sorgmot

Let CIT Fail: The Business Model Is Broken

Gingis Kahn had the golden hoard which was driven into faraway lands because the lands it came from could not feed the hoard as it grew and grew.

The USA has the lawyer hoard which is just like the golden hoard in that it is willing to confiscate all wealth in the lands in it's path to feed itself as its size explodes.

The lawyer hoard does the confiscation by taking over all three branches of all USA governments judicial, administrative, and executive. They use these to set up regulations which require vast numbers of consuming but counter-productive government employees. The productive non-government employed members have their taxes raised to pay the hoard. The hoard does not ever stop expanding its tax and regulate demands even as USA businesses fail.

USA businesses are replaced by foreign ones to supply the USA hoard and paid in US$s from an exploding USA money supply. The USA money supply explodes all product prices in USA $'s until only USA government employees and the employees if the remaining USA government created cartels and monopolies can afford the very high pried goods and services available in the USA.

Of course the USA banking cartel will loan the money at 30% to help buy the auto priced at 3 times its cost of production.

Once the USA has lost the good will of all lenders abroad who notice that their collateral is worthless as the loan goes into default
the USA sees its asset values collapse as sales volumes and taxes and everything in the USA collapses.

As the year 2009 by the Christian calender. progresses under the management of the lawyer hoard, good luck to you in this USA collapsing business cycle.

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Investors Staying Away from Banks; Gold Attempts to Break Downtrend

The USA $ bond interest rate decline ran from 1980 to 2000.

That Interest rate declines pushed up asset prices in USA $ for US assets like stocks and bonds and real estate. The big USA banks are full of greedy, stupid, and corrupt people wrote massive amounts of $ loan to collect origination fees and then sold the loans to other financial institutions which further pyramided debt to buy the loans.

Financiers are stubid and greedy. The are not educated in finance.

Mean while as the asset and debt bubbles expanded, millions of new and unneeded buildings and houses were constructed.

Also, the stock markets laid out a super A B C pattern from 2000 through 2009.

What happened? The long term downtrend in USA $ interest rates from 1980 ended in 2003 .

Bush went to work for the oil cartel that financed his election and sent USA troops to the Persian Gulf area to shut down oil production there and drive oil prices from $20 to $160 per barre. Note how fast oil droped back to the 30's when the Republican party lost the 2008 federal elections and the USA lawyer/organized labor backed cartel financed democrateds took over.

Now, in February 2009 USA financial collapse is well under way. Asset prices are falling on stocks, bonds, and real estate. Jobs are diiapearing in large numbers. The USA population is overwhelmed by debt which can not be liquidated by asset sales. The USA governments at the local,state, and federal levels is in debt beyond all hope of redemption. The democrat party thinds the answer is to add more and more debt to the backs of USA citizens.

As in the 1930's and 1940's, the USA is attempting to remedy a situation in which debt is overwhelming earning power and financial collapse is produced by running up debt more and more as asset values collapse. It did not work then and it will not work now.

Keynes was pitch man for mega government and the ruling class which government feeds. His scam leads to more poverty and less efficiency and massive declines in the wealth of the nation as a whole.

Good luck.




What to do with your money?

Good luck