alstry (35.70)

Alstrynomics Explained...

November 10, 2009 – Comments (4)

Alstry realized in 2005 that most of our PRIVATE economy centered simply around real estate..sales, construction, finance, residential, commercial, insurance, furnishing, renovating etc.......between 2001 and 2007 much of the other areas of the PRIVATE economy was supported by borrowing against real estate.....especially travel and autos.

BASICALLY WE PRIMARILY MORPHED INTO A MASSIVE REAL ESTATE ECONOMY.

As long as banks lent and people borrowed...massive sums of money was spent and such spending drove massive tax revenues to government.  Rising real estate prices and additional constuction supercharged property tax receipts.

Government spending in turn exploded supporting Health Care, Defense, Welfare, Social Security and 22,000,000 government workers and untold number of government contractors etc....

In essence, our entire economy was built directly or indirectly on the profits arising out of Real Estate. Without RE America did not have much of a private economy and without a private economy tax receipts to government would evaporate.

It became clear that we simply over leveraged RE to keep the ponzi scheme going and the whole house of cards would collapse once lending was cut back and spending slowed materially.

America is now burdened with over $50 Trillion dollars of Private and Public debt....you need a huge amount of cash flow to service that debt or else the debt will mathematically default.  The only way America could generate anything close to the necessary revenues would be to continue the lending and spending on RE or something else. 

When the bankers cut us off, you knew the party was over.....nobody knew this more than the bankers, but we will save that for another blog.

First RE collapsed, then seemingly banks......and now we face the Biggest and Final Crash...the government collapse.  Government consumes $6.5 Trillion per year...more than our total GDP not too many years ago.......without massive tax revenues coming in...govenrment must borrow or cut.....and if it can't borrow...it can only cut.

Now tax revenues are slowing at the fastest rate in history...New York held a special session last night warning about running out of money by Christmans, New Jersey is contemplating imposing an emergency fiscal plan and practically every city, county and state in the union is implementing material cuts.

When government cuts...it will drive further slowing to the Private economy...which in turn will deminish tax receipts further.....as revenues continue to slow, more and more debt will default causing even more distress.

11.10.9 is the date that you can now Feel the beginning of the Government Collapse...it is about to get a lot worse as government is forced to take action against less income.

In America...we need massive employment to function....and most of that employment comes from RE or government spending.  If Americans are not working, America does not have much of an economy.  And soon, unless we restructure debt...tens of millions of additional Americans will lose their jobs.

Think of our economy as one massive human system...and income/money is the blood which keeps everything going...in order for the entire system to shut down, you do not need to lose all the blood, simply enough to cause enough organs to fail.

On 11.10.9 we are now at that point where organs are failing.  Businesses are shutting down.....millions of workers are losing their jobs...libraries and schools are closing...police and fire departments are cutting back....hospitals and universites have recently started to feel the effects.

The problem is our MASSIVE debt is consuming our income and there is little left for anything else.  As income decrease...the debt will become IMPOSSIBLE to pay back and our government will crash.

Unless we restructure debt...this is not speculation, but a mathematical certainty.  If you have ever been by the bedside of a patient dying...you know the routine.  Think of the rising stock market as morphine....although it helps with the pain, it does little to stop process of demise.

What the system needs is a transfusion...the bankers already got one with Free Money.....in turn, they have tighened credit and raised interest guaranteeing the death of our economy and government as we know it since nothing has been done to reduce the debt burden.

We knew it by 9.09 when the bankers got unlimited free money and cut off our credit dependent economy, and felt the effects on government by 11.10.9........now we can simply sit by the bedside as we will experience are rapidly accelerating contraction in BOTH our Private and Public Sectors.

After enough income/money is consumed, and debt can't be serviced...the entire system will shut down....there is little doubt about it now that we can Feel and the bankers are running the show.

State of Ohio - Expect 100 Bus Drivers / Monitor Layoffs

Warren County - Looking at More Layoffs?

City of Macon - 31 Full Time and 36 Vacant Position Eliminated 

Iowa State - Schools are at Risk For Layoffs