The Oligarchs and Public Debt
Sunday, March 13th, 2011Shlok hits it on the head:
The Rise of the Corporate State
In order to preserve the portfolios of bondholders, Michigan is ramrodding this legislation:
The new law would allow emergency managers to terminate labor contracts, strip local ordinances, hold millage elections, dissolve a government with the governor’s approval, and merge school districts.
It would allow managers to remove pension fund trustees or become a sole trustee if a pension fund is less than 80% funded. It allows managers to recommend that a local government file for Chapter 9 bankruptcy, but leaves the final decision to the governor.
State legislatures, the bush leagues of American politics, can often be bought up by a special interest for less than one million dollars in campaign contributions. Governors are slightly to moderately more expensive ( a good bit more expensive in large states). A fantastic ROI when it yields control of billions of tax dollars. Better than anything comparable in the private sector except, perhaps, the illegal drug trade.
Acquisition and divestmentment of public debt under what terms by municipalities, counties and local government entities are political decisions. The Republican governor of Michigan, Rick Snyder, has whored himself out to the oligarchy to thwart the ability of local, elected, governments from making smart and perfectly legal business decisions – as contracting parties in a bond market – regarding their public debt so that the taxpayers of Michigan can be farmed as long as possible and at the highest rates, for the benefit of the financial oligarchy. No risk for them but serfdom for you.
This is about as anti-democratic, pro-big government, pro-high taxes and anti-free market as it gets and it is being promoted by a Republican.
We need a new major political party if liberty and democracy are to have anyone to speak for them.





