F Dominicus Blog

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

November 2011 - Posts

Why don't they get it?
Or maybe one should write, why do they do not learn?

More and more european countries want that the EZB starts printing even more money. Well let me ask just one question? What does the US citizens have gained with their fed printing money? Or what have the GB citizen gained?

Just to give you an idea GB will need new debt of around 100 billions. Now tell me about insanity. Of course the money is not there, and the government is not able to cut down on it's expenses? Now tell me about addiction. It should help someone drinking to drink yet another few liters of alcohol a day? Well is the goal to die early? Or earlier? Or should one get beyond this addiction and get back a life?

Well for alcoholics the goal is getting of the drug. Why should it be different for governments? Their one and only problem since 5 decades is that they were not able to get along without new debts and what are new bonds? Sugar? No even more of the same debts. So that is insane.

The US and GB and all other countries must come down from their addiction to new credits. No debts not problems. And for us it means we must do everything to not provide the additives with new stuff. Just do not buy bonds, just insist on sound money. That's the best for everyone (but parasites) .

It has nothing do do with market
I'm a regular reader of the Mises blog and this time really a bummer was posted: http://blog.mises.org/19554/whats-7-77-trillion-among-friends/

You can read my blog up an down and I always wrote. don't bail out. Now you can see what happens in this dirty business. This all just can happen because the Fed exists. So the only way which can end this is ending the Fed. So support everyone trying to get rid of it.

Sound money will yield sound markets and sound markets will yield justice. You can see it's also just to fight against governments and money monopolies. There is not market, there can not be justice. It's as simple like that.

What can you do to end the misery?

Well you may ask (I asked more than once ;-) what you can do to end the misery. If you ask which misery, this entry is not for your. It's for those you think we should do as much harm to the current system of vermin.

Can we really do something against them? Yes. We can, we can't with votes that's for sure. At least in Germany the congressman can do whatever they want during their active time. Even if you won't choose for them they might have a place on the party list. Will say if you vote for CDU you will get Merkel even if they just get 10 % because she probably is first or among the first on the party list. So harming inept deledefs is a thing you can forget here in Germany.

You can try to vote for another party. But the only parties we have a social democratic to socialists. There's not really any choice for non-left-minds.

So far so bad, but they have a big decades long problem. They do not have enough money, for all their undertakings and so they need the trust in states as debtors. And that is where we really can do something. The simplest thing is not to by any bonds of any government any more. Is that a loss? No hardly, you can buy bonds of corporations. And this is what everyone should do. Buying real values via equities. (I suggest not buying equties of banks because the work with government to make the savers the idiots. So you can buy shares or bonds of everything in industry, farming etc.

This is what I've done some years ago: http://fdominicus.blogspot.com/2009/10/done-i-sold-last-asset-from-country.html. And because I've no bonds of any government I do not have any loses. So that's seems to be a good deal. The other think I suggest do do is buying real values. Your money can be inflated, the real values only to small extends maybe even not at all.

You should also write to every congressmen that he/she should work on abolishing the central banks and go back to money as value not money as debt. They will not give in voluntarily but just keep the pressure up and one day they will have to agree. Sound money is the base for sound business and vs. you can not have a sound business without sound money.

It's high time to say goodbye
dear reader. I guess it's not a suprise to you that I want money as value and not money as debt.

The outooks are getting more devastating every day. And the "solutions" suggested are the same wrong things we're doing since we abolished money as value. In fact the inflation/deflation do not change as usual. It's just more more more inflation. That can't be a suprise because money printing is the solution to everything since ages.

If you consider it it's just voodo. Printing money is absolutely effortless indeed if you add a 0 to a 100 note you suddenly are 10 times reacher (on paper) but nothing was produced for it and no-one has spend any serious work on it. In money as value currencies it is impossible to just printt things. If the note says, you can go to any bank and get xy gram of whatever, this money is backed up and can not be inflated just by appending a zero to it. In fact you "must" know that you have this xy gram of whatever somewhere. Either youi saved it or in the case of banks their customers have saved it and ALLOW the bank to lend i. Yes even there we can not know what investments will be fruitful. But in the old system it simply does not matter. The money is printed "before" something was produced.

