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alstry (35.36)

Are We Americans Worth Much?

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August 06, 2009 – Comments (13)

Right now, many Americans are really not worth very much to our government and bankers. 

America, as an uninhabited piece of land, would be worth a lot simply for natural resources and fertile land.  The problem is that the income derived from the land would have a very difficult time sustaining over 300 million people.  However, it could lavishly sustain 1,000 bankers and politicians and the necessary relatively small workforce to operate it.

American government spends a lot maintaining its citizens each year.  Trillions just on social security, welfare, medicare, medicaid, food stamps and unemployment.   Up until recently, collectively its citizens earned enough to pretty much cover the expenses through taxes paid.  But in the last six months, our earnings have fallen off a cliff and so have the taxes we send to govenrment. 

In addition to the current spend, government expenses are going to skyrocket going forward due to an aging population and additional benefits to more and more losing jobs requiring welfare and unemployment payments.

Based on our limited earnings due to a variety of factors, including an incredibly high debt obligation to our bankers......we simply cannot provide government with enough money to sustain government's obligations to its citizens.

This problem has become very serious lately as people are questioning the ability of government  to continue to borrow money for the sole purpose of extending welfare to its citizens.  If government simply prints money out of thin air, the money will be worthless and that will piss off everyone....especially the bankers, savers and those of us that work for money.

Government is in a pickle.....it simply does not have enough money to satisfy its current obligations to its citizens.  You think the citizens are going to be happy if they find this out?  What is government to do?.......from government's perspective, it would financially be better off if many of us were dead versus alive and a liability.

Potentially, it could take the assets of those citizens with money, but due to the massive size of the deficit and continuing obligations, it would likely have to take almost all of the assets of the citizens in addition to their incomes.

You see the Zombulator is now Zombulated......and it needs to be fed because its citizens need to be fed..............but the Fed is running out of tricks to fool the world and conceal the Zombulation.  We are all in this together who live with the Zombulator....no matter how rich you think you are and you are not part of government.

From strictly a financial perspective, if the government killed all of those on social security, medicare, medicaid, unemployment, food stamps and welfare.....it would be a lot better off.   Plus if it fired most of the 20,000,000 people that worked for it, it would save a boat load of money.....and if they couldn't find replacement work quickly, they could join those who WERE unemployed.

You see, with the swine flu issue coming up and the government likely going to force us all to be vacinated.......could you imagine what some sociopath might consider in light of our nations current government financial crisis.....you know, we must protect the soverign at any cost type....as long as they consider themselves part of the soverign.

This whole essay is simply speculation upon a factual massive financial shortfall for government.  This financial crisis combined with increasingly negative outlook has NEVER happened since George Washington assended to the Presidency.

What will our govenrment do now that it cannot financially meet its massive obligations to its citizens?

Resturcting debt seems like an easy start.

 

13 Comments – Post Your Own

#1) On August 06, 2009 at 10:45 PM, alstry (35.36) wrote:

How Long Can Bernanke Fake It????

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#2) On August 07, 2009 at 12:04 AM, alstry (35.36) wrote:

How much longer can the government borrow?

 

WASHINGTON (Reuters) – For the first time, more than 34 million Americans received food stamps in May, the government said on Thursday, another symptom of the longest and one of the deepest recessions since the Great Depression.

Enrollment surged by 2 percent to reach a record 34.4 million people, or one in nine Americans, in the latest month for which figures are available.

It was the sixth month in a row that enrollment set a record. Every state recorded a gain, and Florida had the largest increase at 4.2 percent.

Enrollment for food stamps, which help people buy groceries, is highest during times of economic stress. The U.S. unemployment rate of 9.5 percent is the highest in 26 years.

"Food stamp enrollment is rising because the economy is having a devastating impact on low-income families and they need this program to eat," said Stacy Dean of the Center on Budget and Policy Priorities, a think tank. "Every single state has been affected."

The average benefit in May was $133.65 per person. The economic stimulus package enacted earlier this year included a temporary increase in food stamp benefits of $80 a month for a family of four.

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#3) On August 07, 2009 at 12:21 AM, alstry (35.36) wrote:

HECK....WE DIDN'T EVEN COUNT THE TRILLIONS IN PENSION AND MILITARY LIABILITIES.

 

The US will have to provide billions more dollars in coming years to finance a huge increase in the size of Afghanistan’s security forces, officials and analysts warn.

http://www.ft.com/cms/s/0/4ffa310a-81e1-11de-9c5e-00144feabdc0.html

Remember what happened to the old Soviet Union after it blew a bunch in Afghanistan and went broke?

