F Dominicus Blog

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

February 2011 - Posts

"Practical" arrangements
Ah well let's see the US consider military force against Libya. And no they do not consider the same for China.

A "practical arrangement". If he enemy seem to have lost, get him. Otherwise do everything to please them. China has killed 25 years ago. Reaction? Nil.

Not doing business with China is not an option any more. Because the USA have "outsourced" everything they need to have an own sound producing industry. All the modern IT stuff it made in China, maybe Taiwan (but pst don't say that loud or BB China will get very upset). Yes there is Intel but hardly any stuff else needed for building computers are "outsourced". Yes it's to maximize the profits of the managers. And if that fails, then Big Daddy is not "far" away. A few trillions here or there among "friends"....

Just a small question
I'm wondering.

If democracy is that great why do our "democrats" arrange themselves with dictators?

Just see what happens in North-Africa currently. The old "gangs" are simply driven away. Have you ever heard of anything to help them? It seems silence was more "wanted". Bahrain is very special case. You remember the bough the F1 circus and suprise they got the football world champion ships.....

Now there still are a few dictatorships around. One of the biggest is flattered like nothing else. It's just "oh what big a market" there is. Hardly a word about "oh see how nice the suppress their citizens". Just remember a 25 years ago, the people where killed on a place with "peace" in it's name. There is but one "renegade" there and they constantly live in fear of war from this "mother country". It's Taiwan, do we here of support for Taiwan? Well just as silent as possible....

Give me a break
from you stupdity and recklessness and especially expertise. http://www.zerohedge.com/article/financial-crisis-inquiry-commission-slams-greenspan-bernanke-geithner-paulson-summers-sec-ra

Just see what the commision writes. The crises was forseeable. Well am not aware that anyone but the Austrians or near stand-bys have warned. And well I do not know who is in that commission, but let us assume there as politcians in it which were there 2 years ago also. And so why "haven't" they warned 2 years ago. Well I guess they thought it would be stupid not to get-rich-quick.

You can really see them showing us how stupid we should be. And of course it was lacking regulation which let to this disaster. How stupid is that? Everyone in the bureaucracy then has backed up this Ponzi-Schemes. And you can see of course what should help "more" regulation. The "regulation by bankruptcy" is not an option. It would probably be too hard for those member of diverse "commissions".

Fact is: The Fed has thown money on the market as if there will be no tomorrow. Dot.

Fact is: The politicians have forced financing of political correct groups. Dot.

Fact is: They have stolen from everyone and are declaring it as "the-one-and-only-that -possibly-could-be-done". They are liars.

Guess what with the big-too-fail superstition this will be just the beginning of a crisis. I just can hope the deledefs have to "bail" out themselves. Better sooner than later.

An embarrassing conclusion
Ok, the Germans do deserve the politicians, we currently have. However a small minorty does not give in. They are just right and the others are wrong.

Why I can't be that sure? Well our minister of defence was a Doktor, but it was found out that he has used others people work without proper citing. That is simply defraud. Anyway nearly 2/3 of the Germans do not see a defraud as a reason for a resignment. And so there are such and such people and such and such politicians

Some are more equal. Still injustice stil is injustice, and so the 1/3 of the Germans are right. I wonder who this 1/3 are. I'm one of them for sure. But I could imagine that are those who "earn" their money. I doubt it very much for the other 2/3. If it is acceptable to them that a title captured by lies is not a reason to resign. That would give a very dark picture of Germany, it would mean honest people are "overtaken" by bandits.Well if I follow the last few years one can conclude: "Well yes "we" deserve such criminals..."

Let's do it better than the Belgian
They are now "unruled" for more than 250 days. And guess what the country still exists. So let's do it like the Belgian, let us send our politicians on a long vacation and let's go along "unruled". Will we be that clever?
It's getting cooler
at least probably with burning less money on IPCC. If this is true: http://www.climatesciencewatch.org/2011/02/19/house-votes-244-179-to-kill-u-s-funding-of-ipcc/ then this would be a "good thing" (tm)

I'm so sure as about the fact that after day night follows, that the climate is changing. The earth is not-yet-a-dead system. Change is all around, the seasons are there, there is no denying, there were much cooler and much hotter times. And if men will have gone, the climate will still change over and over again. Till the day earth will be burned by the expected end of the sun.

