Who Should Pay for Detroit’s Failure?
Detroit filed for bankruptcy a few weeks ago. Now the political forces on each side argue that someone else should pay for their mistakes. I think all the creditors should be penalized and get a fraction of what they were promised. That included bond holders, pension holders and business creditors who are owed money by Detroit. Each of them propped up the political machine that promised more than taxpayers could deliver. Each creditor invested in the financial lie that made future Detroit residents slaves of the past. That which is rewarded is repeated, so each creditor needs the painful lesson of financial loss or we will have more slavery. Slavery is a bad thing and we need to punish it.. good and hard.
Everyone can learn a valuable lesson from this bankruptcy.
- Note to bond holders and bond insurers; don’t take bonds from cities with long-term structural debt, you idiot!
- Note to pension holders; don’t support the union political machine that promises you will get paid tomorrow for political contributions you make today.
- Special note to the bankruptcy judge; please be sure and cut the politician’s pensions too!
- Note to property holders; don’t vote for the best liar running for office. Anyone can give you good news. Elect politicians who will tell you the bad news.
- Note to Detroit’s current creditors; you made a bet and you lost. Now go explain that to your boss.
My dad saw German cities in ruin after World War II. Later, he told me something when I was a teenager in the 1970s. By then we saw Japanese and German industry flourish. My dad also watched the entrenchment of California politics at about the same time. Talking about German and Japanese industry, my dad said to me, “Those countries prosper now, but it isn’t because they have new factories after the war. It is because we bombed city hall for them.”
He was right. Now we need to destroy the entrenched idea that politicians can buy votes and enslave the future. We must destroy that idea or we will all be sold into slavery by corrupt politicians. Our tomorrow will be mortgaged for a politician’s profit today. We too will be enslaved by their political promises. We will all become Detroit, and that should scare you. It sure scares me!
That is why this ruling from the Detroit bankruptcy court judge matters so much.
Free for now, Rob.
Say what you will.