,842,000,000,000 in 2017.   This figure represents all the interest , fees &  commissions associated with the in bureaucrat & private debt.  If you own Private Property in Texas, your annual county tax bills include your share of this debt.  Sadly, most Private Property Owners are only aware of debt (bonds) associated with school & utility districts.  They have no real knowledge of the other STD MuniBonds on which they are spaying.  This Article Will Help You Learn More About The Bonds Needed To Make Your County Grow.   

STD MuniBonds Are Financial Tools Used To Raise Capital.  

Like Other Tools,

They Can Be Used For Good or Evil.  

Eternal Vigilance Requires You Learn How They Work,  And Who The People Are That Put Them Together.

Learn To Follow Your Tax Dollars …

In order to monitor current & proposed STD Municipal Bonds in your county, you must understand what municipal bonds are and the key roles played by politicians, bureaucrats, private business interests, lawyers & marketing specialists.  This article provides A Simplified Description of Key Functional Roles & Responsibilities in preparing & selling STD MuniBonds.   Find below the primary players & tasks required to sell a STD MuniBond.

1

Private Interests ..

Business owners & land developers need capital to buy equipment, introduce new products &/or develop real estate and create both public & private sector jobs. 

 

1

Bureaucrat Interests …

Government (city, county, state) bureaucracies sell municipal bonds in order to raise capital for public  projects.  Examples of such projects include: football stadiums, low income housing, hospitals, county road improvements, surface water treatment plants & reverse osmosis water treatment plants.  

2

County Political Interests ..  

Five (5) politicians sit on your county’s commissioners court.  This governing politburo has veto power over any/all municipal bonds sold to raise capital in your county.  As politicians, members of this panel eagerly raise as much money as possible, from anyone willing to give it to them.  Their No. 1 priority is raising the money they need to run for and stay in office as long as possible and advance their power in their political party.  Their No. 2 priority is getting as many buildings, roads & schools as possible named after them … while they are still alive !!   This panel is your county’s executive & legislative bodies, all rolled into one.   They make & execute all the rules.  Forget all that stuff about separation of power & checks & balances.  In many counties, the commissioners & the judge hold too much political power.  They are Your County Politburo.  They control all of the money that flows into, thru & out of your county.  They control the flow of investment dollars into your county, as well as the assessed value of your private property and which precincts will be financed by the other three.

3

Bond Counsel .. 

guide borrowers thru the financial & political maze that protect bond investors.  They are lawyers who specialize in preparing the Required Legal Documents & Assembling The Marketing Team needed to sell bonds & raise large sums of capital.  Working with the Bond Underwriter, they orchestrate the new bond’s financial structure, working, printing & sale.  This requires mountains of paperwork.  More critically, it requires a team of professionals with just the right financial & political connections at the highest levels of state government.  The skills & services provided by bond counsels are critical.  This is why private & bureaucrat borrowers often become intensely loyal to & very dependent on their favorite bond counsel.  Bond Counsels have preferred Bond Underwriter & a Bond Insurer with whom they work.  Members of this team all know one another quite well.  Members Of This Team Are The Borrowers Rain Makers.

Market Makers ..

are brokers that take on the majority of the risk associated with raising capital by selling debt.  They  buy & hold  large quantities of a new bond, at a discount, for resale in small quantities to investors.  The difference between the discounted price and the price paid by corporations & individuals is called the Spread.  It is additional compensation for the underwriter. 

Registrars ..

are institutions (banks or trust companies) that keep bondholder records as bonds are traded.  When principal & interest payments are due, referring to their list of registered owners, they provide disbursement instructions to the DTC.   

Insurer ..

a legal entity that guarantees that all those who made loans to the borrower (bond owners) receive all of the required payments due them per the agreed schedule. 

Depository Trust Company (DTC) .. 

is the Federal Escrow Agent  for all funds & certificates associated with bonds.  It holds bonds & pays debt service on refunded bonds.  It provides end-of-day net settlement obligations for all US stocks, bonds & money market trading

Example ..

A Borrower Wishes To Raise $100,000,000.00

Note .. It is much easier to borrow $1,000 from 100,000 individuals than it is to find a single individual willing to loan the entire $100,000,000.  The borrower can be a private investor and/or government bureaucracy  

The bond counsel provides a plan for the financial projects, selects & organizes stake holders, vendors & key service providers needed.  With the approval of the county’s commissioners court & the board members of the corresponding bureaucracy, the underwriter prints one hundred thousand serialized $1,000 bonds.  Those bonds are usually sold by a market maker possessing needed skills to sell the corresponding bond type.  

