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alstry (35.03)

Why ONLY A CRIMINAL, IDIOT OR LIAR Would Give Investment Advice In This Environment

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October 12, 2011 – Comments (2)

...and why Alstry doesn't give INVESTMENT advice anymore. 

When analyzing an "investment", you are discounting future cash flow to present value.

In order to do that, you must have some reasonable basis to project future cash flow.

Right now, a huge percentage of cash flow to America, its businesses and its citizens comes from an UNSUSTAINABLE Federal Deficit( a predatory loan against our children's future that we know or should know they can never pay back).

It was not always like this...up until the last three years, the Federal Deficit was about 1% of GDP...more recently it has mushroomed  to over 10% of GDP and remained that way for three years.

Every assumption in current cash flow estimates accounts for an UNSUSTAINABLE Federal Deficit....thus every projection leads one to a illusory conclusion.

Just like everyone wanted to believe Dot.Coms were going to keep going to to the moon, or houses would never crash in value....now everyone wants to believe that we can continue to borrow off our kids future that THEY CAN NEVER PAY BACK.

Soon the party will end, since the money we are borrowing from our kids is not really benefitting them (can't find jobs with massive student loans) and primarily concentrating in very few hands......

The people are finally figuring it out and soon will realize it is an Udder World....and maybe then we can return to a world where "investment" actually means something.

2 Comments – Post Your Own

#1) On October 12, 2011 at 6:59 PM, L0RDZ (84.26) wrote:

Never being paid back ??  is  not factually correct Al...

So long as  the US  is able to print money something that the world  loves having especially  when it  comes from the USA...    we'll simply  print and print and pay and pay.

LQQK at the bogus relationship  between the banks and the gov... where we give them  money at next to nothing and than  we allow them to give that money back to the gov and earn 3% plus commissions or if  a miracle happens, say they actually lend it out to the average citizen at  18%  minus overhead makes  for  a nice profit margin.

18% a  month interest... lol...

if they are so lucky.. to get some credit.

 

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#2) On October 12, 2011 at 8:03 PM, alstry (35.03) wrote:

Actually you are wrong on this one....No nation can simply print money....if it does and it is not backed by production, that is considered counterfeiting money....as money must be a derivative of production or the reasonable expectation of production(loan).

If a nation just prints out of thin air...it either becomes worthless or the nation must back up their currency with war.....which is a legitimate form of production....albeit not a very friendly one if you happen to be the loser or one of those that get killed.

WAR DRUMS: IRAN CALLS 'TERROR PLOT' LIE

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