Slashing of Detroit Workers’ Pensions is Treason Against the Nation
“This is worse than a violation: this is treason. That judge, whether he understands it or not, committed treason against the United States. Because he’s setting members of the United States against each other’s throats on these issues. They’re trying to induce people in Michigan, or places which are not Michigan, to say, “well that’s a Michigan problem.” It’s that mentality. We’re a united nation, we are the United States. We are our United States. And we are concerned about everything that effects everything in the United States. And anything of any significance gets treated accordingly.”
– Lyndon LaRouche, Dec. 9th, 2013
Last Monday, Federal Bankruptcy Judge Steven Rhodes issued an outrageous ruling that despite protections by the Michigan State Constitution, over 20,000 retired workers’ pensions will be placed on the chopping block under Chapter 9 Bankruptcy. While admitting that there were particulars that suggest that the intention from the very beginning was to use bankruptcy as a weapon to strip workers of their pensions, he went ahead anyway and ruled against any objections to initiating the bankruptcy of the City of Detroit. By making the decision to allow the reduction of pensions of $19,000 a year for municipal workers, many of whom have no other source of income, Judge Rhodes committed the unconscionable crime of bureaucratic mass-murder. While Detroit retirees are being told to start over from scratch, a $350 million loan from Barclays was arranged to pay off fees for interest rate swaps that were criminally rigged against Detroit by the manipulation of the now infamous LIBOR.
As Lyndon LaRouche said during a discussion with the LPAC Policy Committee on Monday, this is intentional murder against the people of Detroit, and this is treason against the United States and must be treated as such by real patriots.
This is absolutely a turning point for the entire nation and the entire planet. What this decision signifies is the transition from the already ongoing bail-out of so-called “systemically important” mega-banks to orderly resolution or bail-in as under Title II of the Dodd-Frank bill. Whatever you think you have saved or earned, whether it is your retirement or bank deposits, is now at the discretion of Wall Street gamblers, whenever they decide that your assets are now their assets. Given that Michigan’s Constitution is one of the strongest in its protection of state and municipal employees pension contracts, the precedent that this sets that pensions are no longer sacred, has not been lost on Wall Street vultures, who are already slobbering over the potential for replicating the Detroit model all across the country. In reality, what has been unleashed by this Judge is murder on a vast scale.
The recent thug tactics and threats of professional bank lobbyists against participants of the National Conference of State Legislators in Washington D.C. last week indicates the degree to which Wall Street is in full panic mode to prevent any discussion of re-implementation of Glass Steagall, the only available measure for derailing the bail-in of the world’s systemically important banks.
It would be a mistake to assume this is merely an American issue. In recent weeks, Ukrainian President Victor Yanukovych broke off negotiations around joining the E.U and immediately began orienting Ukraine’s policy toward cooperation with China and Russia. This rejection of the bail-in model has made Ukraine, as Russia has been, a target of subversive operations run out of the U.S. and Western Europe, aiming to break up and destroy the sovereignty of Ukraine. When the alternative is population collapse and dark age – as is now becoming the norm for E.U. Countries – who can blame Ukraine for not wanting to join the E.U? As long as the City of London and Wall Street are allowed to pursue the destruction of nations such as Ukraine, who take measures to maintain independence from a system of bankers dictatorship, the threat of the outbreak of general and thermonuclear war exists.
Likewise, the only possible way the United States can organize a full economic recovery is to partner with the nations of the Pacific basin that have maintained an orientation towards high technology science driver programs. The Congress must now, despite themselves, accept this truth and abandon the murderous policy of bail-out and bail-in. Glass Steagall must be re-instated in the immediate weeks as the first step toward initiating this economic recovery.