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alstry (35.03)

A Story About Two Fools AND Zombulation

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August 28, 2010 – Comments (15)

Two Fools go to a deserted island.  Aside from the fact that the island is deserted, it is paradise in all other respects.  Perfect beaches, temperate climate, abundant food naturally, and infinite spring water.

One Fool comes to the island with the talent to do almost anything, we will call this Fool productive fool.....the other Fool is a banker and a lawyer, so he sets up the rules and the islands first bank and we will call him banker fool.

To get the economy going, banker fool tells productive fool that if he starts developing the island, in exchange for his labor, he will give him a loan for $100K at 4%, deferred payments for 5 years and balloons upon the 5th aniversary, as long as he collateralizes the loan with his ownership in the island.  Productive Fool likes the idea of owning the island and agrees....especially since the rate is so low.

In order to speed things up with the economic growth, productive fool convinces some neighboring island folk to come over and help, and in exchange he will pay them with island money.  Since the neighboring folk had never seen money, and they like its shiny nature, they agree and are willing to work for $1 per day.

At this point, the only money on the island is the $100K banker fool loaned productive fool and that which he paid from the loan to the neighboring folk.  As weeks go by, then months, the island starts to take shape as roads are cleared and huts built and stores created.

Everybody starts paying  FOR HUMAN PRODUCTION with money and everything is running smoothly and the island's economy is booming.....for years.  But banker fool knows exactly how much money he has loaned out....$100K and not a penny more.

BANKER FOOL ONLY LENT OUT THE PRINCIPAL AND NOT THE INTEREST.....so after five years, productive fool owes banker fool about $120K but there is only about $100K if total money on the island.

After the island looks beautiful, banker fool tells productive fool he is calling the loan......but poor productive fool only has a fraction of the amount owed......so he tells his story to the island folk, who have only been getting 1% on their savings invested in banker fools bank, and they feel sorry for productive fool.

In an unprecedented act of kindness, all of the island folk give productive fool all of the money he ever gave tham plus any interest accrued at the bank.....HOWEVER, WHEN THEY ADD IT UP, it is a little over $100K and it is not enough to pay back banker fool.

So when productive fool confronts his old banker buddy with the situation.....banker fool laughes and forecloses on the island, kicks productive fool off his land and out of his house.....and banker fool lives happily ever after while productive fool becomes the slave of the banker......because productive fool still worked for banker fools money....

Welcome to The Digital Age....Welcome to Zombulation.....

America has over $50 trillion of debt outstanding that the bankers loaned out....much of it in the past ten years....and only a fraction of that amount in the bank.....

Simply to service interest, about $2-3 trillion dollars of NEW money/loans MUST be added to the system EACH YEAR or it is mathematically impossible to service the EXISTING loans' interest....when NEW money is not being added.   Alstry called this behavior ZOMBULATION.....when banks slow lending but keep charging interest, it becomes mathematically impossible to collectively service debt because there is not enough NEW money ADDED by the bankers to collectively pay BOTH interest and principal.

PRETTY SNEAKY AS THE SHEEP BLAME THE SHEEP FOR NOT BEING ABLE TO PAY BACK THE DEBT.....

Each day that passes, more and more debt will default and asset values will continue to implode...it is simply a mathematical certainty based on the Fed's current policy of Zombulation, bailing out the banks and not the debt.....

Hang on....things are getting really really slow and lots and lots of debt is defaulting.....

Under the current policy, there is nothing you can do about it....because eventually, if we continue on the current path, everything around you will shut down.....UNLESS IT HAS ACCESS TO CREDIT LIKE WALL STREET AND WASHINGTON CURRENTLY DO...

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15 Comments – Post Your Own

#1) On August 28, 2010 at 8:39 AM, alstry (35.03) wrote:

Alstry was simply the world's foremost expert on Zombulation...

and knew exactly what would happen......and now it is happening right before our eyes.....

RECOVERY BUMMER: Youth employment lowest since 1948...

Thousands line up before dawn for mortgage help in Palm Beach County...

Recession pushes US birth rate to new low...

Joint Chiefs Chairman: National Debt is a Security Threat...

The process is working perfectly.....Welcome to the Digital Age.....

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#2) On August 28, 2010 at 11:20 AM, JerseyShoreGirl (< 20) wrote:

Watch the Beck 'Restore America Rally' live here .... over 108k viewers on right now ...

http://www.facebook.com/restoringhonor?v=app_136483746394240#!/restoringhonor?v=app_136483746394240

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#3) On August 28, 2010 at 12:25 PM, alstry (35.03) wrote:

The only way to "restore" America is to restructure the debt....

But that is not the goal.....Zombulation is the goal

Beck misses the point in many instances......he is confusing because sometimes he is right

Welcome to the Digital Age.....

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#4) On August 28, 2010 at 5:14 PM, JerseyShoreGirl (< 20) wrote:

Alstry .. BTW, +1000 for your creativity above!

