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alstry (35.69)

Everything is TOXIC right now

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September 20, 2008 – Comments (3)

Many individuals can't meet basic needs without borrowing.

Many businesses are running out of the lines of credit.

Cities can't meet their budgets without borrowing.

States same positions.

Our Federal Government even more.

Hospital Systems getting squeezed on debt.

Same with School systems.

As the money runs out....things shut down.   People lose jobs and unemployment skyrockets.  Debt creation has been the nations primary economic driver for the past eight years.  Now we have accumulated trillions of dollars worth of it all over the place that many can't service any more.

Debt is the assets of money market funds.  Debt is the assets of banks.  Debt is the assets of pension funds.  Now debt is collapsing and so are the assets of many of our financial institutions.  As debt collapses so will revenues causing even more defaults accross many sectors causing even more defaults morphing into an ever increasing cycyle of defaults.

We got into this mess by loaning trillions to individuals, businesses and municipalities that could afford to service the debt.....the system became dependant on reckless lending as the economy seemed to be properous.....then banks ran out of money and decreased lending.......now that things are slowing so what are our politicians proposing????

TAKE OUT EVEN MORE DEBT that there is no chance of paying back creating even more toxic debt.  As more toxic debt is created we will neet to borrow even more money creating even more toxic debt.

After this week....the world now knows how bad things are.....if we choose to keep printing money with no chance of paying it back without printing even more.....expect the world to dump dollars as they realize the dollar is no longer a reflection of the economy of our nation.  The consequence will cause an inflation rate that will destroy our economy and impoverish our nation as wages will never be able to keep up.

Any politician that advocates borrowing MORE money from the fed to save toxic debt from fed banks should be prosecuted for economic treason against his or her country.  We are taking the nations wealth and concentrating in a few hands.  Pretty soon, only very few will have any money and entire areas of the country will fall into a despair that few can even imagine.

You simply can't pay debt by printing money creating even more debt forcing you to print even more money creating and adverse feedback loop of inflation where very soon money is worthless.  WORTHLESS!!!!!!  An entire lifetime of savings can be wiped out.

If you want a template of the potential of the current environment....I suggest you read about post World War I Germany and the effects on a once properous nation.

You think I am kidding that millions of Americans will starve........it will be tens of millions if our politicians continue down this road destroying the greatest nation on earth.  It's time to stop this madness and restructure our nations balance sheet right now.....without taking out another dime of debt before we pay it back with what we produce.

If we don't inform our people right NOW!!!!!  We will end up just like the Germans after WWI.  Time is running out.

3 Comments – Post Your Own

#1) On September 20, 2008 at 3:02 PM, jester112358 (29.47) wrote:

I don't know about the starving business, as we are the largest producer of food in the world so this is real asset and we can keep it all for ouselves if we like.  We also have the largest coal reserves, also a real asset.  The Germans in WWII and South Africans have run their entire energy industry on coal-chemicals, transportation fuels etc.   We also have the greatest concentration of scientific talent in the world, the key to new innovations.  But as that is my field, I can say, that situation is also changing as Asian countries begin to dominate due to their respect for the work ethic and education.  Most graduate departments in the physical sciences and engineering consist almost entirely of foreign students! 

Everything else in your post is completely correct.  The solution to debt is not more debt!  This is self-delusion.  We want to live risk free, but that is not possible.  We need to revive values like frugality and savings, living below your means and hard work.  Delayed gratification.  Every value that has been decreasing over the last 30 years.  Its not a new phenomena, once we stopped being the biggest exporting nation in the world, the world's factory, produced more lawyers than engineers, shipped manufacturing jobs and industries overseas, and became solely consumers hooked on cheap entertainment "industries" this outcome was predictable.

 

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#2) On September 20, 2008 at 4:58 PM, dexion10 (28.29) wrote:

Alstry / EVERYONE did you see this ?

How ridiculous is that? Can we launch a grass roots effort to bring accountability back into the picture?

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#3) On September 20, 2008 at 6:09 PM, alstry (35.69) wrote:

Jester...I know about starving businesses.....and many many are on the brink right now.  Carl Ichan confirmed this in an article today.

Yes we have the largest coal reserves....but so what relative to the GDP of our country.  The vast vast majority of Americans work in the non natural resource industries.  If the service industries are gutted...America is gutted.

Dex, you will love this one from the bailout package comrade:

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

Are you kidding me????

I have been studying this crisis for two years.  For two years I was convinced that based on the policies that we were taking, this would be much worse than the great depression....now I am sure of it.

Further, if you look at the rational for passing the rescue package, we are told that by passing it Americans are better off than the alternative....which is finanical Armageddon.  Not a single politician or member of the administration has told us yet what the cost to America and the economy is for passing the legislation. 

At this point it is $3000 for every man woman and child.  Since 3/4 of the taxpayers don't pay taxes...children, below the poverty line ect.....it is at least $12,000 per taxpayer.

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