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alstry (35.41)

Are you ready to wake up?????

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September 03, 2009 – Comments (8)

As many of you know, the United States is now a consuming economy with many agreeing the consumer represents 70% of GDP.

What many of you don't know is the biggest consumer in America is government consuming $6.5 Trillion dollars per year....about half the GDP.

http://www.usgovernmentspending.com/index.php?year=2009

Government gives out about $1 Trillion dollars per year in welfare payments including Food Stamps to tens of millions of Americans.  If government didn't hand out that money, sales to our retailers in America would evaporate.......and since we are now running a collective $2 Trillion dollar deficit, there would be no savings in taxes if we didn't borrow and give out those welfare payments.

In other words, our consumption economy has now become very dependent on Obama handing out hundreds of billions of dollars of Welfare payments with money that doesn't exist.  Those checks support our retailers, millions of employees, and commercial real estate across the nation....not to mention servicing the trillions of dollars of debt underlying the above.  You can get by with this for a little while, but soon someone will have to pay as it is simply a Ponzi scheme that you can no longer conceal.

We could make the same argument for health care as over 50% of health care dollars comes directly from government spending money it doesn't have.  Health Care is a HUGE employer in our economy and responsible for about 20% of GDP. 

Why do you think Obama is so confident when he talks about health care reform?.... because he knows whatever he talks about is simply a distraction until we resolve the deficit issue.

Further, even running a $2 Trillion dollar deficit, sales to our S&P 500 companies are DOWN about 16%.  A HUGE percentage of sales to the S&P comes from government spending....and if the government doesn't spend, sales will evaporate.

The problem now is that the banking system infected our nation with an unservicable amout of debt over the past five years.  They were incentivized to write insane loans due to credit default swaps.   When the debt started defaulting, instead of lowering rates to stem the defaults, the banks raised interest rates and tightened credit causing even more defaults.

Don't worry, they knew what they were doing, this was the plan......because in the end, they knew the taxpayer would bail them out as the economy imploded and millions would lose their jobs.  As long as they told you everything was improving, most of you Fools wouldn't know the difference.

So here we are....a shrinking private economy and a government bringing in less revenues each month as the nation and economy depends on it more and more.  Pretty soon, the government will be almost the entire economy.

Soon we are gonig to have to make a choice.....depression or totalitarianism.....you can't have both when government needs everything you have to drive the economy.  We as a nation don't make enough for government to consume $6.5 trillion dollars. 

Soon you will learn...... we really don't have much of an economy unless Obama spends our nation into bankruptcy(which in large part is due to swap induced overleverage created over the past five years).....and some may argue we are already there....we just don't know it yet.  The question now, is how do we get out of it and whether we will have any imput in the matter.

That is pretty much the way things are in a nutshell......so as revenues keep evaporating and debt keeps defaulting and jobs keep getting slashed, it is impossible to grow a consumer based credit dependent economy when you are incentivizing banks to contract credit to the private economy.

Now the question is why are we being told things are getting better when bankers are cutting off credit to the private economy?....the two are logically inconsistent.

8 Comments – Post Your Own

#1) On September 03, 2009 at 9:33 AM, alstry (35.41) wrote:

Now that we have cut off credit, the private economy is evaporating.....and tax receipts are collapsing....and serviding the ACCUMULATED debt is now impossible for government and citizens based on shrinking revenues and imploding GDP.

Obviously Congressman Pete Stark never thought the Ponzi Scheme would end and the bankers would cut off the private economy from credit.

It is easy to grow GDP if you loan money to everyone and their mother.....the problem comes when you stop loaning and you must service the ACCUMULATED debt.

A MOST AMAZING PERSPECTIVE OF GOVENMENT STUPIDITY.........from ZeroHedge

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#2) On September 03, 2009 at 9:54 AM, JerseyShoreGirl (< 20) wrote:

Once again, Glenn Beck is exposing MORE proof that we have Communists .... YES, COMMUNISTS in the White House .. Hell Bent on RADICALLY TRANSFORMING OUR COUNTRY .. wonder how this all fits into the worldwide Flu 'pandemic' that they're fear-mongering us about ... Instead of just zooming in on the financial problems, try to look at the big picture of what could be unfolding .. PAN OUT YOUR MINDS, Fools!

