F Dominicus Blog

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

August 2011 - Posts

The chances and risk for Lybia
Well it seems that Ghaddaffi was "gone".. That itself probably is good news. Now there will be some interims government. The people of Lybia now have chances hardly ever seen by countries like ours. The chances are gigantiv and the risks not less.

If they embrace sound money, no corruption, money as value and debt free government. They will strive without comparison

Unfortunatly for them it seems most of the interrims government were risen and "de"-educated in developed country. So I'm nearly sure that they will follow the developed countries. I do not think corruptoin will be fought very hard. I do not think they will not have a central bank nor "gold-money" they. The bureaucrats from the IMF, etc will come and suggest them they can not use gold as money.

If they will not embrace austrian economics they will be just another dictatorship this time under "green" authority.

If I'd live in Lybia I'd ask for the following: 1) civil rights 2) free markets and freedom of contracts 2) sound money based on gold or anything else of value 3) no acceptance for corruption 4) no debts allowed for the government

I'm afraid they will get 1) civil rights 2) Bureaucrats (probably too much in too short time, Argument we can not trust markets) 3) regulated markets and limits to freedom of contract (e.g not the freedom to accept anything but gold for payment 4) "democratic" parties 5) central bank and fractional reserve 7) fiat-money 8) tons of corrupton and "worthless" money

The chanced of the first are surely below 1% so I bet that Lybia will just get another France .... The bastard bureacrats from hell will do their best to start a new round of suppression, theft, black mailing etc. It's not that they will want freedom for everyone, but support of the population for their vermins

One of those days
where neithe the sun warms nor the wind cools. It's one of thos days grey-in-grey my photo cells on the roof deliver energy just enough energy for one 40 W bulb. In best times I can get over 5000 W an hour which surely is enough for all our needs. Anyway not today.

Now how provides my energy today. In honest I've change some 3 or so years ago to an energy suppliert not using coal or nuclear power. Thanks to markets I had have and still have this chance. So today my energy comes as usually from water. But to a large extend this is not what the "normal" users will get. They will get their energy from coal/gas/oil/nucelar power plants. Howerver you see all the photo cells are useless today all the wind engines are "superfluoous" today so in fact two times the needs of the people are installed. One time with "renewable" energies and the other times with conventional plants. Well that means also that we have at least double the costs for a reliable energy supply. So in fact today is exactly a day where not even tons of money would help with energy production from renewable sources. Bad for all the users that they still have to pay all the prices be it from the renewable energies and "conventional" energies.

However more interesting, there was a gold rush time for suppliers of photo cells. (maybe around 2007/2008) and this was due to what? Well just one word subsidies. I know first hand because In 2008 I bought my photo cells and for now 20 years the following price is guaranteed: 46,75 €/KWH. that's nearly four times the price for a standard KWH. Who has to pay, well the other inhabitants of Germany not lucky enough having their own roof full of cells.

Am I regretting this buy. Not at all, I named it to that time self-defense. And that is as I see it still. I'm not one of those paying the bills of bureaucrats and deledefs without trying to avoid them. Yes I know I harm others but this is government induced. I would not have bought the cells just for my own pleasure. They were much too expensive to really be competitive. They just get competitive through one of the greatest thefts in history. Introduced and bared from all this f..... deledefs. There is not exception to this stupidity any longer in Germany.

However it's getting worse. The cell producers had their height in or around 2007/2008 since then the guaranteed prices have dropped massively I think they are barley above 20 ct/KWH now. And now just see the stock prices for those cell producers. The dropped between 70 to over 95 % from their highest levels. So you still can see without this absolutely brain-dead subsidies they still can not produce the cells as cheap to be competitive.

Do you think the Deledefs are mentioning that during their speeches about sustainable energies. Not a word, they just tell us that "many" working places were created for that. And that Germany is the leader in "green " technology. Just think about it a second. The prices for the cell producers are completely under water and it's just a question of time when the first will get bankrupt. What about the many work-places than?

In honesty there is hardly a better example on deception one can find world-wide. The big "change" just hot words and substance. As I wrote at the beginning. "One of those days"....

As time goes by
We once had some good journals here in Germany. This times have com to an end within the last 3 years.

