From The Ramparts Junious Ricardo Stanton
I Hate To Say This, But I Told You So
“For years now I’ve been telling you how the Kleptocrats were plotting to bankrupt this country, steal all our wealth and reduce us to peons, serfs and slaves. The housing boom and bust crisis is one example, the economic collapse, spending our tax money on no win wars, the deliberate under funding of pensions and the planned cutbacks on social programs are how they are doing it. Stop and think about this for a minute, what is the statistical probability that all the states would be trillions of dollars in debt, their pension funds massively under funded and the social safety nets depended on by the most vulnerable in such jeopardy if it wasn’t by design? Now stop and ponder this; is it a coincidence that if the states are allowed belly up and declare bankruptcy, their first priority is going to be to pay the bond holders, the 1 or 2 % of the population who are already rich who can afford to invest but not pay the people/workers their pensions and benefits?” Fiscally Challenged States Trying to Weasel Out of Their Obligations by Junious Ricardo Stanton http://www.seeingblack.com/board/viewtopic.php?t=6558
In January of 2011 I wrote a piece entitled Fiscally Challenged States Trying To Weasel Out of Their Obligations that was distributed to several Internet portals, E-groups and newspapers in which I stated US cities, counties and municipalities were seeking ways to file for bankruptcy to get out from under their financial obligations such as pensions, social services and bond interest payments. Keep in mind at that time governments filing for bankruptcy was a novelty. Well the city of Stockton California was just granted permission by the court to file bankruptcy.
“A federal judge on Monday approved the city of Stockton's petition for bankruptcy in a case that sets the stage for a lengthy battle between bondholders and the California pension system. In a case being studied by other cash-strapped American cities including Detroit, U.S. Bankruptcy Court Judge Christopher Klein's decision was a setback for bondholders and insurers who had resisted the California city's bankruptcy filing. Stockton is the largest U.S. city ever to file for bankruptcy. The judge also signaled that the California Public Employees Retirement System's position in the case was not above review. Stockton, a city of 300,000, has so far not reduced pension payments to retired city workers, although it has eliminated retiree healthcare benefits.” Court says city of Stockton, California may proceed with bankruptcy By Jonathan Weber Reuters News
Stockton is not the first it is just the largest so far to do so. Look for this trend to escalate as more and more municipalities, counties and states face fiscal challenges and budgetary shortfalls in the trillions of dollars. This means as we’ve seen around the world in places like Greece, Spain and Italy is the bankers, bond holders and uber rich will get theirs while the masses will be forced to give up their pensions, health and welfare benefits and possibly if what is happening on the island of Cyprus expands; their savings. “Municipal bankruptcies have historically been rare, but troubled American cities increasingly see it as an option as they struggle with big debt loads, shrinking tax bases and massive pension and healthcare obligations. The California city of San Bernardino has also filed for bankruptcy, and some expect the city of Detroit, Michigan eventually to surpass Stockton as the biggest U.S. city to file for bankruptcy. In the Stockton case, attorneys for bond insurers, who could potentially be forced to absorb major losses in a bankruptcy, argued the city could have done more to cut costs and raise revenues. The bondholders, who are not being paid in full under the city's interim operating plan, have also argued that pension payments made to the California Public Employees Retirement System (Calpers) should be slashed.” Stockton ruling seen key to U.S. cities' bankruptcy options http://www.reuters.com/article/2013/03/31/us-stockton-bankruptcy-idUSBRE92U09Q20130331
Do you notice a global pattern, the bankers (shysters, loan sharks and money changers) always win, (except in Iceland). The outcomes in Stockton, Detroit and any other major cities which choose or are allowed to file bankruptcy it will be the bond holders and bankers who get theirs first while the masses are forced into austerity and deep poverty. Keep in mind these cities are in deep trouble not just due to the political good ol boy network, mismanagement and fiscal irresponsibility, they are facing catastrophe because they bought into the get rich quick high return on investment schemes and the Wall Street derivatives mumbo gumbo.
“Detroit is also facing a payment of between $350 million and $400 million on toxic derivatives contracts which were sold to the city over recent years as the mayor and council struggled to avoid bankruptcy. Detroit had issued floating-rate bonds, but then with great folly decided to swap these for fixed rate instruments. When interest rates declined, the city did not reap the benefit of having to pay less debt service. Many US municipalities, ranging from the Metropolitan Water District of Southern California to Harvard University in Cambridge, Massachusetts have had to pay billions of dollars to zombie banks to get out of interest rate swaps gone sour.” http://www.presstv.ir/detail/2013/03/31/295923/us-citizens-facing-austerity-dictatorship/
US cities, towns, counties and states are in the same boat as many homeowners, college kids and foreign countries, deep in debt and the system is rigged against them in favor of the bond holders and banksters! Detroit will end up like Italy with a non elected technocrat, a puppet of the bankers, running the show. In my 2011 piece I intimated this was going to happen I said, “Given we live in a rigid color and class tiered society, if a state government has to choose between defaulting on its bonds and its pension obligations, which one do you thing will get the short stick? Here’s a hint, ‘States and cities typically make a priority of repaying their bond holders, even before paying for essential services. Standard & Poor’s issued a report this month saying that the crises that states and municipalities were facing were ‘more about tough decisions than potential defaults.’ Mounting Debts by States Stoke Fears of Crisis http://www.nytimes.com/2010/12/05/us/politics/05states. Same goes for bonds versus health and welfare or unemployment insurance.” http://www.seeingblack.com/board/viewtopic.php?t=6558
I also wrote in the same article, “Stop and think about this for a minute, what is the statistical probability that all the states would be trillions of dollars in debt, their pension funds massively under-funded and the social safety nets depended on by the most vulnerable in such jeopardy if it wasn’t by design? Now stop and ponder this; is it a coincidence that if the states are allowed belly up and declare bankruptcy, their first priority is going to be to pay the bond holders, the 1 or 2 % of the population who are already rich who can afford to invest but not pay the people/workers their pensions and benefits? Is that just and fair?” ibid
When Joe and Jane Sixpack finally discover they’ve been fleeced like sheep they are going to go berserk and head for their gun racks. Now do you understand why the US Department of Homeland Security is buying all those bullets, and the US Army and FEMA are opening their detention and labor camps? The government anticipates you going off after they slash your pensions, your health and welfare and they steal your savings and 401K. Look to Greece, Italy, Spain and Cyprus to see what’s coming our way. Trust me they are scheming and plotting this as we speak!