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	<title>Whiskey and Gunpowder &#187; Detroit</title>
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		<title>Urban Farming in Detroit and Big Cities Back to Small Towns and Agriculture</title>
		<link>http://whiskeyandgunpowder.com/urban-farming-in-detroit-and-big-cities-back-to-small-towns-and-agriculture/</link>
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		<pubDate>Tue, 03 Nov 2009 19:30:16 +0000</pubDate>
		<dc:creator>Mark Dowie</dc:creator>
				<category><![CDATA[Featured]]></category>
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		<description><![CDATA[Were I an aspiring farmer in search of fertile land to buy and plow, I would seriously consider moving to Detroit. There is open land, fertile soil, ample water, willing labor, and a desperate demand for decent food. And there is plenty of community will behind the idea of turning the capital of American industry [...]<p><a href="http://whiskeyandgunpowder.com/urban-farming-in-detroit-and-big-cities-back-to-small-towns-and-agriculture/">Urban Farming in Detroit and Big Cities Back to Small Towns and Agriculture</a> was originally featured on <a href="http://whiskeyandgunpowder.com">Whiskey and Gunpowder</a>. Visit <a href="http://lfb.org/">Laissez Faire Books</a> for the best selection of libertarian book titles.</p>
]]></description>
			<content:encoded><![CDATA[<p>Were I an aspiring farmer in search of fertile land to buy and plow, I would seriously consider moving to Detroit. There is open land, fertile soil, ample water, willing labor, and a desperate demand for decent food. And there is plenty of community will behind the idea of turning the capital of American industry into an agrarian paradise. In fact, of all the cities in the world, Detroit may be best positioned to become the world’s first one hundred percent food self-sufficient city.</p>
<p>Right now, Detroit is as close as any city in America to becoming a food desert, not just another metropolis like Chicago, Philadelphia, or Cleveland with a bunch of small- and medium-sized food deserts scattered about, but nearly a full-scale, citywide food desert. (A food desert is defined by those who study them as a locality from which healthy food is more than twice as far away as unhealthy food, or where the distance to a bag of potato chips is half the distance to a head of lettuce.) About 80 percent of the residents of Detroit buy their food at the one thousand convenience stores, party stores, liquor stores, and gas stations in the city. There is such a dire shortage of protein in the city that Glemie Dean Beasley, a seventy-year-old retired truck driver, is able to augment his Social Security by selling raccoon carcasses (twelve dollars a piece, serves a family of four) from animals he has treed and shot at undisclosed hunting grounds around the city. Pelts are ten dollars each. Pheasants are also abundant in the city and are occasionally harvested for dinner.</p>
<p>Detroiters who live close enough to suburban borders to find nearby groceries carrying fresh fruit, meat, and vegetables are a small minority of the population. The health consequences of food deserts are obvious and dire. Diabetes, heart failure, hypertension, and obesity are chronic in Detroit, and life expectancy is measurably lower than in any American city.</p>
<p>Not so long ago, there were five produce-carrying grocery chains—Kroger, A&amp;P, Farmer Jack, Wrigley, and Meijer—competing vigorously for the Detroit food market. Today there are none. Nor is there a single WalMart or Costco in the city. Specialty grocer Trader Joe’s just turned down an attractive offer to open an outlet in relatively safe and prosperous midtown Detroit; a rapidly declining population of chronically poor consumers is not what any retailer is after. High employee turnover, loss from theft, and cost of security are also cited by chains as reasons to leave or avoid Detroit. So it is unlikely grocers will ever return, despite the tireless flirtations of City Hall, the Chamber of Commerce, and the Michigan Food and Beverage Association. There is a fabulous once-a-week market, the largest of its kind in the country, on the east side that offers a wide array of fresh meat, eggs, fruit, and vegetables. But most people I saw there on an early April Saturday arrived in well polished SUVs from the suburbs. So despite the Eastern Market, in-city Detroiters are still left with the challenge of finding new ways to feed themselves a healthy meal.</p>
