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alstry (35.40)

Is DinoD Right....Is War The Only Choice?

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February 28, 2010 – Comments (3)

Warren Buffett is generating most of Berkshire's profits with Derivitives....as tens of thousands are fired from his operating businesses.....interesting perspective from the one who is touted as a value investor and his partner says IT"S OVER!!!!

Most of our banks are lying about the value of assets they are holding

20,000,000 Americans work for government directly

40,000,000 Americans are standing in Digital Food Lines receiving food stamps every month

16,000,000 Americans depend on unemployment benefits for income

40,000,000 Americans are dependent on Medicare for health care

Most of the revenues of our drug industry are paid directly and indirectly from government

Most of the revenues to doctors is paid directly or indirectly from government

Most of the revenues to hospitals is paid directly or indirectly from government

The entire defense industry is dependent on government spending to function

A large percentage of Walmart's revenues are generated from entitlement payments and government employees

A large percentage of drugstore and grocery revenues are generated from entitlement payments and government employees

A large percentage of technology spending is a from of government and government employee spending

Once you break it all out....you begin to realize that most of America's profits is no longer generated from producing things but simply buying and selling debt and gambling with derivitives.......and most of America's economy is simply generated by government and government employee spending.

Now that our private economy is being cut off from credit and morphing into a much more efficient digital economy.....revenues to government are evaporating and most of government spending is simply a product of borrowing.  Further, if banks didn't lie about their assets, most banks would be insolvent......and if government didn't borrow and spend, we really wouldn't have much of an economy.

So ask yourself.....why do government and banking employees receive paychecks when their employers really don't have the funds to pay them while private sector employees get fired, lose incomes, and homes when faced with similar conditions?

IBM Workers Brace For Possible Job Cuts on  Monday

At some point....we will all realize that most of our assets are simply debt obligations to each other that can't be serviced unless we are increasing credit......essentially taking on the nature of a Ponzi Scheme......

These debts make up our money market accounts, life insurance policies, community banks, mutual funds assets, IRA assets, 401K assets, Pension Fund Assets and investment accounts.......

From 1776 to 1980.....America accumulated approximately $5 trillion in total debt.

From 1980 to 2000....Debt ballooned to $25 Trillion providing massive stimulous our economy

From 2000 to 2008....Debt more than doubled to over $50 trillion and now infects every aspect of our economy including government, schools, hospitals, housing, retail, construction, manufacturing, and finanicial services.

It is very easy to get rich selling $25 trillion of debt in eight years.....add in derivitives and the numbers are staggering.  The problem now is servicing the MASSIVE accumulated debt is becoming impossible due to credit drying up.

The BIG question is how do you tell the American population their economy and retirement hopes was based on a Ponzi  Scheme of ever increasing debt that would blow up once there was nothing left to leverage and the banking system cut off the economy from credit?

Or do you take the easy way out and start a massive war to destroy the industrial age and move us into the more efficient digital age............

Tackling the defaulting debt problem is the ONLY issue Congress and local governments should be addressing........maybe the issue is being avoided because an alternative route has already been decided?

 

3 Comments – Post Your Own

#1) On February 28, 2010 at 11:15 AM, alstry (35.40) wrote:

The funny part is "retirement planning" and financial services has simply morphed into a debt buying and selling machine hoping and praying that the debt can be serviced down the road.....sorta like playing musical chairs hoping the music doesn't stop at your turn.

Nobody really cares about producing anything anymore....

It was all good so long as more and more were borrowing to support relatively few holding the debt.  But as more and more started holding debt.....even more credit had to be extended to service it until we were financing unqualified borrowers and silly projects simply to increase debt to keep the illusion growing.

The entire financial services industry now revolves around selling you on buying debt.....the products are endless and most of you don't even know what is going on.....

money market funds.......life insurance policies.....mutual funds......modern portfolio theory......municipal bonds....corporate bonds......auction rate securities......mortgage backed securities......credit default swaps,....etc.....

All was good so long as more and more credit was being extended each year to service the debt.....but now that credit is being cut off.........debt is defaulting everywhere and the government is letting the banks and corporations lie so you really don't know what is going on......

Unfortunately....the real world can't lie and millions are losing their jobs and homes as the revenues evaporate and more and more shut down.  We have now reached the point where so many have defaulted on their mortgages the banks are no longer interested in foreclosing in many areas.

Just wait until people figure this out....how many do you think are going to continue to pay mortgage payments when they find out their neighbors are delinquent and nothing happens?

http://www.calculatedriskblog.com/2010/02/living-rent-free-homeowners-become.html

Soon... enough will be idle and we will all look back and say....wow......any Fool should have seen it coming.

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#2) On February 28, 2010 at 11:46 AM, alstry (35.40) wrote:

Will Goldman finance WW3 before more and more find out???

http://www.rollingstone.com/politics/story/32255149/wall_streets_bailout_hustle/print

Tensions are certainly growing around the world....

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Lebanon: Russia Agrees to Give Lebanon Helicopters Report this comment
#3) On February 28, 2010 at 12:15 PM, alstry (35.40) wrote:

PINK SLIPS AND RIOTING....CHANGE WE CAN BELIEVE IN!!!

Sacramento area teachers brace for thousands of pink slips

Sacramento teachers and other school employees are bracing themselves for thousands of pink slips.

Education protests on tap this week in California  

The protests, teach-ins and walkouts that swept through University of California campuses this fall are scheduled to come back this week. But this time the activism is moving beyond UC – to include Cal State, community college and K-12 campuses .

 

DinoD could be more right than he thinks as the Ponzi Scheme unravels and money evaporates....which is easer....fighting your own citizens or fighting a real or perceived external enemy?

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