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alstry (35.28)

It Is Now Happening...1.01.10

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January 17, 2010 – Comments (7)

When you cut off credit, raise interest rates to borrowers, and pay savers practically nothing in a credit dependent over leveraged economy....that economy must mathematically implode without supplying additional credit or restructure the debt.

We are now in the phase where business will abruptly shut down without much notice.....this is the phase which will accelerate the contraction process where default will create more defaults until there is not  much left to  default.

FAIRHAVEN — "It isn’t that bad," someone said to Betty Martin Friday as she walked away from Uno’s Chicago Grill, already dismantled after abruptly closing the night before, reports the New Bedford Standard Times.

"Are you kidding?" the bartender replied, shivering in the cold without her jacket. "It couldn’t get much worse. I’ve got an 8-year-old."

Martin is one of about 37 full- and part-time employees suddenly out of a job in an area suffering under an unemployment rate of 11.8 percent.

Uno pulled the plug on its Fairhaven operation because "we couldn’t continue in this location in this economic climate," said Rick Henry, Uno’s senior vice president for marketing. "This is strictly an economic impact situation...

http://www.bostonherald.com/business/general/view/20100116unos_staff_copes_with_shock_of_sudden_closing/srvc=home&position=recent

Yesterday it was two Uno's in New Hampshire abruptly shutting down without notice....today it is one in Massachusetts.  It is not just Uno's, a small piece of a much larger puzzle, or Arrrow Trucking, or photography chain Kiddie Kandids, or HomeValu........it is now thousands upon thousands of businesses impacting millions of workers shutting down with little or no notice.

A big issue now is that there are fewer and fewer decent paying jobs open for those that become unemployed.

Now practically every city, county and state in America is facing and unprecedented budget crisis....and as more and more lose incomes, tax receipts will continue to evaporate compounding already unprecedented conditions.

It is not the end of the world....simply the condition as it exists.  Pretty soon, the citizens will be able to generate enough money to support government as we know it.  That is where we will reach a crossroads in our nation......which is not too far away.  Many government around the world are already going broke.....all at the same time.

As citizens.....how will we prepare or react....it will be a true test of the character of our nation.

 

7 Comments – Post Your Own

#1) On January 17, 2010 at 10:54 AM, dmjst11 (< 20) wrote:

Time is not on our side.  We cannot continue to spend more than we take in.

 

We should only be spending for natioanal defense and paying down the debt 

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#2) On January 17, 2010 at 11:03 AM, alstry (35.28) wrote:

At this point....it is mathematcially impossible to pay down the debt........and the faster we try, the quicker our economy will implode......

I will explain this in a future blog.

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#3) On January 17, 2010 at 12:11 PM, MotleyPicker (< 20) wrote:

Forgive me, but I feel a huge rant coming on...

We started out as a government for the people and by the people. At least in principle, and often in practice. Somewhere allong the line we allowed usury to become not just acceptable, but policy. Our government sold itself to the usurers and in the end it became them.

We now posess a government where 90% are self-interested hucksters, who pay millions for the rights to inhabit public offices that allow them to skim millions more. It's grown so bad they hardly even bother to try and disuade people of the notion that a government full of white collar criminals is a bad thing.

We knew this was coming when I was a child in the 50's. People used to laugh about our congressmen as the stereotypical hornswagglers portrayed in the comics.

50 years later we find the country has been conned into a self-perpetuating role as credit slaves. Our children and our grandchildren will not be laughing at those blustering images of "noble" American statesmen in the future.

I remember telling my father, "Dad, it doesn't matter how much I pay in taxes as long as I make enough money." Some of us are lucky enough to have some money and a reasonably secure income in the world of professionals; a paid up mortgage and no looming creditors at the door. We'll be retired soon and our future needs are reasonably covered.

Not true for most of the younger americans. Their future was mortgaged before ever they were born.

It's all because our system rewarded greed and the ability not only to sell what was worthless to whomever would be conned, but to make it the law. We literally sold individuals and corporations a license to steal. In such a society nobody could be trusted so insurance became mandatory. Car insurance. Mortgage insurance. Disability insurance. Retirement insurance. And now it will be mandatory medical insurance.

The only hope as I see it is to declare the country bankrupt. Simply invalidate the national debt by soverign mandate, and start a new cash economy. No national borrowing. No national credit. No mandated insurance; but simplyPay-As-You-Go.

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#4) On January 17, 2010 at 2:20 PM, alstry (35.28) wrote:

Motley....I couldn't have said it better or articulated clearer...

But our youth won't have to wait...it starts now.

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#5) On January 18, 2010 at 12:55 PM, mawnck (< 20) wrote:

He hates to say he toad you so.

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#6) On January 18, 2010 at 1:38 PM, IIcx (< 20) wrote:

I'm finding that many of the books from the '70's and '80's that focused on Limits to Growth, the global reach of multinational corporations, and the dangers of centralized financial structures are becoming accutely relevant.

Most if not all pointed to the true cause of the problems yet we now need to clean it up with the few left who have an attention span longer then a gnat's.

The key factors were and are today massive: near complete lack of social values, a turbulent world devoid of leadership, greed and inefficiency in energy, burdensome debt, an aging population, economic growth based on killing innovation, a social legacy of distrust, no end to crimes that aren't addressed in the home, rising disease, and the deterioration of the environment.

The 101 biology experiment in HS using bacteria in a petri agar explains the story.

"We will Overcome"...Happy MLK Day.

Best, IIcx 

PS. Please pitch some positives if you're able to.

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#7) On January 18, 2010 at 2:29 PM, MotleyPicker (< 20) wrote:

I will say this:

The bailouts are not over. There will be at least one more round. Due to that there will be another huge up-tick in the market.

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