Detroit’s default and bankruptcy say a great deal about where we’re headed, and that has little to do with the outcome for municipal bond investors or with the national debt picture. Many, many Detroit retirees are watching their pensions blow up in front of their eyes. What will they do? I’d lay odds we’ll have a gray version of Cairo’s Tahrir Square within two years if some entity fails to come to the rescue.
But these folks were mostly if not entirely UNIONIZED. So let ’em eat Alpo, the GOP says. And while we’re at it, we’re going to chop food stamps and vouchers for subsidized housing for the poor. In short, we just don’t give a Tinker’s dam about anyone except the 1% and ourselves, sayeth the buffoons on the wrong side of the aisle and the wrong side of history.
Where might this lead in short order? Assume no other municipality files for Chapter 9. But watch Detroit. See if CURRENT (union) firefighters begin ignoring calls, because there’s no future in it for them. These people are galvanized solid gold human beings, but they do have to eat. Now and in thirty-five years, and later.
What’s the GOP solution? Cut the budget some more. Cut taxes on those who can afford them. Cut the arguing and let us “deliver.” Like John Boehner means “deliver?” Pray that the country finally sees the real cost of the anti, do NOTHING Congressional GOP.
Or else, by the time it does see, climate change will make Detroit pensions completely irrelevant anyway. Oh, Boehner’s clowns are not about to allow anything to get in the way of that little matter, either. Who cares about a few polar bears or coral reefs? These simpletons care only about SUVs, resource extraction, and a 25% return. that’s what made this country GREAT, you know.