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The Black Robe Regiment - The Patriots Call

Democrats party of Racism
Racism of the Democrat Party
Herman Cain - The DNC has BRAINWASHED most of the Blacks of this Nation
Racism - the Nemesis of the Democrat Party
Democrats invented racism and democrats HATE all blacks
The Snooper Report articles on Democrat invention of racism

The March on DC
Callin’ All the Clans Together
Sick and tired - marching towards the Constitution of the United States
We. Are. Finished. With.  DC.
We. Are. Finished. With. DC. - Addendum Part 1

Civility: The Leftinistra Own None Of It
Civility: The Leftinistra Own None Of It Part 2(?)
Civility: Leftinistra Own None Part Three
Obama, Civility and The Clansmen of Dumb
Brain Dead Leftinistra: Their Stoic Civility
Libtards Have No Class - Civility Escapes Their Brain Deadness
The States Will Be the Next Battlefield in the Fight Over ObamaCare
War Is Coming: Blood On Our Own Streets - Thanks Democrats
Civil War…
We Are In The Midst of Chaos and Civil War
Live Free Or Die
Live Free Or Die Trying
State’s Sovereignty or Live Free Or Die
Live Free Or Die - The Movement Marches On
The Country Surrounds The City

When They Came
Is The Left Still “Proud To Be a Left-Wing Extremist”?
Be It Known - Attention Unconstitutional Congress
Obama: One Big Ass Mistake America
Do Birthers Rock and Roll or Stop and Drool?
Good vs Evil…It Is Your Choice
I Apologize For My Nation
Obama’s Civilian National Security Forces (CNSF)
Obama’s Brown Shirts - Civilian National Security Forces
What Is It About The American Liberal?
The Plan To Destroy America
Another Soldier Has Been Given the Haditha Treatment!
Callin’ All The Clans Together
Callin’ All The Clans Together Show
A History of the List of 45
Constitutionality: The Movement
Vindication: Iraq’s Saddam and Al Qaeda Links Revealed
Redefining The Center or the Moderate
The HIC (Hoax In Charge) Going To Copenhagen
We Didn’t Start This Goddamn War!

Copy Cat Frauds of the IAVA

Contract With America
Snooper’s Declaration of Independence
Thanks Obama

Contract From America

Timothy McVeigh
Thoughts To Ponder and Reflect Upon
Snooper Report Vindication: Al Qaeda, TWA Flight 800 and OKC Bombing
Clinton alludes to 1995 bombing, says words matter

Missing 13th Amendment
TITLES OF “NOBILITY” AND “HONOR” - The Missing 13th Amendment

The Coup
Military Coup Against Obama

The United States Constitution
Our founding document wasn’t set in stone for a reason

Deepwater Horizon
Did Hugo Chavez Sink the Deepwater Horizon Oil Platform?

MSLSD Lies
The New Right

Arizona Rising

Texas Wars

This is pretty much a bunch of crap, FYI.
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Wake Up GOP

This is pretty much a bunch of CRAP, FYI HINT: “MOSTLY TRUE” is a “MOSTLY FALSE” deal which means “MOSTLY TRUE” is a LIE.
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Tuesday
Dec212010

$2tn debt crisis threatens to bring down 100 US cities

Isn’t this what Gov Chrstie said the other day?

Overdrawn American cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the US economic recovery. Nor are European cities safe – Florence, Barcelona, Madrid, Venice: all are in trouble. Shuttered homes and businesses in downtown Detroit, Michigan. American cities and states have debts that could be as high as $2tn. Photograph: Spencer Platt/Getty ImagesMore than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned.

Meredith Whitney, the US research analyst who correctly predicted the global credit crunch, described local and state debt as the biggest problem facing the US economy, and one that could derail its recovery.

“Next to housing this is the single most important issue in the US and certainly the biggest threat to the US economy,” Whitney told the CBS 60 Minutes programme on Sunday night.

“There’s not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars’ worth of defaults.”

New Jersey governor Chris Christie summarised the problem succinctly: “We spent too much on everything. We spent money we didn’t have. We borrowed money just crazily. The credit card’s maxed out, and it’s over. We now have to get to the business of climbing out of the hole. We’ve been digging it for a decade or more. We’ve got to climb now, and a climb is harder.”