I don't know from what we'll talk in twenty years, but the end was allways predicted to come "far too soon". As long as we can think and try out new things, we'll change our future. Who could think of the IT-industry just 60 or so years ago? Who could think of planes a 200 years or so ag ago. Who can just imagine what would happen if we ever will be able to make practical use of Einstein most famous formula. Just imagine we we're able to store and retrieve our energy by that. The earth would be so full of energy, that everyone could have a few billion airplanes and still it would not make a "difference".

Now imagine we would have spend that much money in nuclear fusion. But you know, we got the decree before the trail. The decree was (and still is) "Guilty". Men is guilty of "heating" up our planet. There's no "denying", this is just "a matter of fact". You can say "god has created earth in 7 days" and this is "undisputable", now it's the same with men-injected-global-heating (migh ;-()

Getting more credit
now this time it's Portugal. They currently have to offer above 7.x %. That's quite a word. But I don't think it will harm them. I guess the EU will find a way "helping" out. They found a way for Greece, Ireland, so what should be the difficulties with Portugal?

Of course it will not be any kind of bail-out. Portugal surely will pay back any credit. And if not? Then the speculators will be blamed. If that does not help, some Terrorists from somewhere on thie earth and of cours the weather. I guess Portugal was just investing every cent in "highering" their dams for the warming climate. Or could you imagine that any money was spend in "dubious" channels?

What do they think
I just will first start with 2 numbers

3 800 000 000 000

1 300 000 000 000

Now let's see how this numbers are "related." Let's see 1 300 000 000 000 / 3 800 000 000 000 = 0.34211 or in per cent 34.211 %.

So what?

Well the US budget consists of 34.21% new debts. Let me break it down for you. You are earning 66 000 Dollar and you "spend" "100 000" Dollar.

The calculate the deficit will go down to 700 000 000 000 in 2014 (see http://www.usatoday.com/news/washington/2010-02-01-budget-obama_N.htm)

Let us assume a linea decrease over this 4 years so we'd have roughly 1.3 + 0.7 = 2.0 / 2 = 1.0 So overall 1 000 000 000 000 new debts over the next four years for every coming year.

The official debts of the US are nearing the 14 000 000 000 000. So we add another 4 / 14 = 28.6 % to this enourmous sum. And this are just the official figures. Not included are every promise for retirement payments and probably a few thousand other "things."

For just the 4 000 000 000 000 in the next 4 years the US will have to pay (assuming 5% interest) 200 000 000 000 a year. Just to get that "figure" right The German overall budget is around 389 000 000 000. The overall interest to be paid will go up to 18 000 000 000 000 * 0.05 = 900 000 000 000

Let as assume that the budget will not grow (ha ha ha). So in 2014 the US has to pay 900 000 000 000 / 3 800 000 000 000 = 23.7 %

Nothing can grow forever and so they still face a new debts in 2014 than the end is near. It would mean the new debts of roughly 1 trillion is needed to just pay the interests. It's absolutely impossible to bear. You can not us new debts to pay all debs for "long". One still has to remember each year the interest raised around nearly a trillions. So something will happen. Past times show, inflation is the most likely outcome which let's back to my My Predictions

Just see how others react on such debt avalanches: http://news.bbc.co.uk/2/hi/business/8518438.stm. See that the is the world largest holder of governement bonds all over the world. See some discussions about the implications at: http://www.federalbudget.com/

It's worse than I could ever imagine. And it has started with "just" the 700 billions of Paulson.... I've always written against this kind of madness. But you know the deledefs know "better"....

Do you remember?
Paulson ... do some bells begin to ring if you hear that name?

Glad you're with me. Yes it the Paulson which demanded 700 billion Dollar. Now sit down, we European can be nearly as good. The illegal safety chute (illegal in the sense, how I understand the no-bailout clause), was first just 250 000 000 000 EUR heavy.

Now it should be made "permanent" with just the slight increase of another 250 000 000 000. Yes, I got this figures right. We are talking about half a trillion EUR for helping out the poor deledefs. That's also roughly 2.7 times the amount the Germans have saved in 2009. Now the Germans are not known of beeing a third world country, and guess what we are roughly 80 000 000 ( I guess one has to write "poor") souls. Yes there are somewhat around 320 000 000 European citizens. But AFAIKT there are just a bit over a third of them "net" payers.

