Having voted down Proposal 1 in the Nov. 6 election, the people of Michigan said “NO” to the Emergency Manager (EM) Law—Public Act 4. But the government of Michigan represents the rich for-profit corporations, and the varied global interests of the bond market.
In complete disregard for the citizens of Michigan, the Republican-controlled government of Michigan, in a lame-duck session, passed a new EM law, P.A. 436, which dismantles democracy, restricts the power of the vote and the rights of the people, while allowing the sale of public property to favor the rich corporations and the bond market. The EM Law cannot be overturned by a vote due to an appropriations clause. After the Michigan Supreme Court refused to review an earlier Appeals Court decision upholding “Emergency Managers” (EFM)’s under P.A.72, Governor Snyder is installing an EFM in Detroit under that statute. The State of Michigan, on behalf of corporations and bondholders, has closed off all avenues for getting rid of this law, short of voting out or recalling the legislature. Government and Big Business have merged into a fascist agency against the people.
The EM Laws are being used by wealthy corporations to void their responsibility for the benefits the workers have already paid for. This includes public employee contract cancellations as well as adjustments in state obligations to state and federal relief programs such as Medicaid, Medicare and Social Security.
While Governor Snyder sits on over $1 billion of public money in his rainy day fund, the for-profit corporations are sitting on trillions of dollars in social wealth, having been bailed out with public funds. While Detroit and other municipalities and states across the nation need relief, large investors are waiting for their next opportunity, and worried about when the next crisis is going to hit under this fickle and ridiculous economic system.
Fifty percent of the citizens of Detroit live below the poverty line. In this post-industrial period, Detroit is in no position to pay its bond note. Bonds today are issued for the purpose of retiring older bonds. Since bondholders can’t get any money out of the citizens of Detroit, they plan to sell off public property to meet their note, with their eye especially on the Water Board, followed perhaps by Belle Isle.
For over 30 years, the municipal bond market has been very profitable. But the bond market isn’t risk-free anymore. The bond market is currently on life support as current Fed Chairman Ben Bernanke is purchasing $85 billion a month in bonds, in a futile attempt to prop up the bond market and prevent the collapse of capitalism.
Today we have reached a critical stage in this development. Michigan and Detroit are on the crucial front lines in this fight. We can only move forward when the people truly have freedom and democracy, as well as a government of the people, by the people, and for the people.
