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alstry (35.36)

The Future Part 4 You Will Be Blamed

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October 24, 2010 – Comments (11)

Before we get to the theme....let's go over over the problem fisrt.

In our "capitalistic" system in America...all money enters the economy and into circulation through a loan.....and that loan is essentially created out of thin air by banks and they get to charge interest.

Without going into too many nuances...as long as the banks keep lending more and more money each year...the debt can be serviced and the economy can grow....and grow and grow and grow.  We went from $5 trillion of total debt in 1980 to $55 trillion in 2007.  But if the banks are NOT lending more money, or even sufficient money, the debt mathematically can't be serviced and the banks KNOW that most of the loans will default.....

Why?  Because it is NEW credit that is the primary driver of cash flow in America and without NEW credit, cash flow evaporates and debt can't be serviced....and since the banks are the conduit of NEW CREDIT/debt....the Wall Street banks that is.....they get to pick and choose when the economy expands and when it contracts....or even crashes.......simply by cutting back credit.

The emotional problem most of you face is that for the past 60 years.....credit has always expanded in America as the banks grew and grew and grew.....so everything chugged along just fine with relatively few hiccups.....I keep using the Madoff analogy, because from a functional standpoint....the two processes are very comparable......as long as Madoff was able to bring in more NEW money each year....he was able to pay his clients consistently a 10% return......but as soon as the flow of money slowed.....the whole Ponzi Scheme fell apart.....

In our case, as long as the banks lent the private sector enough NEW money....then everything kept moving along fine....but as soon as the banks slowed lending....just like Alstry...Benny the B, Warren Buffett, Timmy the G and others.... knew with certainty the system will eventually come to a grinding halt.....

What most of you fail to appreciate about Alstry's blog and  the thousands of posts evidencing exactly the fallout from the unraveling of the debt collapse....it really centered around one primary theme.....who gets to own the property as the system falls apart?...because the question of the system falling apart is a certainty under the current path.....

In Madoff's case....we sent Madoff to jail and stripped him of his assets.....should we send the bankers to jail for creating this Ponzi like scheme, slowing credit, and for lying to you about what was going to happen?  or should we give them America's homes, businesses and other property?...you see, the bankers KNOW that millions more American families will fail because we did not bail out the debt burdening the system......and the bankers are NOT lending enough to the private economy to service the current outstanding debt.....consequently the system and most within it must fail.

Alstry's blog is basically about who is entitled to own America's property...... as the bankers cut off the American economy from credit for the first time since WW2 and we watch our nation collapse........the people, the government, or the bankers?

AT THIS POINT....UNDER THE CURRENT PATH....IT IS MATHEMATICALLY IMPOSSIBLE FOR THE SYSTEM NOT TO FAIL.....

With that in mind, if I can make it look like this problem was all your fault....the bankers will argue they should own the property.....or money.......and either way they can acquire all of the property fo the entire nation.  If Alstry could have convinced you that it was their fault....we could have resturctured the debt and allowed the American people to retain title to what they owned....just like we restructured the debt of the bankers and Wall Street companies.......

But it is clear the trend will now be to blame the American people for what happened....and make them self hating Fools.......how does Alstrymous know?   I was watching TV with the kids last night and couldn't believe a trailer I saw about an upcomig show called DOWNSIZING.

It is about a family that seems to have had a lot and lost everything.....and the family blames themselves for their own problems......without knowing more........there is little doubt that the family probably indulged in excesses, we all did and do........but so did the bankers that loaned them the money.........and the polticians that taxed them excessively and took lavish salaries and perks from the taxes this family paid....and now that the family is not paying taxes and working multiple low paying jobs...the politicians and bankers are still lavishing themselves with generous salaries and the property of America.......

So in the end....who is at fault for all this mess....the bankers, politicians, or families.......but if we kill the families......we will kill our economy.....and the only thing left for the policians and bankers to do is strip out our nations resources and sell them overseas as the rest of the nation lives in poverty.

Now do you see why it is so easy for Alstry to forecast Social Unrest or War.....if you just pulled off the greatest heist in human history....would you want hundreds of millions of victims coming after you?

