F Dominicus Blog

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

May 2012 - Posts

Just give it a name
the disaster can be subsumed under one small sentence.

The problems are there because of the monopolies of states. In this case the monopoly of currencies.

The FED , ECB etc, do just get their position because the state sanctioned it. It's very easy. Just the Dollar or Euro are the lawfu payment items. And so there is not market just the big wanter "state".

The also do nothing against the defraud that banks do lend demand deposits. And so you just whisper bank-run and they get near a heart stroke. This system is perverted. It does safe defrauders and punishes honest men. And that is called "fair". It's obviously just "fair" for those being favored by states. And the state does do everything to get more and more supporters with bribe.

Give us our money back and we'll recover. Do more of you interventions and we crash and "recover" therefafter. The first would be the right way but the Deledefs of alll states, parties will not go that way, it does not suite there "idea" of "fairness". They are suckers and hell I will name them as such.

Let's check
how is our race to the bottom doing?
  • Greece is on it's way to yet another default.
  • If my calculations are right (see: http://fdominicus.blogspot.de/2012/05/ist-blodheit-ansteckend.html) then Spain has to get new debt of 33 ¢ for every Euro they spend. New debts (officiall numbers) around 34 billions. Now they have to offer 6.5 % for new money. How "unfair"
  • Extra implicit debt of the USA 200 trillions. That seems to get a tough one

In short the race is almost run. Currently leading Greece, Spain, Italy. But the followers are not that far of. And what do we get from our politicians? "Everything's under contro" and yet (strange enough) the new suggestions for "solving" the problems are following in a minutes distance. Could it be that "panic" time is starting? All the suggestions just complete the mess. More power, more debt and more regulation. That's all there is, be it in Euro Land. USA or China. Just see some newspapers or probably better blogs....

Circle of manipulation
Ok it's ranting time.

I'm reading quite few blogs. Most about economics and poltics. Now there is one circle of manipulation/lies I will break it down into a recurring circle

  1. Claim that markets do not work or that man has to be thought. That economy has to be re-thought.
  2. Make big waves and claim that there is a lack of justice
  3. Make laws, which do hamper markets even more
  4. Go back to 1

It's a circle which holds for every current state. Be it the USA, some Euro State etc. And then we wonder why it's getting worse by the hour. There are such extreme breaks like war and or break-down of socialists states. Which allows the market to escape (but just for a while)

One extremely popular circle of interventions has to to with given countries a "fair chance" on getting out of the self-induced catastrophes. And this goes so. The economists claim they now how to give states chance.One just have to hamper the free trade. They all it control of the capital and very very popular custom duties. They poor markets from wherever have to be saved for big companies. And that's just possible which taking away the possibility of choosing. The economists do know that is best (free market) but unfortunatly there is never the time that this free markets do what they want them do do. And so just a "temporarily" intermission of the markets is claimed to be needed. Well I guess this temporarily means from now to eternity. That is just snakeoi. The choice of the customer is the only way of deciding. Not any of the strange ideas of wanne-be-we-know.

Tell me lies, sweet little lies

The deledefs currently seem to rotate. Well this time I will not speak of the stupidity of americans to vote between two dead-bets, but the European masters of stupidity.

Europe should guarantee the saving deposits of their people. I can reduce it to one question: With what? They do not have anything of substance and the only think they can is tax the people. So the deposits are guaranteed with "the money of the people". How unreal is that.

I calculate for Germany and there 20 % of the deposit holders own roughly around 3.2 trillions. And our official debt is a little over 2 trillions. How much more unreal can things get? If every German would hold a saving deposit the guarantee would have to cover 8 trillions The complete deposits of all Germans are a littel over 4 billions. How much worth can this "guarantee" have?

If 10 % of the top deposit holders would request their money from the banks, the game would be over. So you can see see rich are very social. They let themselves get robbed and still hold together all the crap..... I wish they would end this farce...

Sometimes I'm glad that I'm not "in"
Ah yes it could be also an extension to Lessons.

As I wrote I hate Facebook. I'm not a customer nor an "investor". And that's so good.

I really am astonished how fast people do forget some devastation of their wealth. Does Internethype tell you something? How much money was burned there (and how stupid was Greenspan to just start printing money) now see the disasters everywhere. I propose checking the prices of still existing corporations which still survived the Internet Hype catastrophe. Take e.g RedHat. It was much more expensive some years ago and earned much less than today.