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#4) On August 07, 2009 at 6:59 AM, JerseyShoreGirl (< 20) wrote:

Just throwing a few thoughts out there ...

 Is it more likely that we will see a gradual decline or that things could go downhill virtually overnight?  My feeling is that this will continue to be slow train wreck .. and that things will go downhill faster in different 'pockets' like Detroit, for example ... vs. across the nation all at once. 

Also, I am a regular listener to Michael Savage and I have to tell you, he was on fire last night!  He puts his neck on the line on every show to expose the truth on the radio waves. Last night he was calling for ALL AMERICANS to unite ... for ALL VARIETIES of BIKERS to go to these town hall meetings and rev their engines as loud as possible so the politicians get the message.  The people need to take back this country before it's too late!  Oh, he also came up w/ a great term .. "Obotomy" .. "Don't be Obotomized!"

 This isn't about political party .. because, in my opin, over 90% of our govt is corrupt.  It's about cleaning house! We need representation that hears the people ... and isn't benefitting from sweetheart deals and getting kickbacks under the table!  From a bumper sticker ... "Show no Mercy; Vote ALL INCUMBENTS OUT!"

 As far as Sarah Palin goes, the dems used a play right out of Saul Alinsky's "Rules for Radicals" .. "Isolate your target, isolate it (from sympathy) and freeze it" ... how they attacked her children is another story!  Sarah speaks for the PEOPLE .. not saying there aren't others better for the job (Romney) but when you actually listen to what she's saying, it is refreshing and it is what this country needs right now. 

 I know I digressed here .. but it's time the People Take Back this Country from this rampant corruption .. and listen to those who speak of PRESERVING what has made this country great .. as opposed to SWEEPING CHANGE BY SPENDING US INTO OBLIVION .. and providing HANDOUTS .. as Alstry articulates on a daily basis .. THIS SPENDING CAN'T BE SUSTAINED!

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#5) On August 07, 2009 at 7:10 AM, JerseyShoreGirl (< 20) wrote:

I highly recommend this EXCELLENT 10-minute video about our various forms of government and where we are headed (most likely) because the writing's on the wall .. when they describe the fall of Rome (from Rep to Oligarchy), it is eerily familiar to the state of America today.


"We can keep our Republic, or we will inevitably end up with an Oligarchy, a tyranny of the elite." 

"The essence of freedom is the proper limitation of government"

http://www.youtube.com/watch?v=GGk6LG0GA4A&feature=PlayList&p=3EBC61E4EB2D1E60&index=0

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#6) On August 07, 2009 at 7:32 AM, rofgile (99.30) wrote:

Alstry:

 US citizens are worth more than you think!  We've got a ton of assets, in that we have a highly educated population that has the right set of attributes to produce new ideas, new products, and new businesses.  We can go into a depression, and still make it out as a strong country.  Put China into a depression (cut off all their exports to the US) and see what would happen over there!  

 The banking system, however, has become parasitic.  I was just reading from "Secrets of the Temple", and old-school eighties take on the Fed.  One paragraph that struck me was this:

"While the major U.S. banks and brokerages dominated American finance, they were also players on a global stage where they did not seem so imposing.  Of the twenty largest banks in the world, only three were American, Germany had six in 1979, Japan had five, France had four and Great Britain had two.  The 16th largest bank on the American map, Mellon Bank of Pittsburgh, was 114th in the global geography, hardly in position to bully its international competitors."  

"Banking power was less concentrated in the United States partly because America's pluralist tradition and federal law prohibited Citibank or Chase or the others from operating nationwide as the major foreign banks could."

 WHAT HAPPENED TO US????  How did we screw up our banking system and let these banks get so big and out of control?

From the WIKI: 

The Depository Institutions Deregulation and Monetary Control Act, a United States federal financial statute law passed in 1980, gave the Federal Reserve greater control over non-member banks.

It forced all banks to abide by the Fed's rules.It allowed banks to merge.It removed the power of the Federal Reserve Board of Governors under the Glass-Steagall Act and Regulation Q to set the interest rates of savings accounts.It raised the deposit insurance of US banks and credit unions from $40,000 to $100,000.It allowed credit unions and savings and loans to offer checkable deposits.Allowed institutions to charge any interest rates they chose. 