11 Comments – Post Your Own

#1) On October 24, 2010 at 1:07 AM, alstry (35.36) wrote:

EXPECT MORE OF STUFF LIKE THIS FROM ZH...

Submitted by Gonzalo Lira

Chile’s Triumph, America’s Exhaustion

In Chile, the collective mood is one of hard-earned triumph, after the successful rescue of the 33 miners.

There was of course joy and jubilation when the miners were pulled out after their two-month ordeal underground. I wasn’t watching the news at the time, but I knew the precise moment when the first miner was pulled out alive: Passing cars started loudly honking their horns—Tat–tat–ta-ta-tat!! Tat–tat–ta-ta-tat!! Tat–tat–ta-ta-tat!!
 
But in the nearly two weeks since the rescue, there has been a collective afterglow in Chile: Everyone feels happy. Everyone feels confident. Everyone feels as if any and every problem—no matter how big—can be taken in hand, and solved successfully.
 
There is none of that feeling in the United States.

Americans were glued to their television sets, watching the rescue of the Chilean miners. It was all day, every day—24/7 coverage that got to be a little tedious. But Americans couldn’t seem to get enough of it—on and on and on, the coverage never seemed to stop.
 
A few Chileans—a small but not insignificant minority—got irritated by the American television coverage: They got irritated by a certain American attitude they sensed in the coverage—an American arrogance.
 
“It’s like these gringos think that they saved the miners,” a close friend of mine told me here in Santiago. “Like us poor little Chileans couldn’t have rescued the miners on our own—as if we needed the gringos to do it. But we didn’t need the gringos. It was Chilean workers, Chilean engineers, Chilean plans that made the rescue happen—not the gringos.”
 
“Yeah,” said another friend. “What did the gringos bring, aside from television crews and talking heads? Gringos never respect anyone else’s achievements—they always try to make it about themselves.”
 
This wasn’t the prevalent thinking in Chile—but it wasn’t an insignificant minority, either. And I couldn’t refute my friends, because they were right—
 
—but at the same time, I could understand why Americans wanted to latch on to this amazing story:
 
Americans just want to feel a little bit of triumph, a little bit of joy.
 
The problem with Americans isn’t that they’re trying to hog the credit: It’s that Americans feel as if their country is a failure—they just want to share in a little bit of that wonderful feeling.
 
The glow that comes after an undisputed success.
 
The United States hasn’t felt success in a long, long time—at least a decade. Ever since 9/11, Americans have been living in a state of constant panic—constant fear—an irrational fear egged on by the leadership classes.
 
This constant state of panic has led Americans to create a police-state, where the police is there not to serve the citizenry, but to keep them in line.
 
This constant state of panic has led Americans into two pointless, endless wars, where “victory” is impossible—because there’s nothing to be won.
 
This constant state of panic has led Americans to be afraid of anything and everything—no matter how trivial and innocuous—and turned the American people into a timid, docile, frightened lot.
 
This constant state of panic has exhausted America.
 
First 9/11 and the pointless, endless Global War On Terror. Then the Global Financial Crisis in 2008—then more financial bad news—unemployment—downsizing—then another financial crisis with the Mortgage Mess: Constant never-ending crises! Never a moment’s rest!
 
And throughout these crises, throughout these years of wailing sirens and flashing red lights, there’s the sense—inarticulate, but ever-present—that the American people are being played for fools:
 
Played for fools by the banksters, with their multi-billion dollar bonuses, paid for courtesy of the U.S. government that bailed them out—and not a one of them going to jail for what they did.
 
Played for fools by the politicians, who promise hope and change, but deliver more of the same—because they are the same: Peons of the lobbyists, suck-ups to their corporate masters.
 
Played for fools by the corporations, who sell foods that are unhealthy, plastics that are unhealthy, communications gadgets which are unhealthy—then lie and say, “They’re harmless!”, even as they settle lawsuits whose conditions are that they do not admit to wrongdoing, or accept responsibility.
 
Played for fools by the security apparatus, growing like a cancer on the body politic, which periodically issues vague and pointless warnings—“Danger! Danger!—A terrorist-threat alert for all of Europe!”—a security apparatus which has become more threatening—even more dangerous—than the terrorism it is supposed to prevent.
 
