Showing posts with label bankrupt. Show all posts
Showing posts with label bankrupt. Show all posts

Wednesday, August 5, 2026

The Race To Bankruptcy Court: A Local View Of Why Seattle Is A Strong Contender To Win The Race

Let’s take a brief break from our run of posts regarding the massive corruption and fraud in government programs along with our political class insanity thread and return to one of the hottest topics we have been covering over the past few years, coverage that has intensified recently: which major city or state government will get to bankruptcy court first?

Our primary cities in the race to bankruptcy include New York City, Chicago, Los Angeles, San Francisco, and newcomer, Seattle. The state governments that we think are soon heading into bankruptcy include New York, New Jersey, Illinois, and California with Washington state a newcomer to the race.

The reason for returning to this topic in the midst of our corruption series is because there have been some significant developments in the race to bankruptcy court. However, before reviewing the latest news and seeing which state or city is making the best progress towards government bankruptcy, let’s review how these cities and states got themselves into this financial death spiral position to begin with:

  • A government entity keeps expanding its budget, eventually putting pressure on the tax revenue stream it receives. 
  • At some point, rather than cut government spending or make its programs more efficient financially, the politicians in charge raise taxes to meet the ever growing government expenditures.
  • The raising of taxes causes some residents and businesses to leave the city or state for less tax burdensome areas, reducing the tax base and reducing the revenue stream.
  • Rather than cut expenses and become more efficient to match the reduced tax revenue stream, politicians in the above cities or states raise the tax burden even more.
  • This causes more residents and businesses to flee the city or state, further reducing the tax base and tax revenue stream.
  • At some point politicians panic and raise taxes more and start cutting vital government services (e.g. police, fire, education) in order to try and balance government spending against the shrinking tax base and revenue stream.
  • The reduction in quality of government services in particular and quality of life in general drives more residents and businesses out of the area.
  • Eventually, the expenses, costs and financial liabilities outstrip the reduced tax stream and bankruptcy occurs.
Okay that’s the process. Rather than do a general review of the  different  states and  cities entering or already in  their financial death  spiral as we usually do, today we will  do something a little different.

We have permission  from the Future 42 folks to copy and republish a recent piece they did regarding the troubles going on in Seattle.  As readers of  this blog know, Seattle was not in our original list of cities likely to go bankrupt pretty soon.  However,  long term trends and the mistakes being  made by the current  mayor, Katie Wilson,  have  propelled Seattle into the middle of the bankruptcy race.

Since the Future 42 folks are local to the Seattle area, they have a much  better picture and vibe on what the troubles are in the  city and  thus, our request to publish their views here. The article we are republishing here can be accessed directly at their website at the following link:

https://future42.org/is-mayor-wilson-actually-capable-of-leading-seattle/

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Is Mayor Wilson actually capable of leading Seattle?'
A Future 42 Special Article

The long-beloved Bite of Seattle festival beneath the Space Needle became the scene of a deadly shootout Sunday evening, leaving three people dead and four others wounded, including a 2-year-old boy.

Seattle police believe multiple people exchanged gunfire outside the Seattle Center Armory during the event. A 15-year-old was quickly taken into custody, but investigators continued searching for another person believed to have opened fire before fleeing the scene.

At a moment like that, Seattle residents needed clear and immediate information.

They needed to know what happened. They needed to know whether another shooter was loose. They needed to know what city officials were doing to protect the public and how witnesses could help police find the person responsible.

Instead, they waited nearly five hours for a public briefing.

As Change Washington detailed earlier this week, Seattle Mayor Katie Wilson initially released a statement claiming that two people were in custody. She updated it without an announcement, after media had already begun disseminating the inaccurate information.

When city leaders finally appeared before reporters around 11 p.m., Seattle Police Assistant Chief Tyrone Davis confirmed that only one suspected shooter had been detained and another person had fled the scene.

For nearly five hours, families who had scattered from Seattle Center did not know that someone believed to have opened fire in the middle of a crowded public gathering had escaped.

