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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDetroit Is Beta-Test of the GOP Plan To Sell The Federal Government to Corporations
http://www.politicususa.com/2013/07/20/detroit-beta-test-gop-plan-sell-federal-government-corporations.htmlRepublicans have long sought to sell off government assets they claim are prohibitively expensive to private, for-profit enterprises they claim are better equipped to administer them because they will base operations on sound corporate business models. What Detroit is experiencing is the Bain Capital vulture capitalist tactic of taking over a company, leveraging it with debt, declaring bankruptcy, and selling off assets and firing union employees all while turning a profit. Michigan governor Rick Snyder followed Bains tactics in appointing his cohort to lead the city, disband the government, and create conditions allowing the emergency manager to declare the city bankrupt to sell off assets allegedly to satisfy creditors.
...
In Detroits case, the city was leveraged to the hilt with state-backed bond money to allow it to meet payroll for its employees, and by feigning resistance by creditors, unions, and pension boards to take pennies on the dollar for their assets to assist in restructuring the citys finances, the bankruptcy gives the emergency manager power to liquidate city assets, including public employee pensions, to satisfy demands for payment. Willard Romney would be proud of emergency city manager Kevyn Orrs adherence to the Bain tactics; especially because as city employees and residents suffer like hundreds-of-thousands of employees Bain companies ruined, corporations will buy government assets for a pittance.
Everything emergency city manager Orr has done is in line with Bain tactics including misrepresenting the citys financial situation to create the necessity for cutting expenses, services, and finally declaring bankruptcy not unlike Bain Capital did to companies they took over. An attorney for Detroit, Krystal Crittendon, criticized a recent financial report filed by Orr and said the numbers do not accurately represent the citys fiscal woes, and it follows typical Republican rhetoric regarding the federal debt. She said, The whole foundation that brings him here is false. We do not have a $15 billion or a $20 billion debt problem. We have less than a $2 billion short-term debt problem that we could manage if we just went out and collected revenues that are owed to the city; stop giving tax abatement to people who can actually afford to pay taxes. Republicans have resisted raising taxes, or even funding the IRS to collect taxes, from corporations and the wealthy while they complain social programs like Social Security and Medicare are driving the country into bankruptcy as a reason to cut spending and turn over operations like Medicare to privatization.
What Detroit suffered is a microcosm of the federal government leveraged with debt from Bush-Republicans tax cuts for the rich, bailouts to Wall Street and banks designated as too big to fail, a Medicare prescription plan, and two unnecessary wars that were all unfunded and put on the nations credit card. To make it nearly impossible for the federal government to meet its debt obligations, Republicans refused to bring in more revenue, and spent four years driving up debt with extensions on tax cuts for the rich, overfunding the already bloated defense budget, and nearly causing the government to default on its debts during the 2011 debt ceiling crisis. Along the way, Republicans have attempted cutting Medicare and Social Security spending they claim is driving the debt and deficit, as well as using the sequester to starve domestic programs into oblivion not unlike Detroits city manager withholding funding for education, city maintenance, and social programs as prohibitively expensive while giving tax breaks to the rich.
...
In Detroits case, the city was leveraged to the hilt with state-backed bond money to allow it to meet payroll for its employees, and by feigning resistance by creditors, unions, and pension boards to take pennies on the dollar for their assets to assist in restructuring the citys finances, the bankruptcy gives the emergency manager power to liquidate city assets, including public employee pensions, to satisfy demands for payment. Willard Romney would be proud of emergency city manager Kevyn Orrs adherence to the Bain tactics; especially because as city employees and residents suffer like hundreds-of-thousands of employees Bain companies ruined, corporations will buy government assets for a pittance.
Everything emergency city manager Orr has done is in line with Bain tactics including misrepresenting the citys financial situation to create the necessity for cutting expenses, services, and finally declaring bankruptcy not unlike Bain Capital did to companies they took over. An attorney for Detroit, Krystal Crittendon, criticized a recent financial report filed by Orr and said the numbers do not accurately represent the citys fiscal woes, and it follows typical Republican rhetoric regarding the federal debt. She said, The whole foundation that brings him here is false. We do not have a $15 billion or a $20 billion debt problem. We have less than a $2 billion short-term debt problem that we could manage if we just went out and collected revenues that are owed to the city; stop giving tax abatement to people who can actually afford to pay taxes. Republicans have resisted raising taxes, or even funding the IRS to collect taxes, from corporations and the wealthy while they complain social programs like Social Security and Medicare are driving the country into bankruptcy as a reason to cut spending and turn over operations like Medicare to privatization.