Played for fools by the generals, who claim that this new strategy will bring about victory—a strategy which, after tens of thousands of more soldiers, and hundreds of billions of dollars for the military contractors, fails like all the other strategies.
 
Played for fools by the doctors and hospitals and insurance companies, who don’t so much heal Americans’ injuries and cure their diseases, but rather suck them dry like leeches of old—only they don’t drain them of blood, but of money.
 
Played for fools by their fellow citizens, as everyone seems hell-bent on trying to screw over his neighbor, whatever the costs, whatever the consequences.
 
The mantra of the last decade in America has been buy!-buy!-buy your way to happiness!—as if mere things could fill a life with joy and purpose. No wonder something like half the population of the United States is morbidly obese, while the other half smokes as much ganja as they can get their hands on: They eat and get stoned so as to numb the mind, dull the pain—get some rest.
 
The people of the United States are exhausted. Fatigued. Burned out. No más, no más, as Roberto Durán said: No more. No more.
 
The trapped Chilean miners—as historical events go—was trivial: It’s nowhere near as important as, say, the upcoming QE2, or the Currency War, or the looming crash in America’s debt.
 
But for the little bit of time that America’s attention was so single-mindedly focussed on the trapped Chilean miners, the American people could pretend that they were saving the miners.
 
For a little while, they could pretend that America’s leadership was responsible and serious in the face of a crisis—not incompetent and ridiculous, as they proved to be after Katrina, and during the BP Oil Spill disaster.
 
They could pretend that America’s engineers and workers solved this difficult problem—with no excuses, no second guesses, no failed plans.
 
They could pretend that America was basking in the warm comforting glow of confident success.
 
As they were digging out the trapped miners, a Chilean mining engineer said at one point, “We’re prepared: We’ve got three rescue plans going on at the same time—and each of those efforts has a back-up. And each of those back-ups has a back-up! So one way or another, we’re going to pull our fellow countrymen out of there alive.”
 
That’s what America needs—that’s what America yearns for: Someone to pull them out of their hole, something that will bring them back up to the surface—alive and beaming with joy, a clenched fist triumphantly punching the black night sky.

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#2) On October 24, 2010 at 1:25 AM, ikkyu2 (99.15) wrote:

There is a political and religious movement afoot called the "Promise Keepers."  Little to do with the usual alstry topics.

But I like to think of the coming era as the era of the "Promise Breakers."  The private and government pension, Medicare, Medicaid and Social Security "entitlements" cannot be delivered.  The mortgage tax credit and estate tax breaks are going to have to go away.  The tax code will become more and more confiscatory every year - for you and me, not for the fat cats on top, because wealth is not taxed, just income.

The "Promise Breakers" hold all the cards, including the military.  I too wonder if the rest of America will go down without a fight. 

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#3) On October 24, 2010 at 2:44 AM, BillyTG (29.23) wrote:

Ridiculous travel advisories, nonsense wars with goals different from what the public is told, everyone trying to screw over his neighbor, no accountability...this guy sounds like...me! haha

 

ikkyu2, I've been thinking about this often, whether we'll go down without a fight or if there will be a civil war.  Sadly, I think things will stay fairly orderly as the American public gets ran over.  I expect riots, looting, and murders like what we saw in New Orleans after Hurricane Katrina, but I doubt there will be widespread organized revolt. 

People wanting to fight face what I think are insurmountable forces:  Media to spew government propaganda, big and powerful police and military to eliminate any insurgents orcivil uprisings.  All the government has to do to keep things orderly is focus on probematic pockets and prevent any widespread organization.  Like in Steinbeck's The Grapes of Wrath,if normal people are physically prevented from organizing, then little can be done.  What has changed since those days is that we have much better communication these days, like the internet.  But how easily would it be for that to be manipulated?  Then, think of the technology employed by our police state.  It's formidable, so the people aren't exactly going against Barney Fife.

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#4) On October 24, 2010 at 9:05 AM, JerseyShoreGirl (< 20) wrote:

Great post, Alstry.  Love the way you continue to reframe the situation based on new developments unfolding.  Unfortunately, the masses don't see this train wreck because it's happening in s-l-o-w motion, and by the time the collective wakes up (most likely due to some 'event'), it will be too late. 

