Detroit debts ‘should be cancelled’

A political commentator says Detroit™s debts are œillegitimate” and œshould be cancelled.”
œThe debt is illegitimate and therefore should be cancelled,” Abayomi Azikiwe, editor of Pan-African News Wire said, œThis is the only solution for Detroit.”
œFirst of all we have to understand that Detroit was hit by a wave of predatory lending and housing which in fact resulted in some 100,000 foreclosures. And as result of these foreclosures the tax base of the city was eroded over the last decade even prior to the wave of predatory lending you had large outsourcing and downsizing in the automotive industry.”
œWhen the city is in a situation that cannot gain revenue through taxes they have to borrow from these same financial institutions which of course led to the massive of foreclosure crisis,” Azikiwe told Press TV.
He also said that if senior citizens of œthe birthplace of the world™s automotive industry” are stripped of their social security to pay off the city™s debts, this would create a very bad pattern for municipalities.

œThere are $6 billion in pension fund that are at stake in this trouble,” he noted.
œThis bankruptcy was engendered by the banks and large financial institutions insides the United States. They are at the root cause of the crisis.”
The Obama administration is making no sign of helping Detroit as its emergency manager and republican governor steer the city towards bankruptcy proceedings.
At least five republican senators have recently proposed tacking language onto spending bills that would broadly prohibit municipal bailouts.
These proposed measures are aimed towards preventing any federal aid to Detroit.
GOP leaders are attacking the city with notable venom at a time when its 700,000 residents–80 percent of whom are African-American–must contend with deepening crises of poverty and privatization.
AN/ARA
Republished from: Press TV