F Dominicus Blog

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

October 2010 - Posts

Is more everytime more?
Just one other question. Does more laws mean more justice? Please check the sheer number of laws today and in the past. What's your finding?
Request to the Economics
It would be terrible nice to check out which country was the soundest before the GFC, during the GFC and how will recover most quickly. And especially what the Keynisiens have to show to prove their points. Here's one comment about not beeing Kynesian http://www.zerohedge.com/article/germany-defies-keynesian-stimulus-and-recovers However this is far from true for Germany. However in comparison to Japan and US the helps was less. But far from "neglectable". What questions I'd like to see addressed. - how are property rights and well-beeing connected. I have not doubt there is a relationship and this one must be very strong. - how is stable money and well beeing connnected. In both areas I've a strong opinion. I'd like to see it confirmed or not. Because if there is a relationship and if there is even a strong one. Then we surely can say the Deledefs have not done well. Then we have to conclude. DESPITE the efforts of them.... But who will dare to challenge them. I bet no-one here in Germany, as you might know every professor is paid for by the governement. And so I strongly assume they do quite some cherry-picking. One of the most dreadful things which have come out of this can you see with the climate hysteria. Even in Germany just a handful professors have opposed the diverse bail-outs, and interstingly enough most of them were not active any longer. And you can see that in Germany the idea of stimulus is heard everywhere. So who will dare to oppose the Deledefs, who will at least try to defend civil and even human rights. Indeed I say human right. There should be one human right which claims. "a base or human rights is a stable currency". So we need property, freedom of contract and precious money. If we got that we probably could get along whith this superflouus bureaucrats and deledefs.
I've written about it before. And the same holds this time. I have not really checked the published items. But if just 1/10 of it is true than we are talking about more than 10000 murdered people. This just shows it very clearly what armed forces are all about. The reactions of the politicians are clear. They don't deny any facts but say every other life of an American soldier or whomever it as stake. As if the life of a soldier from the US would have a higher worth than anyone else. I have written more than once on how armoured forces are behind everything from the governement and this one of the most shabby examples. Agreed it's war, but this war was put on Iraque by the US. They have send down their soldiers because of the most obscure reasons. How would you feel first be opressed by the armed forces of a dicatator and jus a few years later by the forces of a "democratic" choosen parliament. What's the difference, can anyone feel better to see at the point of a gun of a criminal or a "soldier"? Do you feel better that your house is burned than you'd feel if your house is bombed? I'm very shocked and you can bet if I'm glad that this crimes couuld not be kept under the karpet. It does not help any poor soul suffering under this kind of "violence", but maybe it will open up the eyes of a quite a few others what governement really is.
Why one can not choose for the Greens in Germany
It's very simple. They are at the bottom against capitalism and even worse they prefer a sort of dictatorship in the name of the "Environment". But and this should correctly be written BUT this does not hold for the members of parliament. And wel they want to abolish personal transport and replace it by public transport means. BUT this should not hold for "important" members of their party. In fact they are flying around with the aviance attendance as every other politicians too. They are also responsible that Germany is among the countries with the highest prices for fuel. Indeed the fact is that around 70-80% is taxed away... This is due to the "fantastic" work of the Greens. One could live with it but they want to take the rest of freedom away from us, which is left in this socialiced country. Well you can bet if I will choose them ....
Money without worth no more?
Have you ever considered, why inflation is accepted as something inevitable? Well guess again, it's not inevitable. Check out the diverse books form von Mises, Hayek, Friedman and you can see why inflation is the every day robbery of those having control over the money. Even a simple line of deduction can tell you, inflation is very gladful accepted by well you can say every politician. How comes? Well it devaluates the money. And so if the governements want credit, they issues some bonds. Some of them are very long running (up to 30 years). Now agreed they have to pay interest on it. But if we asssume an inflation rate of 2 % the value of the bond is nearly halfed in value after thos 30 years. So the other half was stolen. And remember you have to pay taxes on the interest also. So if we assume just 1/3 of tax on interest and have a nominal interest rate of 4%, and a "nominal" inflation rate of just 2% then the calculation is. You have to pay 1.2% of taxes on your intereste 2% is stolen from it so you are left with "astonishing" 0.8% "gain". Well you can imagine how nice governements found this kind of stealing. They blame everything else for the inflation rate. But they want more an more credit. Saving in this context does not mean putting aside money, but issuing less credit than the normal BIP grows. This again ist simply a plain lie. Inflation must not happen. Just imagine the following scenario. - Reserves are not longer allowed (what does it mean?) Well if you have a reserve rate of 10% you just need 10 Currency Units to lend 100 Currency Units. And well a Bond on one side is an asset on the other side. The other banks lends's another one the money and see money appears out of the nowhere. No imagine a 100% Reserver. That means you can not lend more than you really have. This is the "normal" situation for anyone not bank. If you own 1000 Currency Units you can not suddenly borrow 10000 Units. With such a "simple" approach, all the fuzz which has happened wouls simply vanish, and "too big! to fail can not happen. It's really as simple as that but no one in the policits and especially the federal reserve banks won't work on that simple solutions. They will insist on just another few layers of control. And well you can bet who has to pay for it. - Now imagine a constant money supply. How can anyone get "richer"?. Well for that to see in front of you just check the IT industry. Since their beginnning they have to cope with falling prices. Now if the money supply is constant but the prices do fall everyone get's richer one day after the other. This would be savers paradise. You know if you just keep your money, you'll be richer tomorrow and this is reality. But