F Dominicus Blog

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

March 2012 - Posts

Probably of no interest
but I'm gong to a demonstration against the ESM today.

One always can hope......

Is ObamaCare against the constitution?
Well if you follow this blog you know that I'm absolutely against forced blessings from states.

It seems that it's really against your constitution also. I'm very excitedly what your Supreme Court will decide. I just can hope for you that they judge it as illegal.

You should IMHO start fighting for your freedom. And the only way to get there is to start limiting the power of your governments and military complex. I hope this law suit, will give you starting point. If not, well then you know you have to act now. There will be no amiable later later.....

I repeat myself but I warned your about Obama. And everything gets even worse than expected. I suggest to end the president ship of him now. But as it seems you still prefer another lier and another conservative which probably does not even no what freedom means.

I'm sorry but you behave at least as stupid as we Germans. Instead of freedom you choose slavery I've no idea why.

I guess a lot of jobs are unsuitable to me
I just am astonished, there are more and more jobs on my "don't" do it ever list.

I'm obviously completely lost as politician, because I do not want to rule (and to be honest I do not want to get ruled either) I'm absolutely not suitable for any job where my payments would come from states. All the time I'm just thinking on how to get rid of those "people". If I just see anything which does harm the Eurocracy and our government I'm quite happy....

I could not even imagine working e.g for the EU. It would be as if I'd betrayed myself beyond all hope. Anyway I sometimes feel I have to try getting active in politics just for a freer life of my children. But I'm also new that my ability to lie is very limited. It always have served me well to be frank and straight. There are those who can't bear that, but I've to say I do not care.

I wonder how one can move something in politics without joining this circles? Do you have suggestions?

Why I like the Internet
My daily bread is computer programming, so maybe this explains it in just a few words ;-)

Anyway what I live about the Internet is it's voluntariness. Agreed some must use the Internet. Indeed here in Germany companies are forced to use it for their tax declaration, but I think most are visiting is because they want. And what I like especially is that there is not state there. Yes I know the servers must stand in some state. But that's not the point, there are not those who rule and those who are ruled. And it's as near to a free market as one can think.

I just ask you my (roughly 200 readers) a day. Can I force you to visit my pages? The simple answer is no. In a way you are free to spend your time here or elsewhere, and I'm free to write some entries may they be as stupid as one can imagine or not.

As everyone I have my preferences and I've to admit some of the comics I'm reading regularly just amazes me. I just pick one http://questionablecontent.net/index.php I do not remember how I found it, but I like it. I even liked it so much that I bough the printed comic. I got it from the US. How should I ever have learned that this thing could be of interest of me without Internet?

I can visit sited of liberals, communists, socialists and whatever. No one can know wherre my browser lead me or command me not to go wherever I like. This is what I understand under freedom. The freedom of choice, the freedom of discrimination. The freedom to decide by myself what I will see and what I won't. Indeed I'm very happy that one day human invention spirit came up with the question: Can I connect two computers?

They could and now you in maybe the US? Australia or wherever can read (if you like) what this "stupid" german writes here? Isn't freedom great?

End of the boom?
Well times they are changing ant it seems the car manufacturers are entering really rough see. The selling in February are down to a minimum back to at least February 2003. So indeed we know we'll see what will happen. If the sellings should be that low through the year, I bet we'll here of a new round of subsidies.

Why do I think that, well we have bail-outs for banks, states etc. and we had the paying of 2000 € back in 2009 or so for buyers of new cars. And we know that there are markets and banks and there are system relevant banks. The former can go out of business, the later shall not. So I guess this will be after the markets. A new play ground for politicians and a new incentive for the mangster (manager + gangster) to start getting system relevant.

As we also have learned with Greece, the bail-out are not to help the Greek but to help banks and insurances and pension fonds. So yeah it seems we do not just have system relevant banks but system relevant insurers. So why stop here? I guess sooner or later we'll get system relevant car manufacturers. And quite a few more, till we all are system relevant but could not be "bailed"-out any more. Gods moves may be mysterious but the way of our good-doers are very obvious. Poverty for all with the double-speak saying "wealth for all".

Examples
of von Mises credit expansion, and less disturbed markets.

Since a few month there is just one way for stock: up. Driven by?

Well as we learned some of the companies (in the IT section) are earning really big. Isn't it amazing? They live under constant price pressure, and indeed falling prices since at least 20 years. Now you can buy mobile phones with more computing power as super computers some 10-20 years ago. And here in Germany we have more mobile phones than inhabitants. This is a an example for more free than strangled markets. Assume other area where less is regulated etc. So indeed they are earning their money. People want to have this phones.

