Broke: Stockton Goes Bankrupt: “Precedent-Setting Implications”

stocktoncops

One of the most dangerous cities in America has just declared bankruptcy, leaving creditors out hundreds of millions of dollars.

U.S. Bankruptcy Judge Christopher Klein said the bankruptcy declaration was needed to allow the city to continue to provide basic services.

“It’s apparent to me the city would not be able to perform its obligations to its citizens on fundamental public safety as well as other basic government services without the ability to have the muscle of the contract-impairing power of federal bankruptcy law,” Klein said.

The city of nearly 300,000 people has become emblematic of government excess and the financial calamity that resulted when the nation’s housing bubble burst.

Its salaries, benefits and borrowing were based on anticipated long-term developer fees and increasing property tax revenue. But those were lost in a flurry of foreclosures beginning in the mid-2000s and a 70 percent decline in the city’s tax base.

Attorneys for the city said the city’s budget and services had been cut to the bone.

“There’s nothing to celebrate about bankruptcy,” said Bob Deis, Stockton’s city manager. “But it is a vindication of what we’ve been saying for nine months.”

The Chapter 9 bankruptcy case is being closely watched nationally for potential precedent-setting implications.

The $ 900 million that Stockton owes to the California Public Employees’ Retirement System to cover pension promises is its biggest debt. So far Stockton has kept up with pension payments while it has reneged on other debts, maintaining that it needs a strong pension plan to retain its pared-down workforce.

By 2009 Stockton had accumulated nearly $ 1 billion in debt on civic improvements, money owed to pay pension contributions, and the most generous health care benefit in the state—coverage for life for all retirees plus a dependent, no matter how long they had worked for the city.

CNBC

Creditors, who invested tens of millions of dollars into city bonds to help cover pension payment shortages have been left holding the bag. And now, with the city officially bankrupt, even those pensions are under threat.

Stockton is the first of many large cities that will soon declare bankruptcy, with more troubled local city councils likely to seek bankruptcy protection in the near future.

Like many indebted citizens of America, the Stockton government based their salaries, pensions and city development plans on the notion that economic growth could never end.

Their plan worked until it didn’t.

This is only the beginning.

First, we’ll see major cities across America lay off hundreds of thousands of employees, a trend that has been gaining momentum over the last several years.

Then, entire States, likely starting with California, Illinois, and New York, will fall under the weight of billions of dollars in debt. They will turn to the Federal government, who will happily engage the Federal Reserve to print more Bernanke Bucks to bail them out.

Finally, the United States of America, in its entirety, will succumb to what can only be described as the largest sovereign debt collapse in the history of the world.

The implications will be severe as the paradigm of peace and prosperity Americans have come to know will turn to riots, starvation and bloodshed.

There is no stopping this. The debt loads on every level of government have become wholly unsustainable.


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

Larwyn’s Linx: When Men Forsake God, Tyranny Always Follows

Send us tips! Bloggers: install a Larwyn’s Linx widget. Get real-time news, 24/7, at BadBlue.

Nation

When Men Forsake God, Tyranny Always Follows: Banescu
Starbucks CEO To Christians For Traditional Marriage: Go to Hell!: RWN
Happy Easter!: Malkin

Forward, and downhill: Hayward
Racist Supreme Court Justice Compares Homosexuality to Incest: Patterico
Buffalo Wild Wings Refuses To Serve To Cops Because They Carry Guns: RWN

It’s Okay To Murder The Child If The Parent Doesn’t Want It?: MagNote
“Gang of Eight” Out of Touch on Border Security: Foundry
Texas district attorney, wife found dead at home: AP

Economy

Pandering to illegals as black unemployment soars: CFP
The key to a cheap international holiday: Instapundit
Postulate: Central Banks & Governments Are Thieves And Liars: Ticker

Barack Obama’s Great Redistributionist Lie: AT
Time to Wave the White Flag on the “War on Poverty”: Mish
Fresh Food Thrown in Dumpster as People are Restrained by Police: LbrtyBltz

Scandal Central

Ft. Hood Terrorist Prevails Over Victims: Sentinel
The DHS is Now Moving to Hire Hackers from High School and College: LbrtyBltz
Obama administration withdraws plan to use taxpayer funds for sex-change operations: Fox

Climate & Energy

Claim: Germany Spends $ 110 Billion to Delay Global Warming by 37 Hours: WS
Global warming now ‘Widely Accepted’ to be a falsehood: CDN

Media

TOLERANCE: New York Muslim Calls for Beheading of Gays on NY1 TV Show: Atlas
American Flag Used to Hide Obama PR Problem: Dossier
A(nother) Deceptive Photograph at the Washington Post: Groseclose

Because It Wasn’t Already Contentious Enough…WaPo Op-Ed Injects Race Into the Gun Debate: Ace
Dodgeball and “human target” games banned from school district in New Hampshire: RedAlert
Obama Gives His Easter Sermon: Cowboy