That means also, those having this money first seem to be richer then they really are. So they can buy more for nothing in reality. This is the first time the big debtors gain. Now the biggest debtors world-wide are the states, and the states can force anyone to use their money on the land they rule. This is the first time savers get duped. But that is not all the money out of nothing drives up the demand. And at the end of the chain, those getting this money at last, find that he can not buy as much for this money as some years before. And this is the second but not last time the saver is duped.

The deception goes on with the following. The big debtors not just do print money they are issuing bonds also, and they have to pay interest on those bonds. Here again the states are the highest issuers of bonds, and now another deception takes place. The buyers of bonds can not print money out of nothing, they have to save the money that they can invest. (just remember this money, most often has start is existence out of the blue). Then they have to pay "saved money" for the bonds. During the runtime of the bonds the earned interests are taxed. So real saved money is paid some day in the past, the interest is partly stolen by taxes and the money is inflated and at the end of the runtime the 100 CU are just worth 80 CU or even less.

This money is not a unit for paying and saving every cent is just a lie. Franklin just looks on you and is smiling. He would have got it how you are duped. So you can protest against bank and big business as you like, but as long as you do not protest against the money monopoly and the fiat-money system. You just want to change the system that you are master and not slave any more. Occupy Wallstreet does not have understand this and therefor it's just another master trying to get some slaves.

So there's but one candidate which asks for sound money for ages (at least 30 years) and there's but one way to get our of slavery. Abolish the Fed, take away the money monoply from the state and demand that the currency is backed by values... It's high time to day goodbye to fiat-money. The longer you way the more brutal the awakening. So again Say goodbye to the fed and good-by paper money.

Congress show that you can
dear members of the congress, it's nice that you can show that the US would be better of without you finding "compromises".

So be so kind and stay as you are, do nothing. The US citizens and the world will appreciate it.

So long !

A somewhat nicer outcome
there are those days where you get some positive news.

Now the parties could not find a "saving plan", this alone can not be a suprise to anyone. So nothing really good or positive about it. But

now there is an automatism in cutting expenses. And that is a good thing. I really don't know how serious that is meant, but if it's serious it would be great thing. Just cut everywhere till you get off you deficit, The figures I read are over 1.2 trillion in cuts, and this are "cuts" not "higher taxes". If that is not good news I can not see what else

Now keep your breath
Well I looked over some old blog entries on my outer mises blog and found a most astonishing number:

Three years ago the US debt were 9.5 trillions. Now in November we have officially 15 trillions of debt. That mean more than 5.5 trillions more debt in just 3 years. Will say the new debt growth is 10% a year !!!.

But imagine that is not even half the truth. The debts of Mae and Mac are undocumented. My figures to that time were around 5 trillions. And there were other promises of around 2 trillions.

Now if I take that in consideration we get from 9.5 to 22 trillions of new debt. that's more than a doubling in 3 years or. The other way the debt growth is more than 25% a year! Now if one things just Euro land is in knee deep trouble, think again.

Finally the truth is revealed. The poligangster are putting us all in misery. As Mises and Hayek have written. We were right and all others were wrong.

Worst ways
or, why deledefs love Fiat-money and their money monopoly.

