Who Will Bail Out Detroit?
By: Tom Chatham
The Dominoes are beginning to fall. The result of deindustrialization in America is beginning to have it’s intended effect. More and more cities are losing needed revenue and drowning in a sea of debt. The result is and will continue to be bankruptcies and defaults that will see creditors taking possession of large tracts of real estate in the U.S.
When municipal bonds loose their luster and everyone begins to realize the bonds will default, why would anyone want to invest in these instruments anymore? If you happen to be someone with large amounts of dollars and you want to get something in return for them or at least reduce your losses in the event of high inflation or default of the dollar, a loan to a bankrupt municipal might be just what you want.
The FED is still buying mortgage backed securities in the billions of dollars every month. In the event of default they will effectively own all of the real estate backing those mortgages. Let’s think even bigger. If you loan billions to a bankrupt city knowing fully well they will never pay it back and will eventually default again, it might be a good way to pick up an entire city at very little cost. But who would want to own an entire bankrupt city? Someone with lots of cash they need to protect. Here is one possibility.
The Chinese have been spending their dollars as fast as possible on anything with physical value. They have invested in energy properties, mines, real estate, movie theatres, manufacturing businesses, food production facilities and banks in the U.S. over the past few years. They want physical assets rather than our devaluing dollars. They have been buying properties in various locations where they might be able to set up new residential and manufacturing facilities in the future, run and owned by them.
With the massive and increasing numbers of Chinese living in China, it is becoming harder for them to provide basic essentials for the entire population. They need more living space and natural resources. Why spend a lot of money bringing resources to China when it is much easier and cheaper to send Chinese workers to the resources. If they could buy several large cities in the U.S. in areas near vital natural resources like water and food, they could reduce their population density by tens of millions and procure much needed resources for themselves. Look at the types of resources they have already bought here. Just the types of things you need to supply a large population.
This is just one possibility but it just goes to demonstrate why we should be careful at this juncture in this crisis. There are other entities in the world with the financing and agenda to want large tracts of U.S. land. As was once said by a founding father, Americans may wake up one morning to find themselves foreigners in the land once conquered by their fathers.
The bankruptcy of American cities provides an opportunity for an outside force to enter and take control of America one piece at a time. Once in control of large areas this entity can force the relocation of large populations out of the area or possibly into it depending on the economic factors in play.
The thing to watch over the coming months is who provides funding to these bankrupt cities and what the price will be for future defaults. The bankruptcy of large numbers of cities is also a good cover for Agenda 21 proponents to control the areas they want to utilize in the future. In any event, Americans should keep an eye on what goes on behind the curtain as this all unfolds.