DETROIT, April 18, 2014– One hundred million dollars in taxpayer money is on its way to Detroit.
Only sixteen short months have passed since Obama took credit for Detroit averting bankruptcy. “We refused to let Detroit go bankrupt. We bet on American workers and American ingenuity, and three years later, that bet is paying off in a big way,” said Obama in a reelection campaign speech. It was October, 2012. Obama won reelection. Detroit became the largest city in United States history to file for bankruptcy only nine months after Obama’s speech.
U.S. Bankruptcy Judge Steve Rhodes delivered the ruling, which declared Detroit could move forward with its plans for Chapter 9 bankruptcy, only five months after the filing. According to Judge Rhodes, “This situation has proved unworkable.” Detroit is more than $18 billion in debt.
With taxpayers exhibiting visceral reactions at even the slightest hint of a bailout, the Obama administration ensured Americans no more bailouts. In February, Gene Sperling, the director of the White House National Economic Council, announced that the administration would not bailout Detroit. Sperling called the prospects of a bailout “non viable” and said it would be misleading to float the idea of a bailout.
Regardless of the rhetoric, the bailout addicted administration has been stealthily executing a bailout of the city’s endangered pension funds.
According to the Detroit Free Press, Obama plans to send Detroit approximately $100 million to relieve the city’s pension funds. The report points to Obama’s tough mid-term prospects while stating that he and Democrats have been “under pressure from unions” not to let government retirees suffer in Detroit.
On Wednesday, White House spokesman Jay Carney declined to comment about the report.