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alstry (36.49)

WARNING!!!! The Zombulater WILL GET YOU!!!!!

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May 31, 2009 – Comments (4)

Zombulation is the point where you spend down all of your savings and tap out your credit or when the government taxes you 100% of your income and net worth....in either case you are totally out of money.

The Zombulator is what spreads the FU Virus causing zombulation across the nation.

At this point we are getting much closer to the day where President Obama is going to be forced to cut off tens MILLIONS of Americans from government  payments or double to triple every single American who can pay income and asset taxes.

The nation is shutting down simply because OVER 100% of every dime coming to government is going to pay interest and entitlements...that is what the previous administration left our current President.  That is right....on the day President Obama took office.....OVER 100% of the dwindling tax dollars was going simply to pay interest that doubled over the previous eight years and entitlements.....so even if we cut out our military completely and ended foreign aid, we would still be running massive deficits.

The virus is at pandemic stage, now there is no area immune from the FU virus...it has decimated housing, commercial real estate, construction, autos, and finance.....and rapidly spreading into Technology, Health Care, and Government.

Whatever the sector you work, whatever your job, whatever your net worth.....you are not immune from contracting the virus.

“There isn’t anybody who isn’t laying off,” he said, then draws a long breath before reciting this list: “Microsoft, Intel, Hewlett Packard, Sun, Yahoo, Apple, Google.” He pauses a moment to consider that. “Google. When Google is laying off you know something is going very wrong.”

Social workers and volunteers trying to house, feed and clothe the area’s newly devastated residents recognize that the economic disaster has arrived.

“It’s alarming us to no end,” said David Ujita, a director at the nonprofit service center West Valley Community Services Inc. in Cupertino, Calif. He said they’ve seen a 27 percent increase in first-time food pantry visitors since the fall.

“Folks believe because we’re in the Silicon Valley with million-dollar homes and billion-dollar businesses, hunger and homelessness don’t exist. But in fact it’s getting much worse, and it’s just really frightening,” he said.

http://sentinelsource.com/articles/2009/05/30/business/news/free/id_357426.txt

ALSTRY TOLD YOU IT IS GETTING MUCH WORSE AND ALSTRYNOMICS FORECASTED IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

We Americans collectively borrowed about $30 Trillion dollars in the last ten years...basically our economy was driven by people spending money they didn't have......now we must pay that money back but the only problem is we don't have it...it gone forever.  We simply don't have the money to live the lifestyle we got accustomed to living.

And few want to admit it.......not only that, even if we took every dime of every American to try to pay back the debt....it ain't enough.  At this point the game is over because we are getting cut off from borrowing anymore.  Go out and try finding someone to lend to keep the Ponzi scheme going....AVAILABLE LENDING IS DRYING UP AS FEWER AND FEWER ARE QUALIFIED TO BORROW.

Getting a mortgage is becoming more challenging, credit cards being revoked and lines cut, auto loans become more and more restrictive, commercial real estate loans practically extinct...and now foreign governments shying away from financing our debt.

Don't Fear the Zombulator...as it simply transfers your assets to the banks and government.....in the end, the banks or government will take what you have but at least you know Alstry warned you it was coming.....

My only counsel...prepare for that day.

4 Comments – Post Your Own

#1) On May 31, 2009 at 2:40 AM, millionby24 (< 20) wrote:

this kid knows nothing

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#2) On May 31, 2009 at 3:14 AM, dibble905 (< 20) wrote:

Alstry,

I much appreciate your points of view -- but once again, you have some flaws.

Here's one:

"basically our economy was driven by people spending money they didn't have" -- What?

The July 2008 Estimate of the United States Population is 300M
Even if Americans borrowed $30 trillion over the course of the last 10 years, that amounts to $3 trillion a year. The US GDP is around $13 trillion.

Lets do some math:

1. The Average American borrowed $30T/300M = $10,000 a year over the past 10 years

2. The Average American earned $13T/300M =  $43,333 a year as of last year.

Even assuming the Average American earned less than $30,000 a year 10 years ago (considering nominal wages haven't actually improved a whole lot since then), that's debt borrowing of 23.1-33.3% relative to their income. Even if you factor in taxes, the borrowing certainly wouldn't add up to "money they didn't have" -- this may be the case for some however.

