Taxing Muni Bonds @ 10% Could Bring $370 Billion A Year

The rich have long known that buying muni bonds is a lucrative income, and they are not taxed…

A major elephant in the room of the Fiscal Cliff is they are proposing to tax muni bonds..

http://www.investmentnews.com/article/20121118/REG/311189982

Muni bonds are a $3.7 trillion market, and fund the excessive borrowing of governments to build hospitals, parks, schools, bridges, you name it..

One of the problems is, municipalities (govt) have been investing the money from selling muni bonds in swap accounts and derivatives that are tied to the LIBOR market, and since the LIBOR has been illegally manipulated by the London Banking system, muni’s are having to borrow more money to pay for the projects they have already borrowed for…

http://www.piperjaffray.com/3col.aspx?id=395

The Dodd Frank legislature required municipalities to be transparent with their investment of borrowed money in the huge $600 trillion LIBOR gambling market.

https://docs.google.com/viewer?a=v&q=cache:71XXfVbxCGEJ:www.treasury.gov/initiatives/wsr/Documents/Fact%2520Sheet%2520-%2520Mandates%2520Stronger%2520Oversight%2520of%2520the%2520Municipal%2520Securities%2520Market,%2520Oct%25202010%2520FINAL.pdf+&hl=en&gl=us&pid=bl&srcid=ADGEEShiRs5w8xKPWM9UjIBHLazxuNR9XYAd4xzRcnOZJapj94N6GlBs3VhQiSUDuSZn_NWOOibQbcEbkjfnUcuSsCRyewcAcf-ngDkTtXYugW0PLMVo0is46lJ8NaNgLAFzlk6dJvnt&sig=AHIEtbQmByX_ALNfyHvbcExZ3F4mK7DJkg

The problem is, the legislator of Dodd Frank has neither been enacted or enforced, so govt employees are still gambling, with the aid of major banks, with your taxpayer money. There are more derivatives being played by munis than there are oustanding bonds. Some estimate about $33 trillion, or the size of the CME.

This is the reason cities are going bankrupt, and are struggling. A lethal combination of borrowing to build, and gambling with the borrowed money has created a hole in our economy that can’t be filled. It is inevitable that many, many more will completely collapse. Police, firefighters, teachers will be laid off. Hospitals will be closed down, bridges will crumble..

A partial solution would be to tax the bond holders 10%, which would in turn cause them to force the people (govt) to be more transparent in how they are using that money…

A local example in the area where I live in Southern Colorado, was a few years ago, several million were borrowed by the school district to build a new school, with new athletic facilities. The school was built, but many corners were cut, even causing the brand new school to be shut down until structural issues were fixed. But the athletic fascilities were not built. Nov 5th, after a massive propaganda campaign by the school district, the taxpayers voted to allow the school several million to build the athletic facilities, that were already borrowed for. No one told the voting taxpayers that the school district is heavily invested in derivatives, in which they have been losing their shirts because of the LIBOR manipulation….

Even though this is a complex situation, if the American public doesn’t turn off American Idol for a bit and start learning how this seedy underworld of finance is taking away our sovereignty, we will soon be require to bow to the Queen of England.