F Dominicus Blog

It never rains but it pours.

Spain, Greece, Ireland etc. have suffered (and are suffering) severly under a credit expansin. We know that this will lead to a catastrophe sooner or later. Von Mises has told us, Hayek hase told us and many others also. Currently it looks as if the Deledefs world-wide would like to be the template for credit induced defaults.

Anywa that is not all that has hit Greece, Span or Ireland. The other big big big problem are the subsedies of the EU. This money was of course not given to the people but other governments for "developing" their countries. And so they did. New streets of highes quality, bridges etc. All a bit larger because of he "expected" growth. Anyway in a free market that never would have happened (at least not so long and that absurd) and now they are hit not only with overwhelming credit but with a infrastructure too big (but anyway one has to support it or it will break down). I guess for the next few years thise cuttings will come and with it another wave of defaults (this time in the building industry)

The problem shows that one fault often leads to another while trying to fix it. And this time they are completly wrong. The problem was credit expansion but now they want even more form that and ECB should finance the states. That surely will not do. It's the biggest faule they can do. And so the header will struck with force but it's the Deledefs own fault. They never understand and work for markets always and ever for ever expanding government. Surely the way to hell.

What does disturb me most.

• Actions of governments
• Action of central banks

Well in this case I will link to a blog in German:http://www.rottmeyer.de/von-sparweltmeistern-und-anderen-erfolgsgeschichten/

The Irish government has started to support renters. And guess what the prices of renting do not have fallen as much as the prices for houses. That just means the state subsidies do prohibit falling prices on the renting market. Or the other way round the not supported renters have to buy higher prices than they must. Now if you are loosing your jobs, you may think about cheaper renting. But if you are not supported you loose.

And someones else has to pay the subsidies, that sucks so badly.

Dear French

So vote for socialist an communist is a very proved way to dive down in poverty. And after this poverty come the markets. So you want a breakdown with a new beginning. That's one way of doing it.

I'd qualify this way as the dumb way. But well a nation with such a fine history of absolutism, probably has exactly the politicians who want to get there. And you prefer that over something else. So be it.

An intelligent answer would of course be the complete different. You would have send all the Deledefs to hell, shrink your bureaucracy and the power of you elites. Would stop stealing on such a large scale and give market and the buyers there choice. But I guess one need to have a certain kind of intelligence to see that. So you voted for the crude way. I don't wish those who have voted for that way luck, I spare that for

Those few liberals in your country which surely will have to suffer the most. Because they are the people who do not drown in debts. To those I say. I'm sorry for you and wish you all the luck. And I'm arrogant enough to suggest them starting to get their money out of their country and put it into real values elswhere. If France will be cheap to come back. And maybe this time you get some head start (I'm afraid that will just be it a "head" start because after a while the dumb other voters will vote again to steal more from you) But liberals never have a "real" home. Freedom just wanders along and with it the supporter of freedom. I guess that is what one names fate.....

You want an impression of debt madness?

Run don't go

That's the world of paper money. All time gold would be cube of 20x20x20. Take that you fiat-money believers.

Where have all the bloggers gone?

Do you have find the hidden value from Atla Shrugged? If yes, please tell me. I'd like to emigrate also

There is s much new bad news our there, that it's depressing. E.g our Bundespräsident thinks the ESM is a fine thing for more solidarity to Europe. This sucks. The politicians "discuss" if it's ok to pay day care of children at home.

There is voting time in Greece and France and it sees the left will win. Can you imagine those having started all this misery should have the means to get us out of this crapp

The ECB is considering a new round of money printing and it seems the Fed prepares something also.

So where are you?

What a choice

I just wonder where the choice is. Big money, big government, big new debts,big new military expenses, big new lies and last but not least civil rights abolishments in the name of "fighting terrorism". I has sympathies to you not too far back, but I think this has vanished like snow in sun.

I guess you simply lost how freedom is written and how it tastes. So be it, get you way and do not cry if you get poorer by the day.

Bernanke reload and fire again. You US-Americans are to stupid to see that money as debt is the disease not the cure.

For those not wanting to vote for either of this "politicians", good luck. To all the others go to the socialists heaven (but you will not be a functionary, just a small negligtible particle) . Bear all the poverty you wish upon others.

The sorcerers stone was found

Oh yeah. And that from a country which has disappropriated all the private creditors and have ruined the middle class through high inflation. Am I impressed? You can bet.....

Are you really serious?

Have you ever considered whether he has lived up to his announcements?

Well it seems it does not matter. So vote vor Obama again and bear the consequences.

I wish you all the luck you'll need.