With Facebook it may be even worse: http://finance.yahoo.com/blogs/daily-ticker/facebook-bankers-secretly-cut-facebook-revenue-estimates-middle-133648905.html This sucks. But it's not my business, if the would go bankrupt I would not loose a second though about it. It just is obvious to me. This banks in that form better be gone sooner than later.

I'd be more interested in your feedback about this blog. Feel free to comment as you like as long as you do not sell me anything you're comment will not be deleted....

to be taught and (re)learned.

I was very harsh to you US-citizens among my readers ( I guess a few of them may have stumbled upon this blog, and maybe one or two are reading it on a regular base). Now it's getting a bit less harsh, but nevertheless it may still hurt.

So here we go: "Get rid of you debts". Does this sound not that bad? Well I've some really bad news for you. The USA is even worse than at least Italy, Germany, Spain in regard to savings. I do not even know if it's at the top of the bad countries. Why? Well you do not save. Yes it's true you even had have a negative saving rate (which just means, you're living way beyond your means) . One can blame Germans for stupidity also and if you write/say they are believers (in states) you hit the nail on the head (is that used in english?). It's true we are guilty of that (at least it seems over three quarters of the Germans) BUT Germans do save. Saving is still a virtue. And we do not save as much as one could hope for. But we do save between 10 -15 of our income (on average)

I know some of you do save. I guess most of the readers do because a socialist hardly will read any entry here. So you are probably taught or grown with the austrian economics. And from there and self learning you know. That savings are the base for sound growth. Nothing will change that and the Fed can print money as mad. It can distort the prices for money to the max (as it currently does) but it will not help grows on debt is a fire burning hot and fast and never will be cozy. You know if are near you may get burned too. But saved money and then investes is like a cozy fire, which keeps you warm even in the case it's getting cold out there. So this is what most of the Americans have to (re)learn. The re is justified because to the time before the FED it was the way of live to keep to the saying. "A penny saved is an earned penny" and that is true.

For any of your with debts for private things I suggest you have a look at "Credit card nation" and well the lesson you hopefully will learn (if not, well bad luck for you) is get rid of your debts. Nothing does more to your freedom. A life without debt is a "free" live, the live of a debtor is mostly a slaved live. You may think you're in control, but that's just wishful thinking.

Do an internet search for living without debt and read the stories you find. Here are examples http://www.astoryofdebt.com/ , http://www.milliondollarjourney.com/how-to-get-out-of-debt-our-story.htm, http://rowdykittens.com/about/our-downsizing-story/ and many more

I'm not an example of your way of life. I do not like socializing. In fact too many men at one place are hell for me (but that's another story). Anyway I live it without personal debt and you can bet I will not give in to the singing of the sirens of "buy now, pay later". Never in my hole life did I buy anything on credit and I want to keep that track. Debt is another word of not owning yourself and if there's one nightmare for me it is getting dependent on transfer payments from wherever. I had luck my parents were clever enough not to spend all their money and well I guess my children may have some kind of luck also because I'm not spending all my money also. So they will have a starting with assets. I just can't do more for them. In the end they have to live their live. I just can try to teach them to live in honesty and upright. That's not possible while living in debt. Living in debt means owning someones else parts of your live. The higher the debt the more you live for the debtors. That's the opposite of freedom. So think about it and take or leave my personal advice.

of a Facebook hater.

As you might know I'm quite interested in computer related themes. And well Facebooks is a theme related to it and also economy. (Well one may say data trade with doubtful consense of the users) But anyway there should be nearly 1 billion using facebook. Well I'm not and will not. I'm not running around and showing my private parts. And so I don't want to run around and have my personal Data accessible to everyone. You can read my blog, you can hate it you can love it. All I wrote here is can be cited copied as you like. If you find it useful, let me know if you don't find it useful you will stop reading. That's a deal.

But Facebook gets your data and they then have it. I do not believe a second they will not make use of the data. Oh yes they will not be that stupid to hand out the data. (too much worth to treat them just once) but they will give each who ask some information. And combining just the public available information is at least a good starting point to get to some conclusions.

And now I take of my gloves. The going public has a smell. A stinking one. And it shows really how stupid men are in masses. How an one treat a 1 billion earning company with a value of above 100 billions? This is absolutely stupid. And even more stupid were the first signer of options on facebook base price well beyond 60 US$. I just can hope it was non-banking money. If it were banks, well you know what will happen then, the next bailout. So just can hope the stupids really have to bear their losses.

I will not surrender and not give into this Facebook. It may go bankrