Fools Better Start Worrying About Collapsing Production
June 29, 2010
– Comments (2)
Alstrynomics primarily focuses on production....as all investments are simply a derivative of production in one form or another.....
As production collapses...money, stocks, bonds, land, real estate, businesses, etc......becomes worth less and less.......
And as a nation prints more money against a collapsing production base...pretty soon, few will accept the currency as an exchange for production and items become so expensive relative to money that the money becomes essentially worthless.
We have basically shut down construction in America absent government borrowing and spending.....auto production is a fraction of what it used to be despite massive stimulous spending.....health care and state/local government is collapsing.....the only area where growth and resources are growing is the military..........
Pretty soon, fewer and fewer will accept a currency backed by little production.....at that point, our options are limited because anyone not willing to accept our currency is trying to take away the freedoms so many of us think we are entitled to.........
It is interesting when an entire nation thinks it is entitled to consume massively yet produce little........the options to maintain the entitlements get fewer and fewer.....
Good luck to all at what is just around the corner as we enter the Digital Age.
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