F Dominicus Blog

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

January 2012 - Posts

Obama it's getting worse
If you have read hear just a few articles you know that I think Obama should not be president.

Now he gave a talk about the "Future of the US" and there he mentiones something like egoistic money jugglers.

Well it's not the egoists I'm afraid of. Imagine you get along somewhere (let's think a market), and you want to have something let's say a pot of honey. You want it (egoistic) and now what is the next you ask? Well it will be "How much is it". And you will get an answer. This answer will be the base on which you decide, well yest it's worth it or not.

Now you are a non egoistic but politician. The same market. You see something and think well those or those may have a need for it. You take the stuff and inform the other side that's for the greater good and that he has to agree. If he won't you will just pull your gun and say again. "Sir/Madam you want to give that to me for free, I know better what to do with it". The latter attitude is that of Obama and hit gang (bureaucrats etc) It's not me that is alone with this see the big dispute about a visit to your president here: http://www.huffingtonpost.com/2012/01/24/tim-thomas-boston-bruins-white-house-obama-politics_n_1228156.html

Who is the problem? AFAIKT it's not the egoist. He knows he has to give to receive something in return.

Extension to completely actual
Well it has come as I expected more than once.

Now the next German Solar supplier will probably go bankrupt. And what did I post yesterday? Which itself was quire some "old" stuff? And burning money what did I calculated there.

It's depressing to see your money (yes I'm one of those still paying taxes) burned that way. Now if I would have invest my money with German Solar panels suppliers and started with this investment just 6 years ago and would have held till today I would have lost > 97% with each. Very sustainable. Now I do have done that and still I have to pay for the panels on the roofs. But as you also know I placed some extra on my roof also I mentioned it How to maximize damage to states

I hate to say it, but it's kind of war time its defending one's one property against theft, robbery, and black mailing. On the other side are the states and their workers.. It's a shame.

Completely actual
t's unbelievable what politicians come along these days. Till now every "plan" (should I dare to name it that way) was put into pieces. And they still do not get it. The problem is not too less money, too less political influence and the like. There's just on thing really too less. Personal responsibility. As long as the plans just do everything to minimize that, they will sink Billions and trillions of money, till they can't do any more.

The people having robbed out the majority, must stand to their responsibility and give back. Currently everything is done to keep them "at the top". That's bad, how can anyone expect normal people building trust if they see how those people for the "get rich fast" won't pay to have their bill.

So is the bottom reached. It's not even in sight. For Germany I predict we'll test the DAX lows from 2003 or so, for the Dow at least 1/3 to 1/2 losses is not that uncertain. Will we see bankrupt states. Well we've seen Iceland and we see what happens to Argentina.... Don't say it can't happen to larger states. If we in Germany throw out all the money we do not process....

At least we in Germany have experiences state bankruptcy two times in the 20ies century. One after World Word I and the second after Wold War II. Unfortunately our politicians do not take that possibility into account.... with the half billions parachute for banks, we may start outstretching our luck....

Guess when this was written you can check here Down the drain

There may be a slight chance
That even deledefs have to serve their contracts.

In some german blogs it is mentioned that the "haircut" discussions for Greece are stopped. There seems to be some Hedge Funds (what a luck that they exist) which will not agree to the voluntary debt cut. And they may have a chance to succeed. see also e.g. https://www.nytimes.com/2012/01/19/business/global/hedge-funds-may-sue-greece-if-it-tries-to-force-loss.html?_r=1&pagewanted=all

It would be a hallmark for responsibility. Yes the Greece have made the debt and yes they have to pay their obligations. This would be fantastic news and we had at least some handling against the disposal of governments. I hope they have at least enough bonds to hurt the deledefs of all countries considerably.

Another small look back

Has anything changed or was I right on the point? In fact the debt have risen more then 6 trillions. In just 3 years.

And still the same bandits are riding and driving more and more into poverty. Is that what you US-citizens really want?

Why one would trust anyone of the candidates which have proven to keep this system running is beyond my understanding. The states is the problem and the disease, you must get cutting it out.

Yesterday was a good day
Finally German´y was downgraded. We deserved a much higher downgrade, but it's hopefully the start to end this miserable "social market economy (well this is an euphemism I know it it pure socialism at work)

Anyway neither the US nor Germany deserve an AA- they deserve maximal a grade which states. "will pay for it debs for at least a while". Every Austrian see the marks of the end coming. They just need one look Fiat-money and debt, and they know who is doomed. We Germans are the US is and many other countries are also

The sad but true answer is: There is not one country on this whole world with sound money. So the "social democrats" are the old, and current plague.

