Use access key #2 to skip to page content.

alstry (< 20)

Prepare For Anger in 9.09



September 05, 2009 – Comments (6)

Alstry warned you if we continued with our Zombulation Policies, our nation would eventually shut down.  Now our nation is shutting down with practically every city, county, and state reducing workers and cutting pay.  Our auto companies are bankrupt and closing thouands of dealers.  Many of our banks insolvent and closing.  Our Airlines and Hotels are in great distress.  Builders are bankrupt and independent mortgage companies are not much more than a recent memory.

America simply can't service $40 Trillion dollars of SWAP induced debt without eventually Zombulating the entire nation as more and more debt defaults.

I warned you a few months ago a new trend in America would be Anger.  With 16.8% reported unemployment, you know that frustration levels are high.  With recent government cuts and much more down the road, the frustration is only going to grow as the jobless rate gets to unprecedented levels..  Many will not be able to service their debt causing even more personal distress and in the financial markets.

We are being trained to get angry.  People are visibly carrying guns in public.  Others are screaming at their elected officials at town hall meetings.  Some are questioning the right of our President to be President.....and now, outrage is being sparked simply because he wants to give a speech about the importance of education to our children?

From an analytical perspective, it is not important why people get angry, what is relevant is that anger is rising.....and when it rises among the masses.....the outcome can be very unsettling. 

Never in our nation's history have we or will we face the financial distress being engineered by Benny Bin Laden and his banker buddies.  You simply cannot cut off credit to a massively overleveraged swap infected economy and expect anything but disaster to result......and by only bailing out select bankers and bonusing them with billions of emasculating principles of liberty and justice that have never been crossed in our nations history.

There is simply no moral or legal justification for taxpayers bailing out insolvent bankers yet those same bankers tightening credit and raising interest on the taxpayers forcing citizens into insolvency.  It offends every fundemental principle of fairness.

No terrorist group in the world could have dreamed about inflecting such massive economic, social, and political upheaval in our country without expecting massive retaliation by the entire nation.  Instead, we act with pitiful indifference as anger is directed to health care reform and whether our President should give a speech to our children about education.

Presently, about 50% of our nation's GDP is simply government consumption.  An amount of spend we can no longer afford as our GDP evaporates.  If we took government consumption back to relative Great Depression levels, we would have to cut government spending by 80% and our economy would likely contract by at least 40%. 

With the Wall Street bankers cutting off credit to the private economy, most of our economy has contracted severely.   Conditions are getting worse as interest rates continue to increase and credit tightens....conditions will get MUCH worse..... and as government tax receipts continue to evaporate and INCREASES cutting going forward....the falling domino effect is going to converge upon every cornor of our nation.

This is all very foreseeable

Without restructuring the massive amount of outstanding debt suffocating our a very short period of time we will destroy what took our forefathers generations to establish.

6 Comments – Post Your Own

#1) On September 05, 2009 at 10:36 AM, jason2713 (< 20) wrote:

Exactly, so please explain why people find that unemployment going much, much higher month to month makes the market go crazy on friday.

I honestly do not understand the market, its pretty interesting.

Report this comment
#2) On September 05, 2009 at 10:43 AM, alstry (< 20) wrote:

At this point, the market is dislocated from reality as much of the current volume is simply High Frequency Trading computers trading shares back and forth to each other generating massive volume rebates.

Fundemental analysis in this environment is all but worthless.....until we put a stop to this practice.  Evidence of this is the few bankrupt financial companies dominating trading on the exchange.

If you think people are mad about health care, just wait when they find out about how manipulated and controlled the market is......

Report this comment
#3) On September 05, 2009 at 11:59 AM, alstry (< 20) wrote:


FORT LEE -- Motorists along state Route 36 just outside Fort Lee slowed down yesterday morning to take a peek at the soldiers in full gear guarding the main gate.

About a dozen protesters held posters and chanted, "No more hate! No more hate!"

The base's law enforcement made sure the demonstrators stayed calm and outside Fort Lee's perimeters.

It was a peaceful and short demonstration, but such an unusual scene that a traffic backup seemed inevitable.

"What's going on?" asked a passing driver.

Fort Lee law-enforcement, civilian and military personnel were simulating a protest as part of a three-day anti-terrorism and force-protection exercise at the Army base.

"It is really important to do training like this," said Garrison Commander Col. Mike Morrow, noting the Army's dedication to protect its soldiers and their families.

Throughout the year, Fort Lee officials conduct emergency training, analyze local crime trends and national threats to prepare for different scenarios, from protests to shootings to more violent attacks, Morrow said.

Training today consists of a more violent scenario, base officials said.

Report this comment
#4) On September 05, 2009 at 12:29 PM, alstry (< 20) wrote:


Only two states are currently solvent; North Dakota is one. What makes North Dakota different is that they have a state-owned bank. The advantage of a state-owned bank is to return profits to the public and/or minimize borrowing costs for the state and whatever portion of the public the state chooses as borrowers (North Dakota provides credit at the lowest costs for student loans and to farmers, for example).

Banks legally create credit out of nothing as a fraction of their assets (to simplify). Any state could record state assets (state receipts, buildings, land, etc.) on their accounting books and create credit from their value.

Although different from most peoples’ misunderstanding, banks do not lend what depositors have put in the bank. Therefore, states are not “risking” assets through loans; they are legally entitled to create credit out of thin air. This is verified by the Federal Reserve’s Publication, “Modern Money Mechanics” and explained in its crucial details in my brief.

Excerpts:“The purpose of this booklet is to describe the basic process of money creation in a ‘fractional reserve’ banking system…The actual process of money creation takes place primarily in banks.”“[Banks] do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created.

What they do when they make loans is to accept promissory notes in exchange for credits to the borrower’ transaction accounts. Loans (assets) and deposits (liabilities) both rise by [the amount of the "loan"].

"What does this mean? It means that intelligent state legislators can immediately authorize their own bank, issue credit to themselves at 0% interest to purchase their outstanding debt, and immediately save themselves borrowing costs.

This would be one way to restructure debt.

Report this comment
#5) On September 05, 2009 at 2:16 PM, alstry (< 20) wrote:


Reports filed by banks with the Federal Deposit Insurance Corporation indicate that at the end of June about one-sixth of all construction loans were in trouble. With more than half a trillion dollars in such loans outstanding, that represents a source of major losses for banks.



Report this comment
#6) On September 06, 2009 at 3:01 AM, ocsurf (< 20) wrote:

"Now our nation is shutting down with practically every city, county, and state reducing workers and cutting pay."

My state just added 75 jobs last week. So much for that theory.

Report this comment

Featured Broker Partners