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alstry (35.28)

HOW MUCH DOES AMERICA BORROW?

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June 26, 2010 – Comments (8)

Well let's just look at Federal, State, County, and Local government's first......

The total government deficit in America last year was about $2 Trillion dollars....and now that tax receipts are evaporating and demands on government rising....the deficit is growing rapidly.

HOW MUCH IS $2 TRILLION DOLLARS?

It is enough to provide 50,000,000 families a check for $40,000 per year.....WOW, that just happens to be about the average income for the average American family.  You could also say it is enough to give 20,000,000 families $70,000 per year and 30,000 families $20,000 per year.

Think about that for a second....production in America has dropped so low that government is being forced to borrow an amount of money could comfortably sustain 50,000,000 families.....and the spending of those families could comfortably sustain at least another 20,000,000-30,000,000 families.

IF YOU REALLY THINK ABOUT IT....GOVERNMENT IN AMERICA IS NOW OUR ECONOMY.....AND WITHOUT GOVERNMENT BORROWING AND HANDING TRILLIONS TO PEOPLE.....WE HAVE PRACTICALLY NO ECONOMY RELATIVE TO OUR CURRENT CONSUMPTION.

When someone pays you, protects  you, and taxes you....they essentially own you.......and now that practically every income and every investment in the world is simply supported by government spending in one fashion or another....the concept of private property rights will soon be emasculated as the world prepares for the Digital Age.

Now the only question is how will we proceed forward without the people going crazy?  War or Depression are the only two choices that come to the surface right now.

If government doesn't borrow massively and spend....we enter into an unprecedented depression as we produce very little these days......if the world doesn't let us borrow....we may be forced to fight for the right to continue borrowing.

So what will it be.... sacrifice our children and probably many of ourselves to continue making pancakes......or suffer through the biggest depression America has ever seen as the nation learns it is Zombulated and has run out of borrowing capacity?

The crazy part about this is Benny The B has been saying we have been in a recovery the entire time as the tax receiptes continue to evaporate.......now you tell me who wants to take away your freedoms?

8 Comments – Post Your Own

#1) On June 26, 2010 at 1:34 PM, oshiri (< 20) wrote:

Comrade Alstrymous . . .

Do you find anything wrong with the USA being the only country in the G20 to not have a deficit reduction plan? We will probably also be the only member of the G20 not to have a Federal budget this year.

It must be that laser-like focus on jobs that takes up all the administration's time. 

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#2) On June 26, 2010 at 2:40 PM, alstry (35.28) wrote:

Oshi,

America and Americans face a very serious issue....by the bankers cutting off credit to the private sector.......our production has collapsed.

We see it everywhere in construction, commercial real estate, and recently even with the oil spill....and now we are cutting off credit to cities, counties, states, schools and hospitals...primary employers in America.

As you know money is simply a derivative or production....and as our production keeps dropping, fewer and fewer will be willing to accept our currency in exchange for their production.

At some point, as we have our military stationed in nearly every nation on earth....will we be required to force others to accept our currency in exchange for their production or will we as a nation face the fact that we produce practically nothing absent government spending?

It is soon coming down to just two choices....force the world to accept our currency even though we don't produce much.....and if they don't accept, our only choice will be to fight.

OR

Face up to the fact that we don't produce much and restructure/bankrupt  our entire economy and start over.

Pretty simple with very convulsive consequences either way.

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#3) On June 26, 2010 at 3:17 PM, oshiri (< 20) wrote:

Sempai Al . . .

Given the weaken of our Commander-in-Chief, I do not see the use of force, beyond Af/Pak, to force America's will. That may, or may not happen, once this President goes. What I do see happening are two nasty things -- taxation and devaluation.

At present, a majority of people, and their politicians, are simply not willing to give up entitlements. From government jobs, to pensions, to Medicare, to food stamps -- they are here to stay. Do I like it? No. But as long as people vote-in politicians that support blanket entitlements, we'll have cradle-to-grave entitlements.

Thus the options come down to devaluation and taxation. While the government will continue it's hand-outs, it will rob retirees bank accounts through devaluation. It will also begin to raise taxes on everyone, and everything.

It will be relatively painless for politicians. The cover is the need to continue entitlements because "we made a promise" to this group or that group. They'll be robbing the entitlement class by devaluing their dollar, but they'll still be handing out money to these idle folks.

They can blame higher taxes on the need to balance the playing field, or returning the people's money from the greedy corporations.

Short-term it's devalue-and-tax, long term Sempai you're right, "restructure/bankrupt our entire economy and start over." 

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#4) On June 26, 2010 at 3:43 PM, alstry (35.28) wrote:

Devalue and tax has no correlation on production as tax revenues are so low that any tax would stifle production even further.

You are already starting to see Russia, China and Europe start to push back......time is running out.....

my guess is sometime this summer a decision will have to be made........

but the trigger will be NOTHING you expect.....it never is.....

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#5) On June 26, 2010 at 3:59 PM, alstry (35.28) wrote:

Our production simply became too low after the bankers cut off credit to the private sector......

Government will force us to produce either by regulation or taxation.....

In addition, government will be forced to take over ownership of nearly everything in America in order to provide backing for a currency supported by evaporating production.  Remember, we must produce of there will be no purpose for government.

NEARLY 2,000 PAGES: The legislation would redraw how money flows through economy...
Government would have broad new powers to seize...
DODD: 'No one will know until this is actually in place how it works'...

Obama calls for bank tax as next step in reform...

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#6) On June 26, 2010 at 6:48 PM, oshiri (< 20) wrote:

That's just it Comrade, "tax revenues are so low that any tax would stifle production even further."

The current government is willing to do that, AS LONG AS THEY CAN DELAY THE DAY OF RECKONING.

Muddling through the next two years "should" allow the President to get re-elected for an additional four. In his second term, he will seek a legacy. And from his books, if only Fools will read them, you can clearly see that he seeks a level playing field and a return of production's fruits to the workers. This can only happen if it first flows through the government via taxation, then goes back in the form of entitlements.

No question about it, real production will indeed get lower-and-lower as people give up (that's what I've already done). The government will then attempt to make up for that by devaluing the currency.

I am convinced now that the unexpected trigger will not be pulled until there is a new regime in Washington . . . for as long as people vote for entitlement politicians, there will be ever expanding hand-outs. As tax revenue goes down, there will be increased pressure on government to print money. The retired, elderly, and the entitlement class will then feel the effects of devaluation.

Because this is an election year, I simply do not see it happening this summer. The party in power has no incentive to reduce spending or raise taxes before November. The sheep still have their heads down, and they want them that way.

I also think the President's re-election is much more important to him than implementing his tax-and-devalue spiral before November 2012. After that, all bets are off.

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#7) On June 26, 2010 at 7:15 PM, alstry (35.28) wrote:

Here is the paradox....

Higher handouts....higher prices.....

Higher prices.....lower comsumption.....

Lower consumption......less production........

Less production.......higher prices........

Whooops....here we go again......

Speaking of consumption.....have you checked out the torpedos at www.udderdeals.com?

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#8) On June 26, 2010 at 7:23 PM, oshiri (< 20) wrote:

The Photoman can attest that I'm a sucker for North Korean submarines.

I may not produce, but I still consume and burn sticks. 

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