Milford's Asset Erosion Approaches 70% in 2011

The following graph indicates that the cities assets, when compared to the cities liabilities are continuing to erode. The trend slowed a little in 2011 but still not enough to stem the very troubling pattern of our spendthrift Kleptocracy here in Milford. The numbers speak for themselves, feel free to add your thoughts. (double click image to enlarge.)

Americas Credit Downgrade and Municipal Risk

When Standard and Poors downgraded the United States they did not just teach the Washington spendthrifts a lesson, they sent a message to us all. This message started in Washington and now the effects of the Capitol's gridlock will come home to roost.

Bond King Bill Gross of Pimco Investments has indicated that the AA+ downgrade will likely push rates higher across the entire bond market, including state and municipal bonds. We here in Milford have 300M in exposure and a slight 1% increase in our interest rate can induce a hardship.

About a month ago I quoted Meredith Whitney of the Whitney Advisory Group. Meredith is one of those unique individuals who in her words "has to be right" and she spent considerable time studying the municipal bond market. Meredith concluded about a month ago that the entire "Municipal Bond Market" is set to experience a painful correction.

Wall street, who usually trades on the trends that exist six month ahead, is telling us that something is very wrong and the economic horizon is now set ablaze with bright orange flames.

My predictions on Milford and its looming debt crisis is based on Game Theory as calculated by the economic figures set forth in the CAFRs. Currently Milford has solutions, but neither candidate for mayor has expressed a willingness to embrace those solutions or even ask what needs to be done. We are at a cross roads, one that is not good, one that ignores the very reality of rational decision making and the nature of default based politics.

In 2007, when I ran for state Rep. I set out to sound the alarm on a One Billion dollar state shortfall. Local Republicans and Local Democrats laughed and mocked me for even suggesting something so outrageous and "off the wall." Much to their surprise I was wrong because the problem was 3.2 Billion not One. Now the state is shutting down as mass layoffs further threaten the state economy.

Milford has one shot to fix this coming mass default, one that could rise to as much as One Billion Dollars locally!! It is this year, and it involves something called the "Spike theory of municipal Change." I have all of the details on this rigorous program and how it works. However, our candidates both have expressed they will "wing it" with their unproven ideas. I highly advise and beg of our next Mayor to please not "wing it" this is no time to experiment with our futures.

An Open Letter To Our State Legislators

Dear State Reps.,

The state as you know is in dire straits due to the economic downturn. Currently, and with the rise of ill constructed discord, I see you in a “No Win” situation. If you vote to raise taxes you are going to upset those who have to pay them, If you do not vote to raise taxes you will let down your political party, maybe even be labeled as an anti-union worker rights representative or a poor “team player.” In my conversations one person mentioned something that was “very honest” they said “the state budget deficit is so large that we could lay off all 48K state employees and still be in debt.” George Orwell once said “that in a time of universal deceit telling the truth is a revolutionary act” perhaps you should give this some thought.

There are many passionate and concerned people in our state and district who are really worried that higher taxes will cut into their already difficult lives. There is uncertainty over whether or not they will get pay raises or find the additional money to pay new taxes. This is at a time when health insurance costs among other things have increased dramatically. Milford , like our state, is also not exempt and is expected to have a colorful budget debate this evening over the same types of money problems.

The nature of recessionary politics does not demand a good or a bad vote (there is no such thing on this one vote,) what it does do is define leaders. It separates those who triumph as advocates who stand up to the wishes and consent of the governed while exposing those who usurp the process to cater to their personal careers and future ambitions. This is an issue that I personally believe you are all equipped to handle, because in the end I hope and pray that you will all be kind enough to tune in to the many concerns of your constituents who have also been praying for economic relief wherever they can find it.

Austerity measures are coming, this is inevitable and it’s not anyone in Hartford’s fault. This is a sad fact and consequence of the immutable nature of our nation and this states federally induced decline. This decline is a bipartisan result of costly wars, the Federal reserve and its Quantitative easing, the bailouts of the “too big to fails,” the loss of jobs to China and a stellar rise of gas prices accompanied by inflation.