There are other areas where much is earned (even measured in records) the German car industries. VW, BMW they nearly never have earned more. Fair enough it's with ol'e fuel burning cars. The so wished for cars driven by electricity do not have any real market share. Again people seem to be willing to buy German cars wold-wide

But what about all the other raising prices. Well AFAIK they are driven by "free" money. And indeed this money was not earned but "generated" from central banks, and this money disturbes every thing. We simply do not know any more what parts of the raises are due to "demand" and which one are just due to the inflated money base. The prices are loosing more and more their indication value of sparseness. And that is the von Mises credit expansion. There are "success" stories of employment but is that really true. A lot of figures to seem to indicate this is not the case. And who publishes this statistics organization of the states. In Germany we just know one thing the low paid , half time working day is on the raise. I can't tell if it's due to the people wishing to work shorter times or simply not finding normal paid working days. I can't tell, but at least it seems this is not what most are wanting. But the raising part-time working days do have effects on everything. Of course the people do earn less, and so they surely demand less. And this means the current fired demand by "cheap" money can end and in fact will end one day. We do not know when, we're lacking the "base" information undisturbed do give us. Most of the prices are not set any more by offers/demands, but by prices set independently just by different taxes.

We know e.g that oil prices are near their highs from around 2008. We also know what has happened the last four years, will it be different this time? We can doubt it. As von Mises has told us, some day credit expansion has to stop. The earlier the better, but the central banks to have prevented that "healing" for now at least 2 - 3 years, and if we follow von Mises this means the crash of whole currencies is inevitable. So yes be happy that the stock prices are raising, but do not forget to sell in time....

As I wrote examples of earning and burning....

Where not to invest?
Well now it's official, existing contracts are changed by states if they wan to. You do not believe me? Well check what Greece does to it's private debtors. So how could you expect that this won't be done by every country if the debts are too heavy? You can't, so you better do not "invest" in bonds of states. Their value is not known to you and may change if the defrauders decide that they won't serve their obligations.

The whole fiat-money systems are just playgrounds for gangster and bankster. So I would also do not invest in bank shares or bank bonds.

Anyway if you think I'm a stupid bastard, feel free to ignore my suggestions. I wish you all the luck, you'll need it.

Some small thoughts about value
It's not secret that I'm strictly against central banks. Anyway here's a small calculation on the last moves of the ECB.

They made 1 trillion Euros out of the blue. Now a trillion written is: 1 000 000 000 000. How can they do that? Oh it's simple they just say the money is there and "it's" there. Now if we assume a Golf costs 25 000 then VW could build 40 000 000 of them, they may have build around 30 000 000 Golf have been build. The Golf now is around 45 or so years in production. So if VW can has produced 30 000 000 Golf in 45 years, they can produce around 666 667 cars year. So they would need around 60 years to produce the 40 Millions of it.

Guess how long it took the ECB to create this out of the blue. 0.1 sec. Effort none, and well paper money with a value of 0 also. But assume how this diminishes the information of prices. There are one billion more of a constant amount of things. And it was not earned by individual with their preferences, it's there from now on. And well it gives the impression of being richer. But that is simply a lie, in the end it just makes the prices go up.

And what is is in the end? Just credit expansion. And that means we're on our way to broken currencies. And this after war the most dangerous things one can face. So the ECB does not do anything to fullfill their order just to keep the system running while trying to prolong the boom. We all know that can not work. And no it will not be different this time.

Saying and Doing.
A nice story from our political establishment here in Germany.

Mr Eichel (ex finance minister) has said he would invest in bonds of Greece as the "show" started. Now we learn (he was just joking or simply lying). He wanted to buy for the enormous amount of 1000 € (well now tell me about investing) but unfortunately one had has to buy for at least 5000 € . Well one can call it bad luck I guess

His excuse of not buying now any more is even more "fantastic". He can not buy bonds with a yield of above 20 % that would be to speculate.

There are debts, debts and debts
Not all debts are born equal. And even those being born equal may change over time.

You can bet it's another round about Greece. So yes Greece has emitted bonds. (so for so bad). Now it's getting a bit crazy. During 2010 these bonds were accepted as security for other debts (so far so bad), but now after a year it tuns out this debts were to high. And now it's get interesting The ECB is not allowed to finance the deficit of states. Now a few weeks ago the bonds were "exchanged". And hadn't to bear the looses for this "debt cut". So great the debts were born equal, but after finding their way into the ECB they got different. So indeed there are debtors and debtors. The Private companies do have to bear the losses but not the central banks. Well so far so much worse.

But know who has this exchanged debts? Well it seems the tax payers of europe do hold them now. Now that is really "great". The ECB has accepted junk as security. Before the junk turns out to be junk it was given to the tax payers of Europe. Now what is something I really call bad.

