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alstry (35.03)

THE END OF THE WORLD AS WE KNOW IT????

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September 11, 2009 – Comments (26)

Without domestic consumption, America really has essentially no economy under the current structure. 

In order to consume, Americans need an income or access to leverage.  As banks are cutting off credit to consumers and businesses.....more and more Americans are relying on their incomes to survive. 

Unfortunately, layoffs are just beginning to kick into gear as 17% of the workers in America are unemployed per U6 government statistics.

Now practically every city, county and state are beginning to layoff massive numbers of workers...so are private companies.

Toyota Closure Could Erase 40,000 Jobs in California

NetJets to lay off 5 percent of work force   NOT BUFFETT!!!!!!! 

Broward commissioners approved a flat tax rate that will lead to cuts at the sheriff's office and parks and libraries.

Fools...none of this is fun...it is simply the reality of Zombulation policies that will eventually destroy the economy as we know it.  You can't simply cut off credit to a highly leveraged domestic consumption economy with a massive government on top of it and not expect total destruction to the result.

Sure there are Fools telling you that this is not as bad as The Great Depression....and that is only because government is running a $2 Trillion dollar deficit.  Without that deficit, this would be MUCH WORSE than The Great Depression....with tens of millions of Americans on the streets fending on their own for food and shelter.

And if we keep running the deficit....our currency will be worthless in the very near future as the deficit will only widen as the bankers cut off credit to the private economy and state and local government must balance budgets forcing even more cuts.

It would have been one thing if the bankers cut off credit BEFORE they infected our economy with over $25 Trillion of swap induced toxic debt.....but cutting off credit AFTER and forcing the population to try to service a mathematically foreseeable unservicable amount of debt is Economic Treason that will inevitably lead to the rapid impoverishment of our entire nation.

Without credit.....a credit dependent and highly leveraged domestic consumption economy will be obliterated ....as it tries to service a massive amount of debt taking fund and support its government at the same time.  Between interest and taxes....there is not enough left for food and shelter.

9.09 has just started....MOAP is here......you should now be prepared.

 

26 Comments – Post Your Own

#1) On September 11, 2009 at 2:10 PM, catoismymotor (38.90) wrote:

Thanks. Now I have REM stuck in my head.

BTW, what's the frequency, Alstry?

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#2) On September 11, 2009 at 2:12 PM, alstry (35.03) wrote:

Who cares....the game is about over anyway....for all of us.

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#3) On September 11, 2009 at 2:18 PM, catoismymotor (38.90) wrote:

Yeah. We can even skip the lube.

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#4) On September 11, 2009 at 2:21 PM, alstry (35.03) wrote:

Screw the lube.....not enough time......when so many Fools still don't get it at this juncture in the game.....and government is lying through its teeth or oblivious to what is about to happen.....it ain't hard to see who is the fattest turkey in the room the day before thanksgiving.

Whatever it is 9.09 will be BIG....Alstry BIG.

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#5) On September 11, 2009 at 2:33 PM, catoismymotor (38.90) wrote:

 Screw the lube? Fattest turkey? Alstry BIG? You dirty boy. :)

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#6) On September 11, 2009 at 2:34 PM, prose976 (< 20) wrote:

Give it up Alstry.  There is no shortage of jobs in this country, thus no shortage of money for consumers.  Just follow this link to jobs-a-plenty:

 http://www.quintcareers.com/top_50_sites.html

People will get very hungry and it will be hard to wean them off the superflous credit lines they've grown accustomed to, but there are no shortages here, except the psychological ones.

We still need to slash government and it's runaway spending...and get rid of the clown who currently occupies the oval office along with the dead wood in our Congress/Senate, local and state offices, but reality is much different than you portray it and much different than the headlines bark.

The modern media is poison, and so are some of your posts Alstry.  Maybe instead of posting about all the job losses everywhere, you should be posting what I just did...a link to find jobs.

Change your brain man.  You are a real drag on yourself and your "reality" is just a small piece of the whole picture.  Pull back a little and provide some practical remedies to the problems you point out in your posts.  These sweeping gestures you make and continued beating of the dead horse is just tiresome and unproductive.

It's easy to point out the bad stuff, but it takes true character to provide real "doable" solutions that each Fool can actually put into practical use.

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#7) On September 11, 2009 at 2:41 PM, alstry (35.03) wrote:

pro...

You don't get it....the bad stuff hasn't even started unless we end Zombulation policies and restructure debt.

If we continue down this path...the kind of bad I see makes my goofy lunatic style of screaming blogging seem conservative relative to what could happen.

The only solution is restructure debt....now we are only increasing the burden....what do you think is going to happen when there is no money flowin to government???????

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#8) On September 11, 2009 at 3:33 PM, jason2713 (< 20) wrote:

Didn't I call it earlier??

