Today’s widely expected court ruling that the black disaster city of Detroit will be able to get out of its bankruptcy status is the result of a handout by white institutions of $816 million over the next twenty years.
The deal, or the “grand bargain” as it has come to be called in the city, will see the cash given to the smashed metropolis from nonprofit foundations, the State of Michigan and Detroit Institute of Art (DIA) donors.
The “grand bargain” was concluded after the city reached settlements with all its major creditors, including retirees, unions, bondholders, bond insurers, and banks.
When Detroit first went into bankruptcy—caused by a massive decline in city revenues once black criminality had driven out almost all its white population, plunging the city into Third World status—the city faced furious opposition from retirees, unions, and financial creditors, who had been supplying utilities to the city’s inhabitants.
At one point, state-appointed “crisis manager” Kevin Orr—who is black, because the state of Michigan would have been accused of racism if they had appointed a white to run the city—announced a plan to sell off the art treasures contained in the world-famous DIA.
The DIA is recognized as having one of the most extensive art collections in America, with its paintings collection containing vast holdings of Italian, Dutch, and Flemish schools including numerous Bruegel, Rembrandt, and Rubens masterpieces among its 60,000 artworks.
Orr correctly perceived that the black population of Detroit had almost no interest in the DIA anyway, and put forward a plan to sell off the artwork—which is officially owned by the city—in order to help pay off the debts.
After filing for bankruptcy in July, 2013, Orr hired Christie’s Auction House to appraise the collection. After months of determining the fair market value of art purchased with city funds, Christie’s released a report on December 19, 2013, saying that the collection was worth $454 million to $867 million, with one masterpiece by Van Gogh worth up to $150 million.
This prospect propelled the DIA patrons and others to redouble their efforts to come up with a solution, which has now emerged as a settlement which will—for the time being at least—preserve the DIA.
The value of the white handout to Detroit—some $816 million—is nearly the same as the Christie’s valuation of the art collection.
The “grand bargain” has of course, a number of serious flaws. Firstly, the city has acquired a $275-million “bankruptcy–exiting deal” with London-based bank Barclays—by pledging its projected income tax revenue as collateral.
This “projected tax revenue” is based on the presumption that the Third World city will actually improve economically over the coming decades—something which is unlikely. If anything, it is liable to only get worse, as do all Third World centers.
The plan also forecasts $358 million in “cost savings” from establishing what it calls a “more efficient city government.”
Consultants who provided testimony during the lengthy court proceedings which led to the “grand bargain” about the plan’s feasibility, have, as diplomatically as possible (because they cannot mention race), raised questions about the ability of the city’s workforce to adjust, saying large numbers of workers and even managers lack skills and education needed for their roles.
Ultimately, there are no indications that the city will “turn around” in any significant manner—and thus the “grand bargain” is merely plastering wallpaper over the cracks.