That delay also cost investigators critical time. Witnesses had fled in every direction. Many had recorded videos, seen the shooters or observed what happened immediately before the gunfire began. Yet the public request for information did not come until hours later, when memories were fading, and potential witnesses had already returned home.

Police regularly provide preliminary briefings during major emergencies for exactly this reason. Officials do not need every detail before telling the public what is known, what remains unknown and how people can help.

Seattle’s leaders chose not to do that.

The initial explanation was that officials were waiting for “dignitaries” to arrive before beginning the press conference. But newly released records obtained by The Center Square appear to undermine that excuse.

According to The Center Square, text messages between Wilson and Gov. Bob Ferguson show the governor was nearby but was not told to come to the Seattle Center until after 10 p.m. Ferguson’s office also stated that the governor did not ask Wilson to postpone the briefing. Crucially, the phone records were NOT released. It’s imperative to know what other conversations may or may not have occurred between leaders that weren’t in writing. Citizens should demand full transparency from the “dignitaries” who upheld getting crucial information out.

Wilson has denied delaying the press conference to accommodate political officials. Yet a Seattle Police Department source told FOX 13 that police leadership was prepared to brief the public hours earlier and was asked by the mayor’s office to wait.

Someone made the decision to keep police from speaking.

Katie Wilson is the mayor. Responsibility ultimately rests with her.

Seattle Police Chief Shon Barnes has now been fired, according to multiple reports. Barnes was attending the National Organization of Black Law Enforcement Executives in Dallas when the shooting occurred and had faced mounting questions about how frequently he traveled outside Seattle while his family reportedly continued to live in Chicago. He then abruptly canceled a scheduled Wednesday interview about his travel and the department’s response.

Wilson was right to hold Barnes accountable. But firing the police chief does not absolve the mayor or explain why Seattle residents were kept in the dark for nearly five hours.

Law-enforcement leaders who were in Seattle were reportedly prepared to brief the public much earlier in the evening. They were not allowed to do so. Barnes may bear responsibility for being absent during a deadly crisis, but he was not the person who reportedly prevented the officers on the scene from communicating with the public.

That decision leads directly back to the mayor’s office.

Wilson cannot fire her police chief and expect Seattle residents to conclude that the city’s leadership failure has been resolved. Barnes was responsible for the police department, but Katie Wilson is responsible for the city government—including the people who reportedly instructed police to remain silent while a suspected shooter was still at large.

Most importantly, can residents of Seattle have faith in Mayor Wilson to choose a reliable, competent, and focused successor (preferably one who will reside in the city full time)?

Before becoming mayor, Katie Wilson had never run anything remotely comparable to the City of Seattle.

Her primary management experience was leading the Transit Riders Union, a small but politically effective advocacy organization with approximately $198,000 in annual revenue and only a handful of employees. She had never held public office, managed a government department, overseen a major institution or been responsible for emergency operations.

Seattle voters elevated her directly from community organizing to responsibility for a city government with approximately $8.9 billion in annual appropriations and thousands of employees.

Running an advocacy campaign is not the same as running a city.

Advocates pressure other people to make decisions. Mayors must make those decisions themselves. They must manage professional staff, coordinate departments, balance competing priorities and provide command during emergencies.

The warning signs appeared almost immediately:

* Her first major drug-policy action created immediate controversy.
* Her State of the City revealed an administration still developing basic plans.
* She acknowledged the homelessness strategy was failing but continued much of it.
* She avoided questions at the rollout of her own signature policy.
* She offered no convincing police-staffing or crime-reduction agenda.
* She sought to expand tiny-house villages without resolving serious questions about conditions inside them.
* She cleaned up encampments in tourist areas ahead of the World Cup while allowing residents in other neighborhoods to continue living with the same disorder.

Any one of these failures might be dismissed as the mistake of a new administration.

Taken together, they reveal something much more serious.

Katie Wilson entered office without the executive experience necessary to manage a city facing severe public-safety, homelessness, addiction and financial challenges. Since taking office, she has shown little evidence that she is growing into the responsibility.