However in other words to just save enough for the safety chute the Germans would have to work around 2.7 years for free. And put all their saving in a pot .... controlled by "Politicians". Oh no it's not that we could decide what is done with the money. This is done by bureaucrats and "choosen" defrauders. The same which started all this misery. Now say something about "soundness"

For those Germans still having some property. Think a few hundreds times before investing in Europe. It may make all the difference....

Anyone here who could tell me why it's ok to request that others have to pay for one others ideas? And why it's not ok, to ask that one's payments should be to one's own preferences?

Why is it ok to ask for "justice" and mean "take that and that away from those, those or those"?

I simply can not understand why government can use force against me to "get" my money or my property.

How can it be ok that governments talk about "tax presents". It's impossible.

Or why can one say higher taxes are "more" just. Or how can anyone dare to think that subsedies are "deserved"?

Is there anyone who can be named "better", and such better that he/she can do all kinds of wrong-doings and still be right?

How can one believe that government could be "just". Just see it happens you live right of the Rhine, then you are German, your are left of the Rhine and you are French, Everyone here in BW has more in common with anyone in Elsass than with some Germans somewhere in the north. Elsass was a few times German and a few times French. And still if you go over there the laws suddenly change. One of the most complex constructs are the "taxes" in the European country. So it's terrible expensive to get that all "straight. How comes the notion of nations is that "omnipresent", how comes that in the name of your "fathers country" or motherland every cruelty can be "justified".

Be cautious
whom you choose as friend. If this "friend" is named USA, you may get knee deep into trouble sooner than later. 30 years Mubarak was the "fighter" for the interests of the USA. Now a few days ago, they demanded him to step back. And even more "funny" it is rumoured they had "plans" for the after-Mubark time. I wasn't aware that Egypts is the 51 state of the USA. But hey what am I, just a stupid liberal....
Just am puzzling there was a survey among the German "politicians" (as you know I prefer to name them deledefs (democratic legitimated defrauders)). They think their influence is "minimal". What the hell? Who did us all the "bad" with stupid laws? And on the other hand. The one member of the Fed places a statement: http://blog.mises.org/15612/dont-blame-us/ I cite: The Fed, like every other central bank, is powerless to prevent fluctuations in the cost of living and increases of individual prices. We do not produce oil. Nor do we grow food or provide health care. One can not imagine anything more of lies. The Deledefs crucify us with ridicolous laws (just try to grasp the "idea" and handling of a value added tax) and the FED is the only one who can "print" money. But hey it does not matter, if we raise the money supply by 100 %, than you can not blame us if prices start raising. Sorry both of them are simple liars. There's no excuse or something for all the bad they do to us....

Heavens forbid see http://mises.org/daily/5038/Investors-Finally-Fear-the-Inflation-Precipice and read:

BERNANKE: There really is no problem with raising rates, tightening monetary policy, slowing the economy, reducing inflation at the appropriate time. … Q: You have what degree of confidence in your ability to control this? BERNANKE: A hundred percent.

The commenter was right. Perfect double-thing and speak. Just see they can not do anything if prices are raising but hey they can control inflation. There can't be more lying.

It's even worse as I ever could imagine: http://www.economicpolicyjournal.com/2010/12/bernanke-outright-lied-on-60-minutes.html

If you are not responsible for what you do
then who can care if they get a few extra billions bonus payments. Dafür aber in saftiger Höhe von bis zu sechs Milliarden Pfund (7,12 Milliarden Euro). from http://www.fr-online.de/wirtschaft/krise/milliarden-boni-fuer-banker/-/1471908/7160760/-/index.html

Will say the bankster in London will receive 7 120 000 000 EUR. They would be on the street it not the "governments" had supported them...

They earned big even in 2009, were a litte less "expensive" in 2010 and now, we are back.

Ah yes, so debts to all taxpayers and "rich" for the defrauders. Never ever have politicians shown of which kind they are. Support for bankrupts... And they control our money. How sustainable that is....

