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alstry (35.36)

Relax, Why We Are All Broke II

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August 08, 2009 – Comments (21)

In my prior blog, I explained the concept of joint and several liability and how as citizens of the United States we are liable for the debts and actions of our government.

Now I am going to explain why, under current Zombulation policies, it will be impossible to escape from being Zombulated.

You simply can't escape....no matter how hard you try.  Over the past 10 years, a HUGE percentage of taxes paid were simply generated from borrowing money and spending, buying and selling property at higher and higher prices, increased property taxes, and accumulating massive debt.

After infecting the economy with trillions in debt at teaser rates, then raising interest rates 17 times, tightening credit standards, and toughening bankruptcy laws..... few qualify to borrow anymore as the the banks have substantially cut off our nation from credit. Revenues and profits are evaporating as debt defaults and so are tax receipts to government. 

In addition, government expenses are increasing as employees are being fired by the thousands.  Compounding the problem is defaulting debt destroying profits to our financial system and values in our pension funds and retirement accounts.

When we fire employees or cut wages, we lose tax receipts and they likely default on debt.  With less receipts and higher expenses,  government is forced to find replacement revenues either through MORE borrowing or increased taxes to its citizens.

If our nation goes to war, the Zombulator will take your children.  If our nation increases the military footing, it will need your children to support that larger infastructure....whether you agree with it or not.  The same is true if government needs money to support our nation.

With a massive debt load suffocating revenues out of the economy, BOTH privately and publicly, and few qualifiying for credit, every month more businesses are shutting down, more people lose their jobs, more suffer wage cuts, bankruptcies are skyrocketing and more default on mortgages....each time this happens less and less is paid in taxes.

As more and more Americans are Zombulated, there will be fewer and fewer left to feed the Zombulator.   As the Zombulator's expenses go up, it will be forced to borrow more and more......until no one will be willing to lend the Zombulator anything because most of its borrowing will be to simply pay interest as interest rates will inevitably rise.

Once the Zombulator can't borrow any more...it only has one place left to get funds.......guess where?  Based largely on declining revenues, the Zombulator has had to borrow more and more recently...we have gone from borrowing a few hundred billion per year, to $500 billion per year, to $1 Trillion per year, to OVER $2 Trillion per year, to what will likey be OVER $4 Trillion next year(China's entire GDP).

As more and more Americans go broke, there will be fewer and fewer left for the Zombulator to take from.....AND THE ZOMBULATOR NOW NEEDS A LOT.....once the Zombulator has taken all to keep itself alive, there will be nothing left to take from anyone.

It is just a matter of time....you will know by 9.09....relax.

Zombulation occurs when you run out of savings and access to credit, or government taxes 100% of your income and assets, you have been Zombulated......in either case, you are broke.

And the BIGGEST joke of all is we are giving bankers billions in taxpayer funded bonuses for Zombulating our nation.  Are we paying bankers to Zombulate us?

21 Comments – Post Your Own

#1) On August 08, 2009 at 8:54 AM, alstry (35.36) wrote:

The following as an excellent chart by Calculated Risk on rising delinquencies for mortgages:

http://4.bp.blogspot.com/_pMscxxELHEg/SnsM6DXuy-I/AAAAAAAAGBM/fcfh5q7CuYI/s1600-h/90-day-chart-big.jpg

The chart for increasing bankruptcies is not much different.

 

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#2) On August 08, 2009 at 8:56 AM, jddubya (43.65) wrote:

In your prior blog, you said:

Going forward I will substantially reduce my blogging as this post pretty much sums things up.

Well?!?!?!?  Does your book of definitions define "substantially reduce" as "imperceptibly lessen"

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#3) On August 08, 2009 at 9:09 AM, alstry (35.36) wrote:

jd,

Based on your numerous comments, it appears you are addicted to my blog...actually, I think you comment more frequently than I blog.

How worried are you about being Zombulated?  Based on current policy and failure to restructure debt, it is a mathematical certainty.

My suggestion, relax.....9.09 is soon here.

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#4) On August 08, 2009 at 9:29 AM, jddubya (43.65) wrote:

Wrong again.  I'm just reporting the facts and questioning your statements.  Again, you fail to address the question(s) put to you. 

I'm not worried about being zombulated, nor should any other reasonable person be worried.  If anything you claim comes to pass, the playing field is level for everyone.  But you don't seem to recognize that.

Your attempts to put fear into "the masses" would best be served if you took your ranting to a better suited audience.

I totally support your constitutional right to freely speak.  Those who fall prey to your incessant, non-stop, prophecy of doom and act on things like your top call in April at 8300 are likely to be those less knowledgeable in the markets - I feel for them - to be following so blindly as Jim Jones followers did.

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#5) On August 08, 2009 at 9:36 AM, alstry (35.36) wrote:

I'm not worried about being zombulated, nor should any other reasonable person be worried.  If anything you claim comes to pass, the playing field is level for everyone.  But you don't seem to recognize that.

Sure you are...you are much more worried than you let on.

