Why aren't banks utilities???
If you really think about it, pretty much ALL of the Wall Street Banks are insolvent but for the TAXPAYERS bailout of the banks. If they were citizens, they would have been foreclosed upon and kicked out of their homes and the homes sold to a new family/owner.
Right now, WITHOUT entitlement obligations, America has been infected with about $40-$50 Trillion dollars worth of Debt. At 6% per year, that is about 25% of the GDP going to pay interest and only interest. For many, interest consumes a MUCH GREATER pecentage of their annual income factoring mortgages, credit cards, and auto loans.
For every dime spent on interest, it is a dime that is not spent on goods and services and other enterprises furthering the productivity of the nation.
We are loaning our banks trillions of dollars at 1/4% and they are turning right around and loaning back to taxpayers at 4% by buying treasuries. Could you imagine if your government loaned you a billion dollars at 1/4 percent and you turned around and purchased at Billion dollars of treasuries making a 3 and 3/4 spread on one billion.....or about $37 million per year for the mathematically challenged. Now multiply that by three or five and we are talking some serious numbers.
Ask yourself, why not take the $12 trillion we have allocated to bailing out the banking system and create BankOUSA. After levering up only 3X or 4X(much less than the current 10X) loan the money to the people at 1/4 of 1% for the express purpose of paying off the debt to the banks(Alstry doesn't like to take the bank's assets without due process even if they are insolvent). With the banks paid off, the toxic debt issue would immediately go away as there would be no Toxic Debt....debts would be satisfied
As a result of the above, the collective interest obligation to the nation would decrease by almost $3 Trillion dollar per year....imagine the stimulous of an extra $3 Trillion in the economy that was previously only going to pay interest that could now be allocated to goods and services or paying down principal.
Think of all the progress we could make in medical advancements, green technology, and creating jobs for the unemployed.....for it is Alstry's belief that anyone that receives welfare should do some kind of social service in return....aside for the quid pro quo aspect, it furthers self esteem and self reliance.
Right now our industrial system is broken...there is simply too much debt/interest burdening our citizens, corportions, and government for our GDP to sustain at current rates causing the FU virus and shutting down our economy.
As the economy slows and the interest obligations remain, the interest payments consume a greater and greater percentage of GDP until every dime of GDP is going to pay interest. The process accellerates as things slow and we are experienceing that now with record housing price declines, record foreclosures, and rising unemployment with no end in sight.
Alstrynomics calls this process Concentric Contraction and its progression is inevitable unless a radical new policy direction is implemented. Your government officials and bankers are certain of the outcome regardless of what you are told because you can't escape the certainty of the math.
If you are making 100K per year and 25% of your income is going to pay interest, if your income drops to $50K per year but your interest payments remains the same, now 50% of your income is going to pay taxes and you have instead of $75K available for non interest expenses, you only have $25K which dramatically decreases your ability to consume goods and services.
Imagine this happening to every aspect of our economy including citizens, corporations, and governments......pretty soon, no one has much to spend on anything except interest.....and your government still needs its taxes!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Prepare...if this ZOMBIFICATOIIN process continues where a greater and greater percentage of the revenues is simply paying interest.....our economy is certain to get much worse....MUCH WORSE.....and if we continue to cut people off of credit and welfare without a means for generating an income.....SOCIAL UNREST WILL BE ALL BUT GUARANTEED........
Isn't it time banks became public utilities serving the public....we gave them $12 Trillion after all.