Municipal debt.

Editor,

Municipal bonds are a Ponzi scheme.

Millionaires do not pay a fair share of taxes and buy financial instruments, including municipal bonds, to make a profit on the money they do not pay in taxes.

Local government, thus, instead of receiving revenue in the form of taxes, receives revenue in the form of loans from those very millionaires who do not pay their fair share of taxes.

So revenue municipal government receives, instead of being revenue, is loans that have to be paid back -- with interest -- to people who should be contributing that revenue in the form of taxes but are loaning it to municipalities instead.

Re: "Broke Town, U.S.A." (3/6/2011)