100,000 Bonds Are Sold @ $1,000 Each.

The underwriter selects an investment bank to broker the bonds.  They specialize in marketing (promoting & selling) bond offerings to large institutional investors.  They, in turn sell, mark up the bonds, again, and sell them to  other institutional investors, traders, corporations & individual investors.   All of these activities are carried out under the watchful eyes of the Bond Counsel & Underwriter.  

4

Texas Bond Review Board (BRB) ..

Established in 1987, this is another five (5) man political board.  It reviews and approves any/all bonds issued by Universities & State Bureaucracies that are >$250,000. Board members include four (4) politicians: governor (Abbott), lieutenant governor (Patrick), state treasurer, speaker of the house (Straus), state comptroller (Hager) & the executive director (Kline). The governor serves as chairman.  

Note .. Private Interests selling STD Municipal Bonds are not required to register with the state attorney general.   To date we have been unable to find a complete listing of the Private Limited Partnerships selling STD Municipal Bonds & Taxing You.

5

Brokers ..

are investment banks that specialize in marketing bonds.  They are known as Market Makers.  They  initiate & then orchestrate bond trading by anonymously matching those interested in buying a specific bond with those interested in selling the same bond.  This process is started when the Market Maker buys large quantities of a new bond, at a discount, from the bond underwriter.  In doing so, the Market Makers assume huge risks.  He must hold those bonds until he can sell them.  The marked up bonds are then sold in smaller quantities to Bond Traders.  

6

Traders ..

provide bond liquidity (cash) & stability to a bond’s market.  They do this by assuming large portions of the corresponding risk & then spreading that risk across hundreds of thousands of individuals & corporations (7) willing to loan the borrower needed capital.  They anonymously buy & sell bonds via the bonds Market Maker (Broker 5) as prices rise & fall.  Working together, Bond Brokers & Traders provide the market stability which makes investors (Corporations & Families, 7) comfortable enough to buy & hold some of the borrowers debt (bonds).  

7

Bond Owners ..

In 2015, 41% of all STD Mutual Funds in the USA were owned by families.  22% were owned by mutual funds.   Individuals & Corporate Investors loan capital to the borrower, whenever they buy a bond.  Usually, they buy & hold a bond for years.  Their loan is an effort to create a “guaranteed” income stream that will last until the date the bond (loan) has been completely paid off.  This date is known as the bonds maturity date. In exchange for loaning the borrower a small portion of the money (capital) needed, bond investors receive regular quarterly payments for the serialized bonds in their possession.  The combined principal & interest payment arrive like clock work at the agreed intervals.  Who is loaning you the money being borrowed in your name.  The graphic below will answer that question.

8

Your County Tax Assessor Collector ..

assesses, bills for & collect taxes levied by your county commissioners & judge on your real property.  They also collect all approved taxes required to pay off the layers of STD Municipal Bonds (debt) used to finance major capital projects in your county.  That bill includes your prorated share of each of the 1 to 100 STDs demanding payment on from you on your share of the debts (bonds) you have (or have not) agreed to pay.  

Texas Tax Code Section 31.01 . 

requires your County Tax Assessor Collector To Prepare & Mail Your County Tax Bill By October 1st Every Year.  That bill includes your share of each one of the STD Municipal Bond Payments due plus your pro-rated share of your county’s operating expenses expenses. 

Piling On … Is Great Fun ..

unless you are a Tax Payer & on the bottom of the pile.  In each county there may be several different STDs levying taxes in different Texas counties.  We believe Your Tax Bill should clearly list all of the STD’s & Municipal Bonds for which you are being billed.  Real Transparency Is Badly Needed !!  Many STDs are not reviewed or adequately monitored by any state agency.  Even so, they are able to require that you be taxed to pay off their debt(s).  Many bonds are structured in a way that allows private investors to extract all or part of their original investment as soon as Your Tax Dollars begin to roll in.  Tax payers would benefit greatly from a much more rigorous scrutiny of all STD Municipal Bonds.

Lenders Want Their Money …

The Bond Escrow Agent (DTC) submits a request for your share of payments due.  Your county assessor collector divides the total payment due by the number of property owners in your district (.. or subdivision)    Your county tax assessor collector receives demands, for you to pay your share of each loan (STD Mun Bond) sold to raise needed capital on your behalf.  