Well as we have to realize that we have a debt problem world-wide. (USA > 15 trillions of debt, just remember in June or so they have raised the debt level vom 14 trillions), The EU somewhere between 18 - 20 trillions. Japan a few trillions also and China which claim to have one trillion in "securities" from the US. And so it goes on and one. There is currently not one country world-wide with absolutely no debt. Now tell me about insanity

How can that happen? Well its a "perfect" construction for parasites. The parasites are the politicians, bureaucrats, and big banks. Banks may live without a state, but a state with out banks is well historical hardly to find. Now it makes sense for both sides to work "together" the banks are the only ones which are able to sell all the trillions of bonds. And with every selling, the earn quite a bit. Now what's the advantage for banks. Well they got "political" cover from the states. Either directly as e.g. the Landesbanken in Germany and/or the Sparkassen or indirectly as you can see with the bail-outs. Why do states accept this. Well a bank is not just the seller for bonds but also the holder of deposits. And here comes the worst of all. The banks to take this deposits and lend them out, either directly while buying bonds, or just for other credit facilities for the state. Now this money is not theirs and if the state would not try to "save" the banks, the deposit owners may not get back their deposits. So banks and states are working with everyones property to satisfy their never ending appetite for money.

The biggest thing of course is creating money out of nothing. Absolutely impossible for money as value (read gold as money). If the banks give a credit there are suddenly the credit euros or dollar there, and they do not have backed up completely with their own money. It's just a digit in a computer. So you can create more and more credit, and you just can "hope" that the investments done with credits will be paid back. That is (un) fortunately true most of the times that works. Well in fact if the just loose the normal 5-10 % of the given credit sums, they still earn big. Anyways this system comes to a screeching end if the overall debts are way to high. That's the case currently the states have to many debts and people do not believe any more that they will pay back. So anyways the whole money system is a big Ponzi-scheme. Banks and Politicians are allowed to run it but if you do that in a private enterprise you got to jail (which is correct)

Why can that all work? Well the easy answer is the states do own the "most" weapons and they do write the laws. So if you do not comply you'll get to jail. So people must be afraid to work against this stealing because otherwise they would get harmed. Not to forget the state have currency monopolies and central banks. That another level to obfuscate the wrong-doing. They name it "lender of last resort". Does that not sound "wonderful"? And it's a plain lie again. central banks are backed up by state promises. And that's all there is. I don't know how you see it, but for me this promises are not worth anything. Governments are lying most of the time, and mostly then if it's especially embarrassing for them. Just read about anything from Obama, Junker, Baroso, Merkel and Sarkozy in this regard.

And you can see the greediness of banker and deledefs. They make new laws to save themselves for prosecution. And the state just claims some banks are indispensable. And so we got the worst one can get.

Such system do break every few decades. This system now works for around 50 years and we're nearing another end of such a deception cycle of the follies of deledefs.

The "brutal" truth
about German public law television.

You can bet.

  1. Is it the financial crisis?
  2. Is it the breaking of international contracts?
  3. Is it about too small parking lots?
  4. Is it about the price for petrol?

Now you can choose any of the two? What'll be the result?

Well I know you can not hold your suspense

So here we go it's 3 and 4. Isn't it astonishing? The interest rates for more and more countries go through the roof. Billions of Euros are burned and the most prominent themes are high prices on petrol (of course this is because of the greedy services stations and the big oil companies (pushing aside that 2/3 of the price here in Germany are taxes))

In fact it was mentioned in just one message. Something like. Italy and Spain have to offer higher interest for getting fresh money. That's it. But then the petrol price was theme, people on the street and the ADAC was asked and well that tool probably 1-2 minutes!

A new and a secret round of expropriation
One just can say the break-down runs in direct confirmation of Mises predictions but also "Atlas shrugged".

