Detroit Goes Under: “There Is No Way Out But Collapse”
June 16th, 2013
Though most Americans go through their day thinking everything is now returning to normal, the fact of the matter is the situation is anything but stable.
With crime rates skyrocketing, home prices dropping to under $500 for a house, and the local government out of solutions, the city of Detroit is the latest to join the likes of Stockton, California, having just defaulted on its loans from creditors.
Despite promises to the contrary, it should come as no surprise that the city is unable to meet its obligations. And it won’t be the last. City and state governments all over America are in the same boat.
This is a serious occurrence, and one that will not only destroy the financial bottom line of lenders and wipe out retirement promises for tens of thousands of current and former employees, but may well foreshadow events to come throughout the rest of the United States in the near future:
The city of Detroit defaulted on $2.5 billion of its outstanding debt. The creditors are getting what they deserve.
He who lends to government depends on the exploitation of the people to get repaid.
The city’s retired city workers were also warned that significant cuts in pensions and health insurance would take place.
This is the problem all governments face. They promised the moon. Then when those workers retired, they had to be replaced. The cost of government is rising exponentially and this causes higher taxes and it becomes a dog chasing its own tail.
There is NO way out but collapse.
The economic model upon which government has been designed post-WWII is simply braindead. Dumb and Dumber could have done a better job.