What Detroit suffered is a microcosm of the federal government leveraged with debt from Bush-Republicans tax cuts for the rich, bailouts to Wall Street and banks designated as too big to fail, a Medicare prescription plan, and two unnecessary wars that were all unfunded and put on the nations credit card. To make it nearly impossible for the federal government to meet its debt obligations, Republicans refused to bring in more revenue, and spent four years driving up debt with extensions on tax cuts for the rich, overfunding the already bloated defense budget, and nearly causing the government to default on its debts during the 2011 debt ceiling crisis. Along the way, Republicans have attempted cutting Medicare and Social Security spending they claim is driving the debt and deficit, as well as using the sequester to starve domestic programs into oblivion not unlike Detroits city manager withholding funding for education, city maintenance, and social programs as prohibitively expensive while giving tax breaks to the rich.
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Detroit Is Beta-Test of the GOP Plan To Sell The Federal Government to Corporations (Original Post)
Scuba
Mar 2014
OP
leftyohiolib
(5,917 posts)1. this alone should be all the motivation needed to gotv
Octafish
(55,745 posts)2. More than that.
Michigan Gov. Rick Snyder, the Koch Repuglian, reached across the aisle to tap Michigan's Treasury Secretary, Andy Dillon.
Once the Democratic majority leader in the State House, Dillon had been expected to be Snyder's opponent in 2010. He lost the primary to Lansing Mayor Virg Bernero, who lost to Snyder in the general election. Going from memory: Rather than campaign for Bernero, he sat quietly on the sidelines.
Dillon stepped down from his Treasury gig earlier this year, but his four years demonstrate clearly how some Democrats are willing to work with the opposition to the detriment of the people of Michigan.
TrogL
(32,822 posts)5. HOW? They own the media.
Octafish
(55,745 posts)3. Banksters walk free and We the People pay the tab for their crimes.
Thank you, Scuba. Outstanding article.
From the OP:
Michigan Governor Snyder telegraphed his intent when he appointed Orr, a turnaround specialist, saying, Creditors and public servants deserve to know what promises the city can and will keep, and the only way to do those things is to radically restructure the city and allow it to reinvent itself without the burden of impossible obligations. The victims of Snyder and Orrs machinations are schools, city workers, and their pension plans that were given the option of taking 10-cents on the dollar or lose everything in Chapter 9 bankruptcy reorganization, and like Bain companies, employees will lose their jobs, pensions, and schools are sold off to for-profit corporations.
Background from one of the few news organizations really covering the Detroit bankruptcy:
A whos who of the conspirators behind the Detroit bankruptcy
By Thomas Gaist
13 November 2013
EXCERPT...
Michigan State Treasurer Andy Dillon
Andrew or Andy Dillon is a leading Democratic politician in the state of Michigan, who was speaker of the Michigan House of Representatives before being appointed state treasurer by Snyder. Dillon was elected to the House in 2004, and ran for the Democratic nomination for governor unsuccessfully in 2010, at which point he hitched his chariot to Snyders campaign. He was rewarded with the second most powerful post in the state.
Dillon earned his fortune as a venture capitalist, serving as vice president of commercial finance for General Electric Capital Corporation. He become president of Detroit Steel Company in 1996, and later was managing director of the Chicago-based private equity firm Wynnchurch Capital.
Dillon has been a chief conspirator in the plans for the restructuring of Detroit. He worked with Jones Day attorneys to draft the April 2012 consent agreement, which forced major concessions on municipal workers, and has overseen restructuring operations against municipalities and school districts throughout the state using powers of the authoritarian emergency manager law.
An email sent by Dillon on July 10, 2013 to Orr on the wording he should use to justify the bankruptcy filing exposed the conspiratorial character of the operation. Dillon told Orr he didnt think, we are making the case why we are giving up so soon to reach an out of court settlement. Looks premeditated. He advised Orr to say facts got worse as we dug into the numbers We dont even say they rejected the citys proposal. I think we may want a take it or leave it demand before we pull this trigger. I agree with the recommendation but I dont think we made the case. After the letter is revised, lets work on the Govs response.
Dillon resigned his post as state treasurer on November 1the day after giving a deposition for the bankruptcy trialsaying publicity over his acrimonious divorce was becoming a distraction. Snyder, stating regret, immediately heaped praise on the state Democrat.
He has been instrumental in many of the comprehensive reforms that are contributing to Michigans comeback. He has worked tirelessly on behalf of the people of Michigan, and were a stronger state because of his dedication, expertise and leadership. Dillons partnership with Detroit to assist in the citys turnaround, Snyder wrote, is just one example of Andys positive impact on Michigan.
SOURCE: https://www.wsws.org/en/articles/2013/11/13/whow-n13.html
Huh. Andy Dillon's a Democrat?
butterfly77
(17,609 posts)4. K&R..