Your County Taxes & Your Property’s Valuation …

Your county commissioners & judge determine how the value of your private property will be calculated and the corresponding tax rate.  Tax rates are held relatively constant.  However, the method used to calculate your property’s value vary creatively, as your county commissioners & judge’s planned operating expenses increase. 

 What Happens When A Municipal Bond Is Sold ??

Municipal Bonds …

are created by Special Tax Districts.  This is where private capital is siphoned from the private sector & into the bureaucracies we call government.  Private & Bureaucrat interests who wish to raise capital by selling municipal bonds, must follow strict SEC industry regulations.  They must also obtain The Texas Bond Review Board’s approval.   

Someone Has To Be In Charge …

and in most cases, it is the Bond Counsel.  The most effective Bond Counsels are politically connected at the highest levels.  They often have ongoing relationships with King Pin Bureaucrats that control targeted Bureaucracies.  Bond Counsels structure the borrower’s bond offering and recommend a Market Maker & Insurer.  They then guide the borrower thru the maze of applications, engineering studies & legal documents.  While all this is unfolding, the bond counsel begins to grease the skids with politicians sitting on the Bond Review Board & the Bond Trader who will actually sell the bonds & raise the needed capital.  Throughout this entire process, the Bond Counsel holds the borrower’s hand.  The professionals involved are members of a tightly knit fraternal industry.  Since politicians write all the laws that regulate their activities, these laws are written in a loose manner and .. Far Too Much .. Is Perfectly Normal !!    

Taking A Bond To Market …

simply means selling it to the public.  New bonds are packaged & submitted to The Texas Bond Review Board for approval & its sale is scheduled.  When the STD’s bonds are released for sale, the Market Maker buys large quantities from the DTC, .. at a substantially discounted price.  They then mark up the bonds’ price and begin selling smaller quantities of the bonds to Traders.  They mark the bonds up again & sell them to corporations & individual investors.

Who Pays The Bill .. You !! ..

Tax Payers are on the hook for the Special Tax District’s Municipal Bond until the bonds’ maturity date.  That means you and other tax payers in your county will be paying a bond off for the coming 5, 10, 20 or 30 years.  

Layered Debt .. 

As a property owner, each year you are responsible for your share of the layered STD Municipal Bond Debt in your county.  We believe that all tax payers should receive a detailed list of all the STDs whose bonds we are required to pay on each and every year.  Once fully funded, STD Municipal Bonds are routinely rolled forward several times.  Rolling these bonds forward makes it impossible for you to identify the layers of STD Debt stacked on top of your back and for which you are responsible.  Sadly there are no checks & balances nor transparency that assure your interests are represented, respected or protected.

Huge Infusions Of Private Capital …

are required for any county or state to grow.  These capital infusions come from private sector businesses, .. not government bureaucracies.  Private sector energy, creativity & skills create the value & the new investment capital on which growth & prosperity depend.  Without Private Investment Dollars flowing into your county, its economy grinds to a halt & stagnates.  One of the main challenges of your county’s commissioners & judge is 

… How Many Politicians Can Attract & Hold The Streams of Private Investment Dollars Needed For Your County’s Prosperity .. And Maintain Their Virtue & Chastity; No Matter How Big The Dollar Signs Get ??

It is these streams of Private Investment Dollars that build schools, roads, dams & sewer systems.  This challenge forces your commissioners to become A Political High Wire Act.  They balance themselves on a loose cable strung across a deep corruption filled canyon.  Ideological Party Faithful try stabilize & secure one end.  

Private Investors Work To Mitigate Risks ..

by choosing the political high wire act that will do them the most good.  The winds of corruption and the depth of each commissioners virtue are competing forces that constantly destabilize the cable.  Thankfully, private interests are blessed with DNA that is completely different from that of politicians & bureaucrats.  Their Own Money Is At Risk !!  Those risks increase drastically the second they are forced to seek King Pin Politicians &/or Bureaucrats approval.  There is little reason for them to accept any higher risks.  

Yes !! .. Private Investors Are Indeed Human ..

Just Like You !!

They Have The Right To Pick & Choose Who They Will Trust & Which County’s Executives Offer Them The Best Deal Possible For Their Money.  This Is Why Your Commissioners & Judge Constantly Struggle To Use As Many Of Your Tax Dollars As Possible To Leverage The Probability of Success & The ROI of Private Investment Dollars of Their Pet Projects Up As Much As Possible!!  

