Granted, the story below is not new news – but what we need to begin putting into perspective is what the greater implications are. I have been stating for over a year that at some point, there will come an avalanche of municipal defaults… well, it seems reasonable to say that we are on the cusp of that event, right now, and the stability of our nation may well hang in the balance – not of whether we can avert the defaults, as they are a foregone result; but of how our federal government will respond as cities big and small descend into bankruptcy and chaos.
(Zerohedge) August 10th, 2012 — San Bernadino – the latest and greatest city to file for municipal bankruptcy (after a $46 million shortfall in its budget was irreconcilable). The reason it’s a big deal – unfortunately the state’s retirement fund – CalPERS – is the city’s largest creditor by far with a wonderful $143.3 million exposure. This is more than half the entire debt load of $281.4 million of the Top 20 creditors alone!
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“So what?”, you say, it is subtle justice that the corrupt and bloated governmental structure in California has now officially begun to gorge on it’s own carbuncle. While I agree that there are just deserts due, and that the excoriation of California’s ‘Public Unions’ is obscenely over due; but I am forced to warn everyone that this is the perfect excuse for a grand-mal bailout from our beloved Emir d’America, Obama Bin Lyin’, and that cities and counties from every state in the nation will soon be jockeying fo a place in the line to claim their Obama-Bux – that is when the just deserts will become a food fight, and we will all pay for the mess, as is mandatory in any communist system.
Thus, we will have our own PIIGS to deal with in short order. Break open the vault full of “relief dollars”, and send in the FEMA trucks… Just in time for the election. Yes, FEMA trucks…and the spectre of martial law which is their perpetual shadow, may well be the Obama administration’s natural reaction as cities fail and chaos consumes the remnants of order. After all, we must “never let a perfectly good crisis go to waste.” Especially when you’ve planned and worked for so long to create the crisis in the first place.
And for you snarky ones in the audience; before you speak too ill of me, I would suggest that you take a look at Camden, NJ, who today announced that they are disbanding their police force due to lack of budgetary capacity, and a police union which refuses to renegotiate their contract, even in consideration of their employer’s insolvency…
If we see a city such as Camden declared a “disaster” and given “aid” by the administration, I will be very, very concerned.
LT
~Those who abuse Liberty, do so at their own peril!