The handling of the Bite of Seattle tragedy suggests things are getting worse when they desperately need to get better.

Three people were killed in one of Seattle’s most prominent public spaces. Another suspected shooter escaped. Police were reportedly prepared to speak, yet the public briefing was delayed for hours. The mayor’s office issued incorrect information, offered shifting explanations and failed to quickly enlist the public’s help.

This was not a disagreement over ideology. It was a fundamental failure of executive leadership during an emergency.

Wilson asked Seattle residents to judge her administration “first and foremost” on homelessness and public safety.

They should take her at her word.

On homelessness, Wilson has acknowledged failure without demonstrating a meaningful change in direction. On public safety, she has failed to present a convincing strategy and then presided over a communications breakdown that withheld critical information while a suspected shooter remained at large.

Her lack of judgment and command is more than merely embarrassing. It is putting the safety of Seattle residents and anyone visiting the city at risk.

The question is not whether Katie Wilson needs more time to grow into the job. Seattle cannot serve as an internship for an unprepared mayor.

Wilson has demonstrated that she lacks the experience, preparation and decision-making ability the office requires. The deadly confusion after the Bite of Seattle shooting should be the final warning.

Seattle needs a mayor who is ready to lead now, not one who is still learning how.

Maybe it’s time for Seattle to say, “like…bye” to Katie Wilson as Mayor.

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For a city in financially bad shape, having almost a half a billion  dollars budget shortfall in the next three years,  and being led by a woman  who has no substantial  administrative, executive or political  smarts and experience  as outlined by Future 42, with businesses and residents fleeing the city and taking their tax dollars with them,  Seattle is  now firmly in place to be the next American  city to win the race  to bankruptcy  court.

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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



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Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at:


Sunday, May 17, 2026

The Race To Bankruptcy Court: Clueless In Seattle .... and New York City

 Let’s return to  one  of the  hottest topics we have been covering  over the past few years, coverage that has  intensified recently:  which major city or state government will get to bankruptcy   court first? Our primary cities it he race  to bankruptcy include New York City, Chicago, Los Angeles,  San  Francisco,  and newcomer,  Seattle. The  state governments that we think are soon heading into bankruptcy include New York, New  Jersey, Illinois, and California  with Washington state a newcomer  to the race.


Before reviewing the latest news and seeing which state or city is making the best progress towards government bankruptcy, let’s review how these cities and states got themselves into this financial death spiral position to begin with:


  • A government entity keeps expanding its budget, eventually putting pressure on the tax revenue stream it receives.

  • At some point, rather than cut government spending or make its programs more efficient financially, the politicians in charge raise taxes to meet the ever growing government expenditures.

  • The raising of taxes causes some residents and businesses to leave the city or state for less tax burdensome areas, reducing the tax base and reducing the revenue stream.

  • Rather than cut expenses and become more efficient to match the reduced tax revenue stream, politicians in the above cities or states raise the tax burden even more.

  • This causes more residents and businesses to flee the city or state, further reducing the tax base and tax revenue stream.

  • At some point politicians panic and raise taxes more and start cutting vital government services (e.g. police, fire, education) in order to try and balance government spending against the shrinking tax base and revenue stream.

  • The reduction in quality of government services in particular and quality of life in general drives more residents and businesses out of the area.

  • Eventually, the expenses, costs and financial liabilities outstrip the reduced tax stream and bankruptcy occurs.


Okay that’s the process, now lets check the progress some of the above listed government entities are making to achieve this bankruptcy goal  against this process:


1)Political philosopher, Hannah Arendt, described political ideologues as follows: “[they] function in a world of no sense.” In other words, they have these philosophical  ideas that work in a college classroom but make no sense in the real world of budgets, common sense, and other ideas. As a result, when that insanity leaves the classroom for the real world, things fall  apart in so many different ways.


