10 Steps to Owning America
April 08, 2009
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1. Intentionally drop interest rates to levels a generation has never seen before.
2. Loan money to a bunch of people that can't afford to pay you back but convince them they can. Charge them excessive fees so you make sure you can report HUGE profits at the outset of the loan. After you report HUGE profits, make sure you take HUGE bonuses because you know that your company may be bankrupt in a few years when the borrowers start defaulting.
3. As people start borrowing at levels never seen before, watch prices for debt related assets start to skryocket as almost everyone can qualify to buy what few qualified to buy in the past.
4. Make sure you loan even more money against those inflated assets because you want to make sure your borrowers keep borrowing to stay current on their loans so you can keep your bonuses flowing by the billions. And just to make sure people borrow as much as they can, convince them to take out adjustable rate mortgages and other exotic products which infect them with debt that normally they wouldn't qualify to receive.
5. As asset prices keep soaring, and people start buying and selling, flipping and tripping, watch realized gains soar and tax revenues explode. Make sure you loan lots of money to municipalities who think the tax revenue gravy train is going to allow them to service an ever growing debt burden.
6. After you have loaned tens of trillions to consumers, businesses, and municipalities and infected them with debt levels unserviceable at existing income levels, jack up interest rates seventeen times to force some into default.
7. As borrowers start defaulting, and you have pocketed billions in bonuses, act surprised and tell others that now you can't loan money to anyone. Then you may even giggle out loud as you watch your borrowers start to squirm, develop stress related illnesses, and families ripped apart as they can no longer meet their debt obligations. Then pretend to get really mad at them and take back their homes, cars, and other assets just to show them who is the boss.
8. As people are forced to liqudate assets to pay you back, watch the values of ALL assets collapse as many are forced to sell similar assets at the same time. You can start laughing even harder because you get to grab even more of your borrowers assets as fewer and fewer can afford to pay you back. Caution: make sure you continue to act surprised and tell everyone that no one could have foreseen this as you count your billions in the bank....you don't want anyone to know the real story as they may get mad at you.
9. By now you are laughing really hard, because the longer the process takes, the lower asset values drop. Here is the kicker that only you really know....it is mathematically impossible for your borrowers to ever pay you back because you know your borrowers collectively have only $6 trillion of dollars in your banks but they owe you over $30 Trillion. So if you are not one of the first to pay off your debt completely.....it will be impossible for your to ever pay back your debt as the economy collapses to a prune and your income and asset values evaporate.
10. And to add insult to injury, make sure everyone thinks it is a credit crisis so you can get Trillions of free money from the government and the borrowers get nothing......this way you can continue to get bonuses and take everything your borrowers own as well. In a relatively short period of time, money evaporates from the economy and the economy collapses since almost all available dollars is going to pay back debts that should have never been made in the first place.
Currently, the majority of citizens, businesses, state and local governments, school systems, hospitals, and universities are collectively infected with too much debt. There is not enough money in the economy to pay back the debt. Anyone with any vision could have seen this process coming....Alstry did and developed Alstrynomics. Now debt exceeds savings by over 6 to 1.......and as assets continue to collapse in value....the gap will widen and GDP will shrivel to practically nothing. Until we restructure debt.......we will continue to contract in a process Alstrynomics has called Concentric Contraction....as practially no asset class is safe.
So next time someone on CNBS calls this a credit crisis.....you can sit back and laugh just like Alstry.....because now you know the rest of the story....it is a debt crisis and the calling it a credit crisis only makes the debt crisis more symptomatic.
The Key: Pay off your debt early or you will never be able to pay it off and why Alstry has warned you to PREPARE....Don't Fear.....because if we continue down this road without restructuring debt....pretty soon things are going to get really really difficult.
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