Detroit Goes Under: “There Is No Way Out But Collapse”


Mac Slavo

Though most Americans go through their day thinking everything is now returning to normal, the fact of the matter is the situation is anything but stable.

With crime rates skyrocketing, home prices dropping to under $500 for a house, and the local government out of solutions, the city of Detroit is the latest to join the likes of Stockton, California, having just defaulted on its loans from creditors.

Detroit Goes Under “There Is No Way Out But Collapse”

Despite promises to the contrary, it should come as no surprise that the city is unable to meet its obligations. And it won’t be the last. City and state governments all over America are in the same boat.

This is a serious occurrence, and one that will not only destroy the financial bottom line of lenders and wipe out retirement promises for tens of thousands of current and former employees, but may well foreshadow events to come throughout the rest of the United States in the near future:

The city of Detroit defaulted on $2.5 billion of its outstanding debt. The creditors are getting what they deserve.

He who lends to government depends on the exploitation of the people to get repaid.

The city’s retired city workers were also warned that significant cuts in pensions and health insurance would take place.

This is the problem all governments face. They promised the moon. Then when those workers retired, they had to be replaced. The cost of government is rising exponentially and this causes higher taxes and it becomes a dog chasing its own tail.

There is NO way out but collapse.

The economic model upon which government has been designed post-WWII is simply braindead. Dumb and Dumber could have done a better job.

The  size of government escalates and this creates a deflationary vortex through which the economy is sucked dry.

There is no surviving this crisis.

Politicians are desperate to cling to power so they buy tanks and guns to defend against the inevitable.

Via Martin Armstrong
emphasis added)

Detroit and Stockton are mere microcosms compared to the almost unimaginable debt obligations held by the United States government. We’re talking about tens of trillions of dollars that will never, ever be repaid. There’s so much money that has been borrowed that future generations yet to be born are already indebted.

Detroit, Chicago and other cash-strapped cities are turning into domestic tribal war zones akin to the middle east, with cops outnumbered 500-to-1. Now, with the revelation that they have no money left, people who believed in the benevolence of government and depended on them to pay for their retirements are going to be left high and dry.

We will see the same across the rest of this nation, as the federal government runs into similar funding problems for the one hundred million Americans dependent on monthly disbursement checks. These checks are either going to be cut, or more likely, our money will be inflated away driving prices for essential goods like food and energy to the moon.

It will end in disaster, and as Martin Armstrong notes, will lead to violent confrontations when people who thought they’d be taken care of from cradle to grave realize that no help is coming.

Absolutely plan on the worst case scenario – because you can be assured the government is.

You can prepare and have a chance to survive and thrive. Or, fail to do so and beguaranteed a world of horrific despair and poverty.

Understand this or pay the price: THERE IS NO WAY OUT BUT COLLAPSE.

6 Responses

  1. Booyah Slim says:

    Detroit. No real jobs for people to support their families. Corporations all want to pay slave wages then say their not making any money when you complain about it. Grand Rapids just may be the next Detroit or Flint Michigan… About Detroit…voter rights mean nothing in Michigan and it shows as well. The Governor will just replace you as Mayor and the entire administration underneath the Mayor in City Hall without one ballot being cast…now “that” show signs of what a dictatorship can do for you…the collapse of a major U.S. City…how about helping the Mayor and local government instead of tearing it apart and expecting an attorney to come in and say he’s got the answer… and what about collective barginning…? looks like he(the attorney) doesn’t have the answers does he…? Stay tuned to this story. Locally it’s a big one. BOOYAH !!!

  2. National Socialist says:

    Looks like America Uprising is coming soon and Fetroit will be the flashpoint

  3. carl says:

    the gap growing wider from rich to poor ,the lack of any real jobs following a real path of growth.These things are going to ruin the economy while few grow rich many become poor,lack of growth planning is to blame ,or just a lack of planning.There are many projects to invest in that would show a quick rate of return on the money invested all across this country no one is stepping forward to lead in this way

  4. westie says:

    Once you go black you are doomed!

  5. There is only one solution to the financial and economic crisis.
    Abolish the Federal Reserve nationalizing the central bank and restoring monetary authority to the U.S. Treasury to create and extinguish honest debt free money based on a 3 legged stool of precious metals, barter exchange contrancts and labor treasury certificates for goods produced, services redered and work performed. Inernational trade and balance of payments could be conducted with barter exchange contracts for example a barrel of oil for a bushel of wheat. Thus no trade deficit, no debt.

    By executive orders and directives declare an economic emergency declaring a temporary bank holiday calling in the currency and issuing new currency at a 100-1 exchange rate, pro-rating all prices incomes, debts and charging a graduated exchange rate fee to pay down the legitimate debt, charging a 10% exchange rate fee from one dollar to one hundred thousand dollars, 20% on over one hundred thousand dollars to one million dollars, 30% over one million to ten million, 40% on over ten million to one hundred million, 50% on over one million to one billion and 60% on over one billion.

    The people with the most money are the ones that are going to be squealing like a pig. National security demands political and economic reforms. My proposal to the financial and economic crisis is the only fair method to pay down the debt. Cancelling all debts owed to the Federal Reserve. All other debts can be assumed by the U.S. Treasury.

    Warning, if these proposals are not adopted the Nation is headed for bankruptsy and rioting in the streets.

  6. doesntmatter says:

    let the domino effect began….

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