Recognize and consider that your vote will be of little meaningful consequence either way the fate of our state has already been pre-determined for us by the Federal Government through its actions. The forces at work have clearly put Entropy in charge of Connecticut’s future. The process is known as the Hegelian Dialectic. We both know that the solutions proposed here in our state have already been tried in other states we need to look no further than California, Ohio or some other states who have tried the exact same approaches as our Governor is proposing. We both know that taxpayers are not governed by tables and laws but rather their own personal free will, willingness to comply and most importantly ability to comply. No one is going to go hungry or homeless because of taxes, people will survive and live in defiance.

While I cannot tell you for certain if more laws and higher levy’s on peoples income and property will work, I will tell you that you should listen to the polls and stand on the side of the people on this very delicate issue of higher taxes. Your integrity, your conscience, your heart, your understanding and your love of humanity is what is on the line. The people of our state and Milford need to see all of you as informed leaders who have identified and is courageously standing up to our oppressors.

This time around you all have a very important vote to make and I hope you stand with the people who love and count on you. I would encourage you to work harder than ever in standing up for the rights of this state and all who live here. Hopefully by now you have figured out who to hold accountable for our states financial problems. May God have mercy on us all!

Sincerely,


Rocco J. Frank Jr.
Chair MIP

The 2012 Enigma Why Should We Care?

Enigmatic as it may be the year 2012 certainly has been sensationalized. This has happened at the movie theater, on the History Channel, I have even heard of Mayan prophecies, and prophecies from Web Spiders, to the lost book of Nostradamus.

The conspiracies surrounding 2012 are everywhere, and they are more pervasive and disconcerting than the Y2k Computer bug could have ever dreamed. There is no shortage of paranoia when it comes to 2012, especially those wealthy elite who are creating an esoteric real estate market of under ground shelters. Companies like Bechtel are thriving with a shovel and a tunnel boring machine. The frenzy and paranoia is endless and the mad rush to be prepared for this epoch Mayan dooms day has become an industry on to itself.

Of all the theories none amuse me more than the Nibiru/ Planet X theory. This tall tale comes from the Ancient Sumerian texts that read more like an episode of Star Gate SG9 than a credible archaeological record. The mad rush to doomsday preparation is only exaggerated by the fact that no one can accurately predict the future, nor can we guarantee that there are undiscovered planetoids, comets, asteroids, or near earth objects that threaten Earth.

Looking back we must never forget the lesson of Schumaker Levy, the largest planetary impact of a space based asteroid. No real scientists disagrees that the potential for an asteroid or impact on the earth from a space object is impossible, as a matter of fact we are warned that the possibility is real and they have even named Apothis Earth's greatest future threat.

None of these, however are Nibiru, nor are any expected to arrive in the year 2012, so why all the hype? Personally I think there is much mis-information out there and those who have inordinate amounts of money are not inconvenienced by having the insurance policy of an underground shelter.

These people, perceived as eccentric by some are in-fact concerned about some real issues. Of all the 2012 conspiracies out there there are two that are very hard to dismiss. The one that I find most alarming is the current solar cycle that we are experiencing right now. The Sun, our Sun, is entering a period of intense activity and as many who study the Earth are aware, our planets magnetosphere is what protects life from harmful solar radiation.

The Earth's magnetosphere has been acting erratically and the magnetic poles have been moving erratically. These issues are particularly of concern to scientists because a weakening of the magnetosphere is very problematic when the sun is abnormally active. The CME's or coronal mass ejections have the ability to destroy satellites and wreak havoc on Earths ungrounded electrical grid. This is a real threat and one was recorded in the late 1,800's that destroyed the telegraph telephone system that existed then.

This threat combined with the decline of the Global economy, and the Austerity measures we see on T.V. make it increasingly evident that capitalism world wide has been compromised to rampant fraud and the induced indebtedness of every nation by the worlds largest criminal financiers.

Under current estimates, the U.S. and Europe will experience a currency collapse under the weight of these economic problems within the next few years. The solutions to the worlds debt may be the rebirth of the entire world economy, and end to the American economic customs and traditions we now hold dear.

