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alstry (35.21)

Should Our Government Just Take Over Everything?

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October 30, 2010 – Comments (7)

Right now, about 50,000,000 get food stamps every month. 

About 60,000,000 get Social Security checks.

About 50,000,000 work for government or get unemployment checks from government.

And well over 10,000,000 work for our government subsidized health care system through medicare/aid and government employee insurance.

If you add in dependents...the vast majority of our country is now dependent on government for a check........and then if you add in those businesses that depend on government spending to function.....basically the entire country is now dependent on government spending to obtain an income and/or maintain their perception of wealth.

WITH THE FEDERAL AND STATE GOVERNMENTS RUNNING OVER $1.5 TRILLION DOLLAR DEFICIT PER YEAR.........not including entitlement shortfalls..........

AND NOW WE KNOW THAT OUR FEDERAL RESERVE IS FUNDING THIS BEHAVIOR THROUGH A PONZI SCHEME.......

Shouldn't the government just come in......seize everything everyone has.....stick it in one BIG pool of funds.......and then divide it equitably among the citizens?

For example, should an enlisted soldier only make $30K but a private contracting soldier make $250K?  Should a union penson employee of GM have his pension saved but a non union GM employee see his pension wiped out?

Should a money losing public homebuilder get a massive loan and a private homebuilder get killed....

Clearly our current system has broken down....and not only that, we can no longer afford to maintain it.....it has deteriorated so much that our largest money manager now calls our central bank the largest Ponzi Scheme ever.....

We already have over 2/3 of the country getting a check from government.....and that 2/3 is driving the wealth of the remaining 1/3.......

AT THIS POINT...IN ORDER TO BRING BALANCE BACK INTO THE SYSTEM....WOULDN'T IT BE IN THE BEST INTEREST OF THE COUNTRY IF THE GOVERNMENT CAME IN, SEIZED EVERYTHING WE ALL HAVE......AND REDISTRIBUTED INTO A SUSTAINABLE AND EQUITABLE MANNER.?

Clearly a Ponzi Scheme is not a sustainable way for our nation to run......

7 Comments – Post Your Own

#1) On October 30, 2010 at 10:38 AM, alstry (35.21) wrote:

This logic, although sound, will be very difficult for many to accept, especially those who preceive themselves to be rich.....

You see, the only reason they are rich is because of government spending and the Ponzi Scheme the Fed is currently operating......

Do you think it is ever easy for anyone to realize they are the victim of a Ponzi Scheme?

And with current consumption growth simply unsustainable on a global basis....do you really think there is any other path?

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#2) On October 30, 2010 at 11:00 AM, BillyTG (29.81) wrote:

Many big corporations have a lot of cash right now and are not hiring.  I guess it's because of their uncertainty about the economy, about the future, and they want to have cash on hand to survive a bad season.  Also, they can easily keep prices low, to ensure customers don't at the smaller companies.  My guess is that by next spring, the US will have far fewer companies in business, leaving the corporations around to gulp up whatever market share is remaining.

If the market collapses and forced austerity hits home, that gives these cash-rich companies a great opportunity for buying up things we haven't even considered, diversifying themelves Berkshire style.  Can you imagine Google buying up large amounts of real estate?  It also opens the door for legislation for foreign countries to come in and buy up natural resources if Americans are worried enough that national security concerns take a backseat to them being able to feed themselves and sustain their previous lifestyles.

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#3) On October 30, 2010 at 11:18 AM, alstry (35.21) wrote:

Billy...

Many big corporations have a record amount of debt too......

Yes...next Spring....there will be fewer businesses, schools, and hospitals.....

The cash flow of America is evaporating....much of this is not reflected on the income statements of public companies because it is easy to manipulate profits and losses by simple balance sheet adjustments.