World

‘Ship carrying Iranian weapons en route to Syria’: Times of Israel
Euro value plunges as Cyprus worries markets: AIM
Jailed for Facebook ‘like’: Palestinians endure Middle-East-wide ‘social media crackdown’: RT

46 Senators Voted to Give your 2nd Amendment Constitutional Rights to the U.N.: OffGrid
CBS reports on Muslim persecution of Christians in Syria: JihadWatch
2 in China are first-known deaths from H7N9 bird flu: USA Today

Sci-Tech (courtesy BadBlue.com/Tech)

Turin Shroud ‘is not a medieval forgery’: Telegraph
The next big thing on Twitter: #TwitterChats: NetworkWorld
Meteor Strike: The Complete Story of Russia’s Cosmic Fireball: Gizmodo

Cornucopia

Easter Bunny Beats The Rap: WZ
40 Easter Bunnies more terrifying than a crucified man coming back from the dead: Happy Place
Google celebrates Easter with … Cesar Chavez birthday tribute: Twitchy

Today’s Larwyn’s Linx sponsored by: Support the Senate Conservatives Fund

QOTD: “Same-sex marriage is, by far, the most important issue of our generation – even more important than having others to pay for our free access to birth control. War, terrorism, and taxation are laughable matters compared to the tragedy of two or more men who are in LOVE being unable to commit to each other unless they have a government-issued license. Without a license, how could they demonstrate their LOVE to the rest of the public in front of Chick-Fil-As across the country? It is, after all, their right as human beings.” –The People’s Cube

Doug Ross @ Journal

500 “Youths” That Could Have Been Obama’s Kids Rampage Through Chicago’s Magnificent Mile, Assault Shoppers and Police

CBS Channel 2 calls the rioters “mischievous”.

The warmest day of the year so far brings hundreds of mischievous teens to Michigan Avenue… [But] Police are calling it ‘mob action’.

CBS 2 is learning about multiple incidents in at least four different locations along the Magnificent Mile and in the Gold Coast, yielding a slew of arrests.

Things got pretty bad, very quickly with many innocent shoppers and tourists caught in the middle of a very chaotic situation… Hundreds of teens littered Michigan Avenue and State Street near Chicago… Things started to go bad around 6:00 p.m. Saturday, with teens purposely bumping into people, and causing fights among themselves.

… “You had a group of teens, close to maybe 500. They assaulted a Chicago police officer that was on a mounted on a horse and all of a sudden they assaulted a citizen walking the streets, just a normal citizen shopping and enjoying the weather,” said [an eyewitness].

Later that night, a man was attacked around 10:45 p.m. while walking near Chicago and Dearborn. Sources tell us he was jumped and punched in the face by a group of teens. He was taken to Northwestern Memorial Hospital.

In a separate incident, a group of woman say they were attacked by a mob of girls on the CTA Red Line. The women reported a robbery once they got off the train at the State and Monroe station. Eleven females were arrested—10 juveniles and one adult—and charged with battery. Two of the teens were charged with strong- armed robbery.

According to commenters at Chicago police blog Second City Cop, not only isn’t national media covering the story, even the local media isn’t telling the whole story:

TOURISTS BEWARE: You are not getting the whole story. I was coming home from work at 7:30. The savages were randomly attacking people. Go to Woodfield if you want to shop. Chicago is not safe.

You’d think such vicious racially motivated hate crimes would receive wide-spread national media attention, but they don’t. As a rule, reporters and prosecutors ignore the racist motivations of black-on-white mob attacks. In news articles like this one the thugs are invariably described only by their age — “kids” or “teenagers” — while any mention of their race is studiously omitted, as if it had nothing to do with the crimes.

Or “mischievous teens”.

In related news from gun-free Chicago, “2 dead, 20 wounded over the Easter weekend.”

Thank goodness law-abiding citizens can’t defend themselves in Chicago. Some of those poor “youths” might have been hurt.

Chicago, like Detroit, represents Democrats’ policies writ large: as with the Motor City, we are witnessing the breakdown of the civil society, brought to you by secular immorality, unfettered redistribution of wealth from makers to takers, and incentivizing the single-parent family.

But don’t worry, folks: if Michelle Obama has her way, at least the “youths” who attack you during your next shopping trip won’t be obese.

Doug Ross @ Journal

The Hegemony of the U.S. Dollar as the World’s Reserve Currency Coming to a Quick and Untimely End [Cary]

Crackpot Preppers

Guest post by Lee Cary:

It’s happening incrementally – the unwinding of the U.S. dollar as the world’s reserve currency. We’re seeing trading countries strike reciprocal alignments to exchange each others currencies and not deal in the USD. And it’s picking up speed. Not overnight – but the end of the USD’s dominance is coming faster than we’re prepared for as a nation. And the media is largely silent on the topic. Go figure.

Thanks, World Reserve Currency, But No Thanks: Australia And China To Enable Direct Currency Convertibility

Over the weekend, Australia appears to have come to the same conclusion, with the Australian reporting that the land down under is set to say goodbye to the world’s “reserve currency” in its trade dealings with the world’s biggest marginal economic power, China, and will enable the direct convertibility of the Australian dollar into Chinese yuan, without US Dollar intermediation, in the process “slashing costs for thousands of business” and also confirming speculation that China is fully intent on, little by little, chipping away at the dollar’s reserve currency status until one day it no longer is.