The key decision makers have already amped up the rancour on the instability of global financial instruments, and the worlds middle and lower classes are en-masse letting their voices be heard during this transformation process that seems clearly underway.

While I personally cannot predict the future, I can see clearly and evidently that paper denominated assets, such Pension funds, dollars, 401k's etc. are in jeopardy of being fatally devalued. Americas protests are in large part over union issues, collective bargaining rights and balancing budgets all these are on the heels of the Federal government who itself is monetizing debt as the nations bond sales increasingly produce disappointment.

There is a clear recipe for a rebirth of the entire global economic picture that we have come to know. Those who are aware, educated and prepared for this transformation will fare well while those who are sceptical disbelievers may soon realize the Apocalypse of 2012 was little more than a cruel financial joke played on the worlds working class.    

Budget Woes Give Many Educators Anxiety

In a scenario likely to be repeated across Connecticut, federal funds that cover the salaries of 30 city teachers will likely not be renewed for the 2011-12 school year, leaving educators scrambling to make up a looming deficit. Milford is only one of scores of school districts in the state that would struggle to make up for the loss of federal stimulus money, which could potentially result in massive teacher layoffs statewide for the 2011-12 school year.

Acting Superintendent R. Michael Cummings Jr. will prepare a budget for the fiscal year that begins July 1 with the assumption that little, if any, of the $1.5 million will be replaced. "I'm very pessimistic that we'll be getting any of that next year, and that means we'll have 2 percent less than we do now.''

READ FULL STORY AT CTPOST CLICK HERE

A Outlook of The Weekly News And Milford's Road Ahead

Over the last few days I have been mourning the loss of my family dog. Our beloved Bella passed away last Saturday when she was struck by a hit and run driver. To all my loyal fans and avid readers out there just know I am still with you and my thoughts will continue as they always do moving forward.

Thus far I am back at my desk this morning and have been looking at and analyzing the latest local and state news and the biggest challenges on the table are those that have become emblematic of all communities in Connecticut. Education, education spending, property taxes, and the fragility of survival of our towns citizens who live pay check to pay check.

An eerie reminder of this fragility happened to me just over the weekend. While I was out with my wife and step daughter Lea. We were mourning the loss of our dog together when Terri looked out the window of our booth at the Kimberly Diner and and cried out "Oh my God a woman just fell and is lying motionless on the ground! Somebody call 911!"

Soon several people rushed to her aid, fortunately the woman was alright, but we were told by our waitress who had gone outside to assist that this woman was likely to need several stitches on her forehead. She argued with those aiding her that she had "no health insurance and did not want to go to the hospital" fearing that her inability to pay would result in some punitive financial measure against the little she had left.

The woman did go to the hospital, and thankfully the Kimberly Diner was well equipped with all the necessary first aid equipment to respond to such emergencies. However, there was some frustration expressed when the 911 operator needed the address to the Diner just across the street from the Milford P.D. who immediately responded when they were called directly.

While this is just a random experience of the many tribulations we are now coming to endure, civility in the coming years is going to be more important than ever. As the Federal Government continues to deny our city, and state federal student money and grants as part of these newly emerging global austerity measures the people of Milford will be struggling to find a life balance.

This balance, however is going to be threatened once again by the very pillars that carry the entire town budget. Our mill rate is expected to change dramatically after the new 2011 assessments are complete. Record spikes in foreclosures in Milford and New Haven County have driven down the cost of real estate and stagnated home sales and the entire housing market.

While city officials have all but thrown up their hands and said "regardless of what the Grand List out come is, the budget is the budget!" This is a truly disparaging approach to our looming financial problems. In the past years, Milford has been undergoing a mini-austerity style debacle of its own. The city has made deep cuts in education, closing a school, cuts to the bulk pick ups, and several consolidations and cost cutting restructuring schemes of the police and Fire Departments. Milford may one day be faced with selling off its real estate and assets just to keep up.