The Garn-St. Germain Depository Institutions Act of 1982 (Pub.L. 97-320, H.R. 6267, enacted 1982-10-15) is an Act of Congress, that deregulated the Savings and Loanindustry. This Act turned out to be one of many contributing factors that led to the Savings and Loan crisis of the late 1980s.[1]

The bill, whose full title was "An Act to revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans," was a Reagan Administration initiative.[2]

The bill is named after its sponsors, Congressman Fernand St. GermainDemocrat of Rhode Island, and Senator Jake GarnRepublican of Utah. The bill had broad support in Congress, with co-sponsors including Charles Schumer and Steny Hoyer.[3] The bill passed overwhelmingly, by a margin of 272-91 in the House.[4]

Title VIII, Alternative Mortgage Transactions, allowed Adjustable rate mortgages [5] 

 

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So, our problems can be directly traced to the changes made in US banking under the Reagan administration.  Deregulation of the banking industry, allowing the banks to become large nationwide institutions through mergers led to our superbanks with dangerous abilities to sink our whole ship.  The other Reagan initiative led to adjustable rate mortgages - wow - ****ing brilliant.

 

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#7) On August 07, 2009 at 7:37 AM, rofgile (99.30) wrote:

If you want to see the effects of deregulating bank mergers, here's a full list of them:

http://en.wikipedia.org/wiki/List_of_bank_mergers_in_United_States 

The huge majority happen after 1980's. 

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#8) On August 07, 2009 at 8:39 AM, alstry (35.36) wrote:

UNEMPLOYMENT RATE DROPS?

At some point, what we are told simply doesn't matter as hundreds of thousands are filing for unemployment each week.

Abitare has a great blog this morning providing a different perspective

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=239948&t=01007146184382914537

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#9) On August 07, 2009 at 9:43 AM, alstry (35.36) wrote:

THERE IS JUST NO MONEY....UNLESS OUR MONEY IS NEARLY WORTHLESS.

 

Moreover, the U.S. barely has begun to face the enormous financial bill for the war. By our accounting, the U.S. has already spent $1 trillion on operations and related defense spending, with more to come -- and it will cost perhaps $2 trillion more to repay the war debt, replenish military equipment and provide care and treatment for U.S. veterans back home. Many of the wounded will require indefinite care for brain and spinal injuries. Disability payments are ramping up and will grow higher for decades. The stress of extended, multiple tours to Iraq means that a whole generation of U.S. military men and women may now be suffering from long-term mental health issues. The suicide rate in the Army is at its highest level since record-keeping began.

This wartime spending undoubtedly has been a major contributor to our present economic collapse. The U.S. has waged an expensive war as if it required little or no economic sacrifice, funding the conflict by massive borrowing. As we've observed in the past, you can't spend $3 trillion on a reckless foreign war and not feel the pain at home.

 http://www.madison.com/tct/opinion/column/457378

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#10) On August 07, 2009 at 12:18 PM, jddubya (55.69) wrote:

So, there's this new restaurant that opened a few weeks ago - Texas Road House - the place has been packed every single day.  I went last night, party of 7,  called at 5:30pm and they told us they would have something at 7:15.  Showed up at 7:15, probably 50 customers waiting outside for their numbers to be called.  We went in but still had to wait until 8:00pm to be seated.

Meanwhile, across town, Marie Callendars has closed it's doors.  This makes sense to me.   Competition is good.

Despite all the doom and gloom spewed by Alstry[nomics] I've yet to see in real life how bad it is according to Alstry[nomics].

I'm not saying it isn't bad, car dealerships are the most obvious victims (large empty lots scattered about) -  but visiting the indian casinos on a sunday morning (packed), going on a cruise (sold out), weekend in lake tahoe (packed), local restaurant visits (packed) - If this economy is so bad (which i believe it is) why am I not seeing it?  I'm starting to question whether or not it really is soooooo bad.  We read alot about how bad it is, but again, why am I not seeing it on the streets?

How many of you are seeing how bad it is up close?

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#11) On August 07, 2009 at 5:39 PM, rofgile (99.30) wrote:

jddubya:

 I know people who are out of work, and still looking for a job after a year.

 That's where it is bad.  If you have a job and its stable - then everythings fine for you. 

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#12) On August 11, 2009 at 9:25 PM, USNHR (34.50) wrote:

from government's perspective, it would financially be better off if many of us were dead versus alive and a liability.

 ____________________________________________________

 And we want to put the gov't in charge of health care?

 

 

 

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#13) On August 12, 2009 at 10:51 AM, SolarisKing (23.33) wrote:

Jddubya: The question is how many of those folks follow the market as close as you and i do. Most of them have no idea of the real numbers, or how big the lies yet to be unfolded are.

   Next time you go on a cruise or somewhere, see if you can poll how many folks are using their credit cards, and how many pay off the card regularly. I know many folks who have no jobs, but spend money still. Spend savings, spend borrowings, spend, spend.
    They all think they will have a job soon. And most of them can't count real well anyway. They think they will sell the boat, or the harley, or whatever.

They really just don't know.

-solaris

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