Why Does Alstry Focus On Employment.....
America is a domestic consumer based leveraged economy. If we are not borrowing and consuming, we essentially have a relatively small economy. Understanding this is key because our consumption drives the value of everything we own....including our homes, investments, etc.....
Not only does it drive the value of our investments, but it also drives tax receipts to government.....and our collective government has become the largest consumer in the world consuming over $6 Trillion dollars per year.
If our government is not consuming, we also have a relatively small economy. The problem now is much of our governments' spending is now based on borrowing a massive amount of money and NOT through the collection of tax receipts.
Since the primary source of tax receipts in America is from Income, Sales, and Property taxes.....if people are not working, they are not paying taxes.....and in many cases, are draining revenues from the government.
Up until recently, our economy was growing and our deficits were relatively modest against a growing economy......now our deficits are moving into the stratosphere against a rapidly declining tax base.
Instead of focusing on Unemployment figures, Fools should focus on the number of people actually working and the income they are generating.....it is a much clear picture of how our labor force and economy is doing.....and a much easier number to determine as we can simply use tax receipts for confirmation........AND RIGHT NOW TAX RECEIPTS ARE DECLINING BY THE GREATEST AMOUNT IN AMERICAN HISTORY WHILE GOVERNMENT BURDENS ARE EXPLODING.
We are reaching the point where collectively the citzens can no longer afford to support the current system..........even if we are taxed 100% of our income and assets. And as unemployment rises, asset values will continue to implode making a bad situation even worse.....especially as it applies to Pensions and retirement plans.
You can question Alstry's methodology, but you can't question the facts.....the America as you know it is shutting down under current Zombulation policies as credit is being cut off, interest charged to borrowers rising, and interest paid to savers reduced to practically nothing. The best confirmation for this perspective is the historic decline in tax receipts and the continued contraction as hundreds of thousands of Americans lose their jobs each and every week.
Granted, part of the purpose of my blogging is to provoke.....but the more important purpose is to drive discourse to the most serious issue facing America since its inception......when we the people can no longer afford to serve the government that was created to serve us..........what are the consequences to our families, life, liberty, and property which includes investments?
Right now, the gap is getting wider and the direction is not very positive....
FDIC Chief Expects 2010 Bank Failures to Exceed 2009
St. Vincent's Medical Center in Greenwich Village NYC , In danger of Closing?
When you can't service interest and cover expenses.....you shut down even if you are a hospital.