Competition For Private Investment Dollars Is Intense .. 

Other counties across Texas & the USA are constantly working to attract the same private investment dollars.  Secret Twilight Zone Negotiations thus determine how much upwards leveraging Your Tax Dollars could buy.  The person representing your interests in these negotiation are your County Commissioners.  Opportunities to extract personal gain from these negotiation is a reality.  That reality cannot be taken for granted.  

 How Much

Can You Trust Your

County Commissioners & Judge ??

What Happens When A Municipal Bond Is Sold ??

Do You Know ?? ….. Why Not ?? ….. It’s Your Money !!

Municipal Bonds …

are created by Special Tax Districts.  This is where private capital is siphoned from the private sector & into the bureaucracies we call government.  Private & Bureaucrat interests who wish to raise capital by selling municipal bonds, must follow strict SEC industry regulations.  They must also obtain The Texas Bond Review Board’s approval.   

Someone Has To Be In Charge …

and in most cases, it is the Bond Counsel.  The most effective Bond Counsels are politically connected at the highest levels.  They often have ongoing relationships with King Pin Bureaucrats that control targeted Bureaucracies.  Bond Counsels structure the borrower’s bond offering and recommend a Market Maker & Insurer.  They then guide the borrower thru the maze of applications, engineering studies & legal documents.  While all this is unfolding, the bond counsel begins to grease the skids with politicians sitting on the Bond Review Board & the Bond Trader who will actually sell the bonds & raise the needed capital.  Throughout this entire process, the Bond Counsel holds the borrower’s hand.  The professionals involved are members of a tightly knit fraternal industry.  Since politicians write all the laws that regulate their activities, these laws are written in a loose manner and .. Far Too Much .. Is Perfectly Normal !!    

Taking A Bond To Market …

simply means selling it to the public.  New bonds are packaged & submitted to The Texas Bond Review Board for approval & its sale is scheduled.  When the STD’s bonds are released for sale, the Market Maker buys large quantities from the DTC, .. at a substantially discounted price.  They then mark up the bonds’ price and begin selling smaller quantities of the bonds to Traders.  They mark the bonds up again & sell them to corporations & individual investors.

Who Pays The Bill .. You !! ..

Tax Payers are on the hook for the Special Tax District’s Municipal Bond until the bonds’ maturity date.  That means you and other tax payers in your county will be paying a bond off for the coming 5, 10, 20 or 30 years.  

Layered Debt ..

As a property owner, each year you are responsible for your share of the layered STD Municipal Bond Debt in your county.  We believe that all tax payers should receive a detailed list of all the STDs whose bonds we are required to pay on each and every year.  Once fully funded, STD Municipal Bonds are routinely rolled forward several times.  Rolling these bonds forward makes it impossible for you to identify the layers of STD Debt stacked on top of your back and for which you are responsible.  Sadly there are no checks & balances nor transparency that assure your interests are represented, respected or protected.

Capitalism Works When You Drive Corruption Out …

Huge capital infusions are required if your county (or state) is going to grow.  These capital infusions come from private sector businesses, .. not government bureaucracies.  Since government is incapable of creating value or investment capital, the capital needed to make your community must come from private investors.  Without the flow of their capital into your county, its economy will grind to a halt and stagnate.  The biggest challenge for the human beings sitting on your commissioners court involves maintaining their virtue while attracting needed Streams of Private Investment Dollars.

Streams of Private Investment Dollars ..

build schools, roads, dams & sewer systems.  This challenge forces your commissioners to become A Political High Wire Act.  They balance themselves on a loose cable strung across a deep corruption filled canyon.  Ideological Party Faithful try stabilize & secure one end.  

Private Investors Work To Mitigate Risks ..

by choosing the political a high wire  specialist that will do them the most good (Help the mitigate their risk).  The winds of corruption and the strength of each commissioners virtue are competing forces that constantly destabilize the cable on which politicians balance themselves.  Thankfully, private interests are blessed with DNA that is completely different from that of politicians & bureaucrats.  Their Own Money Is At Risk !!  Those risks increase drastically the second they are forced to seek King Pin Politicians &/or Bureaucrats approval.  There is little reason for them to accept any higher risks.  Yes !! .. These Guys Are Indeed Human !!  They Have The Right To Pick & Choose Who They Will Trust & Which County’s Executives Offer Them The Best Deal Possible For Their Money.  This Is Why Your Commissioners & Judge Constantly Struggle To Use As Many Of Your Tax Dollars As Possible To Leverage The Probability of Success & The ROI of Private Investment Dollars of Their Pet Projects Up As Much As Possible!!  

Competition For Private Investment Dollars Is Intense … 

Other counties across the USA are constantly working to attract the same private investment dollars.  Secret Twilight Zone Negotiations thus determine how much upwards leveraging Your Tax Dollars could buy.  The person representing your interests in these negotiation are your County Commissioners.  Opportunities to extract personal gain from these negotiation is a reality.  That reality cannot be taken for granted.  

How Reliable Are The Virtues Possessed By Those You Elected To Be Your County’s Commissioners & Judge ??

 

Facebook Posts

Jackson C. Smooth updated their cover photo. ... See MoreSee Less

View on Facebook

Shit Hole Countries !! ....
That's right !! .. These words accurately describe a large number of countries whose tyrants have become wealthier & more powerful by hoarding the tax dollars our KleptoCrats have been shoveling into their pockets for decades.

To The UN !! .... You Have Absolutely No Credibility !!
Durbin .... You Have Absolutely No Credibility !!

That's Right !! .... Shit Hole Countries !!!!
... See MoreSee Less

View on Facebook

 

Schumer Is Really A Communist !!

Schumer Is Really A Communist !!

The message from Schumer, Pelosi, Booker, Goober et al is that they place absolutely no value on American Citizenship nor America's ability to defend itself, nor Your Safety.

With the help of the NAACLP, the CBC & Black Ministers Democrats have the Black Vote all sewed up. Now all they have to do is get a few million more non-assimilating illegal into the US and let nature geometrically take its course.

Help Fight For The USA In Your County

For Whom Are They Really Working ??

For Whom Are They Really Working ??

Join Us On Facebook

Facebook Posts

Jackson C. Smooth updated their cover photo. ... See MoreSee Less

View on Facebook

Shit Hole Countries !! ....
That's right !! .. These words accurately describe a large number of countries whose tyrants have become wealthier & more powerful by hoarding the tax dollars our KleptoCrats have been shoveling into their pockets for decades.

To The UN !! .... You Have Absolutely No Credibility !!
Durbin .... You Have Absolutely No Credibility !!

That's Right !! .... Shit Hole Countries !!!!
... See MoreSee Less

View on Facebook

Liberty’s Price, Eternal Vigilance

If you want better federal, state & county government, its up to you.  We suggest you focus 80+% of your resources where you have the most leverage, ….Your County.

Our work focuses on the Politicians & Bureaucrats to whom we are forced to entrusted with collecting & managing Your County Tax Dollars.  Their ranks will provide tomorrows state legislators, congressmen & senator.  Who are they, really !!, and .. are they living up to the fiduciary trust your votes placed in their hands ??  TTCI works to help you answer that question and to prepare yourself before you enter the voting booth.

We Research, Compile & Analyze budgets, capital projects, bonds, elections, legislation, staffing, purchase orders & campaign contributions.  Roads, water, electricity, schools, law enforcement & administrative law courts are always on our radar screens.  No .. TTCI is not a NEWS organization.  NEWS merely scratches the surface.  Stick with us & we show you how to dig much deeper.  Our research & investigative summaries will help you draw your own fact based conclusions.  Our objective is to help you defend yourself & your tax dollars !!  Who’s Really Looking Out For Your Interest ??

Quality Trees & Great Service

Quality Trees & Great Service

Acquiring Wealth Is Really Simple !!

Acquiring Wealth Is Really Simple !!

Is Mueller Afraid Of Hillary’s eMails ?

Is Mueller Afraid Of Hillary’s eMails ?

Drain The Swamp In Your County Too !!

Drain The Swamp In Your County Too !!

Need Water ?? Call Us First & Last !!

Need Water ??  Call Us First & Last !!

If They’re Horrible Whose Fault Is It ??

If They’re Horrible Whose Fault Is It ??

We Cannot Clean The Washington Swamp Unless We First Clean Out Our Counties & State Swamps

Montgomery County Eagle Forum

Montgomery County Eagle Forum

It’s Only Money !! … Your Money !!!!

It’s Only Money !! … Your Money !!!!