no in the this system would stat it that clearly as long as they are "on duty". Just see the remaks of Greenspun about gold backed money. Before his time, he was in it. After he get chef, he started printing money. You may ask how can something grow beyond than? Well it's "easy", if something new comes along (like computers) people suddenly start buying these kind of things and are of course demaning less of anything else. And so even with a constant money supply growth can take place. It would be sustainable growth. This piling up of "securities" as we have seen it just "wishful-thinking" and unsustainable. You could choose for a much better future of us all putting pressure on the politicians and bureaucrats. Just demand one thing. "stable money". If you insist on it and will not get them along with ther lies, you won't e held hostage for THEIR faults any more.... The only trouble with it is that we MUST comply, otherwise they send us someone along with a gun in his/her hand. Arguing in front of such is simply stupid, if you're dead or locked away you can not "do anything" no more. And this is the most depressing news. Your own governement just is nothing more than a Kidnapper. If you do not believe me. Well try the following things. Don't pay no tax anymore...., try to start digging for something of vale on your own ground, do not accept money issued by the governement no more but insist on anything else. Well you'd better be prepared of some stay on in of the "nice" prisons of your country. So fact is there is a layer you've to feed with any money you accept or spend. So if you buy anything for some currency units, you pay for those making your live difficult.... It's perfect system of exploitation. And well they all live from your money....
what happens if failure is not an option any more?
I wonder, how can things work if failure is not option any more. Please tell me how could it be that a "bank", too large to fail, is allowed to persist. Is it better to drive a whole country bankrupt? Just imaginge the following numbers 145 billions have been sunk into HRE, the saving of all Germans in 2009 should have been 189 Billions. That means nearly all our savings from (around 80 milliion people) have been burned. How sustainable do you think is that? I'm afraid a big catostrophy is overdue. What do you think if let's say DB and CB will get into deeper trouble. We simply can not affort it. So are politicians to be allowed to bring that much harm over us? Well in Germany there is oath to save the population for harm. But what do they do they drove us down the road to perdition. I'm really wondering if we can start fighting them, because they are working against or base law. (the "Grundgesetz") How is that different with the US. Isn't Obama, and Bernanke harming the Americans over any before known bound? Think about what it means that failure is not an optoin any more. What about responsibility than? There is no "too big" to fail. Even countries have failed and they will fall again in the not to distant future if they allow overtaking all corporations just because they are supposed "to big to fail". Can you imagine the smash if the US will go down the drain? Just compare that to a failure of all the overtaken businesses. What will harm more people?
How does your country handle property rights
It's quite interesting to see, what place property rights play in any country. There are countries where this is values really high, but there also are countries in which grants on property rights look like an "oversight" or afterrthought. Let's take Germany, we are infamous for a few things, one of it was the ex DDR. Well there all was own by the "people", well the people were a round of guys, claiming allrights for them and leave nothing for the rest. The combined it with a yet to be parralleled system of support for thieves throuhg a state security office. Well even we in the Western part have a few strange limits on property right, the most infamous if there is enough of "public interest" people can be disappropriated. It does not even mean that market prices have to be paid. So let's see e.g. you have a nice piece of land in nowhere land. The "authorities" want to built a highway, well you do not want to sell to them, disappropriation is than an option. Well if you are "clever" enough you see if there isn't one special kind of animal living on your grounds, because then this disappropropriaton will get much harder. Well it's not that you are the owner which make is "hard" it's some kind of "higher" thing like saving some other animal for getting banished. However the points is. A country not honoring private property is hardly a consittutional state. it's just a round of maroders backed up by laws initiated and controlled by a point of a weapon. So be aware of such countries, they told you on how high the value "hard honest" work but in the end it's standing on your ground, pointing a gun to you and sayin. "Well we think you agree you better "cooperate" with us". Or some such....
Introducing a new? scenario
Well it looks as if the diverse reserve banks like to start a degradation race. Simple and convincing idea. Well we just can out of this mess (we have encumbered) with exporting as much as we can. And well they did not say it yet, but are surely working on it. They want to raise the import barriers. They did not have learnt just the slighest things from the past. This was the road to the big world wars, and other global financial crises. How one can think that things having turned ot bad in the past suddenly start working automagically is beyond my understanding. And even if we wouldn't have had the wors or other economic crises. If there is one but one road to poverty and dead, it's hindering free trade. But well if you live in deledefs land of plenty, everything is just a wish away.....
How does your country handel the GFC?
Well II wrote the troubles with the banks are named that way. The US wants to print out their way out of crises. And they really have an elegant way. The fed issues money and buys bond from the governement. This is a circle which one can name a masterpiece of insustainability. Well in EU land till 6 or so months ago the only secure bonds which would have been accepted should have some A ranking. Now with Greece over the edge they accept greek bonds as securities. So well printing money does not mean that are is any congruent value. Because all our currencies are just "hot" air. It does not really matter if you'd spend 100 EUR notes or 10000 bond notes. Well it's just some figure on paper and printing bigger notes is not difficult. See what Zimbabwe does and you clearly see the problems. They have somthing along a few billion dollar notes, but people are partly starving to death. It's because they give money no "value" and so "value" avoids them. It's easy. Ruin ones's currency is as secure a way to ruin a country as any kind of war. So the US and EU are ignoring this. We will have to pay the price. If it comes to that, don't say you havn't been warned....