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alstry (35.41)

Concentric Contraction...Revisited.....

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November 02, 2010 – Comments (7)

As we continue down the destroy the dollar policy....as an IMPORT based nation we are EXPORTING inflation.....the cost of commodities are skyrocketing as the dollar collapses.

The primary areas reflected in commodity price increases is FOOD and FUEL.....and since the printed dollars are NOT repatriating back to America....incomes are falling as business revenues are flat to down.

With lower incomes and higher FOOD and FUEL prices....Americans have less and less money to spend in things like mortgages, health care, and other dicretionary spending.....which is decreasing tax receipts causing further cuts to families incomes.

As international commodity prices rise with American wages decreasing, a greater and greater percentage of Americans incomes will be focused on FOOD and FUEL as less and less is available to service debt and other areas......

I know we grow a lot of food...but we grow that food with fertilizer which requiers commodity inputs and that food must be transported with commodity inputs, and packaged with commodity inputs....

as the prices continue to rise due to the devaluation of the money....and wages collapse because relatively few of our exported dollars are returning to America.....at some point....the vast majority of Americans incomes will be centered around Food and Fuel and very little for anything else.

With 50 million on Food Stamps, 60 million on Social Security, and 20 million.....the need to print to feed will only increase.......which will drive down the value further.....

and we havn't even addressed deficits, pension obligations, and entitlement issues yet......

It is why it is so easy for me to predict rising unemployment, rising defaults, and crashing wages.....as more and more are forced to spend for food and fuel.....they will have less and less for anything else.

7 Comments – Post Your Own

#1) On November 02, 2010 at 10:55 AM, alstry (35.41) wrote:

Homeownership at lowest level in a decade

IT WILL ONLY GET LOWER AS MORE AND MORE MONEY GETS CONCENTRATED IN FOOD AND FUEL.....

and we just bail out the bankers.....

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#2) On November 02, 2010 at 10:58 AM, alstry (35.41) wrote:

RIP.....

Bowen Family Homes - Big Atlanta Homebuilder

as we gave billions to the otherwise insolvent public homebuilders.....

EXPECT MOST EVERYTHING OUTSIDE OF FOOD AND FUEL TO KEEP SHRINKING......

Carolina Cancer Services NC - 3

The Loudoun Museum - More Layoffs

Mount Prospect IL - 34 Next Year Possble

Yakima County's Public Services Department Washington - 11

Dutchess County NY - 2011 Budget could = 101 Layoffs

Fayetteville NC - Job Cuts on the Table 

Trenton NJ - up to 345 Layoffs Possible unless State Aid Comes Through

Suzlon Group will idle its Pipestone, Minn.Plant - 110

Namco Bandai of America - 90

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#3) On November 02, 2010 at 12:54 PM, alstry (35.41) wrote:

As wages collapse and Food and Fuel prices continue to rise...more and more will have less and less to pay mortgages, taxes, and maintenance of homes.....

LPS: Over 4.3 million loans 90+ days or in foreclosure

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#4) On November 02, 2010 at 1:24 PM, BillyTG (29.21) wrote:

Did you see that Obama wants foreclosures to get going hardcore again?

"they also now acknowledge more vocally that foreclosures must continue for a normal housing market to return. And that, in part, is why the administration is not supporting a nationwide foreclosure freeze despite the paperwork scandal that is roiling the mortgage industry."

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#5) On November 02, 2010 at 1:33 PM, alstry (35.41) wrote:

Billy...

at this point.....most issues are really mute......

As an import based nation counterfeiting currency at a rate the world has never seen before......commodity prices will continue to rise.......

and since very few Americans make a living selling commodities......and jobs and wages continue to collapse as spending focuses more and more on commodites and fuel....

home prices will collapse to zero as relatively few people will be able to afford to buy food and maintain their homes at the same time.....

So whatever Obama does....until we stop the printing.....now that we live in a global economy with global demand for commodities.......housing in America is screwed.

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#6) On November 02, 2010 at 1:55 PM, Dow3000 (< 20) wrote:

I'm callin Alstry capitulaton on this one...this is identical to when oil hit $150 two years ago.  Deflationary collapse is dead ahead.

Not going to disagree that hyperinflation in eventually likely...but with all the credit out there that will continue collapsing, deflation is still King...all it takes is a little spark

 

+1 Rec

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#7) On November 02, 2010 at 2:04 PM, alstry (35.41) wrote:

Dow......

Food and Fuel is skyrocketing in price.....as we continue to print and hand 50,000,000 people food stamps and 60,000,000 social security checks and 20,000,000 million people unemployment checks....

by world standards, that is over 100,000,000 people plus dependents consuming massively simply on printed money....add in our deficit and military spending and you have inflation rampant around the world.

Anything outside the commodity sectors is collapsing in value in America.....such as real estate and health care......

at least health care from the provider perspective....

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