<p>One obvious solution is to grow their own, and the urban backyard garden boom that is sweeping the nation has caught hold in Detroit, particularly in neighborhoods recently settled by immigrants from agrarian cultures of Laos and Bangladesh, who are almost certain to become major players in an agrarian Detroit. Add to that the five hundred or so twenty-by-twenty-foot community plots and a handful of three- to ten-acre farms cultured by church and non-profit groups, and during its four-month growing season, Detroit is producing somewhere between 10 and 15 percent of its food supply inside city limits—more than most American cities, but nowhere near enough to allay the food desert problem. About 3 percent of the groceries sold at the Eastern Market are homegrown; the rest are brought into Detroit by a handful of peri-urban farmers and about one hundred and fifty freelance food dealers who buy their produce from Michigan farms between thirty and one hundred miles from the city and truck it into the market.</p>
<p>There are more visionaries in Detroit than in most Rust-Belt cities, and thus more visions of a community rising from the ashes of a moribund industry to become, if not an urban paradise, something close to it. The most intriguing visionaries in Detroit, at least the ones who drew me to the city, were those who imagine growing food among the ruins—chard and tomatoes on vacant lots (there are over 103,000 in the city, sixty thousand owned by the city), orchards on former school grounds, mushrooms in open basements, fish in abandoned factories, hydroponics in bankrupt department stores, livestock grazing on former golf courses, high-rise farms in old hotels, vermiculture, permaculture, hydroponics, aquaponics, waving wheat where cars were once test-driven, and winter greens sprouting inside the frames of single-story bungalows stripped of their skin and re-sided with Plexiglas—a homemade greenhouse. Those are just a few of the agricultural technologies envisioned for the urban prairie Detroit has become.</p>
<p>There are also proposals on the mayor’s desk to rezone vast sections A-something (“A” for agriculture), and a proposed master plan that would move the few people residing in lonely, besotted neighborhoods into Detroit’s nine loosely defined villages and turn the rest of the city into open farmland. An American Institute of Architects panel concludes that all Detroit’s residents could fit comfortably in fifty square miles of land. Much of the remaining ninety square miles could be farmed. Were that to happen, and a substantial investment was made in greenhouses, vertical farms, and aquaponic systems, Detroit could be producing protein and fibre 365 days a year and soon become the first and only city in the world to produce close to 100 percent of its food supply within its city limits. No semis hauling groceries, no out-of-town truck farmers, no food dealers. And no chain stores need move back. Everything eaten in the city could be grown in the city and distributed to locally owned and operated stores and co-ops. I met no one in Detroit who believed that was impossible, but only a few who believed it would happen. It could, but not without a lot of political and community will.</p>
<p>There are a few cities in the world that grow and provide about half their total food supply within their urban and peri-urban regions—Dar es Salaam, Tanzania; Havana, Cuba; Hanoi, Vietnam; Dakar, Senegal; Rosario, Argentina; Cagayan de Oro in the Philippines; and, my personal favorite, Cuenca, Equador—all of which have much longer growing seasons than Detroit. However, those cities evolved that way, almost unintentionally. They are, in fact, about where Detroit was agriculturally around one hundred and fifty years ago. Half of them will almost surely drop under 50 percent sufficiency within the next two decades as industry subsumes cultivated land to build factories (à la China). Because of its unique situation, Detroit could come close to being 100 percent self-sufficient.</p>
<p>First, the city lies on one hundred and forty square miles of former farmland. Manhattan, Boston, and San Francisco could be placed inside the borders of Detroit with room to spare, and the population is about the same as the smallest of those cities, San Francisco: eight hundred thousand. And that number is still declining from a high of two million in the mid-nineteen fifties. Demographers expect Detroit’s population to level off somewhere between five hundred thousand and six hundred thousand by 2025. Right now there is about forty square miles of unoccupied open land in the city, the area of San Francisco, and that landmass could be doubled by moving a few thousand people out of hazardous firetraps into affordable housing in the eight villages. As I drove around the city, I saw many full-sized blocks with one, two, or three houses on them, many already burned out and abandoned. The ones that weren’t would make splendid farmhouses.</p>
