alstry (35.70)

Alstry Is The BIGGEST OPTIMIST On Caps

May 13, 2011 – Comments (5)

No, I am not drinking this morning....nor have I smoked anything either.

At the present time, every data point every Caps member presents is offered AFTER America's ANNUAL $1.6 TRILLION dollar deficit.  Few really understand how much $1.6 Trillion dollars really is and how important it is to our economy.

$1.6 Trillion dollars is enough to pay 40,000,000 families $40K per year

or enough tho pay the top 5% of income earners $250K per year.

Taxed at 30% it is about $500 billion...OR 50% of America's total income tax receipts

and despite this unprecedented stimulous....or economy is barely limping along.

The problem is each time we borrow money...we accumulate debt.....and in just 4 years Americans managed to accumulate more debt than the total accumulated from 1776 to 2000.

And now we are learning we can't borrow anymore.....and as the borrowing stops.....our economy will collapse as we are now starting to liquidate everything around the nation to compensate for collapsing cashflow...

UNIVERSITES AND COLLEGES LIQUIDATING:

Universities Slash Budgets Nationwide

STATE AND LOCAL GOVERNMENTS LIQUIDATING

These liquidations will result in MILLIONS of jobs lost.......

and we are liquidating WHILE continuing to maintain our massive deficit.....the liquidations and conditions will only deteriorate as the borrowing slows.....

Albuquerque Public Schools To Cut About 400 Jobs

And then.....we will all be staring at each other wondering where did all the revenues go......why can't we keep borrowing?

Just like everybody thought housing prices could only go up if we kept borrowing....for some reason, we forgot the lesson about what happens when we can't keep borrowing......and it appears we are about to find out.

US House Proposes New Round of Budget Cuts

And at the end....as the revenues evaporate......we will wonder.....who is John Galt?  Who is Alstry?