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Detroit and the new feudalism
The first domino
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Not the only US city in this condition
Detroit is bankrupt.
But it's not the only US city that is.
And many, many other sit on the precipice.
This is not a new problem. A trip through US cities shows that many of them are in very, very bad shape.
It's a very predictable pattern:
1. Take away manufacturing jobs by agreeing to import products made by slave labor without any environmental controls
2. Mass unemployment
3. Skyrocket social costs including increase in crime
4. Those with resources leave the city
5. Tax base collapses
What's missing is the final scene of the show...
Investors get their heads out of their you-know-where and start to wonder how the bonds these places float are ever going to get paid off.
Then the real fun begins...
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