IS IT TRUE? July 22, 2011 Topic of the Day is Debt

IS IT TRUE that the federal government of the United States of America is still a whirling dervish of spin doctors without a comprehensive solution to assure that the nation’s debt will be paid after August 3rd, 2011?…that the old song “Stuck in the Middle with You” with the lines “clowns to the left of you and jokers to the right” should be the official campaign song of both President Obama and whoever emerges from the magma of 11 Republican hopefuls to oppose him?…that the President did engage in some scare tactics on the subject of Social Security checks being able to be mailed that seems a bit uninformed?…that the so called “Social Security Lockbox” contains no money at all?…that what is on deposit in that lockbox is a great big stack of already issued debt backed by the faith and means of the United States Government?…that if the Social Security Administration sold some of this debt on the open market that the “Social Security Lockbox” would have enough cash in it to cover the August commitments to our nations retirees?…that will ease some of the burden for cash without raising the debt limit?…that hopefully our Congress and our President will log onto the City County Observer today and we will hear no more fear mongering aimed at the elderly?…that as long as the US debt instruments have a market that Social Security checks should not be in jeopardy?

And on the Local Scene

IS IT TRUE that proposed debt instruments down at the Executive Inn Dilemma are becoming a hot topic of discussion among the rapidly growing “VETTING CLASS” of Evansville?…that opinions and concerns are already finding their way into the media regarding the financing that has been proposed to build and operate a new Downtown Convention Hotel?…that skepticism is both justified and necessary in a decent vetting process and that we applaud the expression of any and all concerns?…that raising a red flag or a yellow flag of caution is not a sufficient condition to eliminate either proposal and that to do this part of the vetting process correctly will take more than a couple of weeks and maybe some new knowledge?

IS IT TRUE that the proposal from Prime Lodging LLC expresses the intention to arrange for $22.5 Million of senior debt through a program called EB-5?…that this is a legitimate program that is under the administration of the USCIS (United States Customs and Immigration Service)?…that this was designed to allow desirable foreign nationals (meaning those that are educated in critical need areas like engineering) that have money to come to America on a fast track?…that SW Indiana is certainly a place that could use an influx of brains and money?…that they do not have to move here, but they might in which case two problems are improved upon?…that no entity in Evansville has ever cashed an EB-5 funded check to do a major project like this before?…that there may be no one in the food chain down at the Civic Center that knows and EB-5 from the Space Shuttle?…that this is why Councilman John Friend was correct when he suggested professional vetting by competent people?…that the “we ain’t never seen this foreign money scheme in these parts before and we ain’t havin it” routine is not vetting?…that if and we do mean if the EB-5 program is real that it has favorable loan terms, job creation quotas, and makes the start up period for the hotel less challenging?…that this needs to be vetted for a reality check?…that we are beginning to think that a VETTING PROCESS may actually happen?

IS IT TRUE that to those who say “we don’t want none of that foreign money here”, our advise is for you not to cash your next check that has any federal government sources?…that it is foreign money?

IS IT TRUE that the Kunkel Group’s proposal is more conventional when it comes to financing?…that the senior debt is proposed to be gotten through an investment group in Irvine, CA?…that the terms of the loan in the proposal are not as favorable as the terms disclosed by Prime Lodging?…that the real issue regarding the terms of either proposed senior debt arrangement need to have at least two levels of vetting?…that the first level is simply can these guys really get the money?…that the second level of vetting is to ask the question “if they are successful in getting this loan, will the operation of the hotel be sufficient to service the debt”?…that we are encouraged to actually see vetting style questions being asked?

IS IT TRUE that if after professional vetting that neither proposal is acceptable to the ERC, EEDC, and the City Council then and only then will we be back to square one?…that if this scenario plays out that the next Mayor will have the hotel, the McCurdy, and consolidation kicked down the road and into his lap?