In many ways, it’s like a ghost town. It’s eerily quiet. Driving around in the middle of the afternoon, in a city that once was among the most productive on the planet, you see very little traffic, minimal commercial activity, hardly any pedestrians.
What you’ll see are endless acres of urban ruin, block after block and mile after mile of empty and rotting office buildings, storefronts, hotels, apartment buildings and private homes. It’s a scene of devastation and disintegration that stuns the mind, a major American city that still is home to 900,0000 people but which looks at times like a cross between postwar Berlin and the ruin of an ancient civilization.
Detroit was the arsenal of democracy in World War II and the incubator of the American middle class. It was the city that taught mass production to the rest of the world. It was a place that made cars, trucks and other tangible products, not derivatives. And it was the architect of the quintessentially American idea of putting people to work and paying them a decent wage. It’s frightening to think seriously about what we’ve allowed to happen to this city and what is now happening to the middle class and the American economy as a whole...
...The popular narrative of what happened to Detroit contains a great deal of truth but its focus is too narrow to account for the astonishing decline of this former industrial colossus. Yes, there were the riots of 1967, and white flight; and political leadership that was not just shortsighted but at times embarrassingly incompetent and corrupt. And, yes, the auto industry was a case study in self-destruction.
...Detroit was still viable enough for the Republican Party to hold its convention here in 1980, when it nominated Ronald Reagan. And it was not the riots, but the devastating recession of the early ’80s that really knocked the city senseless. “That’s when the place really cracked,” said Mr. Shaiken, “and that was about aggressive globalization and the lack of an industrial policy, not the riots.”
Detroit and its environs are suffering the agonies of the economic damned because of policies, crafted at the highest national and corporate levels, that resulted in the implosion of crucially important components of America’s manufacturing base. Those decisions have had a profound effect on the fortunes not just of Detroit, or even Michigan, but the entire U.S. economy.
“We’ve been living with the illusion that manufacturing — making things — is so 20th century,” said Mr. Shaiken, “and that we could succeed by concentrating, for example, on complex financial instruments while abandoning the industrial base that sustained so many American families.”
The idea that the fallout from the wrongheaded economic concepts of the past 30 or 40 years could be contained, with the damage limited to the increasingly troubled urban areas while sparing prosperous suburbia, has now proved as phony as Bernie Madoff’s fortune. Americans, whether they live in big cities, suburban towns or rural areas, need jobs, and when those jobs are eliminated (for whatever reasons — technological advances, globalization) without being replaced, the national economy is guaranteed at some point to hit a wall...
And, of course the pillaging continues even though you're more likely to hear about who shot whom in the hood than what the white men in suits are doing here:
...Detroit Mayor Dave Bing is struggling to save his city from fiscal calamity. Unemployment is at a record 28% and rising, while home prices have plunged 39% since 2007. The 66-year-old Bing, a former NBA all-star with the Detroit Pistons who took office 10 months ago, faces a $300 million budget deficit—and few ways to make up the difference.
Against that bleak backdrop, Wall Street is squeezing one of America's weakest cities for every penny it can. A few years ago, Detroit struck a derivatives deal with UBS (UBS) and other banks that allowed it to save more than $2 million a year in interest on $800 million worth of bonds. But the fine print carried a potentially devastating condition. If the city's credit rating dropped, the banks could opt out of the deal and demand a sizable breakup fee. That's precisely what happened in January: After years of fiscal trouble, Detroit saw its credit rating slashed to junk. Suddenly the sputtering Motor City was on the hook for a $400 million tab...
The rape of America coninues. Of course, real 'merikans don't just lay back and accept it. They join in and spread the violence around in a way the locals won't object to boiling the frog nice and slow.
Mr. Herbert, since you keep coming up to the board with the right figures, let me add it up for you. It's not your fault you don't get it. There is some forethought to what's going on in America and the world.
Chaos is the plan.
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