American cities and states have debts in total of as much as $2tn. In Europe, local and regional government borrowing is expected to reach a historical peak of nearly €1.3tn (£1.1tn) this year.

Cities from Detroit to Madrid are struggling to pay creditors, including providers of basic services such as street cleaning. Last week, Moody’s ratings agency warned about a possible downgrade for the cities of Florence and Barcelona and cut the rating of the Basque country in northern Spain. Lisbon was downgraded by rival agency Standard & Poor’s earlier this year, while the borrowings of Naples and Budapest are on the brink of junk status. Istanbul’s debt has already been downgraded to junk.

Whitney’s intervention is likely to raise the profile of the issue of municipal debt. While she was an analyst at Oppenheimer, the New York investment bank, in October 2007 she wrote a damning report on Citigroup, then the world’s largest bank, predicting it would cut its dividend. She was criticised for being too pessimistic but was vindicated when the bank was forced to seek government support a year later. She has since set up her own advisory firm and is rated one of the most influential women in American business.

US states have spent nearly half a trillion dollars more than they have collected in taxes, and face a $1tn hole in their pension funds, said the CBS programme, apocalyptically titled The Day of Reckoning.

Detroit is cutting police, lighting, road repairs and cleaning services affecting as much as 20% of the population. The city, which has been on the skids for almost two decades with the decline of the US auto industry, does not generate enough wealth to maintain services for its 900,000 inhabitants.

The nearby state of Illinois has spent twice as much money as it has collected and is about six months behind on creditor payments. The University of Illinois alone is owed $400m, the CBS programme said. The state has a 21% chances of default, more than any other, according to CMA Datavision, a derivatives information provider.

California has raised state university tuition fees by 32%. Arizona has sold its state capitol and supreme court buildings to investors, and leases them back.

Potential defaults could also hit Florida, whose booming real estate industry burst two years ago, said Guy J. Benstead, a partner at Cedar Ridge Partners in San Francisco. “We are not out of the woods by any stretch yet,” he said.

“It’s all part of the same parcel: public sector indebtedness needs to be cut, it needs a lot of austerity, and it hit the central governments first, and now is hitting local bodies,” said Philip Brown, managing director at Citigroup in London.

In Europe, where cities have traditionally relied more on bank loans and state transfers than bonds, financing habits are changing. The Spanish regions of Catalonia and Valencia have issued debt to their own citizens after financial markets shut their doors because of the regions’ high deficits. Moody’s cut to the rating of the Basque country on Friday left it still within investment grade but noted “the rapid deterioration in the region’s budgetary performance in recent years”. It said it expected it to continue over the medium term.

In Italy, Moody’s and S&P have threatened to downgrade Florence, while Venice has been forced over the past few months to put some of the palazzi on its canals up for sale to fund the deficit.

“Cities are on their own. Governments won’t come to their rescue as they have problems of their own,” said Andres Rodriguez-Pose, professor of economic geography at the London School of Economics. “Cities will have to pay for their debts, and in some cases they will have to carry out dramatic cuts, such as Detroit’s.”

California crunch

Vallejo, a former US navy town near San Francisco, is still trying to emerge from the Chapter Nine bankruptcy protection it entered in 2008.

The city, now a symbol of distressed local finances, is still negotiating with the unions, which refused to accept a salary cut plan two years ago. Paul Dyson, an analyst with the Standard & Poor’s credit agency, said Vallejo, which is mostly a dormitory town for Oakland or San Francisco employees, did not have enough local industry to sustain its finances and property tax – a major source of local income – plunged with the collapse of the real estate market. The S&P credit-rating agency has a C rating on the town – the lowest level.

With a population of about 120,000, Vallejo has $195m (£125m) of unfunded pension obligations and has to present a bankruptcy-exit plan to a Sacramento court by 18 January. Since 1937, 619 local US government bodies, mostly small utilities or districts, have filed for bankruptcy, Bloomberg News recently reported. US cities tend to default more than European municipalities as they usually rely on bonds issued to investors, which enter into a default if the creditor misses payments. European towns, by contrast, traditionally depend on bank loans and government bailouts.

The Snooper Report.
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