We will go negative, then turn positive in the last hour.

How does this happen every day?

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#9) On September 11, 2009 at 3:41 PM, catoismymotor (38.90) wrote:

That's great, it starts with an earthquake, birds and snakes,
an aeroplane - Lenny Bruce is not afraid.
Eye of a hurricane, listen to yourself churn,
world serves its own needs, dummy serve your own needs.
Feed it off an aux speak,, grunt, no, strength,
The ladder starts to clatter with fear fight down height.
Wire in a fire, representing seven games, a government for hire and a combat site.
Left of west and coming in a hurry with the furies breathing down your neck.
Team by team reporters baffled, trumped, tethered cropped.
Look at that low playing!
Fine, then.
Uh oh, overflow, population, common food, but it'll do.
Save yourself, serve yourself. World serves its own needs, listen to your heart bleed dummy with the rapture and the revered and the right - right.
You vitriolic, patriotic, slam, fight, bright light, feeling pretty psyched.

It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine.

Six o'clock - TV hour. Don't get caught in foreign towers.
Slash and burn, return, listen to yourself churn.
Locking in, uniforming, book burning, blood letting.
Every motive escalate. Automotive incinerate.
Light a candle, light a votive. Step down, step down.
Watch your heel crush, crushed. Uh-oh, this means no fear cavalier.
Renegade steer clear! A tournament, a tournament, a tournament of lies.
Offer me solutions, offer me alternatives and I decline.

It's the end of the world as we know it.
It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it (It's time I had some time alone) and I feel fine.
(I feel fine)

It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it (It's time I had some time alone) and I feel fine.

The other night I dreamt of knives, continental drift divide. Mountains sit in a line
Leonard Bernstein. Leonid Brezhnev. Lenny Bruce and Lester Bangs.
Birthday party, cheesecake, jelly bean, boom!
You symbiotic, patriotic, slam book neck, right? Right.

It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it (It's time I had some time alone) and I feel fine.

It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it (It's time I had some time alone) and I feel fine.

It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it (It's time I had some time alone) and I feel fine.

It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it. (It's time I had some time alone)
It's the end of the world as we know it (It's time I had some time alone) and I feel fine...

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#10) On September 11, 2009 at 4:06 PM, jason2713 (< 20) wrote:

awww. it went red again.

Sorry guys, I tried to look into my magic 8 ball and it gave me the wrong read.

 

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#11) On September 11, 2009 at 4:29 PM, TMFCrocoStimpy (95.48) wrote:

Alstry, serious question to you:  You've mention restructuring debt as the necessary step to avert a collapse of the leveraged economic structure we're currently in.  Let's grant that for the moment.  Can you provide some additional thoughts as to the type of debt restructuring you have in mind, and the potential ripple effect from the restructuring?  When you "restructure debt" that means someone gets screwed out of their expected returns to allow you to get back onto a reasonable financial footing.  So, who do we need to screw to restructure the debt (let's take the highly unlikely scenario that we then practice safe spending practices in the future)?

-Stimpy

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#12) On September 11, 2009 at 4:55 PM, jason2713 (< 20) wrote:

China and Russia

Both will have to be screwed.

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#13) On September 11, 2009 at 4:57 PM, jason2713 (< 20) wrote:

Aftering reading all these Alstry blogs, Jason needs a stiff drink...or 8!

 

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#14) On September 11, 2009 at 4:58 PM, prose976 (< 20) wrote:

Alstry won't answer with any conviction, because Alstry doesn't have a clue.

 

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#15) On September 11, 2009 at 6:09 PM, alstry (35.03) wrote:

Stimp,

You restructure the debt by captializing a new bank and loan money at much lower rate to pay off higher interest rate old debt.

Money supply remains constant so not inflationary.

In the end, old debt gets paid off and refinanced at much lower rate with new bank...nobody is screwed and toxic debt is removed.

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#16) On September 11, 2009 at 7:08 PM, TMFCrocoStimpy (95.48) wrote:

Alstry, I'd like to keep walking through this thought experiment if you're willing.

Capitalization of a new bank of sufficient size to impact our cumulative high interest debt would require an enormous amount of capital.  Where does this quantity of capital come from, the government?  I can see that once you have closed the loop of borrowing and then paying off high cost debt you could in theory keep the money supply unchanged.  This is essentially what the Fed is doing already in a very "old boy network" fashion with keeping the lending rates at near zero for financial institutions.  Would your idea be to essentially open up the Fed lending to all consumers/businesses via a federal bank for the purposes of restructuring expensive debt?

