Why Alstry is sooooo Right so Often...
Folks none of this is very hard....
If you looked in the comments of my last blog, you saw reported in the WSJ that one in eight workers is employed by healthcare related companies.....up from just 1% of the workforce 50 years ago when America was at the starting gate of the greatest economic boom in history. 20% of America's GDP goes to heatlhcare....no other industrialized nation in the world even comes close.
We have reached the BREAKING POINT of Alstrynomic's theory of Concentric Contraction....now that much of America can no longer afford to borrow ADDITIONAL money to maintain the leverage because they have been infected with sooooo much debt, revenues to just about everything are evaporating where business after business is being forced to shed workers or shut down.
As businesses shut down and shed workers....a greater and greater perecentage of America's GDP goes to simply paying interest and healthcare payments.....throw in taxes and there is often NOTHING left for anything else. The joke is that as the press reports our savings rate is increasing because we are paying down debt!!!!...but they fail to tell you there is nothing left for anything else.
If Alstry knows this.....don't you think those in charge of our government and Wall Street knows this as well......of course silly gooses....the math is sooooooooo easy.
That is why day after day, week after week, month after month we continue to see REAL deterioration in the economy as healthcare, taxes, and interest suck a greater and greater percentage everyday.
And if you take the above three, which one is the most discretionary?.......heatlhcare of course.....
Now healthcare is starting to suffer. Highly profitable elective surgury is evaporating. People can no longer afford to throw their parents in retirement homes and revenues to hosptials is slowing rapidly as fewer and fewer can afford insurance or even copays.
Our nation is already in the midst of the deepest economic downturn since The Great Depression. Where do you think we will be as health care starts unraveling that concentrates the employment of 1 in eight Americans????
Here is the problem...if we keep the current policies....we are almost guaranteed that things are going to get much worse...MUCH worse.
As a nation, if we don't restructure soon.....our society will start to unravel......and in the end....that may be the goal.....who knows???? As fewer and fewer are employed, and more and more are hungry....will Americans be screaming for Communism so they can eat or will a new war breakout???
Let's hope someone with some brains starts running the show....otherwise few of us will have much of anything in the end....unless of course you have a friend who is the Treasury Secretary or Fed Chairman......