Alert!!! It Is Now Happening...The Money Has Run Out
From 2000-2007....the vast majority of our productive economy grew simply because of the expansion of credit and the accumulation of debt. We borrowed more money in seven years than we did in the previous 200. It was our PRIVATE economy that drove tax receipts to government, and government spending that drove revenues into the economy. The only reason politicians had jobs is because the private sector supported them and they were there to serve the citizens and nation.
The bankers made a ton of money infecting our economy with an unsustainable debt load(primarily the consequence of credit default swaps), government doubled in size, and all seemed like it was chugging along......Until the bankers raised interest rates and cut off credit.
Since, revenues to the productive economy have evaporated, tax receipts imploded, and you know the rest.
Now CASH FLOW is reaching critically low levels and businesses, families, and govenrment are simply shutting down because of an inability to meet obligations created during a credit expansion environment. It is easy to pay $10K per year for health insurance when you are making $100K....much more difficult when your income has been eliminated or cut in half. Same with property taxes, auto insurance, or debt obligaitons......or any other expense for that matter.
However, if you are the Federal Government or a Wall Street bank you have unlimited free money despite the fact your cash flow has evaporated and you are insolvent......but as a private citizen or business, you are suffering.
Ask yourself, why should a Wall Street Banker or government politician still have a job and income while the private sector employee is unemployed and potentially getting kicked out of their home even though ALL PARTIES ARE INSOLVENT?
America was built upon a foundation of All Men Are Created Equal and Equal Justice For All. What kind of justice is it when an insolvent government only bails out its insolvent banker buddies and lets the rest of the nation rot???????????????????????????????????????????????????
Due to credit being tightened and cut off, our productive side of the economy that employs the majority of the nation is suffering and shutting down. Hospitals, Schools, Universites, Manufacturing, Construction, Technology......
What most of you Fools fail to realize just yet......is that once productive America is broke, you are broke as well. If America is not producing an income, we simply can't be a society based on a government that prints money and hands welfare out to its citizens.....eventually, few will accept our currency and our economy will disintigrate.
Right now 40,000,000 Americans receive Food Stamps, over 16,000,000 receive unemployment, over 20,000,000 get their paychecks from our insolvent government.....where do you think WalMart's and Target's revenues come from???? Now even Costco is accepting Food Stamps.
The ONLY visible politician addressing the issue right now is the governor of New York......on December 31st, New York ran out of money......now the question is how will an insolvent nation equitably restructure so we can build a future for our children on the principles America was built upon.
ALBANY — In a strikingly blunt State of the State address, Gov. David A. Paterson chastised the lawmakers seated before him on Wednesday, saying they had spent the state into near-ruin and stood by as a plague of political corruption destroyed New Yorkers’ trust in their government.
Dispensing with the ritualized flattery that typically precedes the annual address, Mr. Paterson said that the Legislature’s reluctance to make hard decisions and rein in its own excesses had plunged the state even deeper into crisis.
“You have left me and other governors no choice,” Mr. Paterson, the former State Senate minority leader, said. “Whether it be by vetoes or delayed spending, I will not write bad checks, and we will not mortgage our children’s future.”
The public scolding drew a cold response from lawmakers, who gave Mr. Paterson little applause and rose from their chairs only when he entered and exited the Assembly chamber.
Some sat stony-faced during the speech, while others fidgeted with BlackBerrys.
My guess is much of America will be stony-faced once they realize where we all stand.