But Majority of Public Opposed
IF these scoundrels get their way, I know of one town (at least) that will intentionally default of some Federal Government loans. These were 40 year notes (originally), with 10 years time left on them. Payments are being made, and will continue to be made. However, should Detroit receive a bailout for their mis-deeds, criminal activities, and malfeasance, this town will not be making further payments.
That said, this is just one small American town. It will most certainly have to get in the line of intentional defaults, which will certainly spread like cancer or pandemic. No doubt thousands of cities, towns, and counties that are making their payments, as agreed, will do the same. Many of those are in worse shape than the town of which I refer. There are hundreds (perhaps thousands) of such places that are already on the verge of their own bankruptcy.
This is one of the unintended consequences we have not considered, that could very well shut down the entire Federal government. I seriously doubt that TPTwB has thought this out either. For without these (massive) payments, our Federal Government will not long stand.
The Federal Reserve is printing 85 billion dollars per month now, doing its QE. They cannot add another 100 billion to that number and expect to stand for more than a couple of months. Not that they would even try to be so bold. If the Federal Government passes this bailout and the other grant recipients decide to default like Detroit, the system will breakdown inside of two months.
They have probably never planned something this into their balance sheet. Or have they?
Benjamin Franklin, when once asked what he thought the English government would do about a particular subject. Whether we could yet hope for a resolution to the coming storm, he said,
“…given the choice between doing what is right and doing what is not right , His Majesty’s government will take the latter course every time.”
The same can be said about the “System” we have today. Therefore, we can expect the Federal Government, under the auspices of the Kenyan, to bail out the failed City of Detroit. How the rest of the country will respond remains to be seen.