As a student of the esteemed Institute of Alstrynomics, I ask you these questions ... What is the end game here?  Do you feel this was engineered?  Have both political parties played active hands in this?  Do you base many of your predictions on Toeffler's 'Future Shock'?

Thanks for taking the time to make this post because it really boils down the situation.  The hope I cling onto is that the will of the American people is beast not to be reckoned with.

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#5) On October 24, 2010 at 10:03 AM, TigerPack1 (97.04) wrote:

+1

Alstry and Peter Schiff are helpful crazy men in getting the word out about what is really going on.  Without the internet, and some freedom of speech in America, the truth would still be a mystery to EVERYONE.

The powers that be have truly BOXED IN the country now.  Real problems in the economy and society seem to be the only "future" from this point forward.  We had many good choices available last year to make, to avoid what is beginning to take place.  But with idiots like BEN leading the show, I am not suprised all the WRONG decisions were made on our behalf 12-18 months ago.

-TigerPack

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#6) On October 24, 2010 at 10:19 AM, alstry (35.36) wrote:

This is absolutely engineered and both political parties are equally complicit....the evidence is clear.

2008 identified the problem....and by 9/09 the conspiracy was obvious

and my predictions are my own....simply from distilling the facts and identifying probable outcomes.  I actually go out of my way to avoid reading too much "future" analysis ...other than refelecting on the book Atlas Shrugged as a template...but that novel was written over 50 years ago.

It really is not that difficult to analyze by someone experienced in accounting and law.  It is simple fraud.

How do you think people will react when they realize the banks infected the nation with trillions in fraudulent loans......and it was the people that lost everything as both political parties bailed out the bankers?

If you want to follow the best expert on this subject....right now I think it is Bill Black....the former prosecutor of the S&L crisis.

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#7) On October 24, 2010 at 11:38 AM, JerseyShoreGirl (< 20) wrote:

I'll have to do a little research on Black ... I think my husband has mentioned his name lately.

I thought the Gonzalo Lira piece was well written, but it does paint with a broad brush.  I think a large percentage of America is as he describes, BUT there is also another ever-growing group that is waking up, and coming on board with what's really going on .. there is a HUGE, growing community on YouTubve, for example .. and there are also many freedom-loving, tax-paying Americans who may not yet have the big picture in view, but they certainly won't roll over so easily.  When the veil does come down, I think we'll see the true American spirit rise up.

Also, not sure if you're familiar with the term Agenda 21 .. it's a 'plan' thought up by the UN.  Here's a quick "Agenda 21 for Dummies" video to give you a flavor ... I researched and verified much of what is in this video .. and such a 'plan' really does exist.  I suggest all who read this blog at least get familiar with the Agenda 21 plan.

http://www.youtube.com/watch?v=TzEEgtOFFlM

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#8) On October 24, 2010 at 5:08 PM, alstry (35.36) wrote:

California Cut 37,000 Government Jobs in September; Much More to Come

vs.

Presidential entourage books all 570 rooms in 5-star Taj Mahal Hotel...

NO WONDER THE MEDIA IS WORTHLESS WHEN IT COMES TO REAL ANALYSIS.....

BIDEN: GOP spending $200 billion on campaign ads...

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#9) On October 24, 2010 at 5:13 PM, alstry (35.36) wrote:

It appears that Denninger is calling for a potential violent reaction against the current fraud being assaulted upon the American people....

expect this kind of rhetoric to escalate.....

http://market-ticker.org/akcs-www?post=170138

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#10) On October 24, 2010 at 10:58 PM, jatt22 (44.67) wrote:

+ 1 ( for comment # 1 )

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#11) On October 24, 2010 at 11:24 PM, goalie37 (91.43) wrote:

Unlike some of the other comments, I don't believe the people will rise up, when we are far too easily turned against each other over something like gay marriage or whether it's okay to put up a Christmas tree on public land, even East coast versus West coast rap if they felt like it.  We line up on each side of the issues, screaming at our opponents, while the bankers take a little bit more.

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