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alstry (35.82)

We Will ALL Soon Be Broke

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August 19, 2009 – Comments (5)

Due to the Federal Reserve's Zombulation policies, tax receipts to the U.S. government has dropped to about $2 trillion per year....however, due to an ever expanding government, annual spend is over $4 trillion per year resulting a a deficit of about $2 trillion dollars.

About one trillion of those dollars are spent on about 100,000,000 Americans on Welfare, Unemployment, Food Stamps etc dependent on the government for income.....

But for that spend, America would have lines miles long of citizens begging for food.  A scene much more severe than the pictures we are used to seeing from The Depression era when no such social safety net existed.

However, up until the past few months, America was able to generate enough income to support is government.....BUT NOT ANY MORE.  And revenues are declining further as swap induced excessive debt is suffocating the earnings out of America.

If we don't reverse this path to devastion very soon, few around the world will accept our currency.  As  a nation no longer earning much in the way of profits, foreign countries will no longer feel it necessary to accept our currency.  Other nations can just as easily print local currency and hand it over to their own citizens for their use.....soon the American dollar will no longer be respected as no nation has ever been allowed to simply print unlimited amounts of money without an economy to support it.

You say we have a $13 or $14 trillion dollar economy.  NOT SO FAST.  Much of our current economy is simply a product of government spend and citizens borrowing money they don't have.  Once you back out government spend and private borrowing, you will quickly realize we really don't have much of an economy.

Time is running out.....we as a nation must deal with this issue of counterfeiting our nation's currency or our currency will be worthless very very soon.

This is no joke Fools.

It should not be too much longer now if we continue down the same path....9.09 could be the time....if not sooner.

 

 

5 Comments – Post Your Own

#1) On August 19, 2009 at 2:25 AM, MAURIZIO400 (90.09) wrote:

great blog alstry, ok that the banks are robbing americans(and the rest of the world)blind, no doubts on that. excuse my ignorance but would you mind explainin to me what is exactly this infamous "credit default swap" thing, I m not sure I get it.

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#2) On August 19, 2009 at 4:09 AM, AdviceDog (< 20) wrote:

I think your posts would be more entertaining if they included investment opinions.   Sure, prepare...but how?  That's what people want to hear, rather than warnings of varying vagueness.

You say the currency will soon be worthless, but I don't recall you saying anything bullish about gold or commodities.

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#3) On August 19, 2009 at 7:37 AM, alstry (35.82) wrote:

Mauriz,

Just go back and read my most recent blogs.

Advice,

We are a capitalistic based representative democracy.  If we continue to maintain a lifestyle that is not representative of our capitalitic economy, it will not be too long before we are collectively bankrupt and possibly no longer a democracy.

In the past, I have repeatedly mentioned holding some physical metals.....but if our nation's governmental structure breaks down, I am not sure how much it will help.

What we are confronting right now is one of the most serious issues to face America...if we as a people don't demand that our nation restructure its debt so that we can live within our means, I have little doubt, from a legal perspective, our debt through bankers demands, will restructure us.

Our currency for the last few hundred years was issued in a quantity that was representative of our economy and/or our gold.  It has only been over the past year or so that the income earning capacity of our nation has evaporated.

Instead of dealing with the issue, our political leaders and bankers have spent more and RAISED the interest rates on its citizens making it even harder to service debt and earn an income. 

Sorta strange don't you think after we bailed out the banks and told by Washington they are trying to help?

None of this is too hard folks in concept or practice.....if a family that was once earning a very large income does not adjust when its income decreases, pretty soon the bankers and economy will force that family to adjust.  Something not too different will impact a nation if its income evaporates.

The sad part here is that our own Federal Reserve and Bankers created the current environment by issuing credit default swaps and infecting our nation with a quantity of debt we can never pay back.  During the process, our politicians did nothing and were one of the primary beneficiaries of the bubble.

 

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#4) On August 19, 2009 at 7:50 AM, alstry (35.82) wrote:

Deere Q3 sales down 24% to $5.9 billion

Aren't commodities supposed to be strong?  For the past month or so, we have seen the REVENUES to our most important companies drop anywere between 20-30% time and time again.

Oil and Steel are down 50% and more.

This is clear evidence that our economy is not just slowing, it is slowing DRAMATICALLY and across practically every industry that is not the recipient of direct or indirect government spending.

Now Buffett is warning about excessive monetization?   A bit late don't you think after the guy just stuck billions into the insitutions that are primarily responsible for causing this mess?

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#5) On August 20, 2009 at 1:36 PM, ButterflyOne (34.53) wrote:

I feel that you are correct in stating that the banks were prime players in the financial crisis game, but the big financial institutions, Bear Stearns, JP Morgan, etc., were primarily responsible for the CDO (collateralized debt obligation) & CDS (credit default swap) mess.  I can’t remember which institution it was that got it all started, but JPM claimed a lot of the praise when things were going good and everyone was making money.  In reality though, it is the across the board responsibility that concerns me.  From homeowners that lied on their application to politicians that enable the lenders, to those making mega bucks in the mortgage underwriting industry, at the main street level, who then sold the bad mortgage to financial institutions who bundled them and sold them again.  I have neighbors who are somewhat responsible for this financial mess because they wanted to live like the “Jones.”  To me, the core problem of what is going on in our society is the attitude that ‘I deserve’ without the attitude of ‘I will work, therefore I deserve.”  Excuse me, but I worked when I was in high school, worked while going to college, worked while being a single mom, and I’m still working and because of this mess will probably be working longer than I really wanted to, but hey, I accept that and I’m willing to do what I need to do in order to live the way I want to live – I just wish the 100,000,000 Americans you mentioned felt the same way!

 

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