The Failure of Detroit: Going bankrupt and the primary reason why

It was not a surprise that Detroit filed for bankruptcy.  I reported it here at Overmanwarrior’s Wisdom many months, ago.  There was nothing stunning about it, yet the reaction of some of the public workers in the system such as County Circuit Judge Rosemary Aquinlina was.  Detroit was being crushed financially under their legacy costs negotiated by labor unions adhering to a failed Keynesian economics plan.  The unions led Detroit to a financial reality that was not based on any kind of successful logic.  Nobody wanted to associate the math of so many pension requirements with the decline of business in the city that was driven away by high taxes, union mandates, and unmanaged government.  They just hoped that the money needed to sustain government and its workers would magically fall from the sky and into their laps like some tribal god granting the campfire dancer’s uttering war chants their requests.

A Michigan judge ruled Friday July 19th, 2013 that Republican Gov. Rick Snyder’s Detroit bankruptcy filing was a violation of the state’s constitution and that it fails to “honor” President Barack Obama who “took (Detroit’s auto companies) out of bankruptcy.” County Circuit Judge Rosemary Aquilina said she hopes Gov. Snyder “reads certain sections of the (Michigan) constitution and reconsiders his actions.  I have some very serious concerns because there was this rush to bankruptcy court that didn’t have to occur and shouldn’t have occurred,” Aquilina said.

More on that topic can be seen at the links below:

(RelatedMelissa Harris-Perry’s ‘Delusional’ Analysis of Bankrupt Detroit May Stun You)

Judge Aquilina is obviously out of her mind, and a functional drone of the Obama administration.  Obama did not take the auto companies out of bankruptcy; he simply stole tax dollars to pay union supporters of his campaign money they did not deserve as their union’s legacy costs were destroying the auto manufactures.  The money Obama gave to the auto companies only delayed their bankruptcy.  The foundations that the unions built their union pension system in the private sector were entirely unsustainable and rooted in sheer communism, which should have never happened in the first place.  It has destroyed auto manufacturing in Detroit, and therefore—Detroit.  Then to make matters worse, the government of Detroit through their public sector unions applied the same economic theory to their own pension system—which obviously has failed.

We often consider judges wise—but obviously Rosemary Aquilina is lacking due to her beliefs that bankruptcy in Detroit can just be pushed under a rug.  Currently, both pension funds in Detroit have claims to roughly “$9.2 billion in unfunded pension and retiree health care liabilities,” the Free Press reports.  Where does Judge Aquilina think that money will come from—the ghost businesses in Detroit, the ghost residents of the neighborhoods who have moved away to flee the poorly managed city, or the ghost money that is flowing through the revenue collection system?  The answer is far worse than just being stupid, it is ideological and therefore rooted deep into the core of her thinking which should disqualify her from any decision-making authority as her personal philosophy has eliminated her from logical consideration.

Judge Aquilina is not alone; in my school district of Lakota the same progressive union mentality is present.  If left unmanaged, unchallenged, and completely to their own devices, they are just as stupid.  In a recent levy attempt to put their money-making scheme on the ballot, they want a tax increase on property against residents while enrollment is on a declining path—which makes no sense.  Like Detroit, there will be fewer contributors to the tax system in the years to come, so Lakota like Detroit believes that they can increase taxes on those who are left to balance the books, while they continue to raise the costs of their positions with wage increases, more public employees drawling from the system and continued mismanagement.  The public employees involved are behaving like brainless zombies who have no idea where the money comes from, they only care to fill their endless desire for more.  It was that type of short-sightedness that destroyed Detroit, and now that the time has come, the contributors to moral bankruptcy cannot see that it was their mentality that bankrupted their city, school districts, and destroyed the lives of millions.  They believe even as the world burns around them, that their system of collective government is achievable, and that the Cloward and Piven strategy they all learned in college was actually to benefit the poor, and (middle class) instead of the real intention—to destroy American imperialism by cutting off its financial legs with slow brewed communism.  People like MSNBC’s Melissa Harris-Perry and Detroit’s Judge Aquilina and Lakota’s Karen Mantia are the foot soldiers of the Cloward and Piven strategy of destruction that intentionally has used Keynsian economic theories to destroy American wealth for the global aims of a one world middle-class designed to bow at the feet of the elected elite described in Plato’s Republic.

But what is stunning is that people like Judge Aquinlina even as the world burns around her is in complete denial and expects that nobody can see the flames licking the sky about her talking head pronouncements.  The ultimate villainy of progressive theory is the denial of reality, which is typical of their kind.  They are so practiced in the art of self-deception that they actually believe what they are saying.  Aquinlina actually believes that President Obama saved the car companies with some kind of magic money, and that Detroit’s bankruptcy can be suspended till some future date perhaps after her own retirement from the system.  She believes that magically Detroit’s finances can be balanced by doing the same things that drove the city into $9.2 billion in unfunded liabilities which is obviously false.

Detroit is bankrupt, and it was the first large city of its kind to find itself in that situation.  But it won’t be the last.  As a state, California is collapsing under the same pressures, and nobody wants to face the music.  California boomed with three major economic expansions, the Gold Rush, the movie business, and the technical advances of Silicone Valley.  Without a way to continuously make money with sustainable jobs, the government which erupted in the wake of capitalist success like parasitic flees sucking the blood of a dog, California has driven away it’s positive money creation endeavors into other states with excessively high taxes leaving the pornography industry and what’s left of the film industry to carry the entire state’s finances.  But like all bankruptcies, Detroit included, the film industry is about to collapse on itself.  The studios there cannot continue making routine billion dollar box office pictures to pay for all their labor costs, which is why production budgets on films are so high.  Within a few years, only a few films will have the ability to generate so much box office money to cover their extraordinarily high production budgets—budgets that are driven up by union wages and legacy costs that are built with the same financial philosophy which has destroyed Detroit.  And when it happens there will be armies of people like Judge Aquinlina who will not understand because the essence of their very beings believe in these large statist ideologies and the very notion that they were always unsustainable means that they must analyze their entire philosophy about life, liberty, and happiness.  They will discover tragically that they were always wrong, and terrible liabilities on the success of tomorrow as they have been functioning for years as parasites to progress when their party of progressives fulfilled the exact opposite of everything they ever thought was possible with a grim reality of bankruptcy.

Rich Hoffman

“Justice Comes with the Crack of a Whip!”