Abayomi Azikiwe, editor of the Pan-African News Wire, has written extensively on the economic crisis in Detroit. He is now covering the bankruptcy hearings downtown., a photo by Pan-African News Wire File Photos on Flickr.
Mon Jul 29, 2013 5:38PM GMT
To listen to this statement delivered to Press TV's US Desk by Abayomi Azikiwe, editor of the Pan-African News Wire, just click on the website below:
A political commentator says Detroit’s debts are “illegitimate” and “should be cancelled.”
“The debt is illegitimate and therefore should be cancelled,” Abayomi Azikiwe, editor of Pan-African News Wire said, “This is the only solution for Detroit.”
“First of all we have to understand that Detroit was hit by a wave of predatory lending in housing which in fact resulted in some 100,000 foreclosures. And as a result of these foreclosures the tax base of the city was eroded over the last decade. Even prior to the wave of predatory lending you had large outsourcing and downsizing in the automotive industry.”
“When the city is in a situation where it cannot gain revenue through taxes they have to borrow from these same financial institutions which of course led to the massive foreclosure crisis,” Azikiwe told Press TV.
He also said that if senior citizens of “the birthplace of the world’s automotive industry” are stripped of their pensions to pay off the city’s debts, this would create a very bad pattern for municipalities.
“There are $6 billion in pension funds that are at stake in this struggle,” he noted.
“This bankruptcy was engineered by the banks and large financial institutions insides the United States. They are at the root cause of the crisis.”
The Obama administration is showing no sign of helping Detroit as its emergency manager and republican governor steer the city towards bankruptcy proceedings.
At least five republican senators have recently proposed tacking language onto spending bills that would broadly prohibit municipal bailouts.
These proposed measures are aimed towards preventing any federal aid
GOP leaders are attacking the city with notable venom at a time when its 700,000 residents--80 percent of whom are African-American--must contend with deepening crises of poverty and privatization.