alstry (35.49)

80-90% of America Will Be ZOMBULATED!!!

June 13, 2009 – Comments (7)

Zombulation is a term created by the Institute of Alstrynomics defined as the point when one runs out of money and extinguishes all access to credit OR when the government taxes you 100% of your income and assets. In either case, you economically lose everything.

THE ULTIMATE EFFECT OF ZOMBULATION:

Dozens of US cities may have entire neighbourhoods bulldozed as part of drastic "shrink to survive" proposals being considered by the Obama administration to tackle economic decline.

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=212036&t=01000218353128929071

When Alstry started blogging, I blogged primarily about residential real estate.  It became clear early that loaning money to tens of miillions families in amounts unsustainable by their incomes would lead to disaster....especially if those loans were adjustable and at the time interest rates had been intentially INCREASED over a dozen times.

To compound the problem....it was obvious this was going to lead to massive social distress because the bankruptcy laws were changed to make it much more difficult to discharge debt burdens.

Then Alstry observed it was not just residential real estate, but commercial real estate, commercial business loans, and government debt as well grew to levels unsustainable by revenue streams.

BASICALLY OUR ENTIRE SOCIETY BORROWED TRILLIONS MORE THAN IT COULD EVER PAY BACK.....an amount of money that exceeded our total savings.....and it was clear that the road would be littered with a massive number of individual, corporate, and government bankruptcies....

Six Flags seeks Chapt. 11 bankruptcy protection- AP

Those at the lower end of the economic spectrum felt the effects first....subprime loans.  But it wouldn't stop there...because too many borrowed too much regardless of their status at the time.

If you take a step back and look at our economy.....90% of America is either dependent on borrowing or selling to others that borrow.  SO EVEN IF YOU DIDN'T BORROW, THOSE THAT BUY FROM YOU OR THOSE THAT YOU PATRONIZE DEPEND ON BORROWING OR THOSE THAT BORROW!!!!!!

The biggest borrower AND beneficiary of the DEBT BUBBLE was government......not only did government see a huge rise in tax receipts....BUT borrowed against that much higher level of income AS WELL!!!!!!  GOVERNMENT GREW TO ABOUT HALF THE ECONOMY!!!!  HALF!!!!

If you think about it, we lived one giant ponzi scheme.....and just like all ponzi schemes....the game ends when new funds can't be raised anymore and money stops flowing around.

And now, the funds are slowing to the 800lb gorilla....the Government........and this is where the sh*t hits the fan.....the entire economy of the Washington D.C. area is dependent on government spending....so is the entire defense industry, much of health care, and hundreds of billions in sales to government aid recipients......such as WalMart, grocery stores and the like.

The fallout will be unlike anything we have ever seen before......far worse than most of you can imagine at this point.  The unknown will be how will government react to simply not having any money.

What demands will it make on its citizens......will we be taxed 100% of our income....for the few that have income......will our assets get taken over in order to fund our own defense and to protect us from social disorder?????  What is your life worth?????

At this point......few know the answer......my guess is that there are bunch of policy makers grinding out the numbers and goals as this blog is written. 

My role is simply to preapre you for what is coming......and soon most of you will KNOW......it is much easier to mentally adjust with prepartion than react to unexpected distress.

And by the way.....this will be a world wide issue!!!!  It will impact the United States and Europe the hardest...but all will feel it to some degree or another.

One way governments have moved through massive transitory periods is war.....it speeds up the creative destruction process.......my departing thought at this point....

PREPARE!!!!