Tag Archives: bankruptcy

GREATEST DEFAULTS TO COME – REVOLUTION BREWING

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Union thugs are manning their posts, ready at an instant to levy ISIS type destruction on their enemies; innocents will also suffer. From Chicago to Hartford to cities in between, budgets are being busted at a rapid pace. States suffering from largess include Illinois and Connecticut; sooner or later they will face the unthinkable! The “B” word. Vengeful state unions are arming their members with vitriol diatribe. When layoffs occur to the union legions violence is a given.

Pensions and benefits layered on year after year are now so heavy that many states and cities cannot afford the old paradigm of tax and spend. Taxes are driving more of the productive to greener pastures thereby exacerbating the problem. Florida, Texas, South Carolina are reaping the benefits. Just yesterday it was noted that 10,000 millionaires left France for greener (means no tax) havens. Many have seen this smoldering fire burning for a while, but have ignored it; rating agencies are now lowering bond ratings of socialist city/states because of lower revenue expectations. There is only one way out of this mess, if not taken, we are looking at state and city wastelands, akin to the favelas of Brazil.At times Rio de Janeiro has utilized troops to temporarily occupy favelas such as seen here in the Complexo do Alemão during the 2008 municipal elections. This is the exception rather than the rule however, particularly with the establishment of permanent community police forces (the UPPs).

Click here for the Deadly Summer awaiting Chicago. It ain’t gonna be pretty folks. “I saw a man stabbing his wife in Chicago, its my home town.” Most of those growing up want to be “killers.” Passed down from father to son. 

Never think that this can’t happen here; we are not an island until itself. Lying politicians using deceptive words have sucked the life blood out of cities and states with abandon; not to mention the 100 trillion dollar debt of Uncle Sam. The bottom line here, if there is one, be prepared for mass exoduses from Blue States to Red States – with Blue State implosions the military will be called in to quell the violence. Rabid dog populace will no doubt be on the lookout for red meat snatching and burning anything left in their path. The United States can print all the dollars they want, but will the rest of the world accept them? Socialist evil dwellers such as Chavez and heir Maduro promised more than they can deliver. The flames of revolution are brewing higher by the day, citizens looking for politicians blood because they have gone back on their word or stepped on too many when vaulting to the top spot.

HEY BUDDY, CAN YOU SPARE $60,000

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The city of Chicago has been looted by liberal parasites for decades, now the bill is due. Chicago is about to fall into lake Michigan.  However, as Rahm says, you should never let a serious crisis go to waste. Believe us when we tell you, Chicago needs more than one crisis to fix its problems. Each Chiccago household is on the hook for $60,000. So the rock and hard place are facing the taxpayer as Emanuel searches for funds to pay the pensioners.  We recall the old saying when it came to Chicago during Daly’s time,  it was called the “CITY THAT WORKS.”  Yeah right!

Looking at Detroit, Chicago sees itself in less than a decade. The drums are beating, the people are leaving  and the city has nowhere to turn but to tax, tax and tax again. Bankruptcy is out of the question. Chicago is not our kind of town,  it is town built by liberals for liberals. Those savvy enough have left or are making plans to leave as soon as possible.

The definition of insanity is repeating the same thing and expecting a different result. This phrase was attributed to Albert Einstein, Ben Franklin and others.  The phrase fits the Democrats perfectly; raise more taxes, spend frivolously on schools, extend unemployment, fight for more police and firemen, increase pensions call for a $15.00 minimum wage etc. and they expect the economy to boom. The truth be told, the Democrats are always one tax away from that expected boom they forecast, so they keep on taxing. To quote ex speaker of the House Nancy Pelosi “that giving more money to the unemployed creates jobs and thereby helps the economy. “

ATLANTIC CITY’S PIE IN THE SKY

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A city rolls snake eyes, Atlantic City has run out of luck; no more comps. The city at one time had visions of Vegas East Coast, but those visions have been swallowed up by the Atlantic Ocean which ebbs and flows at the front door of the iconic casinos. Even the “Donald” could no make it in Atlantic City, his tenure there has left a trail of bankruptcies rivaling the downfall of many of the “elephants” that roamed the casinos. What sets Atlantic City apart is the proximity to New York – fifty million people within driving distance were not enough to raise Atlantis. Atlantic City skyline from 47th floor of Revel

What doesn’t set Atlantic City apart from other failing cities is that Barack Obama received 85% of the vote in 2012 joining Chicago, Jersey City, Stockton and Detroit. Bankruptcy is now the plan. Reorganization lawyers have been hired against all odds to put a plan in place to solve the $400,000,000 in debt owed by the city. What is on the table is layoffs and debt relief. Current year deficit is running close to $100,000,000; that is real money that seems to have gone into a sinkhole.  The population of AC is only 40,000, mostly of the liberal persuasion that consistently spends more than it takes in.

We wish them good luck at the bankruptcy table as they roll the dice for what maybe the final time. Casinos were to be the “pie in the sky” for the cities hopeful, but as it turns out that many of its citizens who worked the casinos are lining up for government comps.

WHAT THE GOLD BRICKS WON’T TELL YOU

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Through out history gold has been the medium of exchange; the store of value. Paper money displaced gold early in the 17th century; first used in Massachusetts then by the states during the Civil War. The banking industry’s genesis was initiated early on by warehouses which issued a receipt – thus a warehouse receipt – entitling the holder to redeem the receipt for the said amount of gold as defined in the receipt. As the industry blossomed it became apparent that the holders of receipts very rarely requested the physical gold; they only transferred the receipts. Thus the warehouses evolved into lenders realizing that a call for 100 percent of the gold at any one time was not a probability.

The 18th through the 21st century became the glory days of gold. Banks became behemoths lending more gold than they had in inventory. When a run on a bank occurred, which it ultimately did, culminating in bankruptcy and ruin. As the United States entered the 20th century as the world’s big money player the world treated the dollar as if it was good as gold.

This was true up until 1971.  Not dismissing the illegal taking of individuals gold by FDR back in 1933 (see executive order 6102).  The world was on the path of becoming a dynamic and risky adventure from 1971 on; the dollar was no longer convertible to gold, the dream of El Dorado became a reality by inventing paper gold on a scale never seen before. The physical gold window had closed, the dollar pyramid scheme began.  Hence the printing of paper money on a scale never seen before. Economies were on financial cocaine, a euphoria that is still manifested by governments gone wild. More printing enabled the exalted to exert control of economies, countries and world politics. But good times don’t last forever.

Entering the 21st century has proved that the dollar panacea has a long reach, but things can changes in a quant moment. Across the globe one country after another has defaulted; Greece and Argentina head the list. Is it possible that the United States is next?  A probability that cannot be counted out. What brings us to that conclusion is the loss of faith in the United States. We are no longer control world events – Obama saw to it.

Future obligations are the tail wagging the dog and that is about to become the albatross under our neck for the next two decades. Obligations are coming due. And the question remains, who will be responsible to pay them. for sure you can’t count on today’s youth to hand over their hard earned cash.   17 Trillion and counting is a gargantua number, that is just debt, counting social security, medicate obligations and interest on the debt we are looking at a google type number closer to 100 trillion. $100,000,000,0000,0000.

Another relevant question to ask a politician of the goldbrick variety is:  Will we ever be able to pay back the money we owe?   Don’t expect a straight answer.  The next question is, Will gold provide a solution to political largesse?