<p>As Detroit was built on rich agricultural land, the soil beneath the city is fertile and arable. Certainly some of it is contaminated with the wastes of heavy industry, but not so badly that it’s beyond remediation. In fact, phyto-remediation, using certain plants to remove toxic chemicals permanently from the soil, is already practiced in parts of the city. And some of the plants used for remediation can be readily converted to biofuels. Others can be safely fed to livestock.</p>
<p>Leading the way in Detroit’s soil remediation is Malik Yakini, owner of the Black Star Community Book Store and founder of the Detroit Black Community Food Security Network. Yakini and his colleagues begin the remediation process by removing abandoned house foundations and toxic debris from vacated industrial sites. Often that is all that need be done to begin farming. Throw a little compost on the ground, turn it in, sow some seeds, and water it. Water in Detroit is remarkably clean and plentiful.</p>
<p>Although Detroiters have been growing produce in the city since its days as an eighteenth-century French trading outpost, urban farming was given a major boost in the nineteen eighties by a network of African-American elders calling themselves the “Gardening Angels.” As migrants from the rural South, where many had worked as small farmers and field hands, they brought agrarian skills to vacant lots and abandoned industrial sites of the city, and set out to reconnect their descendants, children of asphalt, to the Earth, and teach them that useful work doesn’t necessarily mean getting a job in a factory.</p>
<p>Thirty years later, Detroit has an eclectic mix of agricultural systems, ranging from three-foot window boxes growing a few heads of lettuce to a large-scale farm run by The Catherine Ferguson Academy, a home and school for pregnant girls that not only produces a wide variety of fruits and vegetables, but also raises chickens, geese, ducks, bees, rabbits, and milk goats.</p>
<p>Across town, Capuchin Brother Rick Samyn manages a garden that not only provides fresh fruits and vegetables to city soup kitchens, but also education to neighborhood children. There are about eighty smaller community gardens scattered about the city, more and more of them raising farm animals alongside the veggies. At the moment, domestic livestock is forbidden in the city, as are beehives. But the ordinance against them is generally ignored and the mayor’s office assures me that repeal of the bans are imminent.</p>
<p>About five hundred small plots have been created by an international organization called Urban Farming, founded by acclaimed songwriter Taja Sevelle. Realizing that Detroit was the most agriculturally promising of the fourteen cities in five countries where Urban Farming now exists, Sevelle moved herself and her organization’s headquarters there last year. Her goal is to triple the amount of land under cultivation in Detroit every year. All food grown by Urban Farming is given free to the poor. According to Urban Farming’s Detroit manager, Michael Travis, that won’t change.</p>
<p>Larger scale, for-profit farming is also on the drawing board. Financial services entrepreneur John Hantz has asked the city to let him farm a seventy-acre parcel he owns close to the Eastern Market. If that is approved and succeeds in producing food for the market, and profit for Hantz Farms, Hantz hopes to create more large-scale commercial farms around the city. Not everyone in Detroit’s agricultural community is happy with the scale or intentions of Hantz’s vision, but it seems certain to become part of the mix. And unemployed people will be put to work.</p>
<p>Any agro-economist will tell you that urban farming creates jobs. Even without local production, the food industry creates three dollars of job growth for every dollar spent on food—a larger multiplier effect than almost any other product or industry. Farm a city, and that figure jumps over five dollars. To a community with persistent two-digit unemployment, that number is manna. But that’s only one economic advantage of farming a city.</p>
