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alstry (35.94)

A $2 Trillion Dollar Defict

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October 22, 2009 – Comments (16)

About $6000 for evey man woman and child in America....and growing. 

Without it....we would have no army

Without it...40 million Americans would be standing in line for food instead of getting food stamps

Without it...most of the money for health care and prescriptions would be gone

Without it...the unemployed would not be getting monthly checks

Without it...we would have to fire most government workers

Without it...the FDIC would be bust

Without it..the Pension Guaranty would be bust

Without it...the FHA would be bust

Without it...few would be buying homes at anything close to current prices

Without it...it would not be the end of the world, simply the end of a welfare world as we know it

And even with it....tax receipts are contracting at the fastest rate in history

And even with it...over 500,000 people are applying for unemployment benefits each week for the first time

And even with it...mortgage defaults have grown to the highest number ever

And even with it...the unemployed are now staying unemployed for record lengths of time

And even with it...our economy is contracting and sales are evaporating

I know many of you Fools think you are entitled to the benefits of such a massive deficit....you are entitled to have such nice hospitals, and strong army, and good roads, and affluent poor not begging at your door, many of you feel you are entitled to all of the above and much more even though no other citizen in the world is permitted to have anything close with such little relative productivity.....

But in the end, the piper must be paid....if we maintain the deficit, fewer and fewer will respect the dollar anymore and our currency will be worthless.....if we become responsible, our economy shrinks massively for a while setting the foundation for future growth

Soon Obama will be forced to make a very difficult choice between attacking other nations to accept our currency or confront his citizens that CHANGE will be necessary.....because no bank, no nation, or no group of nations will have enough money nor the inclination to finance such a large deficit simply so America can feed and care for its citizens without producing much.

Right now we are creating a MASSIVE obligation to the money center banks that niether the banks have the funds to loan us nor do we have the ability to pay them back based on a contracting economy.  The more we borrow, the more we and our children owe them ....and one day the primary dealers will demand payment by one method or another.

Nice gig isn't it...you get to loan America trillions of dollars you don't have....collect interest on it......and laugh all the way to any foreign bank as you deposit your profits in case you choose to cut America off of the money you don't have.

If Obama chooses peace....all of us will be forced to accept less....the problem is there is a massive debt load that can't be serviced with less income.....that is why so much debt is defaulting right now as income is contracting......and if government slows spending....it will be much less for all....at which time we will need to restructure.

If Obama chooses or forced into war..........

16 Comments – Post Your Own

#1) On October 22, 2009 at 10:55 PM, alstry (35.94) wrote:

Oct. 23 (Bloomberg) -- The dollar traded near a 14-month low against the euro as a recovery in corporate earnings and improved prospects for the global economy revived demand for riskier assets.

It can only go so low before tough decisions must be made.......

or decisions will be forced upon us....

if we don't restructure soon, there will not be much left to restructure as the private sector is burdened with a massive amount of debt and credit is being cut off at record rates.

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#2) On October 22, 2009 at 11:16 PM, alstry (35.94) wrote:

ALL OF THE BELOW WITH A $2 TRILLION DOLLAR DEFICT

REMEMBER....THE EFFECTS OF THE CUTTING HAS NOT EVEN SERIOUSLY STARTED AND THE COMMERCIAL REAL ESTATE COLLAPSE IS JUST BEGINNING

LANSING -- As tax revenues that support K-12 education in Michigan continue to plummet, Gov. Jennifer Granholm said more districts would be on the bubble of financial insolvency should another per-pupil cut of $120 be required on top of the $165 cut per student in the school budget she just signed into law.

With another round of state budget cuts looming, Margaret H. Marshall, chief justice of the Supreme Judicial Court of Massachusetts, warned yesterday that financial troubles are clogging the courts, pulling probate officers from Boston schools, and decimating the ranks of court-appointed guardians.

Cascade County Sheriff Announces Drastic Budget Cuts

 

1300 state jobs at risk in proposed cuts

 

Arizona agencies weigh in on 15% cut scenario

More Budget Cuts For The Peach State

Georgia lawmakers are predicting yet another budget deficit. This time it could mean billions more dollars in cuts.

 

IT IS NOT THAT ALSTRY IS A PERMA BEAR...JUST THE DOCTOR OF ALSTRYNOMICS DOCUMENTING AND DIAGNOSING THE PATIENTS CONDITIONS.

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#3) On October 22, 2009 at 11:23 PM, alstry (35.94) wrote:

ANOTHER is no longer better than expected by 11.10.9

NEW YORK, Oct 22 (Reuters) - Time Warner Inc's magazine division Time Inc plans another round of job cuts as advertising declines erode revenue, a source familiar with the unit said on Thursday.

The New York Times will cut 100 positions in its newsroom by the end of the year, Executive Editor Bill Keller told staff on Monday. This is the second time that the paper has taken this unfortunate step, having cut 100 positions last year...Our colleagues in editorial and op-ed, and on the business side, also face another round of budget cuts.

Illinois County Health System Lay Off 335, Cut 700 Jobs

 

 

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#4) On October 22, 2009 at 11:36 PM, lquadland10 (< 20) wrote:

Alstry. It really pains me to say this. YOU ARE WRONG. You have your figures off by just a little bit. (About $6000 for evey man woman and child in America....and growing. ) Acording to the US Debt clock the total amount we now owe is 343,771

 

http://www.usdebtclock.org/index.html

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#5) On October 22, 2009 at 11:38 PM, lquadland10 (< 20) wrote:

343,771 per person.

