The Detroit Detox
NO Government Bail Out For Detroit
A Commentary by J. D. Longstreet
Of course, Obama will do everything humanly possible to bail out Detroit -- in one fashion, or another. There can be no question about it.
After all, Detroit IS spelled: U-N-I-O-N .
are a host of municipalities standing by, holding their collective
breath as they wait to see what the federal government will do about
Detroit. IF the US government writes a check to Detroit, get ready.
The flood gates will open and, in the twinkling of an eye, the US
Treasury will be bone dry -- or at least as dry as Death Valley in the
middle of August.
In a letter authorizing Detroit's bankruptcy
filing, Governor Rick Snyder, a Republican, noted a few problems that
have contributed to Detroit's dilemma:
• The city's unemployment rate has nearly tripled since 2000 and is more than double the national average.
The homicide rate is at historically high levels, and the city has been
named among America's most dangerous for more than 20 years.
• Detroiters wait an average of 58 minutes for police to respond, compared with the national average of 11 minutes.
• An estimated 40% of the city's street lights didn't work in the first quarter of 2013.
• Roughly 78,000 city structures have been abandoned.
Consider this: "The
combination of lost auto industry jobs and rising crime rates prompted
many middle-class whites and African Americans to flee Detroit over the
past few decades. That exodus left behind an overwhelmingly poor and
nearly 83% African-American population, making Detroit the nation's
largest black-majority city." SOURCE: http://www.usatoday.com/story/news/nation/2013/07/18/detroit-files-for-bankruptcy/2567159/
Orr, the city's appointed emergency manager, has said Detroit's
financial responsibilities -- in total -- could be as much as $20 billion.
In October of 2012, President Barack Obama said:
"We refused to throw in the towel and do nothing. We refused to let
Detroit go bankrupt. We bet on American workers and American ingenuity,
and three years later, that bet is paying off in a big way.” That was then. This is NOW.
municipal workers’ pension plans (that face 90% losses) will be
bailed-out via the Pension Benefits Guaranty Corporation (PBGC)" SOURCE: http://www.theblaze.com/stories/2013/07/18/obama-flashback-we-refused-to-let-detroit-go-bankrupt/
The PBGC is a US Government Agency. That means, of course, taxpayer money.
How could this happen? Detroit is the largest city to file bankruptcy in US history. Spending money you don't have is a very effective way to bankrupt anything or anyone.
Detroit tried taxing the rich, you know, the foundation of Obamanomics,
and what did they get for their effort? Well, a ride through the city
observing the hulking multi-story -- empty -- factory buildings and the
explosive unemployment rate should answer that. THE RICH LEFT -- and took their businesses -- and JOBS -- with them.
Detroit has been circling the drain for decades. The decline in the auto business and the population moving away was a symptom, not the cause, of the city's collapse.
When you cut through all the Bovine Scatology the answer is clear.
Consider this from an article by John Hayward at Humanevents.com: "And
let’s not dump too much of Detroit’s crisis at the feet of those
automakers, because that corrupt Democrat Party elite spent the city
into penury, racking up enormous long-term debt. They spent money like
tomorrow would never come, but yesterday tomorrow came. Bloated
pensions are just another form of deficit spending: commitments given to
today’s workers, without worrying about who’s going to pay the bills
when they come due. At some point, the spendthrift government can’t
borrow enough money to keep the shell game floating any more. Who wants
to buy bonds from a city that’s talking about 90 percent haircuts for
Mr. Hayward continues: "All of a
sudden, the politicians who spent decades assuring their constituents
that debt and deficits are no big deal throw up their hands, declare
nothing can be done to escape the fiscal black hole they’ve created, and
retire to their lavish estates. Detroit is end-stage Obamanomics."
We watch the dance in DC take shape, over the weeks and months ahead,
as the democrat controlled government figures a way to bail out Detroit without appearing to bail out Detroit. Then, we watch as one municipality after the other lines up at the trough until the entire country goes the way of Detroit.
But, HEY! This is redistribution of the wealth. This is Obama's socialism.
I seem to recall having mentioned in the weeks, months, and years past
that the end result of socialism is always the collapse and death of the
host country . It never fails.
"The Detroit death
spiral is Democrat corruption, which drives people out of the city,
which leaves fewer taxpayers to finance the next round of Democrat
corruption." -- John Hayward/Human Events http://www.humanevents.com/2013/07/19/detroit-goes-bankrupt/
is a sad story but it is not unexpected -- well, it is not unexpected
by conservatives, who've been predicting it for decades. And -- just as
we've been proven correct about Detroit, unfortunately, we will be
correct about the financial collapse of the United States. I take no joy in saying that -- at all.
© J. D. Longstreet