People start to sell off bonds from nearly any EU country. Believe it or not Germany is not among them. Quite the opposite, the spreads from every other EU country to Germany are raising and Germany gets the money for free. Indeed they had to offer 0.8 % !!! for 6 months running bonds (AFAIK) and we have an inflation rate near 3%. Well so much to money and interest. Just remember also the ECB has lowered the Discount rate to 1.25 %. So in fact this is artificially low. And it fits the last moves of a Fiat-Money system. So Germany does not have a problem refinancing itself with bonds. But it gets more expensive for the other on a daily base. Monti or not Italy is "finished". But now the EU bureaucrats are again entering the scene. Baroso warns of a systemic crisis (he is right on that) and he wants no actions and now the madness shines. A new round of credit and leverage of EFSF should do the work. JFYI the EFSF has to offer much more interest then Germany alone, but the credibility of Italy, France, Belgium etc is (not free but) falling. So there are two options I think the deledefs will take. At first the will put more pressure on the ECB to buy even more bonds (this would be another new round of expropriation). The other thing will be that they introduce a tax names something like "stabilization of the euro fond" or the like. Taxes are not a gift they are robbery and so you can see in both paths a new round of expropriation starts.

But there is another "secret" round, with no democratic control and even worse. The ECB has bought bonds from Greece, is now buying bonds from Greece and Italy. (it's not known to me yet if France bonds are bought also) but the ECB has to be financed from every Euro country. And well Germany bears 27% or so of the "financial needs" and well the bonds will get worthless sooner or later. I guess sooner is not a bad guess these days. Why is this even worse than EFSF, well the ECB works without any control. An extension to the EFSF is not very likely any more. But the obligations from the ECB must be beard. This means whatever the ECB does everyone has to pay for it (dearly) . So the way seems very clear to me. The pressure on the ECB will raise they will claims kind of emergency laws. And down we go.

I just invite you to check this blog for the past years and you'll see how I warned about it over and over again. Just see http://mises.org/Community/blogs/fdominicus/archive/2011/02/03/my-predictions.aspx on my outside Mises blog I wrote (more than 2 years ago http://fdominicus.blogspot.com/2009/10/done-i-sold-last-asset-from-country.html You can check the Mises blog and see they warned and warned and warned. But the delebets do not give in the name expresses what they are.

A lot of things
just stink. Now I have to read really bad comments about Berlusconi, but years after years nobody but a few did not have had anything against him. Hi tries to avoid processes with special laws targeting his wrong-doing. Tried to shorten statutory periods of limitation. All this was done during his whole period of "leadership". Was there much critique?

No, he's the leader of a big economy and nearly all is fine. Now he was gone and now hardly anything is fine any more, that stinks.

The EZB was started with the one and only goal stability of the currency. And is now buying bad bonds as mad and is the one of the biggest bad banks around. That stinks.

Everyday we get new laws to save us from ourselves, and this laws are binding to us. We have to follow otherwise we will be prosecuted. Now there are laws which are broken by our parties over and over again, and we do not even have a chance to question them in court. This laws are not binding to deledefs, that stinks.

Just a small excerpt of things which have more than a smell. And as it seems there will be much more to come, that stinks.

This time is NOT different

Do yourself a favour and buy or try to get your hand on "This time is different". It is as if this book was written for this crime we currently have to watch.

If you just believe a second what the supposed-to-be-experts write. Just forget it, especially forget nearly everything Krugman writes. No too much debt is always the beginning of the end. And this was trues always and can not be changed. You just can live beyond your means as long as people trust that you'll be able to pay back.

This trust has to be earned. But if you always act against horse sense, you'll see one day you won't get any credit any longer. Now it seems that too many countries faces this fate. Greece does not get any more money, and Italy is starting to get no more money. And the US can't do anythign any longer because of 15 trillions of debt.

You may remember:http://mises.org/Community/blogs/fdominicus/archive/2011/09/08/who-could-be-suprised.aspx. It's so foreseeable

Foreseeable wrong. Nothing has changed since ages the rulers enslave their underlings. Today they name it democracy, but democracy is just another kind of dictatorship. The majority rules the minorities. And guess what the vermin are the majority. You can name, them bureaucrats are the most harmful, but then you will also read from the poor blind which can not do this or that or whatever. It's always that it's not ones own fault, no the culprits are always the circumstances or the others.

