Detroit Rock City
Detroit Rock City
Once the icon of empire, Detroit was the automotive industry capital of the world. The city now exists on life support. Once a mecca for commerce, it is now synonymous with crime and murder. The Governor of Michigan is considering sending in a financial emergency manager to take over the city. Last year, Detroit’s fiscal deficit neared $1billion. The city’s long term liabilities include more than $14 billion in underfunded pensions. We are seeing more and more cities choose bankruptcy as an alternative to escape looming pension shortfalls.
Enter at Your Own risk
Detroit police issued statements last October warning tourists that Detroit was considered unsafe to visit. They claim the city is in a war-like state and is the most violent city in America. Detroit police whose number have shrank by more than 1000 officers over the past 10 years have told visitors to enter at their own risk.
Detroit’s political choices are in direct correlation with her level of financial failure. In the November election, Obama received 98% of the city’s votes. It is absolutely no coincidence that the cities in America suffering the highest degrees of blight subscribe to the gravy train policies of the left. The something for nothing mentality plagues once prosperous cities all around our country.
State Trends
Unfortunately, it does not end at the municipal level. This diseased thinking has permeated liberal states as well. We see several examples of extreme left states like Illinois and California facing severe financial crisis despite disproportionately high tax rates. We still have bastions of freedom like Texas who are running budget surpluses despite collecting no state income tax. Yet the liberal states quickly dismiss the facts and cling to their failed ideology.
America’s Path
We have excellent examples of what happens when you tax the citizens of your state and let the government decide how the money will be spent. We have examples of how people will invest their money if you let them keep it. It seems common sense would dictate that we would choose the path of prosperity. Common sense has a decreasing role in the decision making process. The liberal politicians in power achieved that power by promising the fruits of other workers labor to the welfare class.
Our country has chosen this path. Detroit acts as a road map to show us the destination of this path. We should expect the same outcome on a national level as we are making the same choices that Detroit has made.
If you have not prepared, it is time to get with the program. Read our 7 Step Survival Plan. Also think about protecting a portion of your wealth in silver or gold. The only way America can maintain the $1 trillion dollar deficit spending each year is by creating more money. That new money devalues the existing money as it competes for the same goods and services that make up the economy. For a great guide on purchasing silver bars, check out: BuySilverBars.com .
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Happy Prepping!
