…Stockton is the first of many large cities that will soon declare bankruptcy, with more troubled local city councils likely to seek bankruptcy protection in the near future.
Like many indebted citizens of America, the Stockton government based their salaries, pensions and city development plans on the notion that economic growth could never end.
Their plan worked until it didn’t.
This is only the beginning.
First, we’ll see major cities across America lay off hundreds of thousands of employees, a trend that has been gaining momentum over the last several years.
Then, entire States, likely starting with California, Illinois, and New York, will fall under the weight of billions of dollars in debt. They will turn to the Federal government, who will happily engage the Federal Reserve to print more Bernanke Bucks to bail them out.
Finally, the United States of America, in its entirety, will succumb to what can only be described as the largest sovereign debt collapse in the history of the world.
The implications will be severe as the paradigm of peace and prosperity Americans have come to know will turn to riots, starvation and bloodshed.
There is no stopping this. The debt loads on every level of government have become wholly unsustainable.
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