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alstry (36.32)

Why Alstrynomics Is more accurate than Economics

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June 20, 2010 – Comments (1)

With Alstrynomics we specialize in facts.....what actually happens and how people actually behave......with Economics, they specialize in fantasy, how people should behave based on silly models of what should happen.

Remember, money and gold are simply a derivitive of production.  Without human production, money and gold have no value.  If you went to a deserted island, all the money and gold would have no value on that island with no human production.

The dollar is currently backed by primarily US production, but indirectly world production so long as it remains the reserve currency.  But as US production evaporates, more and more are wanting to move away from the dollar as reserve currency.

Russia pushes for New Reserve Currency...

And right now, US production is reaching critically LOW LEVELS.  Construction down 80%....US auto manufacturing down 50%....oil production in the gulf coming  to a grinding halt......toursism slowing dramatically, especially in the Southeast....while commerical vacancies are exploding.  We really don't produce much anymore now that we have outsourced much of our manufacturing AND technology.

Evidencing the evaporation in production is the MASSIVE decline in tax receipts over the past two years....NEVER HAS ANYTHING CLOSE TO SUCH A MASSIVE PRODUCTION DECLINE EVER HAPPENED IN AMERICA BEFORE absent world war.

By cutting off credit to the private sector(which became credit dependent to function).....and giving essentially unlimited credit to a few Wall Street banks and government.....YOU KNEW THE PRIVATE ECONOMY WOULD EVENTUALLY SHUT DOWN AND GOVERNMENT AND BANKERS WOULD TAKE TITLE TO MORE AND MORE PRIVATE PROPERTY AND PRODUCTION.

It is incredibly insane to bail out banks and not citizens in a capitalistic democracy with a historical foundation rooted in private property rights.  You either bail both or none......BUT NEVER JUST ONE...becuase the one you save will own everything....and in this case, it is NOT the citizens.

Now the only things really producing are a direct result of government having access to massive credit from insolvent banks and handing trillions of borrowed dollars to people NOT PRODUCING....retired, unemployed, and welfare.

How long do you think an economy can last under such a ridiculous model?  Where the non producing retired, unemployed and welfare recipients are controlling the output of a rapidly contracting productive class.

If such actions were permissible for nations not producting, every country in the world would do it and poverty would be eliminated.....unfortunately, if not producing was a behavior encouraged like it is now here in America, humanity would stop producing and we would all perish.

As our production continues to collapse, and tax receipts continue to evaporate....fewer and fewer will loan America any money or accept our currency as an exchange for their production.

Right now we are still benefitting from the production efforts of our earlier generations....but that is rapidly coming to a grinding halt.  Soon the military and farming will be the two primary production drivers in America. 

The amount of crops we produce is no where near close to maintain our current lifestyle and consumption.......and when others stop loaning us money or stop accepting our currency.......we only have one productive outlet left and that will be to force others to accept our currency.  And if they don't accept, our only choice will be to fight as we are heading rapidly down that path right  now.

None of this is very complicated if you sit back and think about it and stop grazing with the sheep.

YOU CAN ONLY BE RETIRED OR RICH IF THERE ARE ENOUGH PRODUCING UNDER YOU TO SUPPORT YOUR WEALTH OR RETIREMENT.....YOU CAN'T BE RICH OR REMAIN RETIRED IF THE YOUNG/PRODUCTIVE SEGMENT OF THE POPULATION IS NOT WORKING/PRODUCING......

As production collapses, there will  be more and  more money chasing less and less production.....and the cost of everything skyrockets.  Right now production and money are collapsing at about the same pace keeping the perception of inflation relatively tame....it is why so many are unemployed and that is the current effects of the current policy.

Eventually, as government continues to print more money and hand it to the non productive class and the productive private sector continues to shrink....production will drop much faster than money and massive inflation will set in..........and it will happen in a very short period of time catching most off guard.

By making money worthless.....humanity will be forced to produce again.....and we will set the foundation for future progress for man.

Welcome to the Digital Age.....where knowledge you can apply functionally will be production and production will be money again......not just some piece of paper or metal that is a derivitive of production.

And you wonder.....who is John Galt?

1 Comments – Post Your Own

#1) On June 20, 2010 at 11:22 AM, alstry (36.32) wrote:

Remember...when production drops too low because credit is being cut off to the private sector....govenrments and bankers WILL force you to produce.....or else they will have nothing to rule over or control.

REPORT: USA Testing Pain Ray in Afghanistan...

Hugo Chavez Orders Raids as Food Prices Skyrocket...

Dubai to have security cameras 'everywhere'...

States Take Aim at Pension Costs...

...Bank failure pace more than double last year

You can't punish production and reward non producton and the derivitives of production forever....pretty soon, nothing is being produced.

And by the way.....Carlos Slim and Warren Buffett understand these concepts very well.  Both men have never flaunted their ownership in other peoples production. 

Why do you think Buffett gave away all of his ownership in a declining production base back to the people?...over time he learned the production was never his in the first place.

Why do you think Jesus threw over the tables of the money changers in the temple?  Or Moses freed the slaves?  In the end, if man doesn't own his own production, he owns nothing.

Now the only question is whether we are moving back in the direction of forced production or will man have rights to his own efforts?

It is very uncertain times as we proceed forward into the Digital Age.....stay focused on functional production and you will be focused in the right direction.

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