Financial Stability Agreement - City of Detroit

Here is what Obama does not talk about and the Hollywood media never mentions –

Deficits = Debt = Destruction and today we add the fourth D to the formula:

Deficits = Debt = Destruction = Detroit

The city of Detroit is bankrupt.  It has so much more debt and obligations beyond its ability to pay that it is insolvent – unable to meet its obligations.

Whenever someone - a person, a company; any entity is insolvent and unable to meet their obligations, things happen.  For most of us, the thing is called bankruptcy.  But, when the politicians and bureaucrats get involved they prefer to call it something a bit different.  Fancy it up - call it a “restructuring” or a “bailout” or“reorganization.”  In the case of Detroit it is now being called a “financial stability agreement."  It’s still the same old rock and roll, folks – it’s a bankruptcy.

If you wish to read the entire agreement, please go to - http://www.freep.com/assets/freep/pdf/C4186488313.PDF 

We are only going to focus on one part of this “stability agreement.”  Here is the wording of that portion of the agreement –

“Review and approve… any proposed amendment or modification to any material contracts to which the City (Detroit) is party (including, but not limited to, collective bargaining agreements, pension agreements and any other contracts requiring the payment of retiree benefits)….”

The above wording comes from page 9 of the so-called “financial stability agreement.”

Those few simple words need to be on the mind of any thinking, caring, and taxpaying American voter later this year.  There is no town, no village, no state, no school district and, most certainly, no city in this country that can endlessly pay unionized public employees of any sort the ridiculous salaries and benefits and pensions that are currently being paid.  Detroit is bankrupt because of its union employee agreements and whether the SEIU or the AFSCME or the NEA or the AFT or the AFL-CIO likes it or not, the day of reckoning comes and it comes in the form of this wording –

“Review and approve… any proposed amendment or modification to any material contracts to which the City is party (including, but not limited to, collective bargaining agreements, pension agreements and any other contracts requiring the payment of retiree benefits)….”

So to the fat cats in all those unions in places like California and Illinois and Ohio and Wisconsin – reread those few words.  In case you can't immediately grasp their meaning, let us help.  Those few words mean the party is over; the pensions are gone; the free benefits are kaput; the big salaries and all the days off are history.  And if you don't like it, tough.  There ain't no money in the till folks; so the contracts get amended or modified or just ripped up.  You outsmarted yourself.

We call those words - music to our ears. 

Today, Motown gets to face the music; tomorrow – fill in the blanks __________, IL; ______________, CA; ____________, NJ; ______________WI or _____________,__.