<p>The average food product purchased in a U.S. chain store has traveled thirteen hundred miles, and about half of it has spoiled en route, despite the fact that it was bioengineered to withstand transport. The total mileage in a three-course American meal approaches twenty-five thousand. The food seems fresh because it has been refrigerated in transit, adding great expense and a huge carbon footprint to each item, and subtracting most of the minerals and vitamins that would still be there were the food grown close by.</p>
<p>I drove around the city one day with Dwight Vaughter and Gary Wozniak. A soft-spoken African American, Vaughter is CEO of SHAR, a self-help drug rehab program with about two hundred residents recovering from various addictions in an abandoned hospital. Wozniak, a bright, gregarious Polish American, who, unlike most of his fellow Poles, has stayed in Detroit, is the program’s financial director. Vaughter and Wozniak are trying to create a labor-intensive economic base for their program, with the conviction that farming and gardening are therapeutic. They have their eyes on two thousand acres in one of the worst sections of the city, not far from the Eastern Market. They estimate that there are about four thousand people still living in the area, most of them in houses that should have been condemned and razed years ago. There are also six churches in the section, offering some of the best ecclesiastical architecture in the city.</p>
<p>I tried to imagine what this weedy, decrepit, trash-ridden urban dead zone would look like under cultivation. First, I removed the overhead utilities and opened the sky a little. Then I tore up the useless grid of potholed streets and sidewalks and replaced them with a long winding road that would take vegetables to market and bring parishioners to church. I wrecked and removed most of the houses I saw, leaving a few that somehow held some charm and utility. Of course, I left the churches standing, as I did a solid red brick school, boarded up a decade ago when the student body dropped to a dozen or so bored and unstimulated deadbeats. It could be reopened as an urban ag-school, or SHAR’s residents could live there. I plowed and planted rows of every imaginable vegetable, created orchards and raised beds, set up beehives and built chicken coops, rabbit warrens, barns, and corrals for sheep, goats, and horses. And of course, I built sturdy hoop houses, rows of them, heated by burning methane from composting manure and ag-waste to keep frost from winter crops. The harvest was tended by former drug addicts who like so many before them found salvation in growing things that keep their brethren alive.</p>
<p>That afternoon I visited Grace Lee Boggs, a ninety-three-year-old Chinese-American widow who has been envisioning farms in Detroit for decades. Widow of legendary civil rights activist Jimmy Boggs, Grace preserves his legacy with the energy of ten activists. The main question on my mind as I climbed the steps to her modest east side home, now a center for community organizers, was whether or not Detroit possesses the community and political will to scale its agriculture up to 100 percent food self-sufficiency. Yes, Grace said to the former, and no to the latter. But she really didn’t believe that political will was that essential.</p>
<p>“The food riots erupting around the world challenge us to rethink our whole approach to food,” she said, but as communities, not as bodies politic. “Today’s hunger crisis is rooted in the industrialized food system which destroys local food production and forces nations like Kenya, which only twenty-five years ago was food self-sufficient, to import 80 percent of its food because its productive land is being used by global corporations to grow flowers and luxury foods for export.” The same thing happened to Detroit, she says, which was once before a food self-sufficient community.</p>
<p>I asked her whether the city government would support large-scale urban agriculture. “City government is irrelevant,” she answered. “Positive change, leaps forward in the evolution of humankind do not start with governments. They start right here in our living rooms and kitchens. We are the leaders we are looking for.”</p>
<p>All the decaying Rust-Belt cities in the American heartland have at one time or another imagined themselves transformed into some sort of exciting new post-industrial urban model. And some have begun the process of transformation. Now it’s Detroit’s turn, Boggs believes. It could follow the examples of Pittsburgh, Cleveland, and Buffalo, and become a slightly recovered metropolis, another pathetic industrial has-been still addicted to federal stimulus, marginal jobs, and the corporate food system. Or it could make a complete break and become, if not a paradise, well, at least a pretty good place to live.</p>
