Welcome to the post-sequester apocalypse. As much as President Obama will have us believe otherwise, the greatest financial catastrophe in the coming days will not be of Washington’s making at all.
If you’re looking to see what a policy of liberalism can do to a city, look no further then Rock City. Despite one of the most aggressive ECD campaigns featuring celebrities Eminem, Jeff Daniels and Tim Allen, not even Hollywood can save Detroit from going broke. It is on the verge of being taken over by the State of Michigan in hopes of saving the city from bankruptcy.
President Obama on October 13, 2012 stated that he “refused to let Detroit go bankrupt.” Well, Mr. Obama then you better be willing to write a very big personal check.
With over $3.8 billion in federal stimulus funds to the city in 2009, President Obama claimed during his reelection bid to be the city’s savior. On the same day that the world is supposed to end with the much-ballyhooed sequester going into effect, Detroit’s financial woes are the inevitable result of liberal tax and spend policies. These policies have led to an annual budget deficit of $100 million, which includes a total of $14 billion in employee retirement liabilities and unfunded pensions. In order for the City to be in the black again, (something they have not been since 2005), Detroit would need $1.9 Billion over the next five years to pay off other long-term liabilities.
As Bob Woodward has discovered, the paternity of the sequester lies squarely with President Obama. It was devised as a trap for the Republicans. The same can be said about the plan of action in regards to Detroit, which was nothing more then smoke and mirrors just to delay what was predictably going to happen. This result was inevitable considering Detroit has always been a city plagued with liberal policies and run by the labor unions.
This is only the beginning. Cities around the country like Stockton, CA, Jefferson County, Alabama and Harrisburg Pennsylvania are Cities traveling down the same path. These cities all share the common trait of continuously electing Democrat majorities to control their local Government. Like a string of dominoes, they are destined to fall one by one. When the states can no longer bail out the cities, who will be there to bail out the states? For example in California’s case, what happens when a State cannot rescue its own municipalities? Does the Federal Government step in and take over a State or does our Federal Government look to foreign investors to bail those States out?
The good news is, with every major bankruptcy or bad economic news that is announced it seems our stock market usually has an opposite effect and reaches for the sky. Chairman Bernanke and his minions at the Federal Reserve hope that this manipulated surge will continue the charade of growth in today’s economy giving the American people the false sense that our economy was not effected.
How quickly will the tribulations of the March 1st sequester be forgotten, once the upcoming consequences of what raising the debt ceiling on March 27th might yield. However, with the Federal Reserve printing no less then 85 billion dollars per month, this economic fairy tale has no chance for a happy ending for the City of Detroit and I fear the rest of the Country as well.