Alstry GUARANTEES almost ALL will be ZOMBULATED!!!!
May 28, 2009
– Comments (14)
Zombulation is the point where every dollar of your income will be required to either pay interest or taxes and NOTHING ELSE!!!!!!
So let's look at an easy Zombulation example.....a person or business owner making $300K per year spending only $100K on interest for his house, credit cards, and other miscellaneous consumer debt like a cabin, cars, boat etc.......not bad considering that only 1/3 of his income is allocated to such debt leaving a healthy 2/3 for taxes, goods and services, and savings.
Most conservative mortgage metrix allow for about 1/3 of income for housing ALONE.....keeping the above in perspective.
In the above case, if the person's income dropped to anything below $150K, he would be ZOMBULATED factoring taxes and interest. How many American's do you think fit the above criteria in the past few years in occupations such as Real Estate Sales, Mortgage Brokers, Plastic Surgeons, Airline Pilots, Small Business Owners etc......????
When these people are Zombulated, they can no longer spend a dime on goods and services without tapping into savings or borrowing to survive....once savings and credit runs out...they are economically DEAD!!!!!
As income and spending decreases, ironically the demands on government expenditures INCREASES due to rising unemployment, welfare, and crime demands. Consequently government must raise taxes on a smaller population base to cover the rise in costs. If government cuts expenses, it too will contract the economy further having the same effect of decreasing income and expenses raising demands on government further.
This process called Concentric Contraction continues to play until revenues aggregately slow so much that the demands for interest and taxes will consume practically every dime of every American.
You can already see the effects of Zombulation in New Housing Down 80% and Autos DOWN 50% where revenues to those two industries are so low they can no longer cover interest expenses and pay their employees at the same time....and now they are simply living on credit and savings.....until they run out.....
The demands on government are going to skyrocket as more and more will need free health care and unemployment benefits....fewer and fewer will be foreced to bear the burden.......and factoring legacy interest obligations......every dime of practically every American will need to be allocated to interest and taxes and nothing left for discretionary expenses if we continue down the same policy direction.
You think I am kidding....tell that to the every increasing and record number of Americans that are losing their jobs and getting kicked out of their homes EVERY month.....they are placing greater and greater burdens on government and society....as the economy slows even further, a greater and greater percentage of it is being used to service EXISTING debt while government obligations are exploding causing crowding out spending for goods and services that society depends on to exist.
The consequences of Zombulation are not a question at this point......under the current policy direction...they are mathematically certain...now the only question is when will all of us be Zombulated creating a Zombie Nation.
Japan was able to avoid a bunch of the distress because its population had no debt and it was an export based economy.....INTEREST WAS NOT A FACTOR IN JAPAN....versus our nation built up a significant dependance on credit and government welfare over the past 10 years. Now that credit extension is cutting back dramtically, legacy interest obligations are enormous suffocating our economy resulting in an inability to pay back debt.
Printing money is not an option because printing requires borrowing and few will lend us any money right now at current rates due to our inability to pay it back....and those that will lend will demand higher and higher rates until we can't pay the debt anymore.
At this point...under current policy...as interest payments consume more and more....and government needs grow and grow resulting in higher and higher taxes on fewer and fewer.....it is only a question when before we all be Zombulated and we eventually morph into Zombie Nation.
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