Use access key #2 to skip to page content.

alstry (36.32)

The Insanity Of Reality

Recs

15

January 12, 2010 – Comments (8)

We have a government "of the people" needing to borrow money......lots of money.  And since no nation has the requisite money to loan our government, we had to turn to our banks.

However, our banks were insolvent, so our government gave the banks trillions of free money so banks could lend it back to the government at much higher rates.

Why would our government give the banks free taxpayer money simply so the banks could lend it back to the government at a much higher rate??????

And to add insult to injury, the bankers give themselves massive bonuses and foreclosed on private borrowers who were in the identical position they were in...except didn't have access to any money???????

The joke is that the American economy has become functionally dependent on private sector borrowing in order to maintain spending.....no private sector lending very little private sector spending....and now are tax receipts are evaporating.

THE GOVERNMENT CRISIS.....WE ARE AT THE POINT WHERE THE CITIZENS SIMPLY DON'T HAVE THE INCOME TO SUPPORT GOVERNMENT AS WE KNOW IT.......AND GOVERNMENT SPENDING IS THE SINGLE BIGGEST COMPONENT OF GDP.

Arizona, New York, California, Illinois, Hawaii.........all running out of money and facing historic cash flow crisis due to declining tax receipts.

Going forward, just last year we had tens of millions of Americans lose their jobs and/or suffer massive wage/income cuts who are not going to pay taxes this year deepening the cash flow crisis.

Our governments simply don't have the revenues to meet its expenses including salaries, pension obligations, and commitments....yet so little is discussed about the problem in the open.

Now you have to ask yourself.....what demands will be made on the people when the people don't have the money to support their government???

Crazy times....when the insanity of reality eclipses the tabloids.

8 Comments – Post Your Own

#1) On January 12, 2010 at 10:43 AM, alstry (36.32) wrote:

Arizona Treasurers Says Checks Will Bounce Amid Budget Crisis 

Schwarzenegger Declares Budget Emergency in California 

California May Delay March Bill Payments on Cash Dip

NEW YORK, CALIFORNIA, ARIZONA, FLORIDA, ILLINOIS

ALL PRETTY MUCH OUT OF MONEY AND TAX RECEIPTS IN 2010 ARE EVAPORATING..........

STRANGE HOW NO ONE SEEMS TO CARE VERY MUCH...

 

Report this comment
#2) On January 12, 2010 at 11:03 AM, EnergyCzar79 (31.73) wrote:

alstry,

I think people care. They are just at a loss as to what to do. Many of them lost their jobs and homes. Many more are up to their eyeballs in debt and facing a huge pending tax bill from federal and local governments, as well as mandatory health insurance increases.

What would you have them (legally) do? 

Report this comment
#3) On January 12, 2010 at 11:09 AM, alstry (36.32) wrote:

We actually are dealing with a Constitutional issue coming under the Commerce Clause.........

The problem is both collective and individual making the issue somewhat complicated to approach as it is so massive in both scale and serverity.

However, it will take the collective will of the people to drive change.......otherwise, the few will get buried by the unlimited resources of Wall Street.

My guess is we are rapidly approaching an inflection point where government runs out of money and there simply are no more bubbles to blow.

Report this comment
#4) On January 12, 2010 at 11:42 AM, EnergyCzar79 (31.73) wrote:

 

I don't disagree with you that things are, and will continue to get, rough. Anyone who reads knows this.

RE: "However, it will take the collective will of the people to drive change."

OK - So how is that actionable today, tomorrow, next week?

The "collective will" has driven some incumbents to no longer seek reelection (ie. Senator Dodd and Gov. Ritter). If an incumbent is not up for reelection, what does the "collective will" do about that?

Also, while most people agree that the current situation is sorely in need of rectification, I see virtually no consensus on "how" it should be done. Quite to the contrary, the solutions offered are all over the map.

What is the Alstry recommendation for something one can do, that is actionable today and will have some effect?

 

Report this comment
#5) On January 12, 2010 at 3:40 PM, BlkAngus10 (33.00) wrote:

After not reading anything you had to say for awhile, I decided to check out what your last month or so of blogs had to say. I must tell you, it pleases me greatly that almost no one bothers to respond to your BS anymore. I geuss everyone finally had enough of you- maybe you should take the hint and permanetely go away.

Report this comment
#6) On January 12, 2010 at 6:02 PM, EnergyCzar79 (31.73) wrote:

alstry,

 

I appreciate your fervor and passion. Empathizing with the plight of another is one of the things that separates us from animals, in my opinion. You have certainly displayed those qualities.

 

Yes, the situation is dire. You, among others, have made that point crystal clear.

 

You are obviously bright and willing to do the work. However, the question remains. What work should be done?

 

There's the rub. How do we extract ourselves from this quagmire with the least amount of pain to all parties concerned?

 

Is there a consensus that can be found?

 

I would offer, for your contemplation, the word "compromise."

 

It is a word seldom used these days. It means everyone gets something, no one gets everything. Certainly a unique perspective in today's world.

 

I think it will take intelligent, hard working people, such as yourself, to find the delicate balance needed to attain that lofty goal. To that end, I would suggest that you use your considerable talents toward seeking out the only path that does not lead to utter destruction - of the banks or of the individual.

 

A total victory for one is the utter ruination of the other. Both of those solutions lead to unthinkable consequences.

 

Therefore, I leave it to you. Help us find a workable compromise.

Report this comment
#7) On January 12, 2010 at 6:27 PM, alstry (36.32) wrote:

I am actually thinking of starting a alternative dispute/mediation business to deal with the onslaught of contract defaults that will be coming down the pike.

It will take an approach outside the current legal system to reach acceptable resolutions.

Report this comment
#8) On January 12, 2010 at 7:06 PM, EnergyCzar79 (31.73) wrote:

Excellent. A step towards resolving the problems already.

There may be hope for us after all. ;) 

Report this comment

Featured Broker Partners


Advertisement