And that falling apart process is happening right now in the cities and states listed above that are  heading for bankruptcy court. And one of the reasons they are going bankrupt  is because the ideas  their political leaders are proposing and implementing are just plain  stupid  and non-workable. This results in inefficient and ineffective government programs  that waste taxpayer money  and frustrate  the taxpayers.


But nowhere is Ms. Arednt’s keen observations more  front and center than in  New York City:


  • You know that a liberal/democratic  politician  is screwing up when even the  biased New York Times agrees with reality that the current socialist mayor,  Zohran  Mamdani, is  screwing up royally.

  • According  to the Times:  "As New York’s first modern mayor to wholly embrace democratic socialism, Mr. Mandani has little actual power to impose that ideology on city government."

  • For example, he  promised free daycare for kids and parents living in the  city but one hundred days into  his term  he is nowhere close  to fulfilling that promise.

  • If he is lucky, he may get one free daycare opened by later this year, a  single daycare center in a city with millions of kids.

  • And that is only possible  because the state government and governor gave him a one time gift of a whopping $1 billion to get the single day care effort off of the  ground.

  • It is going to get very expensive to give out free daycare to  every city kid if it takes a  billion dollars to open a single location.

  • He promised free bus  rides for  everyone but that promise  probably has  an  even slimmer chase of ever happening.

  • The MTA, the city agency that operates the city bus system, is already hurting for ridership and revenue so to remove the revenue  from bus fares would make a bad situation worse.

  • The reality is that free bus rides  would cost an additional  $700 million a year on  top of the current revenue crisis.

  • He also promised to freeze rent costs in all rental properties in the  city which was a stupid idea to begin with.

  • But  apparently he cannot dictate that plan  since the city agency tasked with rent  programs, the NYC Rent Guidelines  Board, has to legally "balance the interests of landlords and renters taking into account expert testimony about the city’s housing market."

  • Mamdani does not care about landlords but he is legally constrained to stick financial hardship onto them.

  • He also wants to raise the tax burden on the wealthiest city residents to fill in his  current budget hole  of $5.4 billion,  but the city council will also have a strong say to determine if that happens.


The reason  for going  through Mamdani’s promises  and failures  to deliver is that he is focused on philosophies and ideas  that cannot stand up against reality. Rather than  focus on real  life problems and make city government more  efficient and  smaller in order to  live within the  current  revenue stream, he promises grandiose “free” programs that rational  taxpayers and residents realize are not in alignment with their needs and worries.


And eventually those  residents will realize that their tax dollars  are being wasted  for ideas  that are stupid  and ineffective  and they will take their hard earned  income  and wealth somewhere else where their concerns will be realistically addressed.


2)And  those residents are already leaving the city and leave Mamdani’s unrealistic  and  nonessential  programs behind:

  • According to an analysis by the Citizens Budget Commission, and an article by Snejana  Farberov on  the Realtor.com website, it is not only the wealthy residents that are leaving  NewYork City.

  • The loss in  the city’s  population  in 2025 was driven by the out immigration  of taxpayers across all income brackets,  not just the wealthiest.

  • And  while the city’s population grew in 2023 and  2024 before declining in  2025, the population gains in 2023 and 2024 were driven by illegal immigrants, most of whom were not paying city taxes.

  • Thus, a lot of  the new city residents were actually a drag on city tax revenue since the  city was giving them free shelter, free food,  free  medical  care, and other freebies without collecting  much tax from most of them.

  • In total, the city lost 114,000 more residents  to other  U.S. locations than  it gained.

  • Specifically: "More New York City residents of all incomes, races, ethnicities, and ages have moved to other parts of the U.S. than moved in. Such broad-based domestic outmigration demonstrates that many differently-situated New Yorkers no longer find New York City’s value proposition compelling."

  • The study authors suggest that high taxes, the high cost of living, high housing costs, and the less than stellar quality of city services  is driving the  out migration:  "It is a barometer of the challenges of raising a family in New York City.”

  • And while  many  ex-city residents are staying relatively close to New York City, settling in New Jersey, Connecticut, and Pennsylvania, not surprisingly, many are headed  to low tax burden  areas like Florida, Texas, North Carolina and Georgia.

