Skip to main content

America Submerged - Triple-A Relegation to Minor League.

Yesterday (Friday August 5th 2011) a signal was sent by S&P rating agency, confirmation that the USA is technically bankrupt... no surprise there... anyone with a fundamental grasp of grade 5 math would not be challenged with the calculation.

Annual Income $2.3 Trillion - Annual outgo $4.3 Trillion the result is preceded with a minus sign - the shortfall between making ends meet and fiscal failure. This annual shortfall has now acrued $15 Trillion of deficiency with no means to pull it back into a manageable situation - GNP is shrinking along with the tax base. The conclusion of such a leger is insolvency if not sooner... then later.

Compounding the magnitude of that unresolvable sum, there is the reality of the upcoming $110 Trillion commitment known as unfunded liability. This in fact dwarfs the almost trivial annual deficit number...

Cunningly, unfunded liabilities do not move onto government ledgers until the payment checks are issued keeping them off the radar at least temporarily. Still... reality has two undeniable aspects, it cannot be avoided and often bites.

The USA is far from unique... the same unsolvable riddle blights Europe, UK and indeed almost all industrialized nations. Globally the malaise of fiscal challenge is far beyond any conventional solution. Applying conventional solution actually compounds the issues.
STOCK markets around the world plunged again yesterday as fears grew that the global economy would slip back into recession.
The FTSE 100 Index ended a week-long slide in which it saw 9.8 per cent - or £147.9 billion - wiped off its value.
That was the worst performance since October 2008 when investment bank Lehman Brothers collapsed and triggered turmoil in global financial markets, marking the start of the credit crunch.
Markets across the world plummeted amid fears the United States is heading back into recession and Europe's debt crisis is worsening.
Analysts believe the plunge in share prices may worsen unless Governments take firm action to convince the markets they can pay off their loans.
Not to be forgotten is the epidemic of shrinking sovereign GNP the national assets used to secure loans, used to pay interest on previous loans... a process of mortgage submersion on a grand scale. GNP shrinks as unemployment rises.

Next Monday Aug 8th 2011 - Markets will more fully collapse.

Trillions more of hypothetical wealth will be added to last weeks $2.2 Tillion which evaporated from world stock markets in the current run up of "realization fear" which caused continuation of the 2008 market "correction".

There is insufficient investor greed left to counter the investor fear, appetite for risk is waning fast.

This time there will be no TARP, EQ sequals or cosy inter- government cooperation... those bullets are all used up already.

The global economy is now stripped of crutches and must stand alone on its own feet - a feat not possible.

As social support budgets and services are slashed and taxation is increased significantly (the only options for slowing the flow) - socio-economic tolerance of citizens diminishes rapidly...

Immediate hunger and shelter needs short cut personal preference in the arena of patience and compliance to regulation.

In short expect some tangible unrest across the board.

If controlled universal debt forgiveness is not applied by global elitist power-mongering governance... then natural sovereign debt defaults will complete that process naturally.

We are in uncharted waters - outcomes are predictable by reviewing circumstance and one should anticipate a self-help strategy based on observation -

YOU are the only reliable thing left - for you and your well-being and well-fare!



Stay tuned...
Labels:

Comments

Post a Comment

Popular posts from this blog

Women and children overboard

It's the  Catch-22  of clinical trials: to protect pregnant women and children from the risks of untested drugs....we don't test drugs adequately for them. In the last few decades , we've been more concerned about the harms of research than of inadequately tested treatments for everyone, in fact. But for "vulnerable populations,"  like pregnant women and children, the default was to exclude them. And just in case any women might be, or might become, pregnant, it was often easier just to exclude us all from trials. It got so bad, that by the late 1990s, the FDA realized regulations and more for pregnant women - and women generally - had to change. The NIH (National Institutes of Health) took action too. And so few drugs had enough safety and efficacy information for children that, even in official circles, children were being called "therapeutic orphans."  Action began on that, too. There is still a long way to go. But this month there was a sign that ...
Post a Comment
Read more

Benefits Of Healthy eating Turmeric every day for the body

One teaspoon of turmeric a day to prevent inflammation, accumulation of toxins, pain, and the outbreak of cancer.  Yes, turmeric has been known since 2.5 centuries ago in India, as a plant anti-inflammatory / inflammatory, anti-bacterial, and also have a good detox properties, now proven to prevent Alzheimer's disease and cancer. Turmeric prevents inflammation:  For people who
Post a Comment
Read more

Austerity-A Fancy Word for Destitute.

The reason for this post is not for the folks who have been caught in the first wave of personal economic hard reality, but the next wave. Regardless of the optimism espoused by grinning leaders and sycophant press, we are entering the final stage of global economic collapse. It began in 2008 and was forestalled for five years with fudge putty, but the weight of global indebtedness cannot be propped any longer and the final crunch is imminent. Austerity measures herald the final throes.  Indications of coming austerity.   Austerity measures are the final last ditch effort, futile or not! Back in the day many of us old-timers went through periods of "hard-times". In retrospect I realize there is no comparison to yesteryear hard times and today's version. Back then, expectations were never very high for the working class, there were no sophisticated systems or conveniences anyway. In fact the difference between being "set" or not was about having treats or not. Si...
Post a Comment
Read more