If I've outlined your scenario in a roughly correct manner, then I can identify the people who get "screwed" (I am not sympathetic, just looking for who loses out).  Because the vast amount of this debt has been monetized, then somebody is being paid to take on the risk of default, while somebody else has the risk that the high paying debt is paid off early and does not produce the future income that was expected when the debt was monetized and sold.  I don't know enough about the structure of monetized debt to know who loses when all the high interest debt that underlays the investment gets suddenly paid off, but those are the people/institutions that will get screwed.

Lots more to think about with regards to the implementation of such a system, but I don't want to veer too far off and put words in your mouth if I've made some assumptions above that don't hold true.

 -Stimpy

 

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#17) On September 11, 2009 at 7:13 PM, alstry (35.03) wrote:

No it wouldn't...much less than was required to bail out the banks.....due to fractional reserve banking.

The money has already been allocated and much of the toxic debt being written off would not have been written off as it would have been paid off and now performing.

This process would only apply to existing debt and not new debt so as to not be inflationary.

Al

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#18) On September 11, 2009 at 7:15 PM, alstry (35.03) wrote:

Stimp,

I am a little short with my response as I am leaving for dinner....if my response needs more detail please indicate where and I will be happy to elaborate.

 

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#19) On September 11, 2009 at 8:30 PM, Starfirenv (< 20) wrote:

You fools just don't get it. 9.09 is padded room time. PREPARE!!!!!!!!!!!!!!
Alstrydomous is not very good at answering direct questions equalled only by his lack of success making calls, (although he claims to be a lawyer), but let's give him (or her or it) a chance here. For laughs.

Sir, your first sentence: "Without domestic consumption, America really has essentially no economy under the current structure".
 Question: What country does, or could possibly, under any "structure".
 Let me answer that for you,"YOU JUST DON'T GET IT!!!!!!!!!!"
Zero cred here.
+1 rec for Prose next post (#6)
Remember what prepare means, per Alstrydomous, "cash, some PM and an occasional short". Answer the question and don't tell me I don't understand. FOR ONCE!!!!!!!!!!! +1 rec #14.

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#20) On September 11, 2009 at 8:55 PM, TMFCrocoStimpy (95.48) wrote:

Alstry, I've got lots of follow-up, but like yourself am taking some time out with the family to have dinner and some down time.  I'd like to continue later.....

-Stimpy

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#21) On September 11, 2009 at 9:37 PM, alstry (35.03) wrote:

Star...

Japan does....it exports and produces more than it consumes....or at least export/production was the driver of consumption....as such it had relatively little debt

In America...credit was the driver of consumption... and production basically became a byproduct of credit...we export very little to drive reserves and with credit comes accumulated debt....now we simply have been infected with too much debt and have become Zombulated....it is just that we don't know it yet....we are starting to feel it.....soon we will know it....9.09

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#22) On September 11, 2009 at 9:38 PM, alstry (35.03) wrote:

Star...

Japan does....it exports and produces more than it consumes....or at least export/production was the driver of consumption....as such it had relatively little debt

In America...credit was the driver of consumption... and production basically became a byproduct of credit...we export very little to drive reserves and with credit comes accumulated debt....now we simply have been infected with too much debt and have become Zombulated....it is just that we don't know it yet....we are starting to feel it.....soon we will know it....9.09

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#23) On September 11, 2009 at 10:13 PM, booyahh (< 20) wrote:

Dude, you  missed the whole rally. What a joke. When it comes to investing, don't overthink it. As Yoda said: "Don't think, just do"

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#24) On September 11, 2009 at 10:20 PM, AvianFlu (34.92) wrote:

According to www.usdebtclock.org we have about 72 trillion dollars in federal debt and unfunded liabilities. This does not include private debt, which by the way is "only" about 9 trillion.

I do not think we will be able to come up with this cash. At this point we would have a hard time even offering our creditors 10 cents on the dollar. Our only hope is to radically increase the money supply so we can pay everyone back with dollars that aren't worth anything. Did we have anything in our contract preventing us from debasing our currency? I didn't think so.

 On another topic, I see where Obama issued an executive order in the last few days giving taxpayers the "opportunity" to receive their tax refund in the form of an IOU (treasury bond) to be paid back at a later date with interest. Anyone taking BO up on this offer is unlikely to show up in the all-star category on CAPS.

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#25) On September 11, 2009 at 10:25 PM, alstry (35.03) wrote:

Private Debt is MUCH HIGHER than $9 Trillion...as defined by non federal debt.

Just residential mortages is over  $10 trillion plus HELOCS, credit cards, auto loans, commercial loans, commercial real estate, municipal loans....and more easily exceeding $25 trillion.

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#26) On September 16, 2009 at 12:12 PM, ayekappy (< 20) wrote:

Well, I hate to say it, but I think I missed the rally.  I'm starting to think we might not go down for a few years... maybe that Keynesian economic stuff does work.  Your whole think gets screwed if housing really does start to go up again, along with wages and consumption.

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