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alstry (36.32)

How To Destroy America's Private Economy

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June 18, 2010 – Comments (7)

1.  Loan it trillions of dollars to build houses, condos, office buildings, shopping centers and much  much more.

Watch the  economy boom as everyone starts borrowing lots more and spending.....jobs, wages, spending, prosperity grows.

2.  After the private economy becomes dependent on credit to function because the price of just about everything doubles due to the demand from prosperity...CUT OFF CREDIT to the private economy

3.  As the private economy collapses due to an inability to service debt, loan lots of cheap money to bankers and government WHILE keeping interest rates high for citizens.

4.  When the citizens inevitably default on trillions of debt causing the banks to go bankrupt, bailout the banks and not the citizens....this way the citizens will lose all their assets but the bankers can still foreclose.

5.  Have the government "buy" the citizens assets from the banks through the government borrowing money from the banks even though the banks don't have any money to loan them.

In the end, by simply printing/loaning money back and forth to each other, as the private sector is cut off of credit, pretty soon there is no private sector and bankers and government own practically all of the production of America....

HOW HARD IS THIS TO SEE?

over 40,000,000  food stamps

over 50,000,000 social security/medicare/aid

approaching 20,000,000 unemployment

over 40,000,000 work for government/government funded healthcare

If you add in the dependents, about 2/3 of the country works directly or indirectly for the government....if you add in financial services and government contractors, the number crosses 2/3 without any stress.

During the Great Depression and after WW2, the number was closer to 10%...we were a nation of producers.

When government/bankers are employing 2/3 of the population directly and/indirectly, they are essentially the only employer in town.  Even if you own the gas station, restaurant, or grocery store......you are dependent on that employer to keep paying salaries to operate.

WHETHER YOU LIKE IT OR NOT THE PRIVATE ECONOMY IN AMERICA IS DYING RAPIDLY...JUST LOOK AT THE VACANCIES RISING IN PRACTICALLY EVERY TOWN IN AMERICA

It is simply what happens when you bail out government and bankers and let the citizens fail....the citizens lose and the government and bankers own everything.

Now ask yourself these simple questions:

What do you owe the entity that:

1.  Pays you

2.  Protects you

3.  And can take from you through taxes, regulation, and cutting you off of credit or customers?

HOW MANY AMERICANS DO YOU THINK REALIZE THAT 2/3 OF THE POPULATION IS NOW DIRECTLY OR INDIRECTLY DEPENDENT ON GOVERNMENT FOR A CHECK?  AND MOST OF THE OTHER 1/3 IS DEPENDENT ON THOSE 2/3 SPENDING......

 

7 Comments – Post Your Own

#1) On June 18, 2010 at 8:15 AM, alstry (36.32) wrote:

Uh Oh....What happens if the bankers cut off government?

Greenspan: USA May Soon Reach Borrowing Limit...

 

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#2) On June 18, 2010 at 8:44 AM, alstry (36.32) wrote:

What happens when the primary employer in town runs out of money?

Just about everything in that town becomes worthless.....

Government shed payrolls amid budget crunches

Remember when Alstry was talking about the Detroitization of America?

How long did you think we as a nation could simply live off of government payments and consume massively without producing that much?

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#3) On June 18, 2010 at 11:38 AM, alstry (36.32) wrote:

The average Social Security check is about $1,200 a month.

http://finance.yahoo.com/focus-retirement/article/109847/places-to-retire-on-social-security-alone?mod=fidelity-readytoretire

OVER $50 MILLION PEOPLE RECEIVE SOCIAL SECURITY CHECKS AND THE NUMBER IS GROWING EVERYDAY.

That is hundreds of billions of dollars of spending on other people's productivity.

Unfortunately the number of people producing paying into social security is dwindling as the population ages and tens of millions of jobs are lost.

Interesting....a lot of people demanding for others production but relatively few actually producng.

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#4) On June 18, 2010 at 3:08 PM, dickseacup (66.79) wrote:

"...a whole generation of economists seems to believe that the wealth of nations is dependent upon the willingness to develop effective demand, rather than upon the wilingness to work. And it can be said without exaggeration that no single fact has done modern economic analysis so much harm as the assumption of a very elastic money supply." - L. Albert Hahn

We have seen the fruits of this disconnect between academic theory and reality playing out in the United States for the last forty years. Working and being productive is discouraged, some would say punished. While not working, being non-productive, is rewarded by an ever-increasing number of constantly expanding public welfare programmes.

You repeatedly ask, alstry, what happens when the people quit producing, with strong insinuation that the government will then force production out of the masses. The problem I see with that position is that the government has bred successively larger percentages of at least three generations to believe that they do not have to work. They will resist anything that seems like work, because they do not understand that they have to work if they want to eat.

 

 

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#5) On June 18, 2010 at 3:21 PM, alstry (36.32) wrote:

There is always some that can work and produce.

You think when production drops low enough the producers will accept a stock certificate, or cash, or gold?

When production drops low enough, the producers  will and can demand anything they want.......your attractive wife, their children, your home, whatever......

and that is when war will break out because the non producers will have to fight as their only access to production.

The insane part of the current system is the producers are now dependent on the non producing retirees and welfare class to get money to obtain others production.

How long do you think this will last as we cut off access to credit to the productive segment....production is shutting down?

American Furniture and Mattress in Nazareth 

Ken Crane in Southern California 

Angelica Textiles in Ballston Spa NY - 113 Jobs Lost 

Valu King Food Market in Norwalk Ohio

Victorian Treasurers in Warwick NJ?

Staccato Restaurant in Downtown Bend

La Retro Gifts in West Reading PA

Monadnock brand - Fitzwilliam Plant NH - 24

3 Birmingham AL Libraries 

Nevada State Prison in Carson City Possibly Closing

Update: Riverdale Elementary School' in Anaheim CA

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#6) On June 18, 2010 at 3:33 PM, alstry (36.32) wrote:

How long do you think doctors are going to exchange their production/life for medicare payments?

WASHINGTON – The Senate passed legislation Friday to spare doctors a 21 percent cut in Medicare payments — but the last-ditch effort did not come in time.

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#7) On June 19, 2010 at 1:22 AM, oshiri (< 20) wrote:

Comrade Alstrymous . . .

     Do you like wine?

     If so, we need to have a chat with Photoman about the digital revolution and vino. It will be exciting!

     And have you had a chance to visit my future homeland? I've eaten lamb on a stick there many-many times. 

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