Thursday, July 19, 2012

Bankruptcy: Cities First, Then The States

 By Douglas V. Gibbs  Wednesday, July 18, 2012
Douglas V. Gibbs  Bio
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As we watch the slow collapse of the nations of Europe under the heavy weight of leftist entitlement spending, the reality of the destructive forces of socialist utopianism is all too real.  The United States has trailed Europe on its dire course, and only now is the diabolical truth of a progressive agenda truly taking shape for more than just the politically savvy to notice.

Before the current Obama administration in the White House the socialist ideas of utopianism were applied incrementally, slowly so as to not be noticed, yet steadily enough to move this nation in the direction of Marxist communitarianism. While full control of the federal government was granted to the democrats between 2007 and 2011, the downward spiral towards collapse accelerated at break-neck speed.  Since the republicans gained control of the House of Representatives, President Barack Obama has ignored the people’s attempt to check his power, and has continued to fundamentally change this nation at the foundational level through the courts, executive orders, and regulatory agencies.

The Founding Fathers of the United States were all too aware of the utopian imaginings of the statist mind. The U.S. Constitution was written in such a manner to keep the leftist hounds at bay, to keep this country a land of liberty, and to protect the sovereignty of the individual States. The sovereignty, after all, is the key. It is the sovereignty of the States that alone can stop the rising tyranny we now see at the federal level.  In the minds of the founders, as long as the individuality of the States remained intact, the growth of the central government would remain contained and tyranny would not be able to rear its ugly head.

Though the States have original authority, and hold all powers not delegated to the federal government by the Constitution, there are also prohibitions to the States listed in the Constitution. For the individual States to remain strong, and out of the way of the necessary workings of the federal government, Article I, Section 10 of the United States Constitution provided some prohibitions to the States that disallowed the States from functions like making treaties, entering into alliances, and matters of national defense. Among those prohibitions were also those that disallowed the States from coining money, or going into debt.

Article I, Section 10 states that no State shall emit Bills of Credit.
After the American Revolution all of the colonies were in debt, and the federal government assumed that debt under the federal umbrella. In return, for the purpose of protecting the States from future economic ruin, the allowance to go into debt was taken away by the Constitution. The bail-out of the States was only supposed to happen once.

Cities, under the State Constitutions, may issue bonds, and other bills of credit, but even debt at the municipal level is a dangerous endeavor. In California, three cities have now decided to declare bankruptcy, a trend that may become less extraordinary as the weight of public employee pensions and the mismanagement of city funds catches up to each of these cities. The lies that emerged when the City of Bell was caught with its officials’ hands in the cookie jar seem to be something that was not limited to just that city.

The real question is that if bankruptcy becomes the only choice a State can make, what becomes of the State? The State has already acted in an unconstitutional manner by going into debt. Should the federal government, as it did over two hundred years ago, bail out the States, or would the State’s inability to manage its own finances force the State to lose its statehood and become a territory existing under the complete control of the federal government as provided in Article IV, Section 3 where the Congress is granted the power to “make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States?”

The problem is, this has never happened before because the Founding Fathers saw fit to not allow it to by prohibiting the States from emitting bills of credit.

Just another problem we have encountered because of our unwillingness to follow the U.S. Constitution.
Our insolence, if we don’t stop the progressive wave of utopianism, could result ultimately in the collapse of our nation. The bankruptcy of cities is only just the beginning.

Douglas V. Gibbs, Political Pistachio Conservative News and Commentary,  is a Radio Host on KCAA 1050 AM on Saturdays and Sundays with his Constitution Speaker program, as well as a longtime Internet radio host, conservative political activist, writer and commentator. Doug is the founder of the award winning Political Pistachio website, and a free lance newspaper columnist for the Murrieta Patch, The Central Idaho Post and The Examiner. Doug is a member of the “American Authors Association”, the “Committee of Concerned Journalists” and “The Military Writers Society of America.” He received the Golden Anchor Award for his patriotic commentary in 2008, and was a candidate for his local city council in 2010. An active member of the Tea Party Movement, Doug mans a Constitution Booth at Tea Party events, is a public speaker on the U.S. Constitution, and teaches classes on the U.S. Constitution once a week in Temecula, California. Doug is a family man, married 27 years to his high school sweetheart. He is the father of two and has four grandchildren. Doug is a proud United States Navy veteran. Doug can be reached at douglasvgibbs [at] or constitutionspeaker [at]

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