Detroit in Debt

Sunday, April 8, 2012
Posted in category Detroit

There is an interesting article on Bloomberg titled, “Detroit Wants State’s Money, But No Real Reform.” After this article was published, the Detroit City Council approved a consent agreement with the state of Michigan, giving up some temporary sovereignty over its own financial affairs. The consent agreement means that a nine-member financial advisory board will run the city’s operations and budget. The city of Detroit was on track to run out of cash by early May, with a projected deficit of $270 million for this fiscal year. The Bloomberg article reveals the following:

Detroit’s accumulated debt stands at more than $10 billion, something that puts its debt-to-asset ratio at 33-to-1. By contrast, GM’s debt-to-equity ratio when it went into bankruptcy was 22-to-1. Detroit’s annual debt payments — $600 million a year — exceed its primary tax revenue by $60 million.

While the city has been repeatedly raped by the Marxist criminals who have been running its finances for the last 40 years, City Council member JoAnn Watson could do nothing better than blame everyone else.

“There are those who will try to pretend the consent agreement will be good for the city even though there is no cash infusion on the table,” said JoAnn Watson during the meeting. “Clearly there’s a viable option … Stand up and demand that the governor pay what he owes. Don’t give up the legacy of this city and those whose shoulders we stand on and act as if we have no options.”

Additionally, the opponents against the consent agreement have, unfortunately, turned this issue into a racial war via claims of racism and white power, as expressed most recently by minister Malik “This is White Supremacy” Shabazz.

To clarify, I am a very much a proponent of my city, and in fact, I have seen immense positive changes in the city over the last few years, with most of those changes occurring in the downtown area and its surrounding communities. Meanwhile, the outlying neighborhoods continue to deteriorate rapidly, in spite of numerous voluntary neighborhood organizations dedicated to rejuvenating their communities. The city of Detroit had three options: (1) the consent agreement allowing the financial review board to take over the city’s finances (2) a takeover of the city by the state with an emergency manager, and (3) bankruptcy. The City Council chose to allow the state to try and clean up its mess because the appointment of an emergency manager would have enabled the state of Michigan to have much more leeway to change union contracts. In my mind, bankruptcy was the best and most viable option, with the emergency manager plan being the next best option. Either of the latter two options could have razed the unions, freeing Detroit from forty years of union thuggery and deeply entrenched political pandering.

The financial review board will have difficulties navigating the waters of union contracts and entitlements. That said, the city’s biggest foe is, unsurprisingly, its legacy costs for the masses of retired government workers living off of the working folks, and its Marxist unions that have enjoyed 4o years of power since the Coleman Young administration established its takeover of the city and handed power over to the unions. Here is a snippet from an article on NPR:

One of the biggest tasks ahead: to try and negotiate new agreements with city unions.

They already agreed to give up historic concessions, only to have the state block final approval. Snyder says those agreements don’t go far enough.

Union leaders now say they’re in no mood to bargain. And they may have little recourse at this point but to strike.

Whenever I hear the local union leaders claim they won’t budge, and would rather strike, I say, “bring it on.” Go, strike, and good riddance. Let the city go bankrupt and let the court sort ‘em all out. This would undoubtably be the best option, for the long term, to clean up the city’s financial boondoggle and do some deep cleaning in the dirty closets while they are at it. The days of wine and roses and inflated wages/benefits are over for the parasites who have been living high while robbing the non-union working class for decades.

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One Response to Detroit in Debt

  1. jeannie queenie says:

    April 9th, 2012 at 12:13 am

    You have hit the nail on the head Karen with your repeated mention of Marx. The more I study the man the more I realize just how confounded he was in terms of his understanding of the world’s ills. And worse, his ‘cure’ for all he felt was unequal in society.

    I quote him here in his feminist ravings…“Anyone who knows anything of history knows that great social changes are impossible without feminine upheaval. Social progress can be measured exactly by the social position of the fair sex, the ugly ones included.”

    His idea of social progress is anything but, when you factor in latchkey kids, parents who are friends to their kids, and not parents, moms who put ‘training bras’ on their 9 yr old daughters, or pierce their ears at age seven.

    We can see so many of our US ills connected to his oft promoted and insane love of communism. The tearing apart of the family, so called women’s rights, the love and promotion of homos, the job of raising children to be outsourced to others, his disavowal of owning personal property, the blaming of capitalism on all economic woes, and the whackiest one of all we call feminism, or the call to arms against the family.

    This is the notion he promoted, and that is, being a female in the traditional sense means that you lose your self identity, become an idiot and make no monetary contribution to one’s family, that is, the gospel according to X marks the Marxist Marx!

    Communism to the rescue though….you too, can be a worker, even three times around if you are a woman under the saviorhood of Marxism. The big joke on women with this feminist and resultant commie thinking is that yes, she is freed from that maternal tie that binds for she can put that off by using day care centers, and substitute faux females in schools, all of whom form a family of feminist frumps devoted to the Hillary mantra, “It takes a village to raise a child”. Or in other words, if you stay at home and raise a child, you become a village idiot! Here in New England, if you do the 3 job thing of a paying job/keep your own home and raise a family, you need not worry about pleasing your man in bed, for the yellow pages in Boston is filled with oodles of pages of escort services. So much for the midget mind of Marx’s improvement on women’s lot! Marxist’s notion of
    what is best for women has proved to be one of the biggest jokes not just for women, but on men and children, the biggest losers in Marx’s loser game. Destroy the family and you destroy a man’s incentive to live, grow, work, and succeed and to protect a woman and his children.

    Has anyone noticed the link yet between women’s progress in the ‘work’ paying world and that boys are lagging behind in so many ways, a virtual national tragedy?

    Decry like democrats do,
    that capitalism is evil so that your men can renounce work that moves one forward in life and then you have the miserable state that Detroit finds itself in. Democrats have proven time and again, that Marxism is sick, demented, anti life and anti family, perverts sexuality, uses and abuses on so many fronts it would be impossible to address in such a forum as this. One wonders if Obama with his pathetic Single Mother’s Support Act within the healthcare plan, is just another commie tool to destroy the family. Under this act, as a single mother you have your hospital bill for birth paid for, your babies diapers and formula, your rent, food and utilities, your babysitter for while you are at school to learn a trade/free tuition, all the meanwhile, you the ‘freed mother’ can now depend on others to ‘teach’ your child, brainwash your child and perhaps even abuse your child, as you march forward proving to the world that you too can be a man in a skirt, and skirt the real issue of being a woman who makes a contribution beyond that of making gidgets for ABC corporation and giving uncle sam all your hard earned tax dollars. And your reward for this? Simply put, just believe in Marx and his mad man theory that women should stop being women and relieve men of having to prove they are men…women of the world unite…you can prove you are a man by taking on three full time jobs..and you get to support the state by so doing…and you get to play sexual roulette and never have to bind yourself to anyone at any time. Hell, you can’t even own private property. And you must knock capitalism. How lucky is that…to be mentally marked by Marxism?

    Indeed he was if anything, mentally deranged. Need proof, think about this quote of his, ““The writer must earn money in order to be able to live and to write, but he must by no means live and write for the purpose of making money.” To Marx, I say WTF!! Apparently this ninc never heard of the concept of inhaling and exhaling. Seems to me that you need to do both, no?

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