Moving forward those schemes may be insufficient and not able to satisfy the current problems of the broader state and Federal economy still stuck at over 9.6% unemployment. While the worst unemployment picture we have since today's numbers date back to 1983 (when we had 13.5% unemployment,) those numbers were figured with a different formula. If we use the same formula from 1983 the true unemployment picture could be estimated at 18.9% making this recession the worst since 1929.

What remains as a state of severe uncertainty is the nature of the "Double dip." Experts tend to agree that our jobs and debt are unlikely to be abated soon making the "Double Dip" more likely rather than less likely. The nature of this "Double Dip" is an enigmatic one, but none-the-less of serious concern for a small city like ours. Should this dip become "Deflationary" like some fear than that would present a very different set of challenges than if the "Double Dip" goes "Inflationary" as several critics of the Fed's money printing program have been upset by.

There is going to be a strong need for some "math-magicians" at city hall to make it all work in 2011 and if we escape through the next budget without any dramatic tax increases or significant losses in services we should be proud of those who were able to negotiate and usher in those achievements. It is times like this that challenge, and threaten the very survival of our communities and only with lots of concessions, co-operation and civility can  Milford succeed in the road ahead. Our leaders must look to the future in a way way that prepares us for anything, because at this point anything is possible.

Why State Spending Is Enigmatic

Many Conservatives have clamored that spending is excessive and problematic in the state of Connecticut. This is true, at least somewhat, but there are omissions that are being ignored for political pageantry. Conservatives would have us believe that there is too much wasteful spending, and certainly they are not entirely wrong. But, it is important to note that this is true of every governing body across the country, and the argument is nothing new.

We all are keenly aware that there is always a way to get things for less, perhaps privatize more of government, and certainly cut those social programs that have earned such a terrible record.

Well no one doubts that spending needs to be streamlined, especially during hard economic times when government and the deficit grows in tandem with poverty. Sadly what is being overlooked is the paradox of tax cuts during a Recession/Depression (depending on your view of the current economy.)

The paradox in state spending today is accompanied by its rhetoric. Rhetoric that reminds voters that people are hurting, there are few good jobs out there and several other preventable conditions exist that are agitating poverty. With the spread of rich to poor now at at record 14.5% Connecticut, and many other states for that matter, has to factor this increase in poverty into its budget. We also have to consider the cost of Un-employment (at a record 99 weeks for some) , food aid, and a record level of need as requested by the Connecticut Department of Social Services. Lets also factor in the interest on our debt, accompanied by inflation and the associated cost of dealing with increases in crime and punishment, and then it becomes easy to understand how our state ran some record deficits.

Connecticut has the highest debt to person ration in America and a pension fund set to run out by 2019 because of negligent cuts that are threatening everyone. The disingenuous nature of economic repair men is dangerous and irresponsible. Once again we have a tax paradox in Connecticut, whereby we all overwhelmingly agree that the poor should be helped, children deserve health care, and that the tide of poverty must be reversed. But few dare offer a genuine solution by way of new jobs and economic opportunity.

There are several places where money can still be saved in government but those cuts will hardly match the money that is needed to solve the basic humanitarian issues we have incurred in our state. For this reason I question the MRTC produced graph as little more than a political ploy emblematic of a half truth. A half truth that will become self evident in time when all cuts that have been made get made. Then it will become clear that such a graph accompanied by more conservative tax rhetoric will amount to severe austerity losses. Austerity losses accompanied by the unwelcome sight of homeless people living on the street, children being left uninsured, and pension funds being denied to new employees while older employees receive less.

The answer is as I stated in previous articles, and that is Connecticut needs to challenge the monetary policy of the Federal Government, resist austerity measures, challenge the supremacy clause of the Federal Government, sue the Feds against all job killing treaties and consider rebuilding our state from the vantage point of the sovereign position of individual states rights. This may require us to pass new "xeno-tax" laws that specifically target the Federal Government and the glut of outside slave produced goods dumped on our markets. Lastly and most importantly we need to embrace the green economy and protect our remaining jobs from export. Connecticut cannot "fix the world," but Connecticut can independently work to fix its economy from within our own borders by not allowing "the world" to "drag us down."