<p>Not everyone in Detroit is enthusiastic about farming. Many urbanites believe that structures of some sort or another belong on urban land. And a lot of those people just elected David Bing mayor of the city. Bing’s opponent, acting mayor Ken Cockrel, was committed to expanding urban agriculture in Detroit. Bing has not said he’s opposed to it, but his background as a successful automotive parts manufacturer will likely have him favoring a future that maintains the city’s primary nickname: Motor City.</p>
<p>And there remains a lasting sense of urbanity in Detroit. “This is a city, not a farm,” remarked one skeptic of urban farming. She’s right, of course. A city is more than a farm. But that’s what makes Detroit’s rural future exciting. Where else in the world can one find a one-hundred-and-forty-square-mile agricultural community with four major league sports teams, two good universities, the fifth largest art museum in the country, a world-class hospital, and headquarters of a now-global industry, that while faltering, stands ready to green their products and keep three million people in the rest of the country employed?</p>
<p>Despite big auto’s crash, “Detroit” is still synonymous with the industry. When people ask, “What will become of Detroit?” most of them still mean, “What will become of GM, Ford, and Chrysler?” If Detroit the city is to survive in any form, it should probably get past that question and begin searching for ways to put its most promising assets, land and people, to productive use again by becoming America’s first modern agrarian metropolis.</p>
<p>Contemporary Detroit gave new meaning to the word “wasteland.” It still stands as a monument to a form of land abuse that became endemic to industrial America—once-productive farmland, teaming with wildlife, was paved and poisoned for corporate imperatives. Now the city offers itself as an opportunity to restore some of its agrarian tradition, not fifty miles from downtown in the countryside where most of us believe that tradition was originally established, but a short bicycle ride away. American cities once grew much of their food within walking distance of most of their residents. In fact, in the eighteenth and early nineteenth centuries, most early American cities, Detroit included, looked more like the English countryside, with a cluster of small villages interspersed with green open space. Eventually, farmers of the open space sold their land to developers and either retired or moved their farms out of cities, which were cut into grids and plastered with factories, shopping malls, and identical row houses.</p>
<p>Detroit now offers America a perfect place to redefine urban economics, moving away from the totally paved, heavy-industrial factory-town model to a resilient, holistic, economically diverse, self-sufficient, intensely green, rural/urban community—and in doing so become the first modern American city where agriculture, while perhaps not the largest, is the most vital industry.</p>
<p>Sincerely,<br />
Mark Dowie</p>
<p>November 3, 2009</p>
<p><strong>Editor&#8217;s Note:</strong> This article originally appeared in the August 2009 edition of <em>Guernica</em>. To view the original article, &#8220;Food Among the Ruins,&#8221; <a href="http://www.guernicamag.com/spotlight/1182/food_among_the_ruins/" target="_blank">please click here</a>.</p>
<p><a href="http://whiskeyandgunpowder.com/urban-farming-in-detroit-and-big-cities-back-to-small-towns-and-agriculture/">Urban Farming in Detroit and Big Cities Back to Small Towns and Agriculture</a> was originally featured on <a href="http://whiskeyandgunpowder.com">Whiskey and Gunpowder</a>. Visit <a href="http://lfb.org/">Laissez Faire Books</a> for the best selection of libertarian book titles.</p>
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		<title>Detroit&#8217;s Socialist Nightmare Is America&#8217;s Future</title>
		<link>http://whiskeyandgunpowder.com/detroits-socialist-nightmare-is-americas-future/</link>
		<comments>http://whiskeyandgunpowder.com/detroits-socialist-nightmare-is-americas-future/#comments</comments>
		<pubDate>Mon, 02 Nov 2009 20:10:26 +0000</pubDate>
		<dc:creator>Porter Stansberry</dc:creator>
				<category><![CDATA[Featured]]></category>
