AS GOES DETROIT

Detroit has entered the bankruptcy process .  The purpose of this move to solve their debt problem is going to destroy the workers pensions and benefits won through years of service to the city.  Now some of you say these workers just get too much for their service , and you think they should be raped.  The truth of the matter is this bankruptcy is being conducted to pay off the bets they made in the market.(called derivatives.) (simply a bet that an instrument will move one way or the other over time)  As they are finding out now a bet that was suppose to guard their investments and make the funds safer.  Now they are finding out the exactly the opposite is happening.   They owe huge amounts to payoff their bets.

Derivatives remember are just a bet they cover nothing in the real world but have given priority in a bankruptcy which means they get paid off first and the pensioners are last.   So people who have worked all their life for the people of the city are going to get screwed  out of pensions and benefits they worked years to get.

Which brings to the front my feelings that “LOYALTY” once a valued attribute of an employee today means nothing to the powers that be.  Your just a number in a book with the lowest priority of all creditors.

This trend is worldwide and is being driven by nothing more than bets and is well on the way to destroying workers everywhere.  If you can bear to look the whiz kids say there are 600 trillion dollars of derivatives out in the world which happen to be 10 times world GDP.  Which brings a lot of yawns to most people who write this off as too complicated for him to worry about.

Detroit and other company bankruptcies should by this time have you up on your toes and ready to rumble.  They are after you and I while the 1% ers get more filthy rich then they are. All  on the worker bees back.  The obvious end to this is a world full of hard working people who now have to work till they drop, but we know they will just throw us out into the street to fend for ourselves at the end of life.

I don’t begrudge the rich being rich but I do hold a grudge for them wanting it all while us hard working types go on the dole.  The end game is clear and has been shown time after time in history.  Push people far enough and real trouble happens.

You would think we would have gotten smarter over time but it appears the same lessons have to be relearned about every 80 years.  If you want to see what our future looks like go google up pictures of life before social security and pensions existed, 80% of seniors in the late 20’s lived in poverty.. We  are fast headed to those kind of numbers again.
Solutions are simple, enact the laws already on the books and put derivatives in their earned position, last in line to be paid.   The people who have given their working lives to their  city, country  or company  should be at the head of the line in a bankruptcy proceedings.  The breaking of contracts around the world in the courts shows clearly where the law shows preference.   It makes one think of who can you trust to honor their written contracts . Where are the days when a handshake sealed a deal.?

Just in case you want to know, I draw 3 pensions , Social Security (reduced by 1/2 because  ) I also draw a military pension for my 27 years of service (17 of it in the reserves)  and to that add a USBR pension for 20 years operating government power plants.  So if my pensions would go I might be setting or your doorstep looking for a handout>

 

ELLEN BROWN ON DETROIT

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2 Comments on “AS GOES DETROIT”

  1. RJOHNSON Says:

    Thought there was a FPGF ~ Federal Pension Guaranty Fund that insured pensions in case of default or is this not an option since the money was invested supposedly versus being safely stored, I guess, in government accounts?

    • thegreytiger Says:

      There is a pension fund but it pays something less than half of what your pension would have been. Problem is that fund is about broke too. Bob


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