F Dominicus Blog

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

Next money too be burned

Now it's Portugal. http://citywire.co.uk/new-model-adviser/thursday-papers-portugal-appeals-for-eu-bail-out-money-and-other-news/a485095

The failout plans have not worked, do not work and never will work. It's not a problem of too less money and credit but too much of them both. One just hase to compare the money base expansion and output expansion. There's too much money and so the prices start raising. Portugal has accepted and asked for too much debts and the EC countries do not accept that. They want to provide them with more cheap money. And so the ones having taken risks (while buying bonds from portugal) will get all the money from those having not taken any risk. So there is no relationship between taking and earning and this will lead in the end to a crash unprecedented.

Suggestions for the investor. You have two just take care of one think Sell your bonds early enough if the EC runs out of money. Till then one can buy as much bonds as one like. All the tax payers in EC guarantee your interest... So I think short runners may be quite interesting. Try to get back what the governments steal from you.