If lies do not cut it any more

It can not come as a surprise to the austrians, liberals or libertarians. What we have seen was and just is "credit expansion". The central banks manipulate everything and so we do not have any idea any more about "prices" for money. Just remember what I wrote some time ago:https://mises.org/Community/blogs/fdominicus/archive/2011/09/08/who-could-be-suprised.aspx

Feel free so just search a little through older entries and I also suggest having a look at: https://mises.org/Community/blogs/tincho/

I also wrote about what one "should" try. There is one problem which will bite you whenever you are just having money in one country. This money is prone to expropriation. Especially worse is it for countries nearing the default or being in default. Greece should be a warning for every one. There are now at least 3 levels of creditors. IWF and ECB as "primary" creditors, ECS has not suffered any losses (all the papers bought were change to papers with the same nominal value), then come banks (they were partly bailed out, either through ECB, FED or other central banks and they could probably keep there looses below 50 or so per cent. Then comes the private creditor. They had to suffer losses beyond 80 %. That' s what will happen world-wide. If you think this well be a Greek specialty, think again and doubt it. If you believe the Fed, ECB or whatever political power will not do the same, you can start burning your money immediately.

There will be always problems if you are just "invested" in one country. The laws change and nobody will grant you anything. You own government does not shy away from robbery. So if you have all your property in your country they will get you. So be suspicious and send your money overseas into different areas. It's unlikely that you will loose everything at once following that route. But be cautious, one larger country getting into default will have implications on other areas also.....

Getting back to my predictions a year or so ago:

1. money still is printed and it seems some prices are starting to show it. (so I guess this can be seen as: On it's way)
2. money hardly can get cheaper (wrong. As it turns out at least the ECB has lowered the price for money again one trillione for 1% for up to 3 years. So with this we do have negative yields.
3. well the Dax has risen a lot in the last year and even since the starting of the year. So indeed it seems I got that right
4. it's to early to decide but at least it holds for all the over-debted countries. where everything goes down investements will also. And that is all too true e.g for Greek, Italy, Spain
5. This was on the point. You can see that all the plans for "saving" just means more taxing.
6. Well the first level surely was reached. You can check any statistics about Greece and Italy and will find capital exports. (So well I guess we're on a "good" will say bad day here.
7. ) Absolutly on the point. The suppression of simple democratic rights, can be seen with the "non-election" of Mr Monti as prime minister in Italy, the ESM, the change of bought Greek bonds form the ECB which were the only one who get a full nominal value of the bought bonds. Whereas the Privates were disappropriated. See all the laws for more surveillance etc. So yes this has come even worse than I could imagine.

Posted: Tue, Apr 3 2012 11:59 AM by Friedrich Dominicus | with 1 comment(s)
Filed under: lies, worse, predictions II, getting back to my predictions, deldefs.

Now it's obvious

In short the outcome feels devastating. We were just around 200-300 participants. So now we probably got on idea on how the last democrats at the end of the Weimarer Republik may have felt. 95% of the Germans seem not even know what ESM means. Those who have to decide upon it seems to be eager to sign the next Ermächtigungsgesetz. Indeed roughly 800 000 Germans have protested by some mail etc. That's well 1% of the population. And now one can see the "merits" of democracy

The majority does what it wants and the minority has to obey. That's great. And so we may have more than 50% of the inhabitants taking one of the other subsidy of the state. And the other nearly 50 % have to do what? Pay. (and pray it won't get more)

It really feels the world has gone mad. Normal behavior is now some kind of absurdity. And stealing from states a "blessing". Well so be it. Anyway even if it would have been me alone, I would not care. It's not of anyone that I'm doing this "stupidities" it's because it's for me. One day this system of slavery comes to an end and maybe my children remember one thing. Father has not take part into it, but tried to fight it wherever he could. This times have one strange new thing. Things I write here may stay here for a while. Even beyond my death. And so there are others we do not forget. Think of the books of von Mises, von Hayek, Rohtbard. They are still there to guide us, and warn us and see the Motto of the old Mises blog: Proceeding Ever More Boldly Against Evil. It's not those wanting to leave in peace and sound money who are the evils, and if there is not much we can do we still can write, think, speak. I will proceed with it, do the same and we'll be maybe not fine but at least better ;-)

Next stop for me is to file a suite against the ESM at our Bundesverfassungsgericht, I do not believe a second that the majority will decide against ESM and that our Bundespräsident will not sign this Emächtigungsgesetz. He speaks of freedom, we'll see what he means. Signing ESM would just be another broken promise and I assure you that would not be of any suprise to me. I even dare to say the Bundesverfassungsgericht will not stop this Ermächtigungsgesetzt. But if there is one left who may do, it's this highest court of Germany.

I dare to say you US citizens are not better of either... We'll see what your supreme court will tell us about the ObamaCare.....

Anyway this systems come to an end. Maybe not today, maybe not tomorrow maybe not in even 10 or fifty years, but they will go done. And that's a good thing.