They are now writing as if they would be paid by the diverse Shadows of Green parties. They are blaming speculators as the scape goats. And not even mention that they were for helping banks 3 or so years ago. I've written against this kind of "help" since the first failout package, and no austrian economics has supported this kind of wrong-doing. The incapable journalists just write about neo-liberalism. Which just is another word for the good state the bad economy. It's fucking depressing to see a once capable journal writing that kind of crapp

No word about the fiat-money system, the melange out of big governement and big banks or big businesses. Not a single word. And here we go the state tries to control and gets bankrupt over that.....And the press just stands beside and applauses this kind of self-murdering.... Stupid, more stupid, Spiegel..l

Fundamental critique
Well I know this may get boring. However the stock markets were temporarily high up the last few days.

So be it. Just it does not change anything IMHO. We still have have the same problems as before and they are worsen every day, with every new bond. We have debts everywhere. Not even our money has some value, it's just an I.O.U. Making the billion dollar note is just as expensive as having one-dollar notes. We have hundreds of thousands inproduktive workers at or around e.g the president. See e.g: http://blogs.law.harvard.edu/philg/2011/08/23/obama-is-my-kind-of-war-president/. The delebets burn money in masive amounts for what?

So whatever will come, it's clear this kind of economic is not sustainable. For having sustainability we need: 1) sound money 2) sound finances 3) less money burners and bureaucrats. 4) less politicians everywhere

So my suggestions still persist. Don't buy any bonds of any state. Buy some or more gold or anything which has proven it's value over the centuries. Tell everyone about the austrian school and try to get this into "mainstream". We have had enough voodo-economics now for too many years...

Saving the delebets way does not mean cut one's expenses but highering ones income. Now this time it Italy. A higher tax for the rich, a higher tax on capital gains etc, but not mentioning cutting down the expenses FIRST. I guess that's what GDP related debt mens. All you property belong to use. We just decide when and where we take it.

Another astonishing development. Forbidding free trade, you think that some stock are to high and do start selling them, empty. It's now forbidden in three or so countries here in EUR land. France, Italy, Spain. Remarkable? Not really that are those which most distruste. As I've seen yesterday even buying Puts short should be forbidden. That means you can not express your opinion that markets are too high. And that will surely help. It will make everyone feel much better. Or not?

It fits very nicely to my predictions that the worse the state of affairs get, the more the delebets will try to "steer" control. The delebets do know they are wrong-doers but they would never admit it. So they are looking for scape-goats and there they are speculants.....

So one can see the usual lies are not langer sufficient, now they introduce some newer ones. BPOHs

Now dear Readers, if you think there must be an end to ignorance and deception. You have to read the following: http://www.icis.com/Articles/2011/08/09/9483817/us-fed-promises-record-low-interest-rates-for-at-least-two-years.html

One can see they are absolutely clueless and can't help but trying to prolong the suffering of a complete and without doubt unsustainable way.

With that Bernanke has now proofed he's an even bigger defrauder than Greenspan. What will he do if the inflation starts galopping. The prices for food and fuel are nearly running. (Well it's get a bit better because of the fear of a recession). Anyway they do it again and again and again, making money cheaper and cheaper just to keep this big ponzi-scheme running a bit longer. We now have negative interest and it's getting worse. They probably will futher buy securities etc. and printing money..

I always thought some sanity and knowledge must be present even with central bankers, but they've prooved me wrong. They are clueless and just panicking. The actions will accelerate the "Untergang".

Without doubt

A lot of money vanished yesterday. I guess we're talking about values at or around 2-10 trillions. How will that be changed if the EZB has bought bonds from Italy and Spain at or around 5-6 billion?

Without doubt, we can say also. Nothing has changed really maybe just the majority starts "understanding" what the central banks and states have done to our money.

I guess they start seeing that fighting problems caused by too much cheap money can not be solved with some tons of other cheap money. And to my pleasure it now hits a few nerves with central bankers, delebets and bureaucrats. I expected such kind of action some 3 years ago. But they were able to keep the impression of solidity and controllability. Everyone just knowing a bit about Austrian economics could not be surprised. I invite you to just browse through the mises blog and their associated blogs like this one. (Yes I'm not very decent) But I have written against this kind of madness right from the start of this blog and my other blot at http://fdominicus.blogspot.com.

I did not even know about the austrian school of economics as I started writing my outside Mises blog. I just keep deer what my grand-parents and parents have told me and lived. The all lived within their bounds. All other things follow from it. We are a family of savers. Nobody knows when one will need some money. And so we saved and invested "cautiously". Along 3 years ago as they started those "failout" programs. I started to invest in gold. I opened accounts in NZ an Switzerland just go get out this EU madness, however I avoided the US as the plague. With all modesty one can say, that has served me well.

