Detroit city, USA, bankruptcy


This video from the USA is called The Committee Against Utility Shutoffs holds demonstration in Detroit.

By Jerry White in the USA:

Emergency manager throws Detroit into bankruptcy

19 July 2013

The emergency manager overseeing the financial restructuring of Detroit filed a petition in federal court Thursday afternoon throwing the devastated industrial city of 700,000 residents into Chapter 9 bankruptcy. Republican Governor Rick Snyder, who appointed Wall Street bankruptcy attorney Kevyn Orr as the city’s emergency manager last March, immediately approved the filing.

The largest municipal bankruptcy in US history paves the way for an unprecedented attack on the pensions and health care benefits of city workers, the further slashing of essential services, and the sell-off of public assets to pay the banks and bondholders who hold the city’s debt.

Announcing the filing, Emergency Manager Kevyn Orr stood side-by-side with the city’s Democratic mayor, David Bing, a multi-millionaire who has slashed the city workforce by 20 percent since taking office in 2009. Both cynically claimed that the bankruptcy would have little effect on daily life and would lead to improved services for city residents. …

Orr has already approved a corporate-backed plan to shut off services to neighborhoods deemed too poor or under-populated for profitable private investment, while handing over public lighting, transportation, garbage collection and other services to for-profit companies. His “turnaround” team has appraised everything from the city’s water treatment plant and masterpieces at the Detroit Institute of Arts to Belle Isle Park and the animals at the Detroit Zoo for possible sale to private investors.

Above all, the bankruptcy filing clears the way to gut the pensions and health care benefits of the city’s 31,000 current and retired employees. By throwing the city into the bankruptcy courts, Orr intends to circumvent Michigan’s constitution, which declares public pensions to be a “contractual obligation” that “shall not be diminished or impaired.”

8 thoughts on “Detroit city, USA, bankruptcy

  1. I watched a documentary a few weeks ago called Detropia. It was crazy – 100,00 homes empty and decaying, entire neighbourhoods dotted with one or two families, little or no services or businesses. Sobering stuff.

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  2. Pingback: Detroit bankrupt, trade union reacts | Dear Kitty. Some blog

  3. The Detroit saga is a result of transporting business overseas, this is the outcome of bad policy whereby the few gain and many are impoverished, overall the American economy will suffer as a result of a minority defining a outcome that is against the interest of the American people as a whole.

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  4. Pingback: Detroit art students against Institute of Arts selloff | Dear Kitty. Some blog

  5. Pingback: Van Gogh painting sold by Detroit museum? | Dear Kitty. Some blog

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