The FED Zombulating America...America shutting down
Anadarko Q2 rev $1.75 bln vs $2.77 bln
Revenues are continuing to evaporate across America. Yes, some months they stablize, but the overall trend is down down down. Even a dying patient's EKG stablizes on and off before they die...but if the disease continues to spread, the patient eventually dies.
In this case, the disease was the FED permitting the banking system to infect America with too much debt at too high an interest rate. Now that the hospitals, school districts, municipalities and citizens can no longer sustain the debt...is the FED taking any steps to alleviate the debt burden?
The only thing they are doing is bailing out the banking buddies by letting banks refinance debt at 1/4% but forcing the rest of the Economy to pay much higher rates.
When Japan applied its Zombie bank policy, at least the Japanese people could refinance their debt at 1% giving the banks satisfactory margin and the economy a chance to survive.
With Americans paying high interest rates against evaporating revenues due to the contraction of credit from the banks...more and more American hospitals, school districts, cities etc are getting Zombulated and being forced to cut and cut and cut. Pretty soon so much will be cut that there will be nothing left to cut.
Today, Jefferson County practically shut down all non essential offices because it could no longer meet debt service. Why should the dealers of excessive debt be treated any differently than those that used it...especially our cities and states and hospitals?
Either Zombulate BOTH the banks and the cities, or restructure both. But by only restructuring the banks, it will not be long before America shuts down and the banks own ALL of the assets of our nation.
Pretty soon, as more and more of America gets Zombulated becuase they are not able to service debt at high interest rates, they will be few businesses open and few left who will have any money. At that point, the government must stay in business and it will have to go after the few with money to keep the system operating at a lower level.
At the current rate of revenue decline for cities, counties and states...plus factoring the rise of bankruptcies...America could be less than a year away from a 100% tax rate. The problem is that it may not be enough due to declining incomes of the wealthy.....therefore an asset tax is the only thing left.
The only question now is what will our assets be worth in that environment?
This is Alstry's last post for a while.