Alstry's Gift to CAPS
September 22, 2009
– Comments (21)
It is now time for you Fools to really understand Zombulation. It is defined as the point when you run out of income, savings and access to credit or when government taxes you 100% of your income and assets, in e ther case you are broke.
Over the past ten years America's banking system infected America with over $30 Trillion dollars of NON federal debt. This debt is in the form of mortgages, HELOCS, credit card debt, auto debt, commerical debt, private equity debt, commerical paper, municipal debt, and commercial real estate loans.
What few really appreciate is under fractional reserve banking, the banks really never had the money to lend...they simply loaned by levering up their deposits. As a result of Credit Default Swaps, banks were actually incentived to make loans that they NEVER would have done under ordinary circumstances.
Consequently, banks loaned out many times the deposits and drove asset prices to levels that were only sustainable if the banks kept lending. Once the banks couldn't lend any more, asset prices were guaranteed to crash. The problem is that as asset prices crashed, the economy slowed, jobs were cut, and wages slashed......BUT.....the debt and servicing obligations remained.
Now we have a collapsing economy burdened with over $30 Trillion dollars of NON federal debt but only about $6 trillion of savings. Now here comes the really fun part that Benny B knows and you are soon to feel the effects. Since savings is paying only about 1% and debt is costing anywhere between 5% and 30%.....anybody with savings is being forced to pay down debt. As a result, savings is contracting rapidly at our financial institutions contracting lending capacity even further and causing even further slowdown in the economy.
We are now at the point where revenues have slowed so much we are firing workers at hospitals, schools, police officers, firefighters, and other public safety positions including prisons, parole officers, and prosecutors.
At some point in the not too distant future, as savings is drawn down to pay down debt and pay living expenses for the tens of millions of unemployed and underemployed...we will reach a critcal point where few banks will be sufficiently capitalized to remain open...especially as defaulting loans further impair banks' balance sheets.
Benny has known this point would eventually arrive under current Zombulation policies...after all, he engineered it whole thing along with is banking buddies. Whenever you incentivize banks to make bad loans...you can be rest assured that a lot of terrible loans will be extended.
In 2007 as credit started to be cut off....it was mathematically certain that most of the debt would default because it was underwritten at amounts that required massive credit to be injected in the economy to sustain high levels of cash flow. Once the debt actually defaulted, the credit was cut further and the massive job losses were very foreseeable based on the Zombulation policy of bailing out the banks and not the citizens....AT A TIME WHEN BENNY TOLD ALL WAS FINE.
So here we are, savings has been drawn down to critical levels, many many banks are on the verge of shutting down, record amouts of debt are defaulting or on the brink of defaulting and it is mathematically impossible to pay down $30 trillion dollars of debt with a few trillion of savings.
Unless we restructure debt soon....our economy will start to shut down at an accelerating rate. Now that we are impacting hospitals, police and fire departments....it is now affecting public safety as the bankers bask in the trillions of bailout dollars....trillions that should have been used to restructure debt and not bankers.
None of this was hard to foresee if you were looking...but just very difficult to accept our own Federal Reserve would orchestrate such a massive deception and destruction on our entire population and economy. 9.09 is here and the shutting down is accelerating.......unless we stop the Zombulator...there will not be much left to Zombulate as the FDIC, FHA, and Pension Guaranty are out of money. As government runs out of money, it will have to get more aggressive with its citizens. Such aggression can and will likely incite anger and social unrest. Just look at what we have seen so far at the early stages.
If Benny keeps printing without producing....a gallon of gas could be $1000 while tens of millions get fired as a result of prohibitive input costs to American corporations. At this point, none of the choices are easy...but it is clear that unless we restructure debt...we will all suffer massive convulsions to a nation and life we currently know.
The time for blogging is coming to an end...the time for action is beginning. In upcoming weeks and months, you will see things might seem unbelievable...but when the Fed unleashed the Zombulator....it unleashed a destructive economic machine that has never been seen in America before.
Unless we demand debt be restructured...the Wall Street bankers will be only ones bailed out and government will be forced to take all we have simply to maintain the soverignty of America.
Money is running out fast Fools...unless we restructure soon...there will not be much money left as a few trillion of savings goes to pay down tens of trillions in debt and massive defaults shuts down most of America.
You are now prepared...go do something about it.
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