The Fools Just Don't Get Zombulation
October 07, 2009
– Comments (29)
Alstry started the Institute of Alstrynomics....it is where Zombulation was discovered and the effect of Concentric Contraction. In practical application, Zombulation to our economy is not much different than Pancreatic Cancer is to our biology.
Pancreatic Cancer is so lethal because it spreads with relatively benign symptoms, and once the symptoms are eventually noticed, the disease has spread so far that it is generally too late to abate or avoid its consequences. Along the way, as the disease spreads, healthy cells are sequentially destroyed until the body simply can't function anymore.
Zombulation is not too much different, the due to massive leverage burdening the system, debts start defaulting and banks can no longer lend as those that need to borrow can't qualify and those that qualify have no need to borrow. Since accumulated debt is many times greater than savings, as revenues evaporate from a lack of credit being extended, it is impossible to pay back the debt without extinguishing our entire savings base...eventually, even healthy citizens and businesses are destroyed due to lack of revenues.
The banking system acts as the Zombulator sucking the cash flow of the nation into its vaults to service the debt, but not letting any money out in the form of credit. As money goes in and little flows out, the revenues to the nation evaporates as savings is drawn down and businesses and families financially fail. Slowly at first the then the pace picks up as more and more get Zombulated running out of savings and fewer and fewer can spend.
What Alstrynomics has been doing is documenting the symptoms with thousands of posts providing evidence of the spread of the disease......and warning of the eventual outcome. NEVER have I represesented it is the end of the world....simply the end of an economy as we know it.
For ten years, practically our entire economy has morphed into one supported directly or indirectly by DOMESTIC leveraged consumerism....my guess is 70-90% of our GDP is dependent on consumerism to generate revenues.....without it most of us wouldn't have jobs due to lack of revenues. Just look around you, it is not hard to see. This process was funded by Wall Street and our banking system and they knew it.
What makes America diffferent than other countries is our own consumer drove our economy through LEVERAGE, not income.... and income for many Americans was a byproduct of leverage by other Americans....in other nations, their domestic consumption was fueled by producing and selling to other nations...especially ours benefitting from our leverage. Now they have savings and we are broke......basically, America and the Americans became welfare recipients of the American bankers and the bankers of the World......and soon the bankers may cut us off as the dollar loses its reserve status and we all get Zombulated and they get bailed out.
In the early sixties, Detroit was a very prosperous town...but as revenues evaporated, the town started to deteriorate. The demise was very slow at the beginning but started to accelerate as sales slowed...now we can Feel what many failed to notice as the change was taking place.
America is really not too different than Detroit....basically Detroit was a one market town...the Automobile industry.....and when its industry deteriorated, so did the town. America is primarily a single market economy as well, its domestic consumer....and much of that consumption was based on credit.......and when you cut off credit to the consumer, the economy will deteriorate, and so will the nation as revenues keep declining and declining.
We are now at the point where revenues have slowed so much that governments and health care systems are forced to slash....this is the point where you not only know about the disease, but will FEEL the symtoms. The banking system is simply sucking out the cash flow of the nation and little is being replaced through the process known as Zombulation. As money evaporates, just like cells dying faster than new ones being regenerated, eventually the system fails.
NY Gov. Paterson - Orders State Agencies to Cut Spending by 11%
Just ask yourself, if America doesn't have a leveraged consumer to sell to........what is our economy???? Insurance, Banking, Health Care, Government, Housing, Retail?????? Do you think it is any different than Detroit and automobiles? Again it is not the end of the world, just the end of a world as you know it.....Detroit is still selling millions of cars per year and has a number of different industries still functioning in its town.
Unless we restructure debt soon, the banks will suck most of the money out of the eocnomy and all of America will be like Detroit.......not a big deal....just a new way of life until we find a replacement......which I am confident we will in at least 10 or 20 years.
So keep bashing Alstrynomics, that is why I call you the Alstrybaters......in the end, you are simply bashing yourself unless you start to address the disease of Zombulation.
Seriously, how hard do you think Wall Street is laughing right now at the billions we just gave them for overleveraging our economy and they shut our economy down??????
