Monday, May 13, 2013

Detroit Emergency Manager Shows the City with $162M Negative Cash Flow

 The city’s state-appointed emergency manager, bankruptcy attorney Kevyn Orr reports that Detroit’s net cash position was negative $162 million as of April 26 and that the projected budget deficit is expected to reach $386 million in less than two months.

The report also notes the instability in leadership atop the city’s police department. Detroit has had five different police chiefs over the past five years with varying plans on how to best handle the city’s high crime rate.

It is still many years away, but the federal government is headed in the same direction. We will end up being a banana republic in a climate that doesn't support bananas. Detroit is just a leader in this direction.

Unfortunately, the federal government has a central bank that can print money, something Detroit doesn't have, which means we must fear Gono Economics at the national level.

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