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alstry (35.81)

You Fools Just Don't Want To Believe Alstry?

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August 23, 2010 – Comments (10)

That we Fools are jointly and severally liable for ALL of our nation's debt......and last year, our politicians put trillions of additional debt, that we are now ALL responsible to pay back, on our balance sheet by bailing out the banks and NOT bailing out the debt.

The funny part is we own the debt.....most of America's debt is owned by Americans in their retirement and savings accounts........NOT THE CHINESE......and if the debt isn't being serviced, we are essentially broke, but if we are forced to pay off the debt we are guaranteeing we are essentially broke......too.......

hmmmmmm.....

Does that sound like a zombulation policy leading to concentric contraction where we are all collectively interdependent with one another?

The nation is shutting down trying to service a mathematically impossible debt load to service.......and now that WE are guaranteeing much of the nation's public and private debt....we are going to collectively go broke guaranteeing it as well.

It is not the end of the world.....simply the end of a world as you know it.

10 Comments – Post Your Own

#1) On August 23, 2010 at 8:04 PM, ragedmaximus (< 20) wrote:

you know it's a ponzi scheme,I know it ,the fed knows it,the bankers know it but the fools don't know it yet.Just like Madoff ran out of time on lies so will the USA.......to be continued

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#2) On August 23, 2010 at 8:06 PM, alstry (35.81) wrote:

shhhh......

just like I had some neighbors who were clients of Madoff's......my guess is I have some Foolish friends who don't know they are in the same position....

 

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#3) On August 23, 2010 at 10:00 PM, GNUBEE (24.42) wrote:

Yoshi,

Please do define "Debt" as you are reporting. As "most of it" is in retirement and savings accounts" What are these retirement and savings accounts buying (who are they lending to)? 

Raged...I will not disagree that it may be a Ponzi scheme, but Ponzi schemes survive because of the belief they work. Just like a Fiat currency. As long as the belief is there it can continue. 

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#4) On August 23, 2010 at 10:04 PM, alstry (35.81) wrote:

No.....wong my new friend....Ponzi Schemes die because they run out of money.....or access to new money.

Debt......mortgages, mortgage backed securities, securitized credit card debt, corporate bonds, corporate notes, municipal bonds, fannie and freddie paper, commercial paper, agency nonsense, and we could go on and on and on.....

what do you think a money market fund is?

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#5) On August 23, 2010 at 10:28 PM, GNUBEE (24.42) wrote:

They run our of money because not enough comes in to cover the outflows. If people thought they could "buy in", they would add the needed new money for the scheme to continue.

So your list of include no government or government backed debts? They do, and I argue that the largest portion of debt is government debt.

Money markets are mostly government paper are they not?

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#6) On August 23, 2010 at 10:42 PM, alstry (35.81) wrote:

huh?  and now the government outflows are growing much faster than the inflows......

much of my list is government backed....especially the trillions of mortgage backed stuff we guaranteed with the bailout last year.....you know.....9.09.......plus all the crap the FED has on its balance sheet.......plus the government and agency stuff which I omitted because it was obvious.....

as far as money market funds....may I suggest you read the prospectus......each are unique......

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#7) On August 23, 2010 at 10:52 PM, GNUBEE (24.42) wrote:

No, the "inflows" can be created out of thin air, seriously read binve's The Matter of Deficits, Sovereign Default, and Modern Monetary Theory, he did a nice write up on it, and some good comments. So they are not slowing

Each MM fund is unique,yes.But my understanding of trending is that MM's have increased govt securities since late 2008 because of their "safety", and out of commercial paper etc.

I do not disagree that the system is not healthy, but it is not as near death as you might report.

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#8) On August 23, 2010 at 11:03 PM, alstry (35.81) wrote:

Ok...so we both agree the patient is dying.....only disagree on when........

so now what?  stare at the ticker? give bankers even bigger bonuses.....

CA now giving IOUs again....home sales collapsing.......WHILE GOVERNMENT printing trillions......

imagine what happens with one bond auction failure or millions exiting the market at the same time.....

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#9) On August 23, 2010 at 11:16 PM, GNUBEE (24.42) wrote:

Money can still be made from the ticker, and bankers do not need bigger bonuses.

CA may be in trouble, home sales may be falling, but other areas are still moving houses.

Because of the "system" there cannot be a bond auction failure. Also, Millions "trying" to exit will be stopped.

And even if the US could not get any outside help, we have the resources to continue, need to rebuild, but continue on our own.

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#10) On August 23, 2010 at 11:17 PM, GNUBEE (24.42) wrote:

Oh, and I never said the patient is dying, just unhealthy. Obese, inactive and unhealthy. Continuing on the current path will lead to self destruction.

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