F Dominicus Blog

A politically incorrect blog about matters of money, government, bureaucracy, freedom and sometimes something else.

June 2010 - Posts

Again the ex FDP
well there was a time when FDP meant something the f stood for freedom. I don't know what this F currently means maybe f... or forget or ... They had there biggest victory around 2 years ago, they got 15% of the votes. And I bet 100 000 000 : 1 those votes were for limiting the believe of CDU beeing able to heal everything with "even more cheap" money. It was the answer to all the Failouts well the deledefs name it Bailouts. But in fact ask yourself where has all the money gone? I do not have to limit myself to Germany here, the US is even worse, there around 750 billions of TARP money simply have gone. I wished I knew where, I guess the "Polticians" does not know and "even worse" do not want to know.... Anyway now the are disucssing a new base program. Getting more "social". Well imagine what that mean. Why would anyone need another "left liberal" party? If you want stupidity and "believe in state can heal everything". Just vote for CDU/SPD/Grüne/Linke. So everyone as he likes. But giving up the F what "easy" is so massivly stupid, that words fail me. Yesterday the FDP may have gotten above 5%, with a new "streamlined program of "social justice"" what an Oxymoron, they will surely fall below. And so let's say "bye bye", it wasn't nice with you.... Now with that I think we're one of the few countries with no more liberal thinking parties. Well you know what will follow. It seems Germany just lives from it's hard earned reputation. Our now grand parents have earned it with hard honest work, living within one limits. Now we are just "living on credit". The US have shown how to fail big with such living, however it does not matter, we follow them in their stupidity. It's really disgusting. Now the ex liberals just follow his "highness" Krugman, and that means a big bang in the end.
My dislike for Obama has grown again
Well I was one of the few in 2008 which were writing against Obama. I had my reasons for that and I just mention a few things - ObamaCare - Tarp Now there was one thing I thought he'd be doing better than anyone else before. Talking to other politicians. But he proofed me wrong. It's corporate America, than America an last and least Americas people. Just so much the US have started on a path of unsustainability. Political decisions have forced the diverse banks to a fatal expanding of granted credits. The FED has fueled this with "100 dollars a dime". It's interesting that the money was lend from all-over-the-world. So in fact everyone having bought an US bond has fueled this "rush". People which have lived within their bounds, we're frowned upon. In fact they did everything right but then the politicians made them pay like crazy for gamblers. Now we know this history. Now Obama does the following he starts to attack China and also Germany because of the status as world champion exporters. So in fact he now want that the Chinese and Germans buy like mad and follow the path to distruction. It's also a fact that corporate America has out-sourced whole industries. America currently can not even produce computers. This ist done nearly 100% in China and Taiwan, there status as exporters is well neglectable, in comparison to their number of inhabitants. So what does the world buy from the US, first and foremost it's software. They surely have an advantage here. Well Boeing is faring quite well also, and I guess americas exports of weapons will be might impressive. However they are not "free" in any way, they draw borders for everything, just see the decisions to not use planes from EADS (Airbus) and instead changing the rules of the "bidding" during it's run. So everything is done and decided to mostly support the "biggest" gangsters sorry company CEOS.... So first goal is help corporate america, which then wil help americas politicians and last and least maybe the american people. So Obama has proofed over and over again, what he is. He is a politician for a small circle, this circle consists of the us politicians (sorry deledefs) and then a few big companies. That BP has make him "freak-out", well how bad would it be to not have BP any longer but a "little" bigger Exxon or whatever other company there is. And also remember the politicians have drawn a liability line of around 75 000 000 for environmental damages. So well you can see Exxon surly looks like "a darling of the US deledefs". You might consider the implications of that.... See the decisions to support bankrupt and "more" than less corrupt banks. See how the Tarp money (just arouudn 750 billions) just have vanished like snow in the sun. Just see the sky-rocketing debts of "politiccal" america. Just see how the have "helped" GM, there is not one proof that Obama has decided to advance the really honorouble people. They just were taken a hostages, fair enougn the "new boston tea part" was established, I just can wish them all-the-best. The US must get rid of their current ruling circles....
The biggest political lies.
without a particular order: In Germany once the minister said: - The retirement payments are save. (well kind of he does not say what he means with save, so if it means everyone will get a few euros months it's probalby not a lie, taking into account the inflaton rate and payments for getting the retirement payments it will be a very bad deal for the younger generation) - politicians serve the commonality - we'll pay our debts - you're money is "safe" (spoken around 2 years ago from our chancellor Merkel) - tax equity - tax gift (well it's an amazing word combination. In Germany it means you do have to pay less taxes, and this is seen as gift.... Well how suprised would you be to hear from a thief, hey you here is your wallet I have taken it form you, probably the next question would have been how much worth is this gift to you ..." - social justice (meaning taking away from whomever can or can not afford to put it into the hands of bureaucrats, giving it away to thos in need (decided upon by you guess it right bureaucrats again) - equality rights laws. Well it means you can discriminat against whomever you like you just have to "prefer" someone which does not fall under that category. - a justified war... It's really one of the bummers... There are other very doubfull things, I spare them to you, but may mention them over time.
Who is to blame
for the oil spill in the gulf. Well yes BP is the main reason but, the governement have decided after the Exon accident to limit the liability to around 75 000 000. Maybe anyone can tell me why that was kept so low, the refineries earn Billions a year. So why should they not be "fully" liable for such dangers. If they'd known that they have to pay dearly the probably have though about avoiding such leaking. But well if you calculate with the above figure.... So the liability was put on the tax payers at a whole, but the profits were "privatized"... So again a nice example on what moral hazard really means....
