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Topic: Detroit Becomes Largest U.S. City To File Bankruptcy - page 3. (Read 7384 times)

donator
Activity: 1218
Merit: 1015
Oh, yeah... TMC is definitely a great example of freedom really turning things around. Just look how far down violent crime rates have dropped since the free market stepped in in '95. You'll see how poorly the national average, which still suffers from the national quasi-military police force, has fared over time.



(2012 was a particularly bad year, up from '11, which was up from '10 -- sorry the graph doesn't have an appropriate amount of data... best I could find.)

Data before '99 is allegedly available @ www.cus.wayne.edu/content/presentations/LeadDetroitCrime.pdf but I can't load the damned thing. FBI data seems to suggest the rate was 880.8 in 1995, but that seems too low for me to believe even when trying to make a counter-point.
legendary
Activity: 1400
Merit: 1013
This is What Budget Cuts Have Done to Detroit ... And It's Freaking Awesome

Quote
The language of budget cuts, austerity, and sequestration seem to dominate the media's landscape these days, instilling fear into Americans of vital government services being cut and chaos ensuing if governments aren't allowed to spend and borrow infinitely. Conservatives decry supposed cuts to the military-industrial-complex, and liberals bemoan that without government welfare transfer programs, there would be social Darwinism. Senator Barbara Boxer (D-Calif.) even blamed the Benghazi scandal on — wait for it — budget cuts and the sequester.

Leaving aside the details on whether the U.S. budget is actually shrinking, one needs to look no further than the city of Detroit to find the spontaneous order, civic cooperation, and peaceful market forces that take over when government simply isn't around.

Detroit is absolutely bankrupt. The city faces a cash shortfall of more than $100 million by June 30. Long-term liabilities, including pensions, exceed $14 billion. Michigan Governor Rick Snyder wants to bail out Detroit's city government even further. Thanks to the financial situation of Detroit, emergency services like police and fire departments are being severely cut short. 911 is only taking calls during business hours. Homes have been abandoned making parts of the city look like a ghost town.

If our public servants are right and wouldn't dare lie and try to scare us, then chaos, anarchy and lawlessness should reign in Detroit now, right? Well, not exactly.

Dale Brown and his organization, the Threat Management Center (TMC), have helped fill in the void left by the corrupt and incompetent city government. Brown started TMC in 1995 as a way to help his fellow Detroit citizens in the midst of a rise in home invasions and murders. While attempting to assist law enforcement, he found little but uninterested officers more concerned with extracting revenue through traffic tickets and terrorizing private homes with SWAT raids than protecting person and property.

In an interview with Copblock.org, Brown explains how and why his private, free market policing organization has been so successful. The key to effective protection and security is love, says Brown, not weapons, violence, or law. It sounds a bit corny, yes, but the results speak for themselves.

Almost 20 years later and Detroit's financial mess even more apparent, TMC now has a client base of about 1,000 private residences and over 500 businesses. Thanks to TMC's efficiency and profitability, they are also able to provide free or incredibly low-cost services to the poor as well.

The reasons TMC has been so successful is because they take the complete opposite approach that government agencies, in this case law enforcement, do. Brown's philosophy is that he would rather hire people who see violence as a last resort, and the handful of Detroit police officers who actually worked with Brown in the earlier years and have an interest in genuine protection now work for TMC. While governments threaten their citizens with compulsion, fines, and jail if they don't hand over their money, TMC's funding is voluntary and subject to the profit-loss test; if Brown doesn't provide the services his customers want, he goes out of business.

This means that Brown is not interested in no-knock para-military SWAT raids, "officer safety" as the highest priority, bloated union pensions, or harassing people for what they have in their bloodstream. TMC works with its customers on the prevention of crime as well rather than showing up after the fact to take notes like historians.

The heroic Brown and TMC are a great example of how the market and civil society can and do provide services traditionally associated with the state far better, cheaper and more in tune to people's wants and needs. I have always believed policing, protection and security are far too important to be run by the state — especially in age of militarized Stormtroopers — and Brown is helping show why.

Law enforcement isn't the only "essential government service" that the private sector is taking over and flourishing in. The Detroit Bus Company (DBC) is a private bus service that began last year and truly shows a stark contrast in how the market and government operates. Founded by 25-year-old Andy Didorosi, the company avoids the traditionally stuffy, cagey government buses and uses beautiful vehicles with graffiti-laden exterior designs that match the heart of the Motor City. There are no standard bus routes; a live-tracking app, a call or a text is all you need to get picked up in one of their buses run on soy-based biofuel. All the buses feature wi-fi, music, and you can even drink your own alcohol on board! The payment system is, of course, far cheaper and fairer.