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		<description><![CDATA[One of the most important things to remember about socialism – or coercion of any kind – is it fails eventually because human beings have an innate desire for liberty and a strong need for personal property rights. In fact, the origins of government lie in the need of agricultural communities to protect themselves from [...]<p><a href="http://whiskeyandgunpowder.com/detroits-socialist-nightmare-is-americas-future/">Detroit&#8217;s Socialist Nightmare Is America&#8217;s Future</a> was originally featured on <a href="http://whiskeyandgunpowder.com">Whiskey and Gunpowder</a>. Visit <a href="http://lfb.org/">Laissez Faire Books</a> for the best selection of libertarian book titles.</p>
]]></description>
			<content:encoded><![CDATA[<p>One of the most important things to remember about socialism – or coercion of any kind – is it fails eventually because human beings have an innate desire for liberty and a strong need for personal property rights. In fact, the origins of government lie in the need of agricultural communities to protect themselves from violence and theft. So it is particularly ironic that in more recent times, it is government itself that has more frequently played the role of bandit. When you start taxing people at extreme rates to pay for socialist &#8220;benefits,&#8221; when you start telling them which schools their children must attend, when you start giving jobs away to people based on race instead of ability&#8230; you quash human freedom, which bogs down productivity&#8230; and if continued for long enough, leads to social collapse.</p>
<p>I find it perplexing that only 20 years after the collapse of the Berlin Wall, the West continues to implement laws that mimic all of the failed policies of our former &#8220;communist&#8221; foes. In fact, our current president won the election by promising to &#8220;spread the wealth around.&#8221; But&#8230; truth be told&#8230; we don&#8217;t have to look to Eastern Europe or the Soviet Union to find a society destroyed by coercion, socialism, and the overreaching power of the State. We could just look at Detroit&#8230;</p>
<p>In 1961, the last Republican mayor of Detroit lost his re-election bid to a young, intelligent Democrat, with the overwhelming support of newly organized black voters. His name was Jerome Cavanagh. The incumbent was widely considered to be corrupt (and later served 10 years in prison for tax evasion). Cavanagh, a white man, pandered to poor underclass black voters. He marched with Martin Luther King down the streets of Detroit in 1963. (Of course, marching with King was the right thing to do&#8230; It&#8217;s just Cavanagh&#8217;s motives were political not moral.) He instated aggressive affirmative action policies at City Hall. And most critically, he greatly expanded the role of the government in Detroit, taking advantage of President Lyndon Johnson&#8217;s &#8220;Model Cities Program&#8221; – the first great experiment in centralized urban planning.</p>
<p>Mayor Cavanagh was the only elected official to serve on Johnson&#8217;s task force. And Detroit received widespread acclaim for its leadership in the program, which attempted to turn a nine-square-mile section of the city (with 134,000 inhabitants) into a &#8220;model city.&#8221; More than $400 million was spent trying to turn inner cities into shining new monuments to government planning. In short, the feds and Democratic city mayors were soon telling people where to live, what to build, and what businesses to open or close. In return, the people received cash, training, education, and health care.</p>
<p>The Model Cities program was a disaster for Detroit. But it did accomplish its real goal: The creation of a state-supported, Democratic political power base. The program also resulted in much higher taxes – which were easy to pitch to poor voters who didn&#8217;t have to pay them. Cavanagh pushed a new income tax through the state legislature and a &#8220;commuter tax&#8221; on city workers.</p>
<p>Unfortunately, as with all socialist programs, lots of folks simply don&#8217;t like being told what to do. Lots of folks don&#8217;t like being plundered by the government. They don&#8217;t like losing their jobs because of their race.</p>
<p>In Detroit, they didn&#8217;t like paying new, large taxes to fund a largely black and Democratic political hegemony. And so, in 1966, more than 22,000 middle- and upper-class residents moved out of the city.</p>
<p>But what about the poor? As my friend Doug Casey likes to say, in the War on Poverty, the poor lost the most. In July 1967, police attempted to break up a late-night party in the middle of the new &#8220;Model City.&#8221; The scene turned into the worst race riot of the 1960s. The violence killed more than 40 people and left more than 5,000 people homeless. One of the first stores to be looted was the black-owned pharmacy. The largest black-owned clothing store in the city was also burned to the ground. Cavanagh did nothing to stop the riots, fearing a large police presence would make matters worse. Five days later, Johnson sent in two divisions of paratroopers to put down the insurrection. Over the next 18 months, an additional 140,000 upper- and middle-class residents – almost all of them white – left the city.</p>
