Welcome To The Third World.

bananas-504478_1920I have been amused in the past when liberal Democrat demonstrations spark a chant of “This is what Democracy looks like..

No.  its not.

They have achieved the goals of their epic struggle against tradition, rule of law, and flat out decency and morals. It is NOT what a Democracy looks like.   This is what a Banana Republic looks like:

FBI Director James Comey has announced that Hillary Clinton acted ‘carelessly’ but committed no crimes with regards to her private e-mail server through which she conducted official government business.  Further, he announced there would be no charges filed whatsoever.  This is despite numerous criminal offenses being already known by the general public through a plethora of FOIA.  Officially, there is no longer any rule of law in this country.

Read the rest.

Ya Mon.

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When Men Were .. Men.

A Transcription from the national archives.
IN CONGRESS, July 4, 1776.

The unanimous Declaration of the thirteen united States of America,

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, –That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

(the remainder below with appropriate emphasis added.)

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Busy Times

The posts are as usual high quality, but currently a little more sparse because of some ongoing election efforts.

10x25MM has done a fine job pointing out the DPS foibles, and this morning reminds me that bankruptcy really was the legitimate option for the failed district.  It appears that even after 617 Million has been approved, no one knows who is in charge yet. From the Detroit News:

Davis, who has been board president for two years, on Sunday said Lemmons was making his move.

“LaMar Lemmons is trying to hijack the ship, but he is not currently the president, even though he would like to be.”

Both insist they are following the June 9 board meeting results even though the stint is short..

Boys. boys…  Just remember, the Captain goes down with the ship.

In any event, I mentioned election efforts, right?  Below is a radio ad I have prepared to run this coming week, and then again closer to the election. I thought it might be of interest, and that THIS TOO might be of interest.  Higher taxes.. Right?

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The DPS Bailout – Debts & Obligations

Debt ImageDPS has two types of formal debt: operating and capital. Operating debt is a conversion of present and past annual operating deficits into ‘long-term notes’ sold to the financial markets, as well as more immediate debts owed to the State of Michigan directly. DPS capital debt exists only in the form of bonds which were sold to financial markets to purchase and rehabilitate facilities.  DPS’ formal bonds are identified by Series, which consists of the year issued and a letter suffix when different purpose bonds are issued in a single year.  The financial markets apply a further identifier, CUSIP, which is a unique identifier of municipal bonds by series and their intended dates of redemption.  All of the DPS debt sold to the financial markets has been enrolled in Public Act 92 of 2005, a program designed to reduce interest rates to local school districts in accordance with the 1963 Michigan Constitution’s Article IX, Section 16.  Most DPS debt is effectively secured by a general obligation to pay, which requires Detroit taxpayers to increase taxes and reduce spending should financial difficulties repaying arise.

DPS 2009B Bond StatementDPS pays off its capital debt in annual installments of both interest and principal, before it pays off (or adds to) its operating debt.  Bond interest and principal payments are required by bond terms which – if ignored – would result in immediate default and bankruptcy.  The exact contract terms of DPS debt sold to the financial markets are laid out in official statements which detail all the formal legal and financial features of the bonds.  The official statement is essentially a contract between DPS and its bond purchasers.

DPS’ operating debt payments are somewhat more flexible than capital debt payments because only a portion of operating debt has been converted into formal bonds covered by statements; much of it is separately owed to the Michigan School Loan Revolving Fund. The SSLRF can best be thought of as a State sponsored credit card. School districts tap into it when they are short of cash, and pay off their balance when they are flush.  Operating debt is only converted into formal bonds when Michigan school districts exceed their limits at the SSLRF.  Those limits are not exact, and generally come into play when DPS goes through one of its periodic financial spasms.

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The DPS Bailout – The Bankruptcy Alternative Not Taken

Daniel Howes ImageGovernor Snyder browbeat the Michigan Legislature to approve the $ 617 million bailout of Detroit Public Schools which he signed today by regaling them with a parade of horribles which would occur if the bailout was defeated and DPS was forced to file for bankruptcy. Daniel Howes regurgitated Governor Snyder’s compelling tales of impending doom delivered behind closed doors in a Detroit News article, but was any of it true?

Right at the top of Governor Snyder’s parade of horribles was the Federal bankruptcy filing of the Richmond [California] Unified School District on April 19, 1991 . Governor Snyder portrayed the outcome of this action as the U.S. Bankruptcy Court denying the petition and ordering the State of California to financially bail out the district.  From Daniel Howes’ article:

There is scant precedence for school districts filing for bankruptcy, the Snyder administration found. In 1990, according to an administration letter to state Rep. Laura Cox, R-Livonia, the Richmond Unified School District in Northern California filed for bankruptcy because of $42.5 million in debt. The judge ruled the district could not be protected by the court in bankruptcy and ordered the state to provide the district with operating funds.

Nothing could be farther from the truth.

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The Veto Does It

car-repairHB4344 is dead.

We scoffed at the consumer protections aspect of this ‘aftermarket’ legislation.  How is raising the cost of repairs and limiting choices in a market environment seen as ‘protection?’

Rick Snyder, often criticized on these pages did one right.  The veto of HB4344 assures that a strong aftermarket industry remains in Michigan. He opines:

I support much of the modernization of the Act that HB 4344 includes, as well as limiting structural parts that are proven to impact safety. However, I am unable to sign this bill because it overreaches in the limitation of aftermarket parts negatively impacting consumers and creating the potential for negative consequences for Michigan’s automotive industry. Accordingly, I am returning HB 4344 to you without signature.

Well done.

Now perhaps we start looking at other protectionist legislation?

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