Comparing this company's bus service to say, my local San Francisco MUNI transit experience, is like comparing the services of local, free-range, organic farms in the Bay Area to the Soviet bread lines.

Not surprisingly, the city government, which has no time to protect its citizens, does manage to find the time to harass peaceful citizens in this spontaneous, market order. Charles Molnar and a couple of other students from the Detroit Enterprise Academy wanted to help make benches for the city's bus stops, where long-waits are the norm, equipped with bookshelves to hold reading material.

Detroit Department of Transportation officials quickly said the bench was "unapproved" and had it taken down. Silly citizens, don't you know only governments can provide these services?

The TMC and the DBC are just two of the larger, more visible examples of the market and voluntary human cooperation reigning in Detroit. "Food rebels," running local community gardens, are an alternative to Big Agriculture and government-subsidized factory farms. Private parking garages are popping up. Detroit residents are using Lockean homesteading principles to repurpose land amongst the rubble of the Fed-induced housing bubble. Community events like Biergartens and large, civic dining gatherings (with no permits or licenses!) are being organized privately. Even Detroit's artists are beginning to reflect this anarchic, peaceful movement in their artwork.

Detroit's city government may be in shambles financially, but the citizens of Detroit are showing what happens when people are given their liberty back. For centuries, libertarians have been arguing for strict limits on state power, the benefits of private, civic society, and the bottom-up, spontaneous order that arises where free markets and voluntary interactions dominate. Perhaps we shouldn't be so scared and sicken with political Stockholm Syndrome the next time politicos fear-monger over budgets cuts.
legendary
Activity: 1834
Merit: 1019
Might be a good time to buy-to-rent in Detroit. Especially if the USD tanks as that will mean that inland production will go up (imports gets more expensive). The bankruptcy might lead to better financial control and federal money/ local tax breaks etc

If I was in the US and wanted to start up a production facility, Detroit might be a likely location.

From the bottom the only way is up.  Wink

Please explain how an overburden of debt will tank the USD.  I see debt as deflationary since interest sucks dollars out of the economy.  Defaults will erase uninsured savings (don't keep more than the FDIC limit).  Made in the USA will return, but there will be few jobs.  Robots or 3-D printers are cheaper in the first year than human labor for many tasks.  Even further excess labor supply will lead to wage cuts.  Productivity per worker will boom as robots and software replace people.  Humans will still be needed for most construction (although people are 3-D printing skyscrapers now), robot maintenance, customer service, engineers, programmers, and highly delicate work (although this can be aided by machines).  Of course, there will still be demand for creative types to entertain and enlighten us.

and the better off we'll be in the long run
legendary
Activity: 1904
Merit: 1002
Might be a good time to buy-to-rent in Detroit. Especially if the USD tanks as that will mean that inland production will go up (imports gets more expensive). The bankruptcy might lead to better financial control and federal money/ local tax breaks etc

If I was in the US and wanted to start up a production facility, Detroit might be a likely location.

From the bottom the only way is up.  Wink

Please explain how an overburden of debt will tank the USD.  I see debt as deflationary since interest sucks dollars out of the economy.  Defaults will erase uninsured savings (don't keep more than the FDIC limit).  Made in the USA will return, but there will be few jobs.  Robots or 3-D printers are cheaper in the first year than human labor for many tasks.  Even further excess labor supply will lead to wage cuts.  Productivity per worker will boom as robots and software replace people.  Humans will still be needed for most construction (although people are 3-D printing skyscrapers now), robot maintenance, customer service, engineers, programmers, and highly delicate work (although this can be aided by machines).  Of course, there will still be demand for creative types to entertain and enlighten us.
newbie
Activity: 11
Merit: 0
Detroit was literally a case-study in financial mis-management at the governmental scale...
sr. member
Activity: 462
Merit: 250
Might be a good time to buy-to-rent in Detroit. Especially if the USD tanks as that will mean that inland production will go up (imports gets more expensive). The bankruptcy might lead to better financial control and federal money/ local tax breaks etc

If I was in the US and wanted to start up a production facility, Detroit might be a likely location.

From the bottom the only way is up.  Wink

Globalization / NAFTA at work here folks..  hope you took advantage of the high puchasing power during the transition since it washes away quickly

There is no reason to rebuild fallen old cities in america...  none..  the infrastructure is spent.  Small old towns can get revitalized if they are in good locations (near good farms or energy producing areas)

You are seeing the 4th turning at work.  Sucking the wealth out of the Empire as the Elite pack up and shift to control the next superpower.


