Liberty and Prosperity’s seventh liberty principle is “Repudiate all unconstitutional debt.” A common practice of Christie Todd Whitman and a succession of Democrat Governors has been to spend more and more and grow the size of government. They funded their government-growing agendas by raising taxes, increasing fees [taxes], and bonding debt for future generations to pay.
The state constitution is clear on the subject of bonding debt. When the amount of the bonds is greater than one percentum of the state budget, the Democrats and Christie Todd Whitman should have submitted the bond proposals for voter approval. Only three billion dollars of the approximate forty billion dollars of New Jersey debt is approved by voters. Democrat Governors McGreevey and Corzine have continued the practice initiated by Governor Whitman of clearly violating our constitution. They chose, time and time again, to circumvent the constitution.
They created government authorities and agencies and had those authorities and agencies endebt us and future generations billions of dollars to pay for their wild ideas and political pay-backs.
Americans for Prosperity and Liberty and Prosperity have been drawing attention to this flagrant abuse of political power. Here is the latest update on our effort to repudiate all unconstitutional debt.
Congress Opens Inquiry Into Wall Street Bond Rating Standards
Americans for prosperity citizen activists lead charge on misleading ratings.
A Note From Steve Lonegan: Nearly three months ago, I stood in front of Moody’s Investment Service near Wall Street with 60 AFP Citizen Activists. We were protesting and bringing attention to the misleading rating system that bond rating agencies like Moody’s and Standard and Poors are using to rate New Jersey contract debt bonds.
While we received some press coverage that day delivering our letter of demand to Ray McDaniel, CEO of Moody’s, the media and most elected officials shrugged off our claims. Some thought our effort was a waste of time.
NOT SO FAST!!!
Last week the United States House of Representatives decided to listen. Hearings into the institutions rating methods were held and executives from all the major rating agencies were called to testify. Ray McDaniel, the recipient of our hand-delivered letter was a key witness.
A few articles:
Waxman digs into Moody’s, S&P with internal docs
Assigning blame
Congress mauls bosses of credit ratings agencies
On Friday, November 21 at 9:00 a.m. our law suit to stop the state from borrowing $3.9 billion without voter approval will be heard in Superior Court in Hackensack. The judge will consider the sketchy practices of the state government and the Wall Street rating services in selling these bonds to investors. The vast majority of these investors believe the bonds carry the “full faith and backing” of the state. This can only happen when the bonds are approved by voters in a public referendum. Moody’s and others have failed to disclose the difference and investors are being misled. The current hearings in Congress are proving this fact, and this revelation could play a key role in what very well may be a historic lawsuit.
Congratulations to all those who took the time to stand up against the power of big government. You have truly made a difference.
Upcoming Meeting
Saturday, Nov 8, 1:30 pm
Community Lodge, JFK Blvd, Sea Isle City, NJ.
On to Victory,
Steve Lonegan
State Director
Americans For Prosperity
