PREPARE FOR SOCIAL UNREST!!!!
Taxpayer supported bailed out banks are reporting massive profits and executives are demanding HUGE bonuses while.....
Millions of Americans are getting kicked out of their homes
Millions more are losing their jobs
California is implementing massive wage cuts for hundreds of thousands of its workers......how many Californians can sustain a 20% wage cut and still meet their minimum monthly obligations?
The economic distress is quickly turning into personal stress and natural human reaction to protracted stress is well documented. And this phenomenon is not limited to America, economic distress is rapidly growing around the world and the reaction will be very predictable.
This from France:
Workers at a failed French car parts supplier are threatening to blow up their factory unless the company’s two biggest clients – Renault and PSA Peugeot Citroen – stump up extra compensation.
Employees of the engine parts maker New Fabris have rigged up a series of gas canisters inside a factory workshop which they say will be detonated on July 31 if the two carmakers fail to pay €30,000 to each of the 366 workers facing unemployment.
The problem facing the world's economy is that over the past ten years, the banking system infected the private and public sectors with too much debt. Now the debt is simply unsustainable. As the economies inevitably contract, debt service will consume a greater and greater percentage of GDP.
Eventually, if the debt is not removed, the GDP will contract to the point where debt service payments equal or exceed GDP and the only money available is directed to pay the bankers and practically nothing for goods and services. This is the concept the Institute of Alstrynomics defines as Concentric Contraction and the slowdown is now being felt EVERYWHERE.
Think of the California family where 80% or more of its income was going to pay taxes, interest, and insurance. There are thouands upon thousands of families in this situation. After a 20% wage cut, the family will have zero dollars for discretionary spending including food and clothing.
Concentric Contraction also applies to government. As government tax receipts dwindle from lower consumer spending, outstanding debt service begins to consume a greater and greater percentage of tax revenues leaving little for services. Eventually, debt service consumes so much that government must start taxing citizens assets and savings simply to pay the politicians wages and bankers at the same time.
It is at this point that populations generally start rebelling. We are nearing that point......9.09 is not far in time.