Different interpretation for unscrupulousness
Let's see BP chef does yachting in England. And Obama sits in his white house, blaming that BP has caused the biggest envorinmental catostrophy ever. (Howerver we should not forget who has allowed them to exploit the oil in the gulf?, and who has the power to decide upon the to be granted security). Ah yes it's all that clear. The BP chef is the bad guy. And his "Royalness Obama", oh yes he has signed the extension of the exploitation but that's not all he also let Amercians die in Iraque and Afghanistan. So who's the more ruthless? When was a President of the US ever impeached for human rights violations? Or "bending the law"? Yes BP obviously has accepted the risks with this exploitation, and yes I can not found anything slanderous about asking all of the BP staff to pay for it. There are a few things which show that the technical risk were either misjudged, or well may mitigated by other things. We really don't know. Howerver what is obvious is that currently neither BP nor the US have the technical abilities to stop this oil leak. So if they are helpless, the only conclusion one can draw is. "We can not afford to exploit in such deep waters". Let me just remember about the Gulf war, where the Iraquis have inflamed so many bore holes. It was a catastrophy also, but the technical skills were there to seal this bore holes.... We have to conclude that disadvantages on this deep water bore holes are not yet controllable. Maybe with a bit more "fore-sight" and investing money beforehand this could have been avoided. But maybe not. Of course in retrospect a lot of people will say, it was unavoidable or was possible to prevent... But this does not help anyone yet. BP has to aquire all the knowledge they can to find a strategy stopping this leak. And instead of political pressure etc, it probalby would help much more to find experts able to help with it, and let BP but also the Politicians having decided to allow this deep water exploitations to pay for it. But I bet 1 000 000 000 : 1, that the politicians will not have to pay for it. They will use it as another lever to "aquire" more political rights. Now tell me about ruthlessness.
Doomed or blessed 4
Another round in our enumeration of dos and don'ts "A governemnt not defending privat property rights is doomed to fail". Examples, one very actual Zimbabwe. The land owners were expropriated (from a total corrupt political "elite"), the inflation rate is not at 231 million per cent. So you can say, the only value of that currency is the paper value of their notes. So the "elites" have taken it all for themselves so in fact there is hardly "support" for private property. It was seizef from the people. Currently in Germany the figure for it is around -10 (we have some strange things in our Grundgesetz, so with enough interest of the "public", one can be expropriated, without a "proper" compensation, it's not complete arbitrary but arbitrary enough to subtract from guarentee to private property) We also have death duties here and this can be extremly high. See e.g http://www.internetratgeber-recht.de/Erbrecht/frameset.htm?http://www.internetratgeber-recht.de/Erbrecht/Erbschaftssteuer/es09.htm So up to 50% can be "taxed" away. That is way beyone any reasonable guarantee to private ownership. It means also you have to triple or quadruple your fortune during your lifetime. One half will be "eaten" by inflation (fiat-money !!) the other hals seized after your death....
Separation of powers the "political understanding"
Well strange things are happening in EU land. As you might know the political guidelines are initiated from a commission of the EU. If I understand it correctly ministers of the diverse EU countries are part of this commission. But this commision never ever was elected, in an open ballot. You'd might thing how does that work democracy and "ruled by commisson" I think this is irreconcilable. And even worse this commison also are the only ones which can go to court for their own decided rules. So we have the no separation at all. If I follow my doom or failure path. I'd say this gives at least a - 90 (so our countries are doomed). Well it does not look all too bright for the EU countries. Once we had politicans acting qute responsible, but I'm under the impresson this times have past. Is it really a "fact" that democracy turns into a Ochlocracy sooner or later? Well I'm under the impression that too much truth lays in that path. Just see how this "politicians" currently act. They decide on laws but do break them without any qualms. And here in Germany many laws are decided which don't apply to the politicians itself. E.g we have laws for healt insurance, but civil servant and therefor also politicians are excluded. They get private health care. Now if the "rulers" rule with laws which do not apply to them. What else could be the result than more and more arbitrariness ? I think it's highest time to get rid of this "rat pack"....
What is the correct spelling for GM?
Since a few days ago I thought GM stands for Gerneral Motors, but I'm afraid I was wrong about it. I think it means "Great Manipulator" really. Here are the reasons: 1) promising tons of money for retirements, which have proofed to be unbearable, GM has gone bankrupt and now the governement has to "guarantee" the retirement payments (IIUC) 2) GM has black-mailed all EU governements to pay subsedies for Opel factories. Well at least the German minister for economy has simply refused it and guess what has happened. GM will get along WITHOUT subsedies or debt-gurantees. Well this was the first time in two years that the black-mailing has not worked. I wish it hadn't worked likewise 2 years ago.
The "merits" of leverage
Just imagine if 5.33 % of the credits are probably failing, spanisch banks will brought to their knees. So you can see what "fractional" lending is one of the safest ways to an economic hell. It would be that simple. You just be allowed to lend what you own. Then 5% were enough starting to get "angry" but you won't have to file for bankruptcy. There is a song the refrain is "wann wird man je verstehen" which roughyl translates to. "when will we ever learn". Well the english title seems to be "Where have all the flowers gone?" Well we have to leave this question open. Will they ever learn that money has to be earned and "saved"? Will they ever learn that the whole purpose of money is having a thing to preserve value.... Every honest earned penny is a value. Why don't they leave it it's value? Why are they taking risks to pauperize everyone? Indeed when (if anytime) will they ever learn?
law or not to law