We are well down the path for a very convulsive change in our country....when our former chief financial prosecutor is screaming about the criminal activity of our largest banks and NO ONE RESPONDS.....and our largest money manager admits that our central bank is running something even more extreme than a Ponzi Scheme and NO ONE RESPONDS.......and we are bailing out Wall Street and not mainstreet and NO ONE RESPONDS........

The only choice left is to react to what happens.......

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#4) On October 30, 2010 at 11:40 AM, alasker (< 20) wrote:

Hey Alstry:

I wanted to thank you. If nothing else your perspetives are making me ask others a lot of questions. For example I work at on a high profile unit that makes a lot of money for the hospital. But the demographics of the patient population are older. It turns out that 90% of our patients use medicare with the other 10% being private or some type of hybrid insurance plan. I'm definitely going to remember you when I hear people taking about austarity measures and medicare cuts (not that I disagree- I just know the hand that feeds me). Whats even scarier is my hospital is th largest employer in the area since the large scale manufacturing left long ago. I'm just saving money while I can and getting experience.

Also- thanks for your perspectives in housing. I have a relative in real estate and I keep telling him I'm a perpetual renter. I don't know how middle class families making (I think the national average) is 50K can afford mortages when taxes alone are 7k a year on a small house in ok areas- not even great.   

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#5) On October 30, 2010 at 11:53 AM, alstry (35.21) wrote:

Billy,

Just a follow up to my last point...if you loaned the people money just like you are loaning Wall Street....they too would have a lot of cash and be able to keep their assets and spend lots of money into the economy.

But when you are primarily loaning only Wall Street money....they are the ones with the cash....and much of the rest of the nation shuts down, the currency value evaporates, and foreigners buy up the remains.

Australians Swoop in on US Foreclosures

Wade's Clothing Ohio

Piggly Wiggly Closing 4 Stores in South Carolina 

Holladay Drug in Seaside Oregon

The Postal Service Closing Midtown Station in Jan.

Furniture Markdowns Going Out of Business and Liquidate 

Bickford's Family Restaurant in Westfield Mass.

Up Against The Wall Store

Expert Tire in Danville VA

Noah's Ark Petting Zoo in California KY

J.C. Penney Co in Manitowoc

Alasker,

I am the nation's foremost expert on Zombulation.  I am one of the few CAPs players whose heritage comes from a nation that actually went communist.....and my grandfather liquidated most things and went to a neighboring country.

Zombulation is the path to state owned ownership of most things.....the fact that you recognize that your income and wealth are now a function of state spending.....and such spending is based on a Ponzi Scheme.....if nothing else makes you intellectually honest.

Some people still, even in the current environment with all of the evidence before them, actually think they are entitled to maintain their current wealth position....even though they realize their wealth is built upon a Ponzi Scheme.

It is very difficult for even experts to grasp this...one of my close friends is the key analyst, and former Wall Street analyst, for billion plus dollar family trust...he is a very good person and very intelligent, and he can't see it.....nor can another person I know who manages a well known large cap mutual fund........

It was one of the most frustrating parts of this analysis....the nation has no clue it has essentially become dependent on government spending to maintain the illusion of wealth and income......and I call it an illusion because such spending is the derivative of a Ponzi Scheme.

By the way...this is not just limited to America.....

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#6) On October 30, 2010 at 12:52 PM, alasker (< 20) wrote:

Hey Alstry:

I just think its a little interesting. In my own bubble it seems pure the philosophy of the first european settlers- you work or you starve. I also respect the idea that to grow an economy you have to make something, grow something, or mine something. Everything else doesnt really add anything. I went from working as a straight commission factory rep for 9 years ( representing companies that actually manufacture things) to working in a hospital. I have my wage now not from what I actually sell- but from what the government is able to borrow to pay the hospital to pay me. Kind of a mind twist.

 

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#7) On October 30, 2010 at 1:58 PM, dbjella (< 20) wrote:

alasker

If a society had most of its "needs" met in terms of housing and food, then how does a society account for arts and entertainment?

I don't have an answer, but was curious. 

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