You can make it happen

I warned you years ago for the man without ideas Obama. I warned for the other candidate also: http://fdominicus.blogspot.com/2008/10/keep-this-on-record.html

It's up to you to end this. Watch closely what the candidates have done in the past and how they acted. If you feel that freedom is not just a seven letter word, you probably just can vote for one candidate. So don't hesitate to do the right thing. You were ruled by liers for decades and government has shown more then once that they are for "big money" and big companies. Don't you think it's time to give those a chance which earn your wealth. Yes GM and the big firms partly do own your wealth. But there are those "little" craftsmen. There are those mechanics countrymen etc. They care for you as customers, they offer value for money. If GM has done wrong it does not try to serve the customers better. Thy sit down in an plane fly over to Washington and are whining how great they are for the US an how under appreciated they are.

This is a plain lie. But hey government just sees 10000 working places in danger. We have to do something. That they drive out of the market ten times as much. That's not what they care for that "normal" risk.

Don't you think that is unfair? If yes again watch closely what the candidates have done and how the acted in the past. You may come to the "right" candidate then.

Last but not least you will have another choice in 5 years to vote for someone else. But it could be different this time. See your constitution and vote for whom stand for it. You grand fathers did know right from the start, what dangers large government brings with it. That it has come so far, is not their fault. They've given you the means to avoid that. So think about it and choose in their remembrance.

Thumbs up for the last ratings

The only problem I see is that the downgrades were just to low and not complete enough

It still is completely ok to downgrade the EFSF. It's simly a package of lies. It's good hat this lies are not bought by the rating club.

You can see how well deserved the downgrades are if you read things like "Germans must help Italy" and the like. There is not must there is just a must not. But this is ignored. But still I won't forget the breaking of the contracts and laws. If you follow this blog you know that I've always expected them to follow their own given rules. They won't and don't, so let them go down. So lower their ratings quite a big further an I'm happier.

Some A-s are rolling
Now some of the too many A-s ar egone. At least for Austria, France, But imagine not for Germany.

Not that France and Austria do not deserve loosing this top-rating, but Germany had has to loose it also.

And just taking away one A is way too less. The US has increased it's debts over 70 %. If you look into "This time is different" another 17% are lurking. In that book they figured out bank crisis led to 87% more debt on average. Well the question of course is why do they not simply let the banks fall.

Now in the eyes of the deledefs this is a very bad idea. Because banks are holding and distributing bonds of states. And so they are "very" interested in banks which can pick up one and/or the other billion of banks of now comes the madness, bankrupt states. And this they are all. Be it Germany, France, Greece, Italy, Portugal, China, Japan, the US. They all have one in common they are broke.

Of course they will no admit it and you can bet it's not the responsibility of the deledefs. Well that's another big lie. But I guess I don't have to tell you.

What can you do about it ? Well you still can vote, so vote wisely. All the candidates will go on with this debt spiral, but Ron Paul. If anyone will cut into the government game of thinking money I think Ron Paul is it. Obama still does not have learned anything, and so haven't all his advisors. We do not speak about the criminal organization for the money monopoly euphemistic named Fed. Of course no-one can hinder them printing money, but doing so is stealing from those having saved money. Every other organization stealing is "criminal" and I don't make a difference here. The wrong-doing of the FED is criminal. But I think you know that I see central banks as the "central" problem. All this debts could not get that large with money as value instead of money as debt. The paper money make it easy for FED and government to steal. Again the only one wanting to end the fed is Ron Paul.

Another thing you should consider according to von Mises the bust is the cure and the boom the disease. So trying to prolong the boom, means prolonging the disease. It's not too less debt that is the problem. It's a system which just works and bredes debt. It seems they deledefs think there is a base human right for government to make debts. No it is not. It's just stealing. There is not other word for it. States can not produce they can't do anything to raise the wealth of countries. The can drive countries bankrupt that's what they surely can. Just see above. The only think states can do to not decrease wealth is going out of the way. And just watching over property rights and contracts. But states do go beyond that they make laws that limit liabilities. So BP does not have to pay for all the destruction which it has brought over all in the Gulf while they were unable to stop the oil leakage. All this is against property rights, but they do not name it such.

Another thing you can do is: "Do not give any more credit to any governmental institution" It still is your money and you do not have to lend it to defrauders. So don't do it please." Let them fall for their own faults. That's "just".

Now it's official
The non-plan about a "voluntary" debt cut, is gone. Wel if you have followed this blog you know this hardly can be told to be a suprise.

At first If I'm having the bond I have the right to get my money back. It's up to me and the debtor to figure something out if he's not able to pay. And there is the possibility to get an insurance about a non-paying debtor. So if I'm having the bond and such insurance. Why should I disclaim my rights.

I swore myself some years ago never ever to buy any bond of any government any time again. And so I was out of this bonds in 2009. So it's should not be my business any more. But now the states decide to hand out money they to not have to other governments which are broke. You can imagine how I feel about that. This is theft in it's worst form. But it's theft from governments, and then it's not theft any more. That's ridiculous.

