It Is Now Happening...1.01.10
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...
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.