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alstry (36.32)

The War on Wealth

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August 19, 2009 – Comments (13)

This is not Alstry's headline....it is MarketWatch's

IRS wins a skirmish in the war on wealth

Increasing interest rates on citizens and businesses

Cutting off lines of credit

Seizing foreign bank accounts after all these years

Increasing property taxes while home values declining

Taxing citizens for losses by the state

Cutting millions of jobs

Slashing wages on tens of millions of citizens...especially the higher paid citizens who pay the most in taxes

Whether you like it or not, the Zombulator is coming after you......and it doesn't matter how rich you are....unless of course you are related to Benny the B and his banker buddies.

And you my special sociopathic/stupid fools....it is coming after you as you cheer it on.....you have been warned over and over and over and over again.......and instead of directing your anger at the Zombultor....you get mad at Alstry.

Pathetic....truly pathetic as you watch your country burn and all of its wealth transferred to a few bankers.

13 Comments – Post Your Own

#1) On August 19, 2009 at 12:03 PM, alstry (36.32) wrote:

Here is the Full Link from above:

http://www.marketwatch.com/story/irs-wins-a-skirmish-in-the-war-on-wealth-2009-08-19

Combine the above with this headline from below:

Louisiana Citizens faces $95 million bill

Louisiana Citizens could raise 'assessment' to pay $95 million legal

http://finance.yahoo.com/news/Louisiana-Citizens-faces-95-apf-4293076109.html?x=0&sec=topStories&pos=3&asset=6ced4250000e708a239e3e9afdbc3f04&ccode=2

And it is easy to see where things are heading...if you are looking ahead that is.....

Remember, we are now running a $2 Trillion dollar Federal Deficit....PER YEAR.....against a evaporating private economy, as a citizen of the United States, you are responsible for that deficit just like the citizens of Louisiana are responsible for the obligations of their state.

You can't hide from the Zombulator....it knows exactly where you are and it will come to get its money....and it is now coming........and will find you sooner or later because it is bigger and stronger than you...... and all you can do is get mad at Alstry for warning you?

As the nation of Fools keeps cheering their own demise.....Alstry has warned you about

9.09

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#2) On August 19, 2009 at 12:25 PM, alstry (36.32) wrote:

An HONEST banker from Mish's Blog warns you as well:

A comment concerning the FDIC - As of June 30 the rates being charged banks have increased substantially. Risk 1 category went to 12 basis points from 5, risk 2, 17 basis points, risk 3, 35 basis points, and risk 5, 50 basis points. Additionally, a 5 basis point special assessment is being charged on September 30 on total assets less tier 1 capital. It is probable that a second assessment will also be charged in December.

The cost of FDIC insurance for a two hundred million dollar, 1 risk rated bank last year would have been around $8,300 per month or $100,000 per year. It would have been much less in previous years.

For a 5 risk rated bank, which many banks have been moved into, the cost will be $1,100,000 including the 5 basis point assessment being levied in September. While warranted, this will exacerbate the problems and ultimately hasten the death or forced sale of a lot of banks.

This will certainly mark the end of the banking model using wholesale funding and aggressive deposits to fund commercial real estate projects. In other words this is going to come down hard on the FIRE economy.

It seems to me that the result could be positive with the elimination of worthless banks and the shaking out of a dead system. In other words, a true restructuring that could generate a true recovery.

However, rather than a return to the basics of lending I am concerned that this move will hasten our national race into the abyss of a depression and the further erosion of small business.

For whatever it is worth, I see years of hard work ahead and tough choices to be made if we are to turn the economy around. I am retired but still own some small community banks and can tell you first hand that the small town part of the economy is weakened but hanging on. The average Joe is hurting and scared. Most have never had to worry like this and just don't know where to turn.

The core small business sector is also under pressure of varying degrees depending on the industry. I have been in banking for over 30 years and from my perspective this is much worse than anything I have seen. God help us if cap and trade passes!

KEEP CHEERING FOOLS......THE ZOMBULATOR WILL GET YOU ONE WAY OR ANOTHER IF WE DON'T CHANGE POLICY!

