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.