F Dominicus Blog

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

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)