Demons & Dialog

Exposing hidden news, history, & the new world order

Societal Apolcalypse: A Great Breakdown Of What’s Currently Happening

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In all of U.S. history, adding up all the nation’s large expenditures–never before has this much money been looted from American taxpayers–in a single year! All these huge past projects put together equal only about one-third of what the predatory capitalists have stolen from American workers and given to incompetent, demonic capitalist predators–in the form of multi-million dollar salaries, bonuses, and bailouts.

Take a moment to contemplate all those historical super-expenditures.

Then let the monstrous nature of
capitalist looting hit you with full force:
$9.2 TRILLION stolen from us–almost 3 times as
much as all previous super-expenditures combined.

That towering amount of money represents between 75-105% of the total gross domestic product (GDP) of the entire United States economy. Any competent economist recognizes that “spending” over about 5% of GDP will result in a total collapse of the American economy–which is what’s happened. In previous essays we’ve explained how the U.S. economy has already collapsed and a second Great Depression has seized the nation and the world. American workers have lost $6 trillion of housing wealth and another $8 trillion in stock wealth.

Hyman Minsky, noted economist and Washington University economics professor, helps us understand how the American economy has been progressively corrupted:

Hyman Minsky’s Financial Instability Hypothesis:
three distinct income-debt relations for economic units during economic collapse

1. Hedge: those which can fulfill all of their contractual payment obligations by their cash flows

2. Speculative: units that can meet their payment commitments on ‘income account’ on their liabilities, though they cannot repay the principal out of income cash flows; such units need to ‘roll over’ their liabilities – issue new debt to meet commitments on maturing debt
3. Ponzi: the cash flows from operations are not sufficient to fill either the repayment of principal or the interest on outstanding debts by their cash flows from operations; such units can sell assets or borrow: borrowing to pay interest or selling assets to pay interest (and even dividends) on common stocks lowers the equity of a unit, even as it increases liabilities and the prior commitment of future incomes

As the U.S. is now increasingly meeting its debt obligations by rolling over present debt and/or by borrowing, according to Minsky’s model America is clearly in the Ponzi finance mode which is indicative of a total economic collapse of asset values…..Read more


Written by Michael Cooper

January 26, 2009 at 4:50 pm

Posted in Uncategorized

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