Welcome to Alstry's World!!!!
June 19, 2009
– Comments (6)
Soon....most of you will be seeing what Alstry has seen for a few years now.......much of our economy was simply a legalized Ponzi Scheme of people borrowing money to drive the economy and the economy generating taxes to feed an ever growing government which in turn spent trillions and supercharged the economy.
Now that people can't borrow, profits have evaporated as have tax revenues to the government. Soon the government will have to cut spending likely causing millions to become unemployed at a time when 8 states are already reporting record unemployment.
None of this is conceptually difficult to see.....as long as the private economy is unable or has little use to borrow.....our private economy will shrivel to a fraction of its former size.....we are already seeing evidence of that everywhere in housing, autos, airlines etc.....
As the private economy contracts, so will revenues to government....which will force government to contract. We are now on the edge of The Greatest Depression in History...Worldwide!!!!!!!
Once our governments start to cut back spending dramatically, currently driving about half the economy, we are likely to experience a downward spiral unlike anything we have seen before.
Prepare......the roller coaster drop is just about to begin....HANG ON!!!!! It will be exciting!!!!
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