If you factor in that "GDP per capita" comprises the entire population, using working age population would improve the statistic for #2 (albeit, it would also increase #1) -- but the absolute change would be higher and in favour of #2 (Even higher income buffer to support the debt)

Please do not state opinions as facts.

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#3) On May 31, 2009 at 9:37 AM, ralphmachio (29.55) wrote:

Your math, using the 'average American' doesn't work. It works to support it's own math, but that is all. It doesn't take into account the percentage of children in the 300M. It doesn't take into consideration the vast percentage of the overall wealth hoarded by the rich that the poor will never access.  I was pretty sure we were clear of 350M, but I have done no research. Your math is too simple of an equation for the problem. 

Alstry is simply saying, as a Nation, we borrow more than we can ever hope to pay back. Like when we borrow from China. It is unsustainable, and I realized this in high school. (I'm 34 now)

When a car runs out of gas, it stops immediately. a battleship takes a bit longer to lose inertia. An empire can run on fumes for a long time before the inhabitants realize it's out of gas. The leaders, on the other hand, have better vantage, and can see further into the horizon. 

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#4) On May 31, 2009 at 9:54 AM, alstry (36.49) wrote:

Dibble,

Alstry occasionally plays chess, he rarely loses not because he is smart, but when he plays he has the ability to see one or two moves ahead of his opponent.

At this point, it is not a question whether Alstrynomics is right...it is mathematically certain that Alstrynomics is dead on....I wish it wasn't.....but it is what it is.

Alstry is the Doctor of Alstrynomics and the diagnosis is clear...the economoy has the equivelent of Pancreatic Cancer.

Think about your math for a second..by missing so many important points you miss what is so obvious...you must not only look at your moves...look at your oponents...and not only look at the moves....but more importantly the EFFECT of each move on the REMAINING pieces.

What about the current interest obligation of the ACCUMULATED debt of 10 years of borrowing, it is now suffocating a HUGE amount of dollars that would be used for goods and services?  It is an incredible burden that you fail to account for in your math.  Extension of credit very stimulative, accumulated debt is something very different.

Sorta like getting drunk is fun, the hangover the next day can really be distrubing...especially if you had a whole lot of fun the night before....and now we are dealing with the mother of all hangovers that took about 50 years in the making but we went nuts in the past 10. 

NEVER HAS THERE BEEN ANYTHING CLOSE TO THIS IN HUMAN HISTORY AS FAR AS ACCUMULATED DEBT BURDEN BY PRIVATE CITIZENS AND THEIR GOVERNMENT.

Moving on to a few more missed points.

What about the tax revenues that is now NOT being generated to government because those borrowed dollars are not being spent and stimulating the economy?

What about the increased obligations on government because of rising health care costs, an aging population, and more people unemployed ON A MUCH LOWER REVENUE BASE?

Simply between current interest obligations and failure to borrow money, unless the consumer is spending down savings.....as over 2/3 of the economy...our boat is now rapidly filling up with water.

Compounding the problem is a government/governments that have also taken on HUGE debt obligations(that also stimulated the economy during the process) that they simply can't meet.

Our nation owes collectively, publicly and privately, about $50 Trillion in debt.  At 6% that is about $3 Trillion per year or approaching 25% of the Ponzi level GDP.

But since consumers are not borrowing nearly as much as before, the GDP will contract 25%...adding in lost jobs and wage reductions, we are looking closer to 30-35%.

In the end combining the impact by the consumer's inability to borrow and drive a Ponzi like economy and the burdensome effect of a MASSIVE amount of debt accumulated over the past 10 years...Alstrynomics is certain that our GDP will contract at LEAST 40-50% as consumers spend down their savings and asset values crash over the next couple years.

It is not a question at this point....it is Alstrynomically certain unless of course you have the capacity to loan the American consumer a few trillion per year and a litte more to cover the ACCUMULATED debt.

Nobody does or is willing at the current time...including our own banking system that infected the nation with the FU virus in the first place.

You simply cannot loan a nation $50 Trillion dollars and it not have the revenues to pay you back and expect something good out of it in the end.  Look what happens when people borrow more that they can pay back....while borrowing the money life is good...but when the run out.....welcome to Zombulation.

Apply that over an entire nation and during the borrowing process you can buy anything you want...but when its over, welcome to Zombie Nation.

Never forget Alstrynomics is all about being right where as economics is more about telling you what you want to hear.

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