Concentric Contraction Begins.......1.01.10
Insolvent Banks get unlimited free money from government and loan that same money back to the government at much higher rates where government gives trillions of that money to insolvent citizens in the form of welfare, food stamps, unemployment checks, medicare, and medicare so they can spend into the economy.
A HUGE percentage of our GDP is simply insolvent banks lending to an insolvent government who is giving trillions of dollars to insolvent citizens driving the sales of many of the companies we invest in.........
THIS IS THE WORLD AS WE KNOW IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
And it is bascially a Ponzi Scheme and the world is beginning to get testy. It won't be stated expressly, but manifest in more subtle ways like trade wars or terrorist acts against our nation/people as they get cut off from credit just like American citizens (foreigners tend to be a bit more emotional and proactive than Americans when they perceive they get bent over by their government or others....take a look at the rioting in Greece or Iran as an example).
A more sanitary, but equally dangerous route is governments engaging in trade wars or blockades....the latter considered a declaration of war under international law.
LOS ANGELES (MarketWatch) -- China's plan to place tariffs on some U.S. and Russian steel products reportedly drew protest from Washington on Thursday.
The Chinese Ministry of Commerce issued a preliminary ruling Thursday that said some flat-rolled electrical steel imported from Russia and the U.S. are being dumped on the market at unfairly low prices amid official subsidies for the material.
Chinese entities importing the product, an input for power companies, will face an import duty, according to reports.
"China's investigation was conducted according to Chinese law and World Trade Organization principles," Dow Jones Newswires quoted a ministry spokesman as saying.
Back to the American people getting hosed......
Why doesn't our government allow all citizens to "borrow" money for free and loan it back to the government at much higher rates just like the banks.....aren't all citizens equal under the equal protection clause of the Constitution?
The dollar amount is arbitrary for ease of presentation.
For example, if the government allowed every American to borrow $10,000,000 for 0.25% and immediately purchase $10,000,000 of 10 year government treasuries at 3.25%, and the citizen deposited the treasuries in a suitable account as collateral for the original loan, the citizen could earn $300,000 per year and the government would be guaranteed the loan was appropriately collateralized. Not only that, the government could make the profit taxable subsidizing the program.
By doing the above, the government could cancel most entitlement payments including social security and medicare. Further, health insurance would no longer be as needed as most everyone would be self insured except maybe the need for supercat coverage. Not only that, the government could force all the citizens apply all of the proceeds first to pay down debt and almost every toxic loan would be detoxified.
But Noooooooooooooooooooooooo. Government is only giving Free money to the banks and the banks are cutting off the citizens as people are getting practically nothing or being forced to pay very high rates. As a result....the people and small businesses are failing at faster and faster rates since the playing field is no longer fair. WE NOW HAVE INSOLVENT BANKERS KICKING INSOLVENT CITIZENS OUT OF THEIR HOMES AS MILLIONS AND MILLIONS OF CITIZENS LOSE THEIR JOBS DIRECTLY DUE TO ZOMBULATION.
Most of you Fools simply don't understand what is happening to our nation.......but if Lake Tahoe can be Zombulated, anyplace can and will under the current policy.
It is not hard to see, simply hard to believe it is happening......and that is why as concentric contraction proceeds, it will not be the end of the world, simply the end of a world as you know it. Most of America will look like Detroit as cities, counties and states go broke.
No matter how low the mortgage payment, if you don't have a job, you can't even afford to maintain the home and pay the property taxes. Why do you think more and more homes in more and more areas are being driven down in value closer and closer to zero as unemployment explodes around America???????
Focusing on Alstrybation and not Zombulation will inevitably lead to a nation of frustration. Trust me, Alstry knows as he was the creator of Alstrynomics and one of the first to foresee concentric contraction.....now upon us as default creates more defaults forcing even more defaults.....until pretty much everything defaults.