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#3) On August 19, 2009 at 12:25 PM, dudemonkey (37.88) wrote:

Maybe there would be more anger directed towards the Zombulator if it posted 11 times a day with basically the same message for a year and offered no advice other than the unspecific "prepare".

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#4) On August 19, 2009 at 12:42 PM, alstry (36.32) wrote:

dude,

Alstry has already described the problem, proposed a solution, and commented on some prudent steps to navigate this storm.....on all three issues at least in two dozen blogs....but you have been mesmorized by your own willful indifference and ignorance as those around you fail.......and if we continue down this path I have little doubt you and most of us Fools will fail.

Alstry can only do so much.....it is now your turn to do a little....9.09 is not too far away.

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#5) On August 19, 2009 at 12:50 PM, dudemonkey (37.88) wrote:

Alstry has already described the problem, proposed a solution, and commented on some prudent steps to navigate this storm.....on all three issues at least in two dozen blogs

I guess the only problem is that two dozen blogs is only a small percentage of your 1358 overall postings, so you're saying that in order to understand the message of Alstrynomics you have to dig through, on average, over 50 blog entries just to find one of the two dozen that contain your actual message.

I've never said you were WRONG, just that you're a firehose of blogging and it's tough to stand in front of that and try to drink in Alstrynomics.

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#6) On August 19, 2009 at 12:52 PM, dudemonkey (37.88) wrote:

And, for what it's worth, I agree with the direction you're going.  I've been taking steps to preserve what I have in the event of massive taxation or devaluation of the dollar, and even social unrest.

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#7) On August 19, 2009 at 12:53 PM, alstry (36.32) wrote:

THE MONEY KEEPS EVAPORATING!!!!

Kaine to Cut Va. Revenue Projections by $1.3 Billion

$1.3 BILLION!!!  VA?

The Zombulator will not stop....this deficit alone represents thousands of jobs.....as any competent surgeon knows, and alstry knows and has deposed a bunch of them, you can only cut so far before there is nothing left to cut.

We are running out of things to cut before you or your neighbor are the next to be cut.....then you might change your views a bit.

It should not be much longer now....9.09 unless we restructure and reduce the burden of debt on the private economy.

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#8) On August 19, 2009 at 1:15 PM, leohaas (31.21) wrote:

Sure, there is a war on wealth.

If it is as successful as the war on drugs, or the war on terrorism, wealth will win. No doubt.

I'm just happy these tax dodgers are forced to pay up. You and I would have to pay a lot less if all dodgers did.

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#9) On August 19, 2009 at 1:21 PM, alstry (36.32) wrote:

dude,

Right now America is supporting 100,000,000 citizens it can't afford to feed due to the Zombulation policies destroying the private economy.

If you think the Zombulator is going to continue to feed that many people without taxpayer support, you don't know the nature of the Zombulator.

WITHOUT REDUCING THE DEBT BURDEN ON THE PRIVATE ECONOMY......

It could either exterminate those citizens, which would be very convulsive through an external event such as a war, pandemic, or economic collapse....or it could tax the remaining citizens to make up the gap.  The problem with taxing the remaining citizens is the amount is so much, I am not sure the remaining citizens could afford it and feed themselves as well.

I am not sure of anyone else analyzing the problem this way....but that would not be a first for Alstrynomics as the crowd will eventually be forced to follow.

My proposal has always been to restructure debt at the non federal level....it appears the Zombulator has something else in mind.....now we will see if we find out by 9.09.

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#10) On August 19, 2009 at 1:24 PM, alstry (36.32) wrote:

leo,

I agree with you with regard to the tax dodgers....now what about the joint liability for trillions and trillions of debt that government has incurred and the trillions of obligations to our remaining citizens.

Somebody has to pay.....and we all collectively don't have enough....so how do you propose we solve this very difficult math problem.

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#11) On August 19, 2009 at 3:43 PM, detroitdea (20.41) wrote:

Back to the math...