I hear what you're saying about Beck .. BUT, we cannot forget about all of the good in this nation and the principles and values upon which this nation was founded .. here's one quote from Beck that really resonated with me ...

"that which you gaze upon, you shall become"

If we gaze upon the Zombulator too much, we will become Zombulated .. now's the time to be part of the solution and not the problem ...  In fact, I'm noticing an uptick in your RECS when you are positive in your posts; maybe it's time we take a different direction here ....

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#5) On August 28, 2010 at 7:02 PM, Starfirenv (< 20) wrote:

Al, I liked your three amigos story better but I see it was taken down. Just wondering if your "angles" were acute or more obtuse.

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#6) On August 28, 2010 at 9:27 PM, valunvesthere (21.57) wrote:

The editor could of made this a happier story if PRODUCTIVE FOOL built an airport, hotel resorts with casinos, built a port, and created a successful tropical fruit export region that rivals Hawaii, Carribeans, Macau and etc. PRODUCTIVE FOOL could go extra further by becoming a satellite state of China,France,Russia,United Kingdom, or United States of America and have a 24/7/364-365 naval base on the island. PRODUCTIVE FOOL chose United States of America because he/she likes its style of democracy and capitalism.

With tourist dollars, dollars from becoming a profitable tropical fruit export region, and super power government defense dollars rolling into the island.PRODUCTIVE FOOL has paid back BANKER FOOL's principal investment plus interest and PRODUCTIVE FOOL has decided to produce and export wine in the region. With so much success it won't be long before a liquor distillery and tobacco factory be set up.

To make this a happier story PRODUCTIVE FOOL never forgot about BANKER FOOL and made him/her CFO(Chief Financial Officer) in many of the islands operations.

Chris

 

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#7) On August 28, 2010 at 11:08 PM, Varchild2008 (84.64) wrote:

PRODUCTIVE FOOL just needs to pay back BANKER FOOL in IOUs

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#8) On August 28, 2010 at 11:47 PM, alstry (35.03) wrote:

Try that on your taxes or mortgage......

It only works the other way around......

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#9) On August 29, 2010 at 12:04 AM, ChrisGraley (30.25) wrote:

How is this like the US? we print money here faster than we can spend it. It's debtor's paradise!

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#10) On August 29, 2010 at 12:08 AM, alstry (35.03) wrote:

Chris....

Only if you are a Wall Street Banker or Washington Politician...

Actually, right now, money as defined as debt and currency is contracting, on a NET basis at the fastest rate in history....

 

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#11) On August 29, 2010 at 3:33 AM, valunvesthere (21.57) wrote:

Alstry

Not necessarily, as solid evidence look at the majority of Chinese immigrants. I believe it's their hardwork ethics in working long hours,tight knit family bussiness operations, balancing work/family, for some spending within their means(frugally), and for others managing debt well.

Many of the unskilled Chinese work in minimum or a little above minimum wage jobs and manage to own homes. How do they do that? They tend to work long hours(50-80hours a week) and live within their means by spending frugally.

Many of the skilled Chinese practice professions like finances,law,and medicine. some may work for large firms but majority tend to or eventually have their own offices and operate independantly as a mom and pa bussiness(family bussiness) they manage to own mid-scale to up-scale homes. How do they do that? They make middle to upper class income,tend to work long hours(40-60hours maybe more a week) balance work/family and manage to control debt to support a middle - upper class lifestyle.

Many of the investor Chinese open up small, mid-size, to large size bussiness(from corner stores,retail chains,to  warehouses) depending on success of bussiness they manage to own low end,mid-scale to up-scale homes.How do they do that? They make middle to upper class income tend to work long hours(70+ hours a week or less if family operation), balance work/family and manage to control debt to support a middle - upper class lifestyle.

Chris

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#12) On August 29, 2010 at 3:33 AM, alstry (35.03) wrote:

In a creek that is quickly drying up, any any given time some tadpoles find enough water to swim.....until there is no more water.

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#13) On August 30, 2010 at 3:27 AM, valunvesthere (21.57) wrote:

Alstry

Any answers about money coming to America from American exports(trade)?

Any answers about foreign investment invested in American industries? 

Any answers about granting wealthy immigrants American citizenship?

Chris

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#14) On August 30, 2010 at 8:21 AM, tomatoflu (< 20) wrote:

That's right..Reads like a modern day parable.

I like the aproach Alstry.

Nice and indirect.

Even after having discovered the bankers evil secret, i am still incredulous that they are getting away with the biggest transfer of wealth in history. 

 Under our noses "while the sheep watch the ticker" (As you say from time to time.) ha..

Don't they know (The sheep) that the money supply is being contracted intentionally so that even more loans default??

The answer to that is protracted "No".

Good grief!!

The early child-sheep-hood "bank" condition is very powerful.

Your use of a story was an optimum idea.

Wonderful imagery etc..

 

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#15) On August 30, 2010 at 8:48 AM, tomatoflu (< 20) wrote:

*Conditioning.

 

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