The Detroit Bankruptcy Contagion - Interview with Ellen Brown

LOS ANGELES | On December 3rd, Detroit became the largest city to declare bankruptcy in American history. This case, which went on four months, protected the city from creditors.

While some government officials blame Detroit's financial woes on a declining tax base, other observers say runaway spending was the main cause. The city had an estimate $18 billion in debt at the time bankruptcy was declared.


The money paid out when the city was healthy did not produce significant results for the people of the Motor City. Over 40 percent of streetlights in Detroit do not work. There are also almost 80,000 abandoned buildings in the city.






A judge ruled Detroit could cut pensions, in order to pay other creditors. This is raising a firestorm on controversy among those who were due to be paid.

Observers are questioning who will pay the debt Detroit incurred before entering bankruptcy.

Ellen Brown is a well-respected attorney, who writes for the Huffington Post. Brown is the author of 12 books, including The Web of Debt and The Public Banking Solution.