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alstry (< 20)

The Divide is Growing WIDER



October 15, 2010 – Comments (3)

Nearly every dollar bill in America today originated from a loan to someone, some business, or some government.  The person or entity borrowed and the money entered the stream of commerce.

With that loan came a liability to pay the money back....WITH INTEREST.  The loan plus INTEREST was a liability to the borrower and the only way the loan could be paid back is if the borrower could obtain more money than he borrowed.

As a system, the only way the interest could be paid back is if more more money was injected into the system each year through more loans.....and as time went by, if the debt was not restructured, the debt would reach incredible numbers though it has today growing from $5 Trillion in 1980 to $25 Trillion in 2000 to OVER $50 Trillion today both public and private.

It doesn't really matter who borrows the long as the money is borrowed and spent, the money enters the system.  If it is the private citizen borrowing the money, than you have a privately driven economy, if it is the government borrowing the money, than you have a government driven economy.

Where the problem comes in today is there are two sets of for the private citizen, and one for government and Wall Street.  The private citizen and private business owner must live within the constraints of a balance sheet...Washington and Wall Street do not.....and consequently can borrow essentially unlimited amounts of money regardless of their financial condition.

That is great if you are an employee or shareholder of a Wall Street company, Wall Street bank or Washington politician....IT SUCKS IF YOU ARE A PRIVATE CITIZEN OR BUSINESS OWNER WHO IS GETTING CUT OFF OF CREDIT OR CAN'T MAKE YOUR PAYMENTS.

The joke about QE is it is simply taking the bad debt off the banks balance sheet and sanitizing it with cash.....if QE did that to the private citizens, they would be able to pay back the banks and both would be fine...BUT THAT IS NOT THE GOAL OF QE....its goal is to shut down the current private industrial economy in America by cutting if off of credit.

When one party is forced to live within the constraints of a balance sheet....and the other party is not.....the other party wins everytime....just like playing monopoly with unlimited access to the win everytime.

THIS IS NOT THE AMERICAN is like getting an inheritance on demand regardless of merit......the sad part is Buffett used to be against, he is one of the nation's BIGGEST through is businesses getting massive amounts of government handouts while private business owners are forced to shut down or go bankrupt.

It is an insane UNConstitutional game we are playing today.....private property is changing hands simpliy because we are not bailing out one insolvent party and handing it to another otherwise insolvent party.

As America is now deteriorating very guess is the citizens will finally figure out what is happening and start to push back.......the issue is how and what reaction will come from Washington and Wall Street?

Your guess is as good as you force most of the citizens to live within the constraints of a balance sheet and allow a few to avoid all liabilities by giving them essentially unlimited credit still escapes me......

It is like Washington and Wall Street get to use Enron type accounting but the rest of the nation gets audited properly.....Washingtion and Wall Street will get bonuses no matter how much money they are really losing.



3 Comments – Post Your Own

#1) On October 15, 2010 at 9:04 AM, alstry (< 20) wrote:

If we continue with the policy of bailing out Wall Street and Washington and shutting down mainstreet.....cities, counties, states, schools, hospitals, and private will not be much longer before Washington and Wall Street own America and most Americans own nothing.....

You simply cannot apply one set of advantageous rules to a few....and another set to the many........and not expect the system to implode....

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#2) On October 15, 2010 at 9:44 AM, carcassgrinder1 (< 20) wrote:

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#3) On October 15, 2010 at 10:15 AM, BillyTG (29.51) wrote:

alstry, where is your patriotism?

This is the USA for crying out loud! We will overcome and be better off after we beat these little economic problems!

Please have some faith in your elected representatives and their appointees. The public would never put them in place unless they were honest and competent and looking out for the best interests of the public.

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