On the subject of the NJ deficit bonds, again (with more Bad Hair in the future),
Paul Mulshine points out how the Republicans step into the ring. The Republicans’ options are varied. One (that I posted on two days ago, is to sue to have the bond sale declared unconstitutional (the state’s constitution requires a balanced budget). Here’s another,
Failing that, the Republicans could sink this deal simply by adopting a tactic proposed by Steve Lonegan. . . .
But there’s another way to sink this scheme. Lonegan said earlier this week that if elected governor, he would simply refuse to pay these bonds back. If every potential GOP nominee adopted that stance, no one would buy the bonds. The fiction under which these bonds are sold is that they are not obligations of the state but of an independent authority, the Economic Development Authority. Failure to repay them does not constitute a default by the state, the buyers are warned.
Borrowing to pay general operating expenses is a bad idea, no matter what party proposes it. Increasing spending to record highs, and trying to “soak the rich”, when added to borrowing, is a sure formula for disaster.