Use access key #2 to skip to page content.

alstry (35.35)

You Better Clearly Understand The Following....

Recs

13

December 02, 2010 – Comments (2)

IF OUR GOVERNMENT IS NOT SPENDING.......AMERICA HAS PRACTICALLY NO ECONOMY

It is not complicated, if you factor social security recipients, unemployment, welfare, food stamps, government workers, and government subsidized health care.......OVER 50% OF AMERICA'S GDP IS A FUNCTION OF GOVERNMENT SPENDING.......

and the other appraoching 50% of GDP is essentially dependent on the revenues from those that receive government spending for it to function.......

Buffett admitted that government spending saved Berkshire from bankruptcy and Gross asseted that such spending is a Ponzi Scheme...

without government spending....car sales will evaporate.....so will home sales.....so will health care revenues.......so will retail spending........and so will jobs..........

What is not very well understood by the society and professionals is the extent of dependency on government spending for our economy to function........just like most of the professionals were caught off guard at the dependency of housing on fraudulent loans.

The problem now is that our government no longer generates anywhere near the revenues to maintain the current spend platform........and if it cuts spending, its revenues will decrease dramatically.

If government keeps printing printing money that more and more are becoming aware can never be paid back....fewer and fewer will accept the dollar.....gasoline has already jumped over $3 dollars a gallon in many parts of the country.....and likely to rise much higher....which will cause the price of everything to skyrocket.....including food and packaging.

If government stops spending.....most of what you see around you will see revenues evaporate.....especially health care and retail....which will cause tax receipts to decline even further.

In the end....it is not the end of the world....just the end of our borrow and consume economy.

Since the days when the Romans were counterfeiting their currency with foreign metals to make them stretch further.....no society has ever been able to debase their currency without going broke and destroying the society......

And since money is what determines our contact and property rights in America......and its value determines whether we get to consume or not......some very tough choices will be thrust upon us in the relatively near future.....

how this plays out is anyone's guess.......

There are live fire exercises going on in the Koreas and on the border of Lebanon and Israel......

We are outsourcing much of our production overseas.....

Our cities, counties and states are running out of money......

Millions are about to lose unemployment benefits.....

And our Federal Government is guaranteeing trillions of dollars of spending that it likely will not be able to pay back with our current declining production base.....

THIS HAS NEVER HAPPENED IN AMERICAN HISTORY BEFORE......WE HAVE NEVER MONETIZED OUR CURRENCY WITHOUT REASONABLE EXPECTATION TO PAY IT BACK....AND IF WE GET THROUGH THIS....MY GUESS IS IT WILL NEVER HAPPEN AGAIN.

Good bye for now......

2 Comments – Post Your Own

#1) On December 03, 2010 at 7:21 AM, shijie123 wrote:

Hi,Dear Ladies and Gentlemen, =====http://www.kogoal.com===== Here are the most
popular, most stylish and avant-garde
shoes,hand jacket,Tracksuit w
ect...NIKE ,JORDAN SHOES 1-24,AF,DUNK,SB,PUMA
, $35HANDBGAS(COACH,L V, DG, ED
HARDY) $35TSHIRTS (POLO ,ED HARDY, LACOSTE) $16
New to Hong Kong : Winter Dress
--- NHL Jersey Woman $ 30 ---**** NFL Jersey $20--- NBA Jersey $ 18 ---**** MLB Jersey $ 30--- Jordan Six Ring_m $30 ---**** Air Yeezy_m $ 45--- T-Shirt_m $ 15 ---**** Jacket_m $ 30--- Hoody_m $ 30 ---***fd

Report this comment
#2) On December 09, 2010 at 5:03 PM, InflationSilver (99.96) wrote:

Nice, alstry is getting spammed now.

Report this comment

Featured Broker Partners


Advertisement