Detroit on the Auction Block
The corporate plan to abolish the last vestiges of urban democracy in the United States is proceeding on a “hyper fast track” with this week’s court ruling on December 3, 2013, that Detroit is eligible for bankruptcy “protection.” Judge Steven Rhodes quickly made clear that the only parties to be protected in his venue are the bankers that will get first crack at the Black metropolis’s remaining assets. Public workers’ pensions, he ruled, are not entitled “to any extraordinary attention” under federal bankruptcy law, despite the Michigan state constitution’s prohibitions against tampering with or diminishing pension benefits. The stage is now set for Kevyn Orr, the state-imposed Emergency Financial Manager, to put Detroit in hock to Britain’s Barclays Bank for $350 million, in order to pay off Bank of America and UBS for a 2005 derivatives deal with the city. Barclay’s would then become Detroit’s “super-priority” creditor—King Predator—with first dibs on all city incomes and assets over $10 million.
The trial on Detroit’s “restructuring” begins December 17 in Rhodes’ court but, based on his conduct since assuming jurisdiction, there is little doubt of the outcome. The judge is an empathetic hangman who listens patiently to the pleas of the people—and then swiftly condemns them. He agreed with the pensioners that Orr had failed to negotiate in “good faith” with the unions, but then ruled that the petition for bankruptcy had been filed in good faith—which somehow negated Orr’s bad faith negotiations.
Municipal bankruptcies are very rare, and tend to be long and tortuous legal ordeals, but Rhodes has greased the skids for the banksters to gulp down the city like fast food. He is on an accelerated Wall Street schedule, and there is no time to waste. Detroit is the golden opportunity to shape anti-democratic legal precedents that can be applied, nationwide, with the least resistance from the white American public. The city is guilty of excessive Blackness (82 percent) and must be punished. In a racist society, Detroit’s bankruptcy fits perfectly the legal maxim that “hard cases” or “great cases” make “bad law.” Whites can be expected to applaud a negative judgment on a Black city, with little thought to the ramifications for their own situations. Michigan voters, who rejected the idea of state emergency managers in a referendum, nevertheless favored Orr’s filing of bankruptcy for Detroit. Whites have always made exceptions to common notions of justice when it comes to African Americans, resulting in grotesquely bad laws.
Wall Street is counting on reflexive racism to smooth the path to a new legal and social order, where capital is unencumbered by democratic constraints. Having already succeeded in disenfranchising a majority of the Black population of Michigan, there are now fewer legal impediments to doing the same thing to whites. After all, thanks to the Black Freedom Movement of the Sixties, the law is race-neutral.
Kevyn Orr, Judge Rhodes and Michigan’s Republican Governor Rick Snyder work for the banking cartel—as does President Obama and the leaders of the Democratic Party, who have done nothing to interfere with the urban doomsday process that is unfolding in Detroit. (Barclays Bank and UBS, the prime beneficiaries of Orr’s restructuring plan, were just this week cited for taking part in a massive conspiracy to rig global LIBOR1 interest rates, in what has been called the greatest financial collusion of the century.) Finance capital, which creates nothing, is confiscating the wealth of the world. In the U.S., a thin veneer of democratic structures stands in the way. Therefore, restructuring is in order. What better place to start than in Detroit, a city filled with people who can be made exceptions to democratic norms.
Soon, the exception will become the rule.
—Black Agenda Report, December 4, 2013
http://blackagendareport.com/content/detroit-auction-block
1 London Interbank Offered Rate (LIBOR) is the world’s most widely used benchmark for short-term interest rates.