It still is hardly a theme. Just see this:

Neun der größten US-Banken haben vom Steuerzahler im vergangenen Jahr zusammen 175 Milliarden Dollar (123 Milliarden Euro) bekommen und zugleich 32,6 Milliarden Dollar an Prämien ausgeschüttet, wie der New Yorker Generalstaatsanwalt Andrew Cuomo scharf kritisierte.

from http://www.n24.de/news/newsitem_5286208.html Rough translation "nine of the biggest banks have got 175 000 000 000 subsedies meanwhile 32 600 000 000 have been paid as bonus payment... They are simply defrauders (very successful one's by the way ...)

My predictions
just to keep that written down. I know no deledef will read it and no-one will agree. But be it as is. The path is crystal clear IMHO.

I wrote yesterday about inflation. And there's a clear evidence for it that prices start running (if they start cantering, everything will go down the drain). The central banks do not do anything against it currently. It was highest time to make money lending more expensive around 1-2 years ago. The central banks did the opposite. They made money cheaper than cheap. Fact is with daily deposits you're loosing money. So I predict a raise of the inflation in EU country at or around 4-5 % in the next 5 years, the same will hold for the US. (1st Prediction)

Bonds have risen extremely. It will not be possible to make money even more cheaper. It could be that it will be demanded that the rich buy worthless bonds from the diverse countries, but this will not happen really soon. So I predict that bonds will not raise much more, instead I predict bonds will start falling within the next 2-3 years. (2 nd Prediction)

Because of the massive liquidity overhang, prices of all commodities will raise beyond reasonable limits. So we'll see the development of new bubbles. (3 rd Prediction). I think the prices will start raising this years.

Because of the massive amounts of debt in the developed countries. I expect cuttings in areas like investing in infrastructure and everything where there is no law to "back" up the claims. Now the services will be needed still so towns, lands, countries will start raising their prices also. I expect higher prices for water, sewage, waste, street cleaning, Kindergarten you can put in here anything that is "provided" by elected "authorities". (4 th prediction) (within the next decade)

Saving in the deledefs meaning always has meant or means, raising taxes. And so I predict raising taxes also (5 th prediction) (within the next decade)

Because people will try to avoid being taxes more heavily. The money will start flowing toward low level tax countries. This is a serious threat to any Deledef and so I expect that they will discuss and hindering free trade and free money flow. There will probably be extra taxes if you start bringing you money outside of your home country. I even could imagine that they introduce "artificial" exchange rates. Just to save the "poor" defrauders, because they will name it "unfair". (6 th prediction)

There is but one thing (I'm just wishing for) which could change things considerably. This would be the end of the Fiat-money fractional reserve system... I predict for the country breaking this taboo, will prosper beyond any imagination. Some countries currently have this chance, I bet they will not see it and do the same mistakes we've done with your federal banks. I do not expect it in the EU nor US. This countries still have no clue about "earning" money any more. The sums mentioned in the area investment banking etc, have not "foundation", but they have much influence and you see what happens if the do wrong. The countries will fail them out. And the politicians do profit massively from this...

This leads to my last prediction. We will hear more often the Phrase (it's as all just a word we have for that in German "alternativlos" (you can roughly translate it as "we have no choice", unparalleled, the one and only choice) . If it comes to more control they will probably not name it as such. It will be "laws against speculation", "program-to-enhance-competion", "law-for-equal-opportunities" or such but in fact it means. "We are right, you have to comply or we bring you to jail! (7 th Prediction)

Too much money
on it's way. Well and it comes as it has to. The prices are on the raise. Be it metals, food, oil etc. Another push towards new bubbles will be the fact that bonds will not raise any more, and if they can not raise they will start to fall.

If you get between 0.5% - 2,0% interest you hardly will be appealed to buy more bonds. And so you will start buying anything else.

And here we go. Oils up, metals are up, shares are up. And what does the EZB, dispite an inflation rate well beyond 2%? It keeps the discount on historical lows. Now avalanches work the same way. At first there is some snow it gets more and more and down in the valley death is inevitable.

We do not have a snow avalance but an "money" avalanche. So we all will end much worse than before. No-one of the current leaders stands up against it. They are just afraid, and so the repeat the same fault over and over and over again...

See our Bundeskanzlering. She's now for a european econimic policy. This means even less control through the population. Nowehere is any treaty of our rights. We can not question nor sue the current deledefs and so it's the deledefs land of plenty. No control, but having all EU cititzens as hostages. Brave new world was Kindergarten in comparison.

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