<p>And so, you might rightfully ask&#8230; after five years of centralized planning, higher taxes, and a fleeing population, what did the government decide to do with its grand experiment, its &#8220;Model City&#8221;? You&#8217;ll never guess&#8230;.</p>
<p>Seeing it had accomplished nothing but failure, the government endeavored to do still more. The Model City program was expanded and enlarged by 1974&#8242;s Community Development Block Grant Program. Here again, politicians would decide which groups (and even individuals) would receive state funds for various &#8220;renewal&#8221; schemes. Later, Big Business was brought into the fold. In exchange for various concessions, the Big Three automakers &#8220;gave&#8221; $488 million to the city for use in still more redevelopment schemes in the mid-1990s.</p>
<p>What happened? Even with all of their power and all of the money, centralized planners couldn&#8217;t succeed with any of their plans. Nearly all of the upper and middle class left Detroit. The poor fled, too. The Model City area lost 63% of its population and 45% of its housing units from the inception of the program through 1990.</p>
<p>Even today, the crisis continues. At a recent auction of nearly 9,000 seized homes and lots, less than one-fifth of the available properties sold, even with bidding starting at $500. You literally can&#8217;t give away most of the &#8220;Model City&#8221; areas today. The properties put up for sale last week represented an area the size of New York&#8217;s Central Park. Total vacant land in Detroit now occupies an area the size of Boston – Detroit properties in foreclosure have more than tripled since 2007.</p>
<p>Every single mayor of Detroit since 1961 has been a Democrat. Every single mayor of Detroit since 1974 has been black. Detroit has been a major recipient of every major social program since the early 1960s and has received hundreds of billions of dollars in government grants, loans, and programs. We now have a black, Democrat president, who is promising to do to America as a whole what his political mentors have done to Detroit.</p>
<p>Those of you with a Democratic political affiliation may think what I&#8217;ve written above is biased or false. You may think what you like. But there is no way to argue that what the government has done to Detroit is anything but a horrendous crime. You may think what I&#8217;ve written above is merely a political analysis. Perhaps so, but politicians drive macroeconomic policy. And macroeconomic policy determines key financial metrics, like the trade-weighted value of a currency and key interest rates.</p>
<p>The likelihood America will become a giant Detroit is growing – rapidly. Politicians now control the banking sector, most of the manufacturing sector (including autos), a large amount of media, and are threatening to take over health care and the production of electricity (via cap and trade rules). These are the biggest threats to wealth in the history of our country. And these threats are causing the world&#8217;s most accomplished and wealthy investors to actively short sell the United States – something that is unprecedented in my experience.</p>
<p>Regards,<br />
Porter Stansberry</p>
<p>November 2, 2009</p>
<p><strong>Editor&#8217;s Note:</strong> A big thanks to Porter Stansberry for this article. We here at <em>Whiskey</em> were very eager to run it. If you would like to read more from Porter and find out about his investment research, <a href="http://www.stansberryresearch.com/pro/0811PSINEX99/MPSIKA00/PR" target="_blank">just take a look here</a>.</p>
<p><a href="http://whiskeyandgunpowder.com/detroits-socialist-nightmare-is-americas-future/">Detroit&#8217;s Socialist Nightmare Is America&#8217;s Future</a> was originally featured on <a href="http://whiskeyandgunpowder.com">Whiskey and Gunpowder</a>. Visit <a href="http://lfb.org/">Laissez Faire Books</a> for the best selection of libertarian book titles.</p>
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		<title>Detroit Real Estate: Down and Out at Market Value</title>
		<link>http://whiskeyandgunpowder.com/detroit-real-estate-down-and-out-at-market-value/</link>