So indeed if you ever consider buying new bonds from states, be aware if banks get rid of those bonds as "security" for new credits at the ECB. You will be a last class debtor. So if you are really that stupid, I suggest to buy another few bonds of Spain, Portugal and whatever state is in financial trouble. It's a wonderful way to get you debts not paid and even "better" you are allowed to bear the costs of the losses in the banking system also, especially the ECB "losses". Now tell me anything about theft...

Our banking systems are broken beyond fubar
Well the longer the crises lasts, the more obvious it gets. Our banking-system is a sham. It allows banks to generate money out of nothing and even worse it allows defraud on the banking customers.

You don't believe me. Well then let me ask you just one question. I fyou are holding sight deposits, will banks lend them? Yes they will that means they are lending money which is not their own. And this means also if every holder wants to get his/her sight deposits, the bank will be bankrupt (bank runs) And does government anything against this defraud? No it is supported and backed up by them and so we get "gurantiees" on our sight deposits. but not fully oh no, just around 100 000 whatever. That means if you are holding 200 000 in sigh deposits the guarantee is just well half of YOUR money. That's a crime

And banks do not have to care for customers, they just have to care about central banks. And guess what central banks do. They just generate another round of money out of the blue. Or do you think the 1 trillion of new debts here in Europe are covered by anything? Well think again.

Overall this system is fubar. One can not expect it to work and it is unfair from the ground up. You can not build trust on such kind of ground. But hey, the deledefs know better and you just have to believe them... For me it's more likely to imagine hell freezes over but believing any deldef or central banker....

Fuel prices
Well here in Germany we are near the top of the prices for fuel. And the politicians blame the oil companies for the high prices. Fact is we do have an oligopoly here. That's in itself not too bad, but together with regulations it hurts.

Anyway did you know that well around 60% of the price is caused by taxes? So let's see 1.67 somewhat is the price for fuel. So we have to pay 1.002 €/l on taxes. Can you believe the comments of the politicians? So in fact without the taxes we'd do pay around 60 ¢/l. instead of 1.67 €. Or put the other way of the base prices raised by 1 ¢ we'd have to pay 2.5 ¢ more together. So with just 10 ct different we have to pay a quarter € extra.

And yes do not forget the evils of Co2. So people curse the state because of it, and the state does blame those earning less from each liter but themselves. They want lower prices? So why do they put 60% taxes on fuel? No they enjoy it. And they do nothing for lower prices. On the contrary, they are even enjoying the benefits of 1 trillion of new Euros without any value. So where do you think the prices will go?

Indeed because the ECB is printing money the prices will go up. And in the not all to distant future we have reached the goals of the greens. 5 DM (that are 2.55 €/l). What will stop the prices from soaring? Well nothing but a crash, either the crash of the currencies of crash of the "social democratic" systems. And as we know from Mises, if you do not stop credit expansion. Credit expansion will stop currencies. And we'll here the new song of the guilty speculators

Interest manipulation
Well dear investors, it is time to conclude. One can not rely on economic data any more. The central banks do manipulate the interest and keep it on record lows. This just means you do not even get the proper interest to account for the inflation.

In short the central bank, inflate the amount of funny colorful papers. Nothing was produced, nothing save, just a few numbers in a computer. the number looks like this 500 000 000 000 for the new "offer" of the ECB. Well this is not an offer but calculated theft on savers. It's as every time. The debtors rob the creditors. That's the sad but true fact.

Again more credit is used trying to solve a problem caused by too much credit. Now tell me something about stupidness... So the disease will proceed and more and more will get infected. And then one day one has to recognize. Credit are not accepted any more. And BOOM.

Central banks , states needs for money and fiat-money a deadly combination....

Look who is printing now
Obviously the ECB could not stand the misery of the FED alone. This poor guy, just think printing money will solve the problem caused by too much money. (too much cheap money indeed). And so the ECB in it's own mercy decided: "We print money also", an offered a three year long tender at an interest near zero. The sum is now well above 1.2 trillion. Money not saved, just introduced by the supermen/superwomen of the central banks.

So the plan must be to ruin the currencies completely. The do not stop credit expansion but adding to it way to much. It should prolong the illness and or prepared for the total break-down. Why they do that? Well it's the believe that you can generate money out of the blue and nobody should notice. Well you can see where it ends. We know have much higher market prices for nearly everything. Are the shareholders that much richer? No they are not they just get more calculation units as before.

The reason of this money printing is most charming. Working against some credit crunch. Ah yes that's our problem too less credit, or not? If a private company would make such manipulation, they would go out of business, but the beneficial (for Deledefs) central bankers, see themselves as the last frontier to barbarism. Central banks suck.