Think of Alstry as the Markopolous of CAPs and many of the CAPs players like the SEC that just didn't want to listen after years of warnings by an expert....The Doctor of Alstynomics....the sythesis of the practical business rules to economics.
During the Bush/Pelosi era.....we now know that the Private Economy was not much more then one big Ponzi Scheme of tens of millions of Americans borrowing against the fictional or perceived equity in their homes and commercial real estate.
Tens of Trillions of Dollars of fictional profits and salaries were created and the government was the beneficiary of trillions of dollars of taxes transferred from the taxpayer to the government. Few were able to see or cared that it was a Ponzi Scheme because the debt was allegedly backed by fictional equity.....sound familiar????
For those of us that saw it....it was easy to see that the Private Economy Ponzi Scheme would collapse simply when few could sustain the burden of an ever increasing debt load against stagnant income. Just like Madoff not being able to bring in any new capital to pay his existing clients created the collapse of his Ponzi Scheme, when the Private Economy couldn't create NEW debt to pay off existing debt.....the Private Economy CRASHED!!!!!!
Now new home construction is DOWN 80%......Auto Sales DOWN 50%....High End American Retailers Down 30%.....Hotels 50% Vacant....and conditions are GETTING WORSE as people and business spend down their savings with no access to capital!!!! A Depression is a 10% Decline in GDP.
What has been holding the economy up is Private Savings that is rapidly dwindling and $6.5 Trillion of Government Spending. As long as the Government was receiving Tax Revenues.....all was relatively good....and for the last 230 years.....the government has brought in pretty much what it spent....save a hundred billion or so per year in recent years.........
But with the Madoffing of the Private Economy.....the Government is not bringing in much Revenues anymore!!!!!!!!! Most of the high income earners responsible for most of the revenues are not making the high incomes anymore so they are not paying much in taxes.
So just like Madoff, without earnings or income, the Government must find suckers to simply hand over money so the government can continue to pay out its $6.5 Trillion dollar budget......and now it must come up with a quick $2 Trillion due to a shortfall in receipts!!!!!
Unlike the Private Economy Madoff of a few years ago that could con people with Ficticious Real Estate Equity despite relatively no income, the Government Madoff does not have such ficticious equity to try and con people to hand over their money so it can be given out to welfare recipients and other purposes.....
So here we are, the Government Madoff needs $2 Trillion against rising spend obligations and an evaporating income.....how will the Government convince people to hand over their money.....well rising interest rates of course.......now the only question is how high will the Government Madoff have to go to raise $2 Trillion dollars?????????????????????????????????