In every speech these days you will hear things like responsibility, helping, solidarity, and not to forget justice. Well the justice of spongers.....

The real justice markets are not even considered any more. All the laws and every action is against markets. Free trade? Come one you must be joking. See the treaties of trade of the US. The bureaucrats, decide whom can do what trade with whom else. And you have to ask the spongers, and if they do not want. Well bad for you....



What a bastard. Oh, yes let’s start again to cry: “Heil”.

It’s wrong on every level. It’s wrong on the economic level. Money printing can not heal a problem caused by too much money printing. And on the moral level it means, it does not matter what a country thinks is best for itself but what is “ideal” for the old masters of the world US and the coming new master China.

It’s wrong on the level of any freedom it’s a fascists dream. Crushing the “Untermensch”.

Let's think a little bit
Well maybe thinking is a litttle to much maybe speculate would be the better word.

As you may have read, Euro land is in as deep trouble as the US. It's an open question who really is the worse, but well that's another story.

Now we have read a lot of ideas about saving. One of the ideas of saving was a tighter "cooperation", well it probably is a asked quite much to synchonise 27 different countries, but welll that's another story again.

But now something changed the ideas slightly. At first Greece is finished. Well just remember the vote then the note vote etc. Anyway Greece just stands for around 350 billions of debt. If you look over Euroland this really is not much. Anyway with the default of Greece bonds french banks will get in knee deep trouble. So far there's nothing new.

But here we go. The interest Italy has to offer are exploding. We are now well beyond 7%. That means a doubling of your debt in "just" 10 years. Or the other way round with 7% interest and 1.8 trillions of debt (official!!), Italy has to pay interest of 1.8 trillions in 10 years (with 7% interet). No that are as much as 180 biillions a year the budget of italy is well below that of Germany that are around 300 billions. So let's assume 250 billions. You can see 180 billions are way too much. So saying that Italy is bankrupt also could be seen as fact.

Now as you know ESFS III should be leveareged to over 1 trillions guranteees (which seems to be illusory) just see my entry on my old mises blog at: http://mises.org/Community/blogs/fdominicus/archive/2011/11/09/extension-to.aspx

So with high likliness this all can not be expected to work. Now the "new" idea is to split up the euro zone into a core zone and a "rest" And now comes the information I found most "revealing". This is driven by France and Germany. Now we know France and Germany have seen itself as "engines" of the eu process. but guess what the french banks have a hell of outstanding bonds from Italy of around 270 billions!. Now the budget of France surely is in that areas. So if italyy defaults France is "finished" also. They can not bear another 270 billions alons. If you see that with the work on the core europe one can come on some ideas....

Extension to
my blog entry a few days ago, about the sustainability of the ESFS.

  • Fact 1) the "auctions" were bad. And the ESFS has to offer much more interest then Germany bonds alone (guess how many would "back" up this bonds)
  • Fact 2) neither the Chinese nor the Japanes, nor the Russion are willing to buy ESFS bonds
  • Fact 3) hardly and private held bank "invests" in this bonds also the only ones taking some of the bonds will probably be government controlled banks.
  • Just imagine the last auction was just over 3 billions now how will they get the leverage on 1 trillion?

    I'm not afraid but sure, that ESFS III can be judged a big failure. Well for liberals and libertarians this can't be a suprise, but even for normal people this is good news. It means there is some natural limit on the manipulations of markets and this supports my other entry: http://mises.org/Community/blogs/fdominicus/archive/2011/10/21/in-the-long-run-markets-will-prevail.aspx

    I'm still as sure that we did not have seen the end of the interventions. The deldefs world-wide will try to find another way of prolonging their "dicatorship" and I'm sure everyone will have to suffer under this decisions. But in the end they will end on the dungheap of history. A new round will start but then I'm afraid again. The spongers will come back. And the honest again will suffer. Freedom is just a seven letter word for them, they have absolutely no bonds with it....

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