Then why don't you take everything you have and give it to those in South Stockton who could use it.

It is not the money issue that disturbs me about Zombulation, it is the lack of freedoms that generally follow with Zombulated societies.

That is now two comments for my one blog.

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#6) On August 08, 2009 at 9:48 AM, alstry (35.36) wrote:

THE PLAYING FIELD IS NOT LEVEL FOR EVERYONE.....

Just those connected to those in control.  A perfect example is observing involvent bankers getting billions in taxpayer funded bonuses while insolvent small businesses people and families lose everything and get kicked out of their homes.

Or insolvent Wall Street bankers get subsidized while police officers, firefighters and and nurses get fired.

Zombulation is anything but a level playing field.

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#7) On August 08, 2009 at 9:58 AM, jddubya (43.65) wrote:

LOL - if you had no comments on your blogs I'm sure you would drift away.

You should thank me for giving you what you want - attention, and the opportunity to put another person down rather than address the questions that your blogs generate.

Just as you continue to blog in the face of many detractors  (and there are many), I, and any other fool here, shouldn't be dissuaded from commenting.  It's no big deal Alstry, just continue with your usual practice of ignoring the comments that you don't like.

And thanks for keeping count - maybe if I come to find that I'm wasting a significant part of my life on this website...I'll stop!

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#8) On August 08, 2009 at 10:10 AM, alstry (35.36) wrote:

That is now #3...just on one blog.

Soon, as more and more lose their jobs, and fewer and fewer get bailed out, America will be controlled by a few bankers and politicians....it will not be the land of the "free" that our founding fathers contemplated with success based on one's merits.

Right now we have tens of millions unemployed and/or working for paltry wages.  Tens of millions more suffering massive income losses, including some very high income earners.  And even more tens of millions surviving on government hand outs including welfare, unemployment and food stamps subsidized by a twindling taxpayer base.

In the not too distant future, we will ALL become aware that the tax base is simply too small to sustain the above.  The government will need to take all we have simply to maintain itself.

If they are willing to take our children to protect our nation, they will be willing to take all of our money to keep our government sustained.

My guess is a few will be exempt from being Zombulated....who do you think they will be?

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#9) On August 08, 2009 at 2:02 PM, mliu01 (< 20) wrote:

Alstry: Don't be bothered with those idiots. Blog it away. This country need more people to tell the truth, not less.

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#10) On August 08, 2009 at 3:32 PM, jddubya (43.65) wrote:

Hmmm... bothered? And I'm an idiot?

The truth is fine, if it were "Alstry reports, we decide" - but it's not.

Good thing this idiot was smart enough to not pay attention to Alstry's top call of 8300 in April.

this is the number 4 comment.

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#11) On August 08, 2009 at 3:54 PM, leo744 (< 20) wrote:

JD you really need to get a grip!!! Ok so you've said it a hundred times Alstry missed the top at 8300....your missing the bigger point here pal! The nations debt is going to be our downfall unless our reps get off there fat you know whats and fix the problem!

So get off Alstrys back and why don't you give us some useful insight....like where do you think the market is heading and WHY???

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#12) On August 08, 2009 at 7:33 PM, jddubya (43.65) wrote:

my number 5 comment, for those that are counting.

leo744 -
LOL - I'm missing the point?  I agree that the nations debt could be our downfall... that applies to any situation, not just this country.  The government is supposedly doing what they can to fix the situation, but I would agree it doesn't look good.  Even though it doesn't look good I firmly believe that the government does not want anarchy.

The point is that taking Alstry[nomics] seriously at 8300 would have been disastrous.  Getting depressed based on the outlook he alludes to does nothing for ones health or bank account.  The fact that Alstry[nomics] refuses to acknowledge that the top call was wrong does nothing but tarnish any respectability he may have had.  On top of that, according to Alstry[nomics], it is all about being right, which he wasn't.

Get off HIS back?  No way.  Without those like me that have temporarily lost our insanity because of his depressing rants, he would have no one to try to help.  Even if you don't follow his blogs, you'll easily get the idea that he believes that most bloggers here "just don't get it"... and that "soon we will see how right he was..."

Also note that Alstry has stated several times that he HOPES that he is wrong.  Everyone should feel good for Alstry and thank those that point out where his hopes came true.

As far as useful insight, well, I'm a long term investor.  Went all in back in November and then double "all in'd" again in March.  It worked/is working very well.  I think the market will be sideways for the next couple of years, and then take a few years to recover, but going all in when I did is a decision I believe was best.

If things actually do go as badly as Alstry implies, then it won't matter for anyone, I guess that's the bigger point I would make.

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#13) On August 09, 2009 at 5:14 AM, mliu01 (< 20) wrote:

jddu: you are confusing a regular market rally with crooks doing illegal and crimnal act.

If you think this market is normal you are fooling yourself. If you really think this is a new bull market, you are fooling yourself.

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#14) On August 09, 2009 at 11:22 AM, jddubya (43.65) wrote:

LOL @ mliu01

What are you reading?  I'm confusing what?  I think this market is normal?  I'm fooling myself?!?!!

