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alstry (36.32)

Are you prepared for Z day?????

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July 15, 2009 – Comments (4)

Z day is defined in Alstrynomics and occurs when the the cost of SERVICING debt exceeds incoming revenues.

Currently, the Federal Government is taking in a something North of $2 Trillion annually.

Expenses are approaching $4 Trillion leaving approximately a $2 Trillion dollar deficit.  That's right, the Federal Government is spending about twice as much as it is taking in and primarily responsible for keeping our economy from crashing into a severe depression.

Interest expense is the fourth largest line item expense for the Federal government exceeding $500 billion annually.

Interest expense now consumes OVER $25% of the receipts coming into the Federal Government.

With the economy slowing, and the deficit increasing by about 20% this year, it is very possible that interest expense could approach 50% of Federal tax receipts within a year.

If such a high percentage of incoming revenues is allocated to paying interest, it seems likely that higher interest rates will be demanded of the Federal Government  driving an even greater percentage of incoming revunues allocated to paying just interest.

As you can tell, based on a slowing economy and continually rising deficit, it seems clear that the Federal Government is on a direct path to Z day......a path that may be much shorter than many think.

 

4 Comments – Post Your Own

#1) On July 15, 2009 at 1:50 AM, greensurfer (< 20) wrote:

Do you expect people to comment on the same topic on multiple posts on a daily basis?? C'mon... Everyone has heard your view and whoever has wanted to respond has already responded by now. We all know what you have to say and alot of it has merit. But it's annoying to hear the same story every day. Whatever, people can chose not to read your posts, right? So, what the hell, continue doing what you're doing. However, you are a very repetitive person.

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#2) On July 15, 2009 at 2:41 AM, TMFCrocoStimpy (89.81) wrote:

Alstry, I'm beginning to wonder if you are a bot.  Can you pass a Turing test?

:)

-Stimpy

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#3) On July 15, 2009 at 7:33 AM, alstry (36.32) wrote:

green,

Z day is actually different than being Zombulated.  Z day is the point simply when the costservicing debt exceeds income.  Zombulation day is when you run out of savings too.

Once servicing debt exceeds income, the path to Zombulation is much more likely.

What I find amazing is that when looking at debt service costs for the Federal Govt, most people apply it as a percentage of budget and NOT percentage of income...sorta of strange don't yoiu think?

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#4) On July 15, 2009 at 8:35 AM, cthomas1017 (98.42) wrote:

Stimpy, the easiest test for a bot to pass is the question, "are you a bot?"  So, I'm wondering...  Are YOU a bot?!? ;)

Alstry, It's not strange at all.  It has served its purpose for many years now.  Lies, darned lies, & statistics.

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