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alstry (34.92)

Apathy To Economic Apocalypse To The Digital Age

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February 06, 2010 – Comments (5)

 After months of shrugging off debt problems in Dubai, Greece and other smaller economies, markets yesterday seemed suddenly aware of the risks of sovereign default.

Back in November, when the question of Dubai's solvency came to a head, it was ultimately bailed out by its rich older brother, Abu Dhabi. Now, the European Union is doing its best to avoid promising a similar bailout to Greece, though in the end few believe Brussels will allow Athens to go under.

The current crisis in Greece is only the worst example inside the EU. The PIGS—Portugal, Italy, Greece and Spain—all boast public debt above or headed for 100% of GDP. Though the PIGS acronym was apparently coined by British bankers, Britain, Ireland and Iceland also smell distinctly of bacon.

The problem isn't confined to Europe. Japan and the United States, by most reckonings the world's largest economies, also face pressing questions about their sovereign debt levels. To be sure, the U.S. and Japan can sustain such deficits more comfortably than small countries like Greece or Portugal where the government's ability to curb public-sector spending is rightly suspect. Yet even in economic giants, bad policy could cause investors to move out of debt they have long considered a safe haven. The moment is approaching when the artificial line separating the wealthy from emerging markets will lose much of its relevance.

http://finance.yahoo.com/banking-budgeting/article/108783/sovereign-risk-meets-sovereign-reality?sec=topStories&pos=6&asset=&ccode=

OK....the world is REALLY going broke.....no big deal, most who read this blog already know that.   Please note the words in the last sentence that have been bolded, it is something that I have been blogging about both directly and by inference.  In the Digital Age, money and wealth from the industrial age will have much less, if any, significance in the Alstrynomic Digital Age where knowledge AND the implementation of that knowledge will be the driver of wealth.

What will a vacant shopping center be worth?  Or a house in a city with little employment? ...we could go on and on, but you get the point.

We know when a nation goes to war, government can take our children........we know when a government is incentivized to attract people, it will give them 40 acres and a mule.  The BIG question is what will a government need from its citizens when the government runs out of money?

My guess is they will supress reality until the day of reckoning or zombulation...which is getting much closer following 1.01.10.

Remember Fools, our government ran a surplus in The Great Depression.....so looking backwards gives you NO insight going forward.

This is what happens when you cut off a credit dependent industrialized world from money.....money simply runs out.....and when access to credit runs out as well......you are Zombulated.

Morphing from the Industrial Age into the Alstrynomic Digital Age will not be easy.....but the end result will propel man further than ever before.

5 Comments – Post Your Own

#1) On February 06, 2010 at 11:50 AM, alstry (34.92) wrote:

As pressure increases from the shutting down of the Industrial Age....expect tensions to rise around the world as each try to mainain the life as they knew it.

China to levy duties on US chicken; Rising trade and currency tensions...

BRITISH AIRWAYS heads for record loss...

Europe's Financial Crisis Intensifies 

Bombardier Inc's Aircraft ( International ) - Planes Order Down 97%

WHEN YOU ARE OUT OF INCOME, OUT OF SAVINGS, AND RUN OUT OF ACCESS TO CREDIT.....YOU ARE ZOMBULATED AND SHUT DOWN!!!!!!!

St. Vincent’s Hospital Manhattan in Jeopardy of Closing 

BE PREPARED FOR A MASSIVE INCREASE OF JOB LOSSES AS THE INDUSTRIAL AGE SHUTS DOWN!!!!!!!

Mass Department of Transportation - 250 Notices

The Indiana Department of Child Services - 75 to 80

Stanley-Bostitch Plant in East Greenwich - 165 Layoff Notices

 

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#2) On February 06, 2010 at 11:53 AM, FreeMortal (29.25) wrote:

How can the world go broke? The world is full of capital.  Capital is not measured in employment, it is measured in people, technology and resources.  The only capital thats screwed up is money.  And money is just a veil.  When the veil flutters...

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#3) On February 06, 2010 at 3:43 PM, ralphmachio (24.57) wrote:

Icarus. That is the only reply I have to your final analysis.

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#4) On February 06, 2010 at 7:02 PM, wvillegas007 (< 20) wrote:

US Bankruptcy Certain based on Default Formula

Has anyone herd of the Greenspan-Guidotti rule? It’s a formula that Accurately predicts if a country would go bankrupt. According to the Formula to US is certain to go bankrupt. Carefully read this well written article that explains it. 

http://www.silverbearcafe.com/private/02.10/bankrupt.html

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#5) On February 06, 2010 at 10:31 PM, jesusfreakinco (28.78) wrote:

wvillegas007

This article assumes the gold we still own is still gold and not tungsten filled bars. I agree with the conclusion, but not the details of the analsis.  Interesting article.

Debt service long term will destroy the US, no doubt.  We were already doomed before the financial crisis because of Social Security and Medicare.  Things have just accelerated.

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