  • According to the analysis and report: "People leaving the city may be choosing a place offering them a higher value proposition through a better mix of quality of life and cost of living. Notably, Florida and Texas have lower taxes. New Jersey and the rest of New York State apparently offer amenities making the choice to leave worthwhile for some, despite relatively high taxes.”


The bottom  line is that New York  is losing  residents and it is not just the wealthy who are leaving and taking their taxable  income and economic power with them. And Mamdani does not get it, offering mythical free  day care, free busing,  and other pipe dreams that will never be successful  but will waste big time tax dollars  in  the process.


All of which accelerates the city’s rush to the bankruptcy court.


3) Mamdani’s female equivalent out in Seattle is also doing a good job of generating stupid ideas that have no chance of being  successful and will  continue to drive people out of the city:


  • We have already discussed mayor Katie Wilson’s  inane comment,  when  asked if she was  worried if millionaire taxpayers in the city would be  leaving because of high taxes.

  • She basically and  falsely stated that she  did not think they were leaving but then  condescendingly added, “Bye,” showing no awareness  of who was  paying a hefty portion of  the city’s  taxes.

  • Before we discuss her latest out of touch  comment,  consider the  reality that the business office vacancy rate in the city is currently 26.6%, i.e.  there are a lot of empty business spaces  throughout the city as businesses have  either fled to better businesses s or new businesses are not  even considering moving  to Seattle to  set up their office and business.

  • This is the  second highest vacancy rate in the  country, surpassed only by one of our prime candidates to go bankrupt, San Francisco.

  • In  certain sections of Wilson’s city the business  office vacancy rate approaches 50%.

  • Rather than work  on the root causes of why businesses leave the  city or do  not  start their business in Seattle, i.e. high taxes, high crime rate, persistent   homeless problem, to encourage  businesses to come to the  city, she has come up with quite possibly the most ridiculous economic idea EVER.

  • Her idea: tax business office space owners for any vacancies they may have in their buildings,  i.e. the more empty space you have in your office buildings the  higher tax rate  would be for those vacancies.

  • TV host, John Curley of KIRO  in Seattle, certainly does a great job describing why this  idea is so  stupid: “That’s their plan: If you can’t rent it, you better drop the price. If you don’t drop the price and get somebody in there, we’re going to fine you or tax you. So here’s the guy that’s got the commercial building, billions of dollars tied up in the loans and everything. Nobody wants to come in, nobody wants to rent it. It’s just sitting there. It’s empty. So what does the city decide to do? Oh, I know how to solve that. Let’s increase the price of the guy who has to pay the bills every single month for the loan for the commercial building. I know how we can incentivize him. Don’t give him a tax break on it. Don’t give him some sort of incentive to get the thing rented. Fine them for every single month that the thing remains unoccupied. Bizarre.”


What color is the sky in Wilson’s world? Because she is certainly not operating in this world, not when she  is  so out of touch with reality with her vacancy tax idea. If her  idea ever occurs, no commercial business  developer  would  ever build and expand in the  city, not when there was a  looming vacancy tax over their  head. They would take their construction dollars elsewhere and take  potential city businesses and  taxpayers with them.


It  continues to  amaze that people like  Wilson and Mamdani have gotten  into such important positions with their views being so ridiculously out of touch with the  real world. Free everything in New York City,  tax empty  business office space owners for there not being enough businesses  around. Insanity.


Rather than  fix what really  is important in their respective cities, these two  clowns fixate on matters that have nothing  to do with  the real problems in people's lives and as  a result, their cities continue to compete in the race to bankruptcy court.


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If you agree that we need to deseat every member of Congress for their lack of success and accomplishment, then please consider going to the following petition link to help the cause:


https://www.change.org/p/deseat-congress-reset-freedom



**********************


Our book, "Love My Country, Loathe My Government - Fifty First Steps To Restoring Our Freedom And Destroying The American Political Class" is now available at: