Detroit- America’s Crystal Ball
Once the capital of industry, Detroit has now filed for bankruptcy. Detroit was the symbol of prosperity for the American working class. It represented what could be achieved through diligence and hard work. Detroit boasted the highest median household income in America at its peak.
Detroit also became a testing ground for liberal central urban planning and the influence of the unyielding United Auto Workers union. When economic conditions called for a little belt tightening, The UAW was unwilling to compromise on 7 weeks paid vacations, job banks that guaranteed no union worker could be laid off without full pay and Cadillac health plans. The jobs that averaged $74 per hour with pay and benifits were unsustainable and led to the GM bankruptcy. The health of the auto industry was tantamount to the health of Detroit.
Liberal politics added to the decay of The Motor City. Detroit has elected nothing but liberal mayors since 1961. This unholy marriage between liberals and the unions permeated the entire being of the city. In LBJ’s Model Cities program, the US Government pumped $490 million into Detroit. This putrid love affair between liberals and unions persists to this day. Unions line the coffers of liberals campaign funds. In turn, Democrats pilfer the pockets of tax payers to prolong the life of the hosts like GM, on which the parasitic unions feed. The life support systems are only effective for so long. Eventually, the collapse happens.
On a grimmer note, the federal government is following in the footsteps of Detroit. Unions and welfare recipients have the same symbiotic relationship to the liberals in DC as in Detroit. They scratch each other’s back, all the while, they feed on the American taxpayer until they have destroyed their host. Unfortunately, the problem is only exasperated by the neo-con, pro war portion of the Republican Party. They seek to rob the country of its wealth by enriching the military industrial complex. Members from both parties are content to squander the riches of our nation through the big budget of the police-surveillance state.
The people of Detroit face a murder rate that is more than 5 times the national average, a drop out rate of nearly 75%, and a 911 response times of 58 minutes for high priority crimes. Only 8.7% of reported crimes are solved. Many go unreported because citizens know it is a waste of time to call police. Detroit is not a one-off city. Several municipalities have similar burgeoning debt and are expected to follow in Detroit’s foot steps. Among the most troubled are Cleveland OH, Cincinnati OH, San Diego Ca, Newark NJ, and Buffalo NY. The state government of California is also facing severe economic challenges.The same trends that have bankrupted Detroit continue for the federal government and we should expect a similar out come.
Rumors are being circulated the Detroit municipal bond holders will be offered 20 cents on the dollar while pensioners will be offered 10 cents on the dollar. Of course on the federal level, there is less of a chance of that happening because of the federal government’s ability to print currency to pay bond holders, social security recipients and pensioners. The problem is how much that devalues all of the existing currency when that money is printed. In all likelihood, if you hold $100 in US Treasuries, you will be paid back $100. However, that $100 may only purchase the same amount of goods as $25 today. Effectively, you will have received 25 cents on the dollar. Even though you still receive the same amount in nominal terms. Inflation is still a default by another name.
Many of the cities mentioned above should expect to have reduced services, higher crime rates, and decaying educational systems. Citizens of Detroit who held out hoping things would get better have found themselves stuck in a dystopian nightmare. If liberalism is ruining your city, get out now while you still have your life and ability to start over. As the federal government continues to rob Americans of their wealth through inflation and excessive taxation, your ability to provide for yourself will increasingly diminish. The best way to combat these effects are to live below your means and develop other income streams such as rental property or a home business. One way of hedging against inflation is to keep some portion of your wealth in gold and silver. I always use JM Bullion as I find them to have the lowest price over spot. Use coupon code PR5 to get $5 off any order over $300.
The following videos present a great synopsis of the problems that ruined Detroit and are ruining America.
Happy Prepping!
MDG
