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alstry (34.93)

2010...The Collapse

Recs

13

December 16, 2009 – Comments (6)

When you have OVER $50 Trillion in Debt.....and massive and growing entitlement obligations......

Credit must be EXPANDING at least 10% simply to service interest and cover entitlement obligations.

If you don't substantially lower interest rates or restructure debt.....MASSIVE FAILURES ARE MATHEMATICALLY CERTAIN.

We are now one year into a period of not only NO credit expansion, but actual credit contraction.....and as documented in the prior blog, we have already seen massive failures in 2009.

Going forward, if we continue with the same Zombulation policies, conditions are going to slow so much that the failure rate is going to explode as more and more businesses or the customers run out of cash or access to credit.

Right now, if you are a Wall Street bank or Federal Government, you pretty much have access to unlimited cash at 0% interest.......the rest of the world is paying much higher rates and are having access limited.

As we proceed to 1.01.10.....the contraction is going acellerate rapidly........until so much has shut down that there really isn't enough of an economy to sustain America's infastructure and government.

.....unless we restructure soon.

Cities, Counties and States have already started laying off tens of thousands of workers.....it will only get much worse as we move forward.

6 Comments – Post Your Own

#1) On December 16, 2009 at 11:34 AM, brickcityman (< 20) wrote:

Where are getting 50 trillion from?  Is that anticipated principle plus interest?

 

I thought the debt was closer to 20 trillion.

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#2) On December 16, 2009 at 11:38 AM, alstry (34.93) wrote:

Federal Debt is about $12 trillion.

Mortgages, HELOCS, Credit Card, Municipal, Corporate...etc......shoots it right up there.......

Then you have entitlement on top of that.......

And in an environment where the banks are cutting back credit......and raising interest rates.....whille incomes and revenues are declining.........the collapse is inevitable........

We are already at record foreclosures.....record tax declines.....and record numbers unemployed.........and we are still in the early stages.

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#3) On December 16, 2009 at 11:42 AM, jddubya (34.06) wrote:

 "As we proceed to 1.01.10.....the contraction is going acellerate rapidly..."

LOL

But... but... oh wait, you're doing re-runs now.  This is what you spewed back in January 2009:

"Concentric Contraction has arrived and is hitting the shore with full force."

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#4) On December 16, 2009 at 11:50 AM, alstry (34.93) wrote:

jd....

It is obvious you don't give a damm about the 2/3 of architects unemployed.....or the 50% of the auto workers......or the over 50% of construction workers.....or the airline workers who have seen 50% of their income evaporate in the last few years.............or the millions of families that have been kicked out of their homes.......or the millions upon millions of newly unemployed with no prospects of job openings

And we havn't even started 1.01.10....................

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#5) On December 16, 2009 at 11:52 AM, AvianFlu (37.50) wrote:

brickcity:

From previous posts, the best place to find the up to date debt numbers is at http://www.usdebtclock.org/

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#6) On December 16, 2009 at 1:15 PM, jesusfreakinco (28.80) wrote:

Avian / Brick,

The US debt clock is the official number, but is not based on GAAP - generally accepted accounting principles.  Alstry's numbers are closer to the truth.  Check out: http://www.iousathemovie.com/ or http://www.pgpf.org/ and http://www.pgpf.org/about/nationaldebt/ for more information on this.  

JFC

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