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		<pubDate>Mon, 26 Oct 2009 16:37:10 +0000</pubDate>
		<dc:creator>Gary Gibson</dc:creator>
				<category><![CDATA[Featured]]></category>
		<category><![CDATA[Morning Whiskey]]></category>
		<category><![CDATA[cities]]></category>
		<category><![CDATA[Detroit]]></category>
		<category><![CDATA[market forces]]></category>
		<category><![CDATA[Politics]]></category>

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		<description><![CDATA[Detroit must be feeling like a streetwalker far past her prime. Some 9,000 homes and lots went up for tax foreclosure auction in the American symbol of industrial urban failure…yet 80% of them remain unsold despite a minimum bid of $500. How the world turns. Once Detroit was a dynamic city, the urban equivalent perhaps [...]<p><a href="http://whiskeyandgunpowder.com/detroit-real-estate-down-and-out-at-market-value/">Detroit Real Estate: Down and Out at Market Value</a> was originally featured on <a href="http://whiskeyandgunpowder.com">Whiskey and Gunpowder</a>. Visit <a href="http://lfb.org/">Laissez Faire Books</a> for the best selection of libertarian book titles.</p>
]]></description>
			<content:encoded><![CDATA[<p>Detroit must be feeling like a streetwalker far past her prime.</p>
<p>Some 9,000 homes and lots went up for tax foreclosure auction in the American symbol of industrial urban failure…yet 80% of them remain unsold despite a minimum bid of $500.</p>
<p>How the world turns.</p>
<p>Once Detroit was a dynamic city, the urban equivalent perhaps of a can-do, modern woman, the kind who could have easily attracted money and devotion from deep-pocketed suitors.</p>
<p>But now the ol’ gal just ain’t what she used to be. “Motor City” must sting like an accusation. Her industries are gone and the political props have only prevented the sort of changes that she needed to retain her vitality.</p>
<p>Now she’s lost her looks…and her dignity…and the only ones willing to touch her aren’t willing to pay very much. But apparently a few banks are hoping to buy claims to pimp Detroit out, while making absolutely no investment in improving her lot.</p>
<p>“Critics say the poor showing at the auction underscores the limits of using a market-based system to clean up property tax problems.”</p>
<p>No kidding!</p>
<p>Critics are always blaming a market-based system…even when it was politics fighting the market that made things so bad in the first place. And God forbid that the market tries to clean things up.</p>
<p>There are plenty of people who would love to buy Motor City’s properties cheap and actually move into the city…but the banks keep outbidding them for the decent properties.</p>
<p>The banks, of course, are hoping to make a quick profit…but property prices improve only when the right kind of productive, mindful people move in and form strong local economies.</p>
<p>By buying up the properties, banks are pricing out precisely the kind of people who would make their investments pay off!</p>
<p>I suspect the banks believe that they can simply count on the government kicking off another real estate bubble with the old bag of tricks: by manipulating interest rates and the cost of money and debt. And who can blame them?</p>
<p>We’ve all been conditioned to believe that politics will trump markets forever, that the universe runs on votes instead of physics. Things will&#8211;predictably&#8211;get worse until this belief is temporarily wrung out of our collective consciousness.</p>
<p>In the meantime, consider homesteading in Detroit. In a little while, the banks will have lost their taste for speculation…along with another chunk of taxpayer money.</p>
<p>Living in Detroit would be rough at first, like living on the frontier full of hostile natives: Mad Max meets the Ol’ West. And it may not pay off. Cities do die occasionally, you know.</p>
<p>But that’s what smart investment is all about. The gains are puny when the chances of success are high. If risk has its rewards, then Detroit’s abandoned streets may be hiding gold under the grit.</p>
<p>Regards,<br />
<a href="http://whiskeyandgunpowder.com/author/garygibson-2/">Gary Gibson</a><br />
Managing Editor, <em>Whiskey &amp; Gunpowder</em></p>
<p>October 26, 2009</p>
<p><a href="http://whiskeyandgunpowder.com/detroit-real-estate-down-and-out-at-market-value/">Detroit Real Estate: Down and Out at Market Value</a> was originally featured on <a href="http://whiskeyandgunpowder.com">Whiskey and Gunpowder</a>. Visit <a href="http://lfb.org/">Laissez Faire Books</a> for the best selection of libertarian book titles.</p>
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