9.09....Time To Start Worrying?
Everything running out of money at the same time in 9.09. Pension Funds, Unemployment Insurance Funds, FDIC, Banks, Insurance Companies, Governments......... Concentric Contraction is here and if you don't already know it, you will very soon.
When the agency that insures traditional pension plans is running a $33.5 billion deficit -- the largest in its 35-year history -- should you be worried? If you're a worker or retiree counting on a traditional pension, the answer is probably not. But if you're a taxpayer, start worrying.
[Eighteen via latest updates] states have simply run out of money to pay benefits and been forced to borrow from Washington a total of more than $8 billion. That number is almost certain to grow as more states reach the brink. If they are not able to pay that amount back before 2011, which most will not be able to do, they face paying hundreds of millions of dollars in interest.
In the end, your entire net worth is a derivitive of the debt structure that is the foundation of our nation and its economy. Since our nation is very leveraged.....it doesn't take much for the entire foundation to collapse.
Over 3000 banks have over 300% of their risk capital loaned to commercial real estate......and commercial real estate is crashing. It doesn't take much to wipe out the entire capital base.
At this point, the only thing holding this ship above water is government running a $2 Trillion dollar deficit keeping unemployment insurance funds funded, the poor off of food lines, the health care system functioning, car and home sales moving, over 21,000,000 people employed.
When every corporation in America paid a grand total of less than $325 Billion in Federal taxes last year....and likely less than half that amount this year.......it seems like we have an issue unless we restructure this whole system......and soon or there will be not much of a system left.
Governments are running out of money and so are the citizens......in the end, we have to make a choice......government or the citizens.......it will be an interesting whether we get to choose at all as we proceed through 9.09.