That said, this latest development in global currency relations should come as no surprise to those who have followed our series on China’s slow but certain  internationalization of its currency over the past two years. To wit: World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan sign new $ 15bn currency swap agreement“, “Iran, Russia Replace Dollar With Rial, Ruble in Trade, Fars Says“, “India Joins Asian Dollar Exclusion Zone, Will Transact With Iran In Rupees“, and “The USD Trap Is Closing: Dollar Exclusion Zone Crosses The Pacific As Brazil Signs China Currency Swap.”

Last week, it was China and Brazil.

China and Brazil agree currency trade deal

China and Brazil have agreed to trade the equivalent of up to $ 30 billion per year in their own currencies, moving to take almost half of their exchanges out of the dollar zone.

The three-year swap line agreement, signed before the start of a BRICS nations summit in South Africa, marked a step by the two largest economies in the group to change global trade flows long dominated by the US and Europe.

It was suggested as a goal early in the first Obama term when Tim Geithner let it slip (then backed off) that it wouldn’t be a bad thing to happen.

Doug Ross @ Journal

Larwyn’s Linx: Immigration ‘Compromise,’ A Catastrophic Deal

Send us tips! Bloggers: install a Larwyn’s Linx widget. Get real-time news, 24/7, at BadBlue.

Nation

Immigration ‘Compromise,’ A Catastrophic Deal In Any Economy: RS
Shock: Obama’s Pastor Launches Race-Baiting Easter Attacks: WS
A First Amendment challenge to gun control laws?: Lott

California Democrat Wants to Take Your Guns, Land and Liberty: Loudon
This nation is closer to a Civil War than it has been since 1861: Clothesline
Wilding Downtown: SCC

U.S. Reverses Position on U.N. Arms Treaty: TAG
Democrats Abandon Obamacare, Piece by Piece: LoneCon
St. Louis Anti-Gun Rally Becomes Rally To Cede US Sovereignty: Loesch

Economy

Unions, Insiders Ink Secret Immigration Deal With Schumer: NewsMax
15 Year Old Wisconsin Conservative Meets Bullying From Teachers: FW
Not the Devil, But Silver-Tongued: RWN

David Stockman: We’ve Been Lied To, Robbed, And Misled: Peak
America at an “End Stage Metastatis”?: Instapundit
Cut Golf? No Way! Obama Heads Out to Play, Despite Sequester: Dossier

Scandal Central

Illinois to the Federal courts: bugger off: A&L
Do You Qualify as a Domestic Terrorist?: SHTFplan
At the U.N., Iran Is a Powerhouse, Not a Pariah: AIM

Climate & Energy

Global Climate Watchdogs Bark In Britain Too: WZ
EPA’s Tier 3 proposal latest in tsunami of regulations that could raise gasoline manufacturing costs: ELP
China’s losing battle against state-backed polluters: Reuters

Media

Google Celebrates Easter in Their Own Special Way: Driscoll
Equality, justice, fairness, morality vs. liberty and faith (and a Happy Easter, or Pascha, to all): Spellchek
Miss Quisling, I presume: LI

Coloring the News: Driscoll
Chris Wallace to Gabby Giffords’ Husband: Background Check Didn’t Prevent Wife’s Shooting: NB
ISRA: One Rampage Too Many – Police Superintendent Garry McCarthy Has To Go: IB Times

On David Stockman’s Out-Rage: Krasting
WaPo op-ed blames whites for mass shootings; contra facts: Owens
This still makes me laugh every time: @TRScoop

History Lesson: Racist Democrats and the Big Lie: Walsh
AP Scrubs Racist ‘Captains of the Religious Right’ Easter Sermon Remark from Obama Service: NB
Alex Jones: ‘MSNBC Is Like the Ku Klux Klan Channel’ – ‘Just Race, Everything Race’: NB

World

Psst! Cesar Chavez Opposed Illegal Immigrants!: DC
UK: Why are the left so angry about today’s welfare reform? Because its popular – and right.: Spectator
2000-year old Damascus synagogue looted and destroyed: Times of Israel

Sci-Tech (courtesy BadBlue.com/Tech)

BitCon: Don’t: Denninger
Internet Hit by Largest Cyber Attack Yet: Foundry
Police said to use Facebook to stop punk rock house parties: CNet

Cornucopia

5 Mind-Blowing Facts Nobody Told You About Guns: Cracked
Introducing Gmail Blue: Google
My Butt Hurts: @JayCaruso

Image: The single saddest photo at the 2013 NCAA tournament
Today’s Larwyn’s Linx sponsored by: Support KeyWiki: Tracking the Radical Communist Movement

QOTD: “There is no crisis of rifle violence in this state, only a crisis of fear driven by opportunistic legislators.” –Ed Pietruszka

Doug Ross @ Journal