It actually would be good if America did combine north, south and central together and created the Amero..  as long as they break away from the rest of the world since it would have all the resources it could ever want.  Wages and buying power wouldn't be as bad as it would be continuing with full on globalization

full member
Activity: 224
Merit: 100
One bitcoin to rule them all!
Might be a good time to buy-to-rent in Detroit. Especially if the USD tanks as that will mean that inland production will go up (imports gets more expensive). The bankruptcy might lead to better financial control and federal money/ local tax breaks etc

If I was in the US and wanted to start up a production facility, Detroit might be a likely location.

From the bottom the only way is up.  Wink
legendary
Activity: 4130
Merit: 1307
And a Michigan judge blocked it just a bit ago.  Who knows what the appellate court will do:
I have no neighbors. two houses on either side and both behind me are empty, and I live in the nicest area still inside Detroit! it is now common practice here if police catch you squatting, as long as your not scrapping copper, have no open fires or illegal electric hook-ups and not trashing the place, your allowed to stay with no hassles. they even started alowing squatters to get legal gas/electric hook-ups with a few inspections and a pre-paid account.

Can I move into one of the houses next to you and bring my Bitcoin miners? I just need electric and Internet. I mostly just keep to myself and own my own means of protection. I could probably find someone similar to me that could live in the house on the other side of you.
donator
Activity: 1419
Merit: 1015
I have no neighbors. two houses on either side and both behind me are empty, and I live in the nicest area still inside Detroit! it is now common practice here if police catch you squatting, as long as your not scrapping copper, have no open fires or illegal electric hook-ups and not trashing the place, your allowed to stay with no hassles. they even started alowing squatters to get legal gas/electric hook-ups with a few inspections and a pre-paid account.

Can I move into one of the houses next to you and bring my Bitcoin miners? I just need electric and Internet. I mostly just keep to myself and own my own means of protection. I could probably find someone similar to me that could live in the house on the other side of you.
newbie
Activity: 21
Merit: 0
Great. Now how long until US of A goes bankrupt?
sr. member
Activity: 260
Merit: 250
Yup. Infact, entire states can go bankrupt - and they will.

I'm not sure if this is big enough to trigger effects elsewhere in the system - it's only $20bn written-off - although apparently it might affect some smaller insurance companies.

I guess we'll have to see.
legendary
Activity: 3920
Merit: 2349
Eadem mutata resurgo
Looks like the socialists taxed themselves to prosperity again ...  Grin

I heard Belle Island was going to be put up for sale ... any chance Bitcoiners can buy it and turn it into an economic free trade zone and to boost Detroit commercial activity and innovation park/center aka

"THE Bitcoin Island?"
member
Activity: 111
Merit: 10
Bitcoin user not affected Cheesy

LOL!

I knew Detroit was bad, but I am just learning now that an entire city could go bankrupt. I guess I never really thought of it really, could this be a house of cards type situation? Scary.
legendary
Activity: 1540
Merit: 1000
Bitcoin user not affected Cheesy
legendary
Activity: 2324
Merit: 1125
full member
Activity: 140
Merit: 100
Hoist the Colours
legendary
Activity: 1834
Merit: 1019
I live in Indiana, the old governor ran things relatively okay. Pretty business friendly, reasonable taxes, and one of the few state governments that doesn't have a deficit. Also eliminating its inheritance tax. Still wouldn't live here though  Cheesy
donator
Activity: 1218
Merit: 1015
i think it'll be a good buy once we reach total capitulation Smiley

I was just thinking might be a good time to buy land.

Cost of ownership throws me off :/
Yeah. 2-5 years of backtaxes on everything (MI property taxes are high across the board, but Detroit is particularly suck) + very high insurance rates.

Try to find a failing town in Indiana, Goat. They're pretty good on property taxes. I firmly believe the best place to live is right on the border with other states (corners are best). It's almost like living lawless. Buy your milk in one state which doesn't have price minimums, alcohol and gas in another, go to the doctor in another and pick up some "illegal" fireworks while you're there...  Cheesy
legendary
Activity: 1834
Merit: 1019
i think it'll be a good buy once we reach total capitulation Smiley

I was just thinking might be a good time to buy land.

Cost of ownership throws me off :/
legendary
Activity: 1834
Merit: 1019
i think it'll be a good buy once we reach total capitulation Smiley
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