SCENT OF A VAMPYRE :)

i use this title because even a dog can smell when something is fit to eat and the American people had a rude awakeing to this .    i remeber the Bizarre statement from W. Bush that the way Americans could help the war effort is to keep going to the malls and spending money.   That made my nose twitch along with alotta other things he did ,( such as spending us into oblivian ) something Clinton was supposed to do to us .   And finally his brilliant analysis   that we needed to destroy capitalism to save it after the Boys and Girls  in Congress set up Fannie and Freddie to fail.   So now we see the American people setting on they're money while the Politicians keep telling them its they're duty to spend ( go in debt) they're way out of this Depression so that we won't have to suffer any consequences  ( in other words they can Paper mache over whatever kind of HELL they  have hidden under all this paper) so now i have experienced this.   When i would try to sell something to get out of debt i would get a sense from the prospective buyer that he or she couldn't really tell for sure if what they wanted to buy had any real value.   My friends would advise me that it was in the pricing but i could tell thats not the problem ( even if i dropped the price in 1/2 to people who came to see it )and it wasn't just that they only were buying what they needed, because some of what i sould was toys ( big boy toys )   :) but it is like their money is worth more to them than buying anything .    it can also be partially explained from the following article

If US consumers believe it difficult to borrow now, just wait! In the next few years credit conditions are likely to go back seventy years when private debt was difficult to obtain. Most Americans intuitively believe there is too much debt at every level of society. But the economic and political vested interests do not want them worried about that. They want to give them credit to infinity to keep this economic mess from imploding. The US Federal Reserve’s new round of quantitative easing (QE2) is clear evidence of that. However, Americans are right about their inordinate debt load, and future economic conditions are likely to create a severe debt scarcity.

The principal reasons for the coming debt scarcity are that ‘debt saturation’—where total income cannot support total debt—has arrived, say some analysts; also, the growing understanding that adding new debt may not increase GDP—it could decrease it; and that the banks and financial system are a train wreck in waiting, eventually being forced to mark their assets to market, thus creating for them massive asset write-downs and strangling their lending ability.

On the subject of consumption, the renowned economist David Rosenberg in The Globe & Mail on August 16 stated that "U.S. household debt-income ratio peaked in the first quarter of 2008 at 136 per cent. The ratio currently sits at 126 per cent, but the pre-2001 norm was 70 per cent. To get down to this normalized ratio again, debt would have to be reduced by about $6-trillion. So far, nearly $600-billion of bad household debt has been destroyed." This data reaffirms Americans growing aversion to debt, that debt has become too onerous, and is suggestive of debt saturation.

Replacing declining consumer debt is the exponential growth of US government debt. For 2009 and 2010, the combined US government’s fiscal deficits required or require borrowing an extra $2.7 trillion or so. Yet with all that spending—combined with about $2 trillion of ‘money printing’ from the US Federal Reserve (the Fed)—it created only around $1 trillion in increased economic growth! [..]

A further, major reason for the coming debt scarcity will be the tremendously impaired financial condition of the banks. The values assigned to many bank assets are fictional according to numerous experts. QE2 is about many things but one of them is aimed at delaying the potential for implosion of the banking system. In 2009, the Financial Accounting Standards Board (FASB) caved in to government and banking industry lobbyists to allow many bank assets to be ‘marked to fantasy’ and not ‘marked to market.’

This viewpoint is best expressed by highly respected Associate Professor William Black (and formerly a senior regulator who nailed the banks during the savings and loan debacle) and Professor L. Randall Wray, who wrote an article on October 22 in The Huffington Post, entitled, "Foreclose on the Foreclosure Fraudsters, Part 1: Put Bank of America in Receivership."

They wrote that, "FASB's new rules allowed the banks (and the Fed, which has taken over a trillion dollars in toxic mortgages as wholly inadequate collateral) to refuse to recognize hundreds of billions of dollars of losses. This accounting scam produces enormous fictional ‘income’ and ‘capital’ at the banks." 

This was quite obvious to me when i sold my land with a house and airstrip and moved on to my other property and went looking for a Double wide Mobile home. i was surprised at how vigorous the owner of this one sales team was in finding me a used house.    He sent me to look at  several of them then as i was saying i had cash to buy ,he put me in his pickup and we went and found a place i couldn't have imagined buying for such a low price 2 years ago ,( turns out he told me for every 20 serious buyers he had only 1 of us had the actual money to do the deal. 

i understand that but i have sensed in this depression that people are paying off their debts and hording they're money like the banks are doing because they can smell something bad like a Poisoned food and they don't want that apple again :   And ofcourse when the other shoe drops this year we better have some real money handy :)  :(