You, being an exclusive follower of Alstry[nomics] are responding in an expected fashion - although I'm not sure what you're responding to and directing it towards me for.

Alstry -

this is my number 6 comment on this blog...

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#15) On August 09, 2009 at 12:31 PM, mliu01 (< 20) wrote:

I am not a follower of anybody. I saw this comming way back in 05 and 06.

 You are here bashing alstry for his analysis on the economy. You only arguement is that market went up. get a life.

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#16) On August 09, 2009 at 1:09 PM, jddubya (43.65) wrote:

Again, LOL @ mliu01 -

Well, if you're not a follower of Alstry[nomics] I apologize.  Please don't feel the need to explain why the ONLY activity you have on these blogs are comments on Alstry's, and only Alstry's blogs.

And if you saw this coming waaaaay back in 05 and 06 then you've no doubt had time to prepare, congrats!  Maybe you can offer the fools here some of your own insight as to what's going on?

I'm not bashing Alstry[nomics] - I'm helping Alstry[nomic] to realize it's hopes, which is to be wrong.

"You only arguement is that market went up."

Umm... I'm not argueing anything.  The FACT is the market did go up.  The FACT is that had you taken action at the top call at 8300 you would have missed out on some pretty darn good gains.  How can you call that bashing?  Sheesh!

Alstry - this is my number 7 comment on this blog...

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#17) On August 09, 2009 at 7:40 PM, bio7 (< 20) wrote:

jdd,

I would assume that most people that don't agree with Alstry's view don't read his blogs.  But for some reason, you think it is important to share your views over and over and over again in someone else's blog.   I don't follow every single one of his blogs but you seem to be in every one that I have read, saying the same thing over and over.  Do YOU have a job because you seem to have a lot spare time yourself.  If you are a full time trader, wouldn't you think your time would be better spent doing research than commenting in Alstry's blog?

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#18) On August 09, 2009 at 9:04 PM, jddubya (43.65) wrote:

syko,

I would assume that most people that don't agree with Alstry's view don't read his blogs. 

To not read a blog simply because you don't agree with that blogger is very narrow minded and closes the door on a ton of good info put out by many bloggers, Alstry[nomics] included.

But for some reason, you think it is important to share your views over and over and over again in someone else's blog. 

It's just as important as the number of times Alstry[nomics] shares it's view with this community, which is many times more than I comment.  I find it odd that you would even suggest that my comments are too numerous.  Alstry[nomics] has pretty much defined "over and over and over"

I don't follow every single one of his blogs but you seem to be in every one that I have read, saying the same thing over and over. 

Funny you would say that about me without mentioning that the Alstry[nomics] blogs say the same thing over and over. 

Do YOU have a job because you seem to have a lot spare time yourself.

Whether or not I have a job, or why it even matters, is really no concern of yours, and I'm not sure how you'll feel about this... but yes, I have a job.

If you are a full time trader, wouldn't you think your time would be better spent doing research than commenting in Alstry's blog?

Yes.

To quote Alstry[nomics] "You don't get it."  I'm actually assisting Alstry[nomic] with achieving his highest hopes - that he is wrong.  Just as he shares his views over and over and over, I present to Alstry[nomics] valid questions and points over and over and over in order to understand how his overabundance of information furthers my knowledge of the markets.

You're quick to comment on the number of my comments, but this community is best served when comments have some substance to them, or at the very least, contain some sort of informative disagreement..

For instance, do you disagree with my comments and why? Or do you just not like how my comments are structured?  Or do you see Alstry[nomics] struggling to address my comments and feel the need to defend the "Institute of Alstry[nomics]" or what?!?!

 Oh.. almost forgot - this is my number 8 comment on just this blog, because Alstry's camp is counting...

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#19) On August 09, 2009 at 10:05 PM, Starfirenv (< 20) wrote:

Dude, you remind me of how prepubiscient teens treat each other when they have a crush on each other. I am interested in relevent, quantifiable, verifiable (read Alstry's contribution) input in these unprecedented times. All great empires have two things in common, they rise and they fall. Methinks our jobs as citizens, Americans and parents is to be as educated as possible and stand up for our common cause and future. Eight retorts should suffice. Lead follow or get out of the way.

Cap'n Al, some in this Foolish community hugely appreciate your concern, time and efforts to bring some insight to these tentative times. Run Forest run. No offense, just $.02

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#20) On August 09, 2009 at 10:34 PM, jddubya (43.65) wrote:

Starfirenv,

"Lead, follow, or get out of the way,"

You forgot the rest of the quote from your profile: 

"...pay attention, believe half of what you see and none of what you hear, give more than you take, and always question 'authority'. "

Seems that I'm actually doing what you say...

Oh well, follow your captain... I myself will continue to pay attention, believe half of... etc, etc...

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#21) On August 09, 2009 at 11:35 PM, Starfirenv (< 20) wrote:

Does that make nine? No offense my brother. Relevent, quantifiable, and verifiable info is $ in my book.  That's all. Peace.

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