Financial Crises and Disaster in U.S. Cities

Our American Cities are in trouble. "According to USA Today, 54% of U.S. cities and towns are broke ....Today the city and county of Los Angeles and Miami are teetering on the brink of financial disaster."

The McAlvany Intelligence Advisor, February, 1997,

"... recommended to readers to sell their urban real estate, to move out of major urban areas and to lquidate ALL municipal bond positions while there is still some semblance of liquidity left in the urban real estate and U.S. muni markets." He advises that liquidity will all but disappear when the "... coming social upheaval and financial debacle..." arrives.

Bankruptcy

"... when a city county, or state goes bankrupt, taxes, fees, surchages, etc. go up sharply; the government bureaucracy to collect all the new taxes, fees, etc., issue the new permits, perform the new inspections, etc. expands rapidly; police, fire protection, garbage and other essential services are cut; welfare is cut.. the biggest tax payers.businesses and individuals)..." move out of the city and create a more depressed tax burden.

What this Generates:

"... social unrest, crime, violence, gang activity." Riots, greater civil disturbance, and eventual martial law. When this occurs, on a national level, it becomes a State of National Emergency. You no longer have writ of habeas corpus (jury trial) and the Constitution of the U. S is suspended.

Source: The McAlvany Intelligence Advisor, February, 1997.

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