Anyway the private bond holders have said. We are not convinced and now it's obvious Greece is broken. And the "saviors" of the other EU countries are on there way to be broken also. Even the rating companies, finally realize that. But still they are givign most of the states something with an A in it. That's stupid and another lie. Fact ist all but a few countries are broke. Manys in the € zone and we do not have to talk about the US anymore. They has a debt increase over 70% in the last 3 years. They are completly broken also. So neither of them deserves that anyones trusts them any more.

It seems that trust has gone down the drain. And that's a good thing. I hope we'll see the end of this Fiat-money system soon. And I wish this that those which have put us there, get their deserved fait.

Going back in time
One of the nice and bad things about Internet is that you can find things you once wrote. This is what I found: http://fdominicus.blogspot.com/2008/09/watch-closely-what-candidates-do.html

Now what has changed? Obama still is clueless. But no other has any more clue but Ron Paul. So nothing learned in 3 years and another 8 trillions of debts later. That's really poor.

It could get "interesting""
As you might know I'm against government wherever I see it. Now there is some interesting new about Hedge funds and Greek debts.

As you might know Merkozy have informed us that Greece must be saved and was saved, partly through a "voluntary" renunciation through banks.

It seems some parties are not very happy about it and have bought many soon to be maturing bonds. Now what does that mean? It means they expect either a full payment (that would be a fantastic return on investement) or that Greece will default and that the CDS will have to pay. In both times they are winning big. And that is excellent new.

I'm quite aware it will harm the counter parties and in the first case (the full payment) those are we the tax-payers. Anyway. it's up to everyone to take the risk or not. It's clear a few billions will be won by the Hedge fund but in the case of some expropriation. I guess they are aware of that danger. They should know quite well. "One can not trust government" If you do you will come home in a body bag.

Starting to solve the Problems
According to von Mises the Bust is the cure and the Boom the desease. So the way out is chrystal clear. As long as we try to prolong the boom the harder and harsher the Bust.

Now we have to pinpoint the problems in some logic congruent way. So we know that the states ever have expanded their activities. And this activities are by definition unproductive. States do not server any customer but themselves. States can not produce anything, because they have no way of calculating (according to Rothbard). So we then have one point where change is needed. The ever expanding government must be shrinked

Now how could that be achieved? Well as you know the state has a few monopolies themselves and gives grants to other monopolies also. The most urgent problem and most dangerous monopoly is the money monopoly. A state who can declare what it likes as money and under physical threat to accept this as "money" is THE problem . So the money monopoly has to be taken away from states. (I know the FED in principal is private, but it is established as a monopoly by simple force of the government) So we have to replace money as debt with money as value (as it is meant to be)

This solves another problem, brining money into existence out of thin air. The Fiat- money system is established slavery. And therefor it has to be abondoned. After the monopoly is gone states can not expand their credits as much as the like. They have to pay back in dear things not with some sheet of paper. So we need to abolish the fiat-money currency. If we do that a lot of other things fall into place.

Governments can not make debts that easy as now. So they must limit their activities. If we have less debt the state does not have to always try to expand their tax base and taxes.

After that we have to ask ourselves. What can states really provide for the well-being of their citizens? We know a) that government can not calculate and b) government can not produce. So what may be the thing a government can provide. well the only think I can see is to guarantee the property rights of anyone living in it's boundaries. But if this is the only thing they probably can offer then you can see how much money can be spared for other things. We do not need laws which limit the risk for big companies if they are doing things wrong. They must be aware that they have to pay for it. So BP probably would be in big trouble these days. But with government limiting the risk for them they go on as usually. So fact is (unfortunately) the government does not even guarantee property rights properly. So in the end. I know it harms everyone but the non guaranteeing of property rights should be paid for by government and its workers. They should at least have to take some responsibility on their doings.

Currently no country starts solving the problems this way. The are establishing more and more even more unproductive layers. This will not work. Again they won't be held responsible for this. As soon as I and you changes to "government" the responsibility is gone. Bureaucrats just obey the written papers and if as long as they do that they can't be responsible. And the law-makers itself hardly ever get in trouble for establishing any stupid law.

Do voters appreciate honesty?
I'm wondering, is this the case? If one sees for whom they voted, it seems the answer is "maybe". AFAIKT Obama has lied. He promised to close Guantanamo but still this violation of human rights is still functional. I do not even start talking about his slogan "Yes we can". The base is Obama has not shown any particular strength in economic knowledge.

He still believes in the magic of the printing press and has nothing to show for paying back the few trillions of debts of the US.

So overall he has lied in more than one way and still one considers voting for them. That means honesty is not what is expected from Politicians.

But if one prefers to be lied at one gets only liars voted. Will this make your live easier?

Way into the future?
I wonder if Hungary is exemplary
  1. a constrained justice
  2. a "Volksgerichtshof" (constrained justice)
  3. limited civil rights

How comes that the only thing we can read about it a notes of protest? How comes that Hungary does not have to leave the EU?

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