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alstry (35.03)

My Fellow Sheep...I Told You It Was Just A Ponzi Scheme

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June 16, 2010 – Comments (12)

Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.

And, in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund — from the same pension fund.

http://www.nytimes.com/2010/06/12/nyregion/12pension.html

My sheep........why do you work anymore for money? 

If bankers can basically loan themselves money, politicians do pretty much the same, retired people now too, and welfare people get it free from government that loans to itself, then instead of working, why can't we ALSO loan ourselves money so we can pay back the banks and pay our taxes, and maybe give a bunch to charity?

THEY DON'T REALLY HAVE TO WORK....WHY SHOULD THE CITIZENS?

Any guesses when people will be forced to actually work/produce as production shuts down.....?

Chicago School Board - 2,700 Teacher Layoffs Possible

Japan Airlines - 3,600 Additional Job Cuts 

Update: PA. Port Authority - 500 Layoffs, and 30% Service Cuts 

Sonoma County Ca. - 177

Allegheny General Hospital Suburban campus in Bellevue - up to 344

Update: Hershey - 500 to 600

PRETTY NEAT...WHEN EVERYONE IS BORROWING MONEY AND/OR GETTING LOTS FOR FREE....NOBODY HAS TO WORK AND THE NATION SJUTS DOWN......

THEN YOU HAVE TO FORCE PEOPLE TO WORK............

12 Comments – Post Your Own

#1) On June 16, 2010 at 1:39 AM, greensurfer (< 20) wrote:

what are the best investments to hold when the debt crisis hits the US?

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#2) On June 16, 2010 at 8:10 AM, alstry (35.03) wrote:

It is morphed from a credit crisis to a production crisis.....

In a production crisis, from a legal standpoint, issues rise as to who gets to own production.

Investments are simply one form of ownership of anothers production.  If this continues much further, there will be very little production to own.

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#3) On June 16, 2010 at 8:42 AM, alstry (35.03) wrote:

When you cut off credit to an economy dependent on credit to produce, pretty soon production comes  to a screeching halt....especially if you continue to charge interest on debt against a foundation of collapsing production.

Money, Gold, Stocks, Bonds are all simply derivitives of production and claims against others production. 

Debt is something that advances future production against a current claim.  If you infect a system with too much debt, the current production can't service the massive claim and production shuts down if you don't restructure the debt/claim.

The question now is who gets to own production when production drops so low that our national security is at stake.  When government goes to war, it gets to own our children and their production in our collective interest.

It is not hard to see where this is going.....man must produce or humanity perishes.

Heavy arms fire rings out in Kyrgyzstan

Iraq

Afghanistan

Pakistan

HELL: Mexican Army Kills 15 as Soldiers Battle Gunmen in Tourist Town...

Mexico

Jamaica

North Korea

South Korea

Yemen

Sudan

Nigeria

When you can't produce, the only option left is to fight for production.

When Americans can't generate enough money/derivititive of production to sustain our existence, we too will be forced to produce.

Right now we are being permitted to strike....but that won't last much longer.

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#4) On June 16, 2010 at 8:48 AM, alstry (35.03) wrote:

 Home Construction Sinks, Building Permits Down

We are almost at the point where production is so critically low.....we are just going to have to take it from others.....Buffet and Gate understand this issue very well....very very very well.

Buffett and Bill Gates Announce Campaign To Get Billionaires To Give Away Half Their Wealth... Developing...

But as long as you keep charging intrest against a foundtion of collapsing production, it really won't help as interest is sapping dollars from production to non production.

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#5) On June 16, 2010 at 9:54 AM, imobillc (< 20) wrote:

1+ REC 

Mars 

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#6) On June 16, 2010 at 10:09 AM, MoneyWorksforMe (< 20) wrote:

NYS will likely be forced to shut-down next week. They are currently creating money from thin air to fund operations...A serious crisis, involving sovereign debt is now in its nascent stages and will subtly precipitate another severe economic downturn.

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#7) On June 16, 2010 at 11:04 AM, finabuddy (96.67) wrote:

money - new york state will be shut down next week? what the hell does that mean? So when the state doesnt "shut down" next week do you lose all credibility?

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#8) On June 16, 2010 at 11:15 AM, alstry (35.03) wrote:

Money is simply a derivitive of production....

It allows you to buy others production......

The more money you have, the more you own others life and production

Our economic system morphed into one where intrest bearing credit drove production

Once credit was cut off you knew production would collapse

Right now the only segment of the economy that is able to obtain credit sufficiently and significantly is government

If government didn't borrow, our system would collspse...

And right now the only entity able to lend to government is basically government......

It has been this way since last March when we bailed out bankers and not citizens...

You knew it was this way in 9/09 when major government entities, like the FDIC were bankrupt, but government loaned them money to remain operational

Currently the nation is bankrupt, and the only reason it functions is because government loans itself money through its bankers

As credit continues to be cut off from the private sector, the private sector will continue shutting down until production ostensibly evaporates

At that point, New York may not shut down, BUT IT WILL FORCE ITS CITZENS TO PRODUCE

If you fire all the police officers because you can't pay them, if citizens don't voluntarily or by force patrol the streets.....anarchy will inevitably break out.

If a man is holding a loaded .45 to your head, how much is it worth to you for him to not pull the trigger?  And if he knows there are no cops around and he needs production to survive....you think there might be an increase in this kind of behavior going forward?

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#9) On June 16, 2010 at 11:16 AM, bcchamp (33.31) wrote:

alstry-- you are a rec whore and a glory hound pc of shit.  I posted this exact headline from dwot on your blog on the 12th and you couldn't even muster up a response. Now you post it like you found some useful information.

GET A LIFE YOU PC OF SHIT

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#10) On June 16, 2010 at 11:45 AM, MoneyWorksforMe (< 20) wrote:

Firstly BUDDY you took what I said out of context. I did NOT say "will be shut down". I said will likely be shut down. Meaning the lottery, DMV, and state parks could be shut down. Hence my statement was tentative, suggesting uncertainty. Secondly, I think you need to be made better aware of the seriousness of this situation. There is a current $8.5 billion spending gap, second to only California. The state has been operating on emergency spender bills for the past 10 weeks. There is still no budget. 

After reading some more on the issue, I have decided that it is less likely than I first thought but still a real possibility. And I still maintain that this is a serious issue that will have significant consequences for all of NYS, as various programs and jobs must be cut to make a feasible budget. Taxes may also have to be raised, which is necessary but not likely, as being reelected trumps prudence. 

http://online.wsj.com/article/SB10001424052748704324304575307623407448864.html?mod=WSJ_hpp_sections_newyork 

http://www.businessweek.com/ap/financialnews/D9GCBVU01.htm

http://www.csmonitor.com/USA/Politics/2010/0614/Even-if-New-York-averts-government-shutdown-its-budget-woes-escalate

http://www.wivb.com/dpp/news/politics/NYS-avoids-government-shutdown-for-now

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#11) On June 16, 2010 at 1:23 PM, alstry (35.03) wrote:

bcchamp,

Sorry, I missed your comment.  It happens.

My bad.  Keep up the good work as if I had noticed it I would have jumped right there and then.

Kudos to DWOT for picking up on it as well.

PS:  I respect your frustration....stay cool my friend, it is about to get a lot more frustrating as we move into the Digital Age and more and more fight for less and less.

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#12) On June 16, 2010 at 4:25 PM, finabuddy (96.67) wrote:

Took out of context? The word likley has a high degree of certainty.  Plus that is semantics. How was I taking it of context? You followed up with "DMV, lotto, state parks". All of that stuff is pretty extreme. I doubt I could add any more fear or dread to the context.

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