Please listen to the playlist and let me know what you think .. (the latest (and most damning audio) isn't on this playlist but once I find a link, I will post.

http://embedr.com/playlist/breitbart-tv-playlist-van-jones

Here's a comment I just read by a person who listened objectively to what has been coming out:

"I used to dismiss all the talk about Obama being a communist as hyperbole. Now I am afraid that anyone looking objectively at all the evidence coming out can reach no other conclusion."

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#3) On September 03, 2009 at 10:35 AM, FreeTruth (< 20) wrote:

This video is a pretty good find.

Based on this logic, why don't we just create a federal debt of, oh, say 15 quadzillion dollars. According to Pete, it would be a good thing as the nation would be wealthier.

 All you can do is sigh when you watch stuff like this.

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#4) On September 03, 2009 at 4:10 PM, alstry (35.41) wrote:

NO PRIVATE ECONOMY....NO $$$ FOR HEALTH CARE

It doesn’t matter that Cook County’s sales tax increase was upheld Wednesday. Layoffs at the Cook County Health and Hospital System are going to happen, according to a budget presented to the board that slashes the system’s county tax subsidies by nearly 20 percent. More than 1,800 jobs will be eliminated by next spring.

Health system spokesman Lucio Guerrero confirmed yesterday that about 500 more jobs will be eliminated, in addition to the 900 that are already being eliminated.

He said no determination has been made regarding which positions will be cut, nor will officials know until a consultant releases a report in October. The cuts will include both vacant and filled positions.

Emilie Junge, regional coordinator for Doctors Council SEIU, which represents about 750 doctors across the health system, says her union is unsure how the layoffs might affect doctors.

“We think the system is down to the bone, unless they’re talking about cutting at a higher level and not cutting frontline workers,” she says. “It’s sort of hard to evaluate until we see what positions are being cut.”

http://www.chitowndailynews.org/blogs/Chicago_Health_Matters/Health_system_confirms_layoffs,32084

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#5) On September 03, 2009 at 4:49 PM, alstry (35.41) wrote:

DEPRESSION OR TOTALITARIANISM?  NOT MUCH TIME LEFT!!!

MADISON - U.S. Rep. Paul Broun is again raising the specter of Democrats turning the United States into a totalitarian state.

Broun, R-Athens, apparently has not changed his belief that President Obama may be a fascist since he made similar remarks in Augusta in November and then in an Associated Press interview.

He told a meeting of the Morgan County Republicans on Wednesday night that Obama already has or will have the three things he needs to make himself a dictator: a national police force, gun control and control over the press.

"He has the three things that are necessary to establish an authoritarian government," Broun said. "And so we need to be ever-vigilant, because freedom is precious."

As he did when comparing Obama to Hitler and the Soviets last year, Broun cited a speech Obama gave in Colorado during the campaign last July calling for "a civilian national security force that's just as powerful, just as strong, just as well-funded" as the military.

http://www.onlineathens.com/stories/090309/new_489061975.shtml

When there is no private profits....the government needs everything to continue to operate.

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#6) On September 03, 2009 at 6:06 PM, ElCid16 (94.13) wrote:

A small piece from "You Never Know" by Wilco:

"Come on, children
You're acting like children
Every generation thinks
It's the end of the world."

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#7) On September 03, 2009 at 6:47 PM, mawnck (< 20) wrote:

Wilco?

That's all you got? Lyrics by Wilco?

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#8) On September 03, 2009 at 7:03 PM, alstry (35.41) wrote:

SURE UNEMPLOYMENT IS GOING DOWN.......

WASHINGTON (Reuters) - More than 35 million Americans received food stamps in June, up 22 percent from June 2008 and a new record as the country continued to grapple with the worst recession since the Great Depression of the 1930s.

The food stamp program, which helps cover the cost of groceries for one in nine Americans, has grown in step with the U.S. unemployment rate which stood at 9.4 percent in July.

The Labor Department will release August employment figures on Friday.

June was the seventh straight month in which food stamp rolls set a record. The average benefit in June was $133.12 per person.

ANY THOUGHTS ABOUT JULY AND AUGUST????

You think there were 35,000,000 getting food stamps in The Great Depression....nope, they were getting there picture taking standing in line for food....but it was no were close to 35,000,000.

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