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#6) On October 22, 2009 at 11:45 PM, ease1 (90.15) wrote:

alstry - I'm afraid to inform you but the decision has already been made.  Obama has no intent to attack other nations.  Why should he even fathom that thought.  Globalism is the goal.  We shall adhere to the policies of the globe, we should no longer be a leader but rather an equal with everyone else.  Our currency should drop and we should say good by to the dollar for good.

These are the objectives of our government leadership.  It's part of the grad plan don't you see?  We shall be equals both globally and individually.  Freedom of speach is lame, the right to bare arms is dangerous, and above all money should be controlled without a doubt by our leaders.  From every penny you earn to every dollar (eh.. euro) they stuff in their pocket.  You should not be allowed to succeed more than anyone else.  All of your productivness should contribute to the greater good, not to yourself.  Entitlement will increase, not decrease.  Distribution for equality is most important.

If there is one thing you should never forget; "power corrupts, absolute power corrupts absolutely"

 

 

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#7) On October 23, 2009 at 12:33 AM, usmilitiadude (32.11) wrote:

Gentlemen, check your decimals. $39,000 per legal citizen. Here is an amazing page at http://www.usdebtclock.org/.

Was the debt limit extended? Here is the most recent opinion piece from the Washington Times. We are 40 to 50 days away.

 

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#8) On October 23, 2009 at 2:48 AM, Decibel45 (< 20) wrote:

Everyone who's touting the debt clock needs to learn the difference between *debt* and *deficit*. Our *debt* per-person is $39k, not our *deficit*.

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#9) On October 23, 2009 at 7:42 AM, alstry (35.94) wrote:

Decibel.....when I started blogging, the deficit was less than $500 per person per year......now we are on track to exceed the number by over 10X the number.....and sales are still declining as evidenced by terrible September tax receipts.

The problem is that we have a contracting economy, especially non government economy, so the deficit and government spend is really now becoming the economy.  Even with a massive deficit, look how revenues to the below companies are shrinking...

Ingersoll Rand Q3 revenue $3.48 bln vs $4.31 bln

Schlumberger Q3 revenue $5.43B vs $7.26B

Honeywell sales fell to $7.7 billion from $9.3

The above are global companies experiencing massive sales declines despite HUGE sales to government or government supported customers.

Construction is practically non existent, manufacturing is evaporating, and now health care is pulling back.  At this trend, there will not be much to service and it will not be long before government spending is the economy....with very few in the private sector making money, our economy will simply be a byproduct of government and not much else.....

unless we restructure debt to the private sector.

The strange part is as revenues evaporate and PEs expand....many of the Fools seem to think this is a positive.

As far as the war option, it won't be presented as a choice....and let's hope it never presents.

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#10) On October 23, 2009 at 8:38 AM, JeanDavid (84.18) wrote:

"Obama has no intent to attack other nations."

??? We are already at war with Iraq, Afghanistan, Pakistan. We are paying Israel to fight a war against the Palistinians and its neighbors. We are threatening Iran and probably carrying out subversive attacks on them already. We subsidize the dictatorship of Columbia, are involved against Somalia. ...

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#11) On October 23, 2009 at 10:58 AM, Rasbold (91.06) wrote:

Dude, I got to respect your ratings, especially if they represent your actual portfolio; but even so. You are totally full of corn....no crash imminent, dollar is not going to go below 70 index....trust me.

I am not sure the definition of MOAP, it is only found through search which leads to your blogs. Nothing is going to happen. Things will get worse, then better, then worse. Like they always do.

I hear you....I want it to fail and fail hard. Those turds in power and financial position should feel an overwhelming crushing destruction of their world...I want that!!   But my wanting that won't force it.

And neither will yours.

 

Good Luck, and May Your Dow Never Jones!

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#12) On October 23, 2009 at 11:31 AM, alstry (35.94) wrote:

Ras,

Alstry is just documenting the Zombulation and Detroitization of America through Concentric Contraction.  Right now we are still losing over 500K jobs per week and vacancy rates and defaults are skyrocketing.

Based on current policy, it is not a questin if.....simply a question when.....if policy changes....so will Alstry.

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#13) On October 23, 2009 at 12:50 PM, alasker (< 20) wrote:

Alstry bloggers-

Could you give me a quick lesson in inflation because everyone keeps talking about the dollar crashing. I am not an economist but do understand supply and demand and money turnover- if you thought your money would be worth less in 15 minutes you would spend it now.

People are losing jobs, not spending money, you have written about homes being worth less than zero. Wouldn;t that mean at this moment in time anyone who has cash physically in their hand- that cash would be relatively more valuable on a micro scale than it was worth 2 years ago. The recipients of the digital currency (hopefully they do not mess up a decimal point because of the zeros) are holding onto the money (i dont see trillions of dollars laying in the street when i walk out the door). I don't see the turnover which is why we are in deflation. 

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#14) On October 23, 2009 at 1:00 PM, mliu01 (< 20) wrote:

6000 bucks are from that 2 trillions.

Not the total debt. Yeah that is the deficit for this year. for family of four it is 24k!!! For every family. They steal, looted 24k from every family of four and hand it to bankers.

They took at least 240k from each family to bailout the bankers.

 USD will be dead in two years. Yes, not worth less. it will be worthless.

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#15) On October 23, 2009 at 4:56 PM, jesusfreakinco (28.94) wrote:

Al / mliu / others,

I'd be curious to have your thoughts on my blog today.  Looking for perspective...

JFC

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#16) On October 24, 2009 at 1:11 AM, lquadland10 (< 20) wrote:

Excuse me. Has anyone looked at the bottom right corner. You know the one that has the unfunded part? The total amount that we have promised? The one that says over 343,812 per citizen? Little things like Medicare SS SSI Drugs for Elderly? That part?

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