Reference Comment #6 in "How Do You Cover A $2Trillion Dollar Deficit?" for some numbers.  

A brief summary below:

"In 2007, all households in the United States earned roughly $7.896 trillion"  

Household incomes:

>$200K equaled 3.65% of households and 17.5% of all income ($1.4 Trillion)

>$150K equaled 8% of households and 28.5% of all income ($2.25Trillion) 

>$100K equaled 20% of households and 49.98% of all income ($3.95Trillion)

$50K to $95K equaled 18.2% of households and 16.5% of all income ($1.3Trillion)

The lowest 10.3% of households made 1.06% of all income ($83.7Billion) 

In 2007, our Gross Domestic Product was $13.84Trillion.

http://en.wikipedia.org/wiki/Federal_tax_revenue_by_state

Of which the Federal Government collected about $2.674Trillion in Federal Taxes (individual and Corporate) 

--------------------------------------------------------------------- 

 http://en.wikipedia.org/wiki/2010_United_States_federal_budget 

 The 2010 Budget of the US Federal Government shows a projected deficit of $1.17Trillion.

Click to the 2009 US Federal Budget which shows a projected deficit of $1.75Trillion  and a National Debt Estimate of $11.3Trillion

Alstry is opening our eyes to some of these facts.

Somebody is going to be left holding the bag.  

"Tax increases will be levied on the highest income earning taxpayers, returning the highest marginal tax rate to the Clinton-era level of 39.6%."

However, this won't occur until January 1st, 2011 and by then the opportunity to recover this money through income taxes on the highest marginal income tax earners will be lost.   

Even if the tax burden is spread across the top 50% of households, based on the 2007 numbers which show that about 50% of the households earned >$50K/yr and earned about 67% of all income ($5.25Trillion), a flat tax at 38% would only yield about $2Trillion in tax revenues.

This is still less than the 2009 expected total expenditures of $3.55Trillion (requested). 

The debt would continue to increase.  Some say to $20Trillion.

 How would we pay this back.  Especially with a smaller tax base.  

 http://www.economist.com/businessfinance/displayStory.cfm?story_id=13653915&source=hptextfeature

The high level of debt and continuing large trade deficits have raised concerns regarding inflation and the value of the dollar relative to other currencies, as well as its place as the primary reserve currency. The Economist wrote in May 2009: "Having spent a fortune bailing out their banks, Western governments will have to pay a price in terms of higher taxes to meet the interest on that debt. In the case of countries (like Britain and America) that have trade as well as budget deficits, those higher taxes will be needed to meet the claims of foreign creditors. Given the political implications of such austerity, the temptation will be to default by stealth, by letting their currencies depreciate. Investors are increasingly alive to this danger..." 

Many of these references are things that Alstry has mentioned before.   

Its just starting to make sense.  

However, the solution may be the greater challenge.   

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#12) On August 19, 2009 at 3:52 PM, alstry (36.32) wrote:

"In 2007, all households in the United States earned roughly $7.896 trillion"

Ask yourself how much of that income was as a direct or indirect result of government spending?

About a trillion on Health Care...  another trillion on social security and welfare......another trillion on defense........another trillion on salaries.........then what about government contractors.....and those contractors of government contractors?

Pretty soon you will realize most of the household income was as a direct or indirect result of government spending.....and then if you back out private borrowing.....you will see there is not much household income left.

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#13) On August 25, 2009 at 7:41 PM, jubling (< 20) wrote:

aLLSTRY,

  i BELIEVE THAT 9.09 IS GONNA HAPPEN BUT NOT THE WAY YOU SAY IT, i TELL YOU WHAT IT'S JUST ANOTHER DAY YOU FOOL THIS DAY TOO WILL PASS AND NOT ANOTHER MINUTE. AND ALL YOUR DOOMSDAY PROJECTION WILL COME TO PASS LIFE GOES ON ITS' NOT THE END OF THE WORLD SO RELAX ENJOY YOUR LIFE OR WHAT'S LEFT OF IT

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