However that probably wasn't the end. One MUST start thinking about a break-down of the western countries. I always was optimistic about out ability to learn. But the Deledefs have proven over and over again. "They simply do not get it". That makes them extremely dangerous because they try to regain "control". I'm not sure if that really is possible currently, but as long as they do not start acting responsible I can not see how things could turn to the better. So I expect new laws, new taxes more limits to freedom In fact I expect stupidities as laid out in "Atlas shrugged". I wished I found the John Galt valley....

That was overdue
Finally and it serves the US right, Especially Mr Yes-we-can president Obama.

The USA have lost their highest credit-ranking. It would have been better they would have been downgraded some 3 years ago. But better late than never. 14 Trillion (extended to 16 trillions (official debts) is way beyond any reason. And it's the highest in times of peace. Well maybe the military adventures of the US do not deserve to be named peace. Anyway there is not declared war but war on terrorism. With all it's "magnificence".

The US should see that debt is the start of the end. And their debt toll is way too much. There should be never any debt for governments. It just means they live without their financial bounds, and they deserve to suffer from it as any other "company". No state does not deserve this special treatement and it just shows among the equal or some "more" equal.

Fortunatly the markets start to realize the mess the states are in. That's really overdue. But again better late than never.

On just can hope that the US will have to pay higher interests also. The current money burning from the FED is also beyond any reason, and it serves them well that the markets realize that they are running the biggest ponzi-scheme ever. I hope the US citiizens vote for Ron Paul in 2012, but well I guess the big "business" firms and military complex of the US will support someone like Obama who gives them access to any purse. Nice to see the reactions of the bureaucrats, "unfair", well no.. "well deserved".

Just can say US citizens you will have choice next year. I'd suggest that you give Obama what he deserves, "go out of our ways". That's the best message I could imagine...

Does the message will arrive?
I'm puzzling. Will the Delebets look at numbers and put of their rose-coloured glasses. Or will they burn a few extra trillions?

Gold has reached again it's highest value. Yesterday. In all but one currency the CHF has outperformed any other currency on the market AFAIKT. Does that mean anything? Well it probably depends if you think democracy is good then the Swiss have a very good democracy. The population can question nearly any law from the authorities. This is near unique world-wide. In Germany we have nothing comparable and so if you have chosen you are through with it. The Deledefs can do whatever they like. NO QUESTIONING.

They argue that the population would be overwhelmed to decide as the negotiators of the party. And so Merkel does what she likes hardly even hampered by any law. And that's mostly similiar to other EU countries, Germany is not even the worst. From my point of view, the French and Italy are much "worse" of. Anyway will they just STOP once and think?

Would it be asked to much really to get to the ground of the austrian school of economics?

I'm afraid they would not hear or see the message if it would be 1 m away from them crying and with 1 m large letters. The Delebets have proved over and over again that they simply do not understand market, they have not idea about consequences of their doing. They really think if they want to achieve something, they can whatever they like. But you see they are wrong with the economy and especially wrong with currencies. The have sunk billions of Euros and still there is no improvement. They do not get that, they are asking for another few billions just to do the same stuff as before. So I'm afraid the message will get lost.

I just want to keep it written down here. There are alternatives, I outlined them here over and over again and probably will another few hundred times. The easy solution is "Go out of our ways". Does this message will arrive some day?

What a suprise?
or not? Well the debt ceiling will be rissen (at least as much as not to bother Mr Obama for his next selection) Who could expect anything else? That anyone would really say, without me, and I'll do all I can to stop the debt making of the government? Just thing the politicians do not care that much about anything but getting re-elected. If they would bear the consequences they, might see getting the US in a harsh recession. And that's never good for getting reelected. And so they go the way of the least resistance. The swear, they just do it for the best of the US. And maybe they are "believing" it. (which makes them so dangerous) But even if the would not officially higher the debt ceiling, how could anyone believe it would stop deb making. There always will be a way for government to "generate" money out of thin air and or steal it from their population. I did not have hesitated a second that they find some way. And it seems they are raising the ceiling in 2 steps 900 Billions immediately and a another trllion a little later this year. Now how serious will they be to avoid new debt while having "new" credit of 2 trillions? I wrote before the US could do us all a favour, making us believe they are going to change anything. This is so fucking dishonest....