Is the FIRE economy a Fraud?
February 24, 2010
– Comments (3)
The FIRE economy is finance, insurance, and real estate. For the past ten years it has been the primary driver of profits to our economy and taxes to government. Government has been the primary driver of dollars to health care. Between FIRE, government, and health care....we pretty much contemplate most of our GDP.
The problem with the FIRE economy is it recently functioned simply by the creation and servicing of debt. Without creating NEW credit, the the existing debt couldn't be serviced...essentially taking on the nature of a Ponzi scheme of borrowing simply to service debt. Now that we are cutting off credit, we are extinguishing the FIRE.......and the economy is imploding.
Putting out the FIRE is causing revenues to government to evaporate. Starting in March, dramatic cuts are being made to health care reimbursement at a time when health care is also suffering due to massive numbers unemployed delaying treatment and massive numbers of uninsured. Expect VERY LARGE cuts to government and health care in the next few month which will likely cripple our industrial economy as we move into the digital age.
Remember, between health care and government, we are addressing OVER 50% of our GDP that is now going broke............
You KNEW, you FELT, and now it HAPPENS.....and if you think Greece is isolated?......you obviously don't know how Zombulation spreads.
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