States and Cities on the Verge of Bankruptcy
by Ian Mosley
Looks like California, Illinois, and New York are going to get some competition in the race to bankruptcy. Pennsylvania is coming up fast on the outside and seems to be battling for at least third place.
The Financial Times of London (the best sources for news of the American economy are all British) tells us: “The state of Pennsylvania has stepped in to help its capital city Harrisburg avoid a default by advancing next year’s state aid so that the money can be used to make a $3.3m bond interest payment due this week. On Sunday, Ed Rendell, the governor of Pennsylvania, announced a $4.3m cash transfer and said missing the bond payment was not an option….Harrisburg’s strains have been closely watched as other US local governments and states struggle to close gaps in their budget amid falling tax revenues in the downturn.
Note that this is just to pay interest. Not to rebuild bridges or provide anything useful like firefighters or sewage treatment or electricity. It’s not even to repay the loan itself. This cash transfer is being done only to pay interest. Harrisburg was recently listed in a Top Ten Declining American Cities article on the Huffington Post. Even liberals are writing it off as a lost cause and basket case.
The Times article notes “For many months, Harrisburg officials have been debating how to handle its debt burdens and whether the city should follow a handful of other cities that have filed for bankruptcy. Harrisburg has already defaulted on $282m of debt in an incinerator project that the city partially guaranteed. The $3.3m payment due on September 15 is an interest payment on the city’s general obligation bond sold in 1997. Such municipal debt is sought out by many investors in the $2,800bn US municipal bond market because the GO bonds have a reputation as being safer than many other types of bonds. Payments take priority over other spending. A default on such a GO bond could have knock-on effects across the municipal bond market, increasing the interest payments that are demanded by investors and leading to a reassessment of default risks.”
There are almost three trillion dollars in municipal bonds for the US!!! Municipal bonds used to be reserved for special building projects. Today, however, with the ever-growing Third World parasite population in every big city and Third World people running the big cities, some big cities are resorting to borrowing money for routine expenses. Add to that the continuing Bush-Obama Depression, and we may soon see the first cities that fail to pay off their bonds.
In the Age of Obama, however, the bill has come due. Decades of slow deterioration are starting to catch up with America on every level, including our major cities. Everything is collapsing because everything is so riddled with corruption, incompetence, deceit, arrogance and madness.
Harrisburg, Pennsylvania is now a town with only one industry: state government, which has one financial foot in the grave and the other on a banana peel. There is no tax base any more since the minorities have clustered in from New York, New Jersey and Mexico and the White people, who work in the private sector, who actually create wealth, have fled. State and city bureaucrats are essentially parasites, and parasites cannot feed on other parasites.
Once a city fails to pay off a bond on time, its bond rating will plummet making it difficult if not impossible to borrow more money in the future. Many of these mayors and city councils were crossing their fingers hoping the economy would turn around and tax revenue would climb back up. Given the continuing state of the economy, a bankruptcy for many cities is almost certain.
While this all sounds terrible, and it is pretty terrible, we need cities and states to start going bankrupt to wake up White people to the fact that Diversity doesn’t work. If White people want the US to return to the prosperity of the 1960s, we need the same demographics as the 1960s, which means a lot fewer Third World people.
News source: www.davidduke.com