Just an interesting side note. One of our running-up for the federal president ship, has aquired a CD with supposed-to-be tax-defrauders.

Well if government start fencing and if a federal president  walks in front of them, what will we have to expect.

Can't be anything good AFAIKT.


Doomed or blessed 3
Next round in the suggestions which indicate doom or failure of countries. "The higher the subsedies the more doomd is that country" Germany according to the Institut für Weltwirtschaft the subsedies and tax deductions should be as high as 164,7 Mrd. Euro. Our whole budget is around 300 Mrd. So if one would have to pay the subsedies in cash we'd have more than half the money gone. I'd argue this is at least around -70 (doom side) What are the figures of other countries?
Doomed or blessed 2
Ok, here a new "suggestion" "A country without firm support for private property is dommed." My notes for this: - Germany -50 (Eigentum verpflichtet und Gemeinwohl) Property obliges and common welfare - Switzerland 70 - US 0 ? - China -100 If the private property is though of as disponible by the unproductive, there is not limt on seizing it or tax it nearly completly. There are examples of countries which do have failed miserable in that regard. The GDR, the UDSSR. You may be suprised about my figures about China, but if you are not "political correct" in the sense of the communist party, then you simply have no chance. You will get to jail or get killed. I can not say how long it will take to see the doom of China, but it's inevitable.
Is your country doomed or blessed
I though about it over and over again. And have come up with this suggestion I will state what I think may lead to doom or blessing of a country. You can judge it for any country on a scale fro -100 .... 100 the more negative the worse. So let's start with suggestion one: "Law can be put before a independent court. Especially can productive elements go for court against "unproductive" elements?" Here's are my estimates about it: - Germany 70 - EU -100 (proof: the EU commision want to emit bonds on the premise for all EU countries but §125 from the treaty of Lissboa states that this is explictly forbidden, the law was not changed it still is valid, but only de jure not in fact, Nobody but someone from the EU commision can go to court against this breaking the law. So in fact the executive and jurisdiction is in "one" hand.. So the EU by any means is doomed ..... - US ? - what do yo think? Is this law enforcement a thing of doom or blessing?
There's just one thing left.
Which will stop the deldedefs to ruin us completey. We have to take away the possiblities to mess up with money. So it all ends in, we need to have a stable money. We have to get rid of the central banks. The problems with the current state of affairs just show it over and over and over and over again. Just read the coments of Bernanke or Trichet, the most prominent examples of the heads of central banks. Just remember the 700 billion TARP money? Just see the 750 billon money for the "european (un) safety net". Fact is: The leading countrie are drowning into debts. Expecting that they will pay for it is just "wishful-thinking". They claim they will start saving, but this is a lie. So what they will do is inflate the money. This will still from those having savings, but that is the way it has gone since the 2nd world war. Just look back into the 1970 ies. With their extremly high inflation rates. That we currently do not see the inflation rate rising is just "by chance", with all the new money printed they will start raising. And then imagine central banks which will claim stabiity is reached as long as inflation rates stay below let's say 10 %. Just let them keep this for 7 years and the value of the debts just have halved.... But if they try to steer back they have to raise the short-termed interest rate, this will get a very very very harsh stop.... I'd prefer not to try this route, so I'm for. Stop the central banks, let's work for "stable" and valuable money.