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alstry (< 20)

Zombulation Summarized



July 31, 2009 – Comments (8)

The Institute of Alstrynomics estimates about 80% of our population is depends on Government spending and/or the extension of credit for incomes.

Let me explain how this number is arrived at briefly.  About 1/3 of the population is dependant on Social Security, Welfare, and/or Unemployment.  About 20%-25% of the population works directly for the government or a government contractor.  Right there we are at about half the population....then add in the fact that over half the revenues to health care comes from government and we can see how the number escalates well over 50% simply generating income as a result of government spending.

Then think about all the jobs that were created simply from the excessive extension of credit.  Jobs on Wall Street.  Jobs at Sub Prime Lenders.   Millions of Construction Jobs.  Retail Jobs.  Travel Industry Jobs etc.  And it was the excessive lending that created the bubble in real estate that drove even more revenues to government.

As you can see, almost our entire ecnomomy was a product of the postive feedback loop between easy credit and excessive government spending over the past ten years.

As a result of so much credit extended and so much debt is clear that very few qualify to borrow money any more.  Our cities, counties and states are over extended.....and tax receipts are declining.  Many of our citizens are over extended and their incomes are declining.  And much of our residential and commercial real estate is heavily leveraged and their revenues streams and values are declining.

If you add up the total debt, WITHOUT ENTITLEMENT OBLIGATIONS, it exceeds over $50 Trillion dollars.  It is a mathematically impossible number to pay back and now receipts, values, and incomes declining, it is getting much more difficult to service.

Due to a contracting economy, more and more American municipalities, individuals, corporations become insolvent.....our Wall Street Banks are already insolvent but the taxpayers are bailing them out so they can continue to foreclose on our homes and businesses.

We know the problem is only going to get worse because without extending credit, the economy will continue to contract.  And with so few qualified to borrow, we know that very little in the way of new lending can occur because those who are can borrow really have no reason to borrow.

As a result of the above, tax receipts to government are evaporating and over half of our country is dependant on government to survive economically.  Without purging the debt, most of the dollars will flow to the banks to service the debt and the percentage will continue to rise as long as we maintain that obligation that was created by the banking system.

You see, the banks really never cared whether the debt could be serviced or not because the real money was in the Credit Default Swaps.  By creating more debt than the nation could sustain, the Fed and the Banking system has Zombulated our economy.

Based on the current policies articulated by Benny B in the video below, you know with mathematical certainty that this unwind is just beginning and there is lots more to go.....

The question is whether the country is prepared for the social fallout of massive unemployment, fewer law enforcement officers, and a judicial system that is backed up and shutting down?

Right now the citizens are getting restless.....let's see what happens when millions more are Zombulated, basically run out of money and access to credit, and learn exactly what the Fed and banking system did to our nation.

Prepare....9.09 is just about here.

8 Comments – Post Your Own

#1) On July 31, 2009 at 1:32 PM, alstry (< 20) wrote:

Amazing How Buying Stocks For Dividends can Change....

The dividend yield on the S&P 500 has declined nearly 100 basis points since March, to 2¾%. At one time, the yield was at a premium to the 10-year Treasury note, but no longer. Not only that, but what is depressing the dividend yield isn't just due to the market price appreciation but also owing to the fact that S&P 500 dividend payments have plunged 32% from a year ago (according to Howard Silverblatt at S&P) — the worst July since 2002. So far this year S&P 500 dividend payouts have declined $29.5 billion and on track to drop $61.5 billion for the year."

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#2) On July 31, 2009 at 1:45 PM, prose976 (< 20) wrote:

Actually, there are some very funny and entertaining commentaries (lines of reasoning) that there is mearly 1 person working to pay all the taxes in this country and that that single person works only 1 day a year (taking into account holidays, breaks, weekends, sick days, etc.) to accomplish this.

Your line of reasoning makes logical sense as written, but it is far from reality.

One thing that most doom-n-gloomers also fail to acknowledge is that while all of this catastrophic economic data continues to pour in, the world population continues to increase due to new births and increased longevity.  These two factors alone call for major adjustments to most projections.

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#3) On July 31, 2009 at 1:49 PM, alstry (< 20) wrote:

And if the population doubles tomorrow, and no credit is extended to them, we will have mass starvation.  Take a trip to Africa for confirmation.

American's can't understand this because credit has expanded for the past 100 years.

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#4) On July 31, 2009 at 1:57 PM, lquadland10 (< 20) wrote:

With hyper inflation coming who wants to be caught with anything longer than 3 months. Oh and did you see where GS backed out of buying the toxic assets?

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#5) On July 31, 2009 at 2:21 PM, alstry (< 20) wrote:

With hyperinflation, due to the serverity of our debt, trying to inflate will essentially make the dollar worthless due to an ever increasing intrerest sprial.

Few will work in that scenario and the nation will come to a grinding halt.

We are reaching the point where no sane person will extend money to our cities, counties and states as tax revenues evaporate and it becomes a burden to simply service existing debt.

This is the point Alstrynomic's defines as Z day.

You will see in the next few weeks that, after all this budget cutting, the supposedly balanced budgets are no longer balanced anymore....and revenues shrinking smaller and smaller.

At some point, the revenues become so low that the budgets and debt service ability are no longer credible.

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#6) On August 05, 2009 at 12:29 AM, topsecret09 (84.47) wrote:

 Very good post alstry. I always wondered what zombulation was...   How about If the people on caps like youself and me Included that truly understand all of the smoke and mirrors that Is driving the governments grand plan for America, get together and head to capitol hill for a meeting with our Congressional representatives and help to enlighten them of the very real possibility that this entire nation is on the verge of financial collapse because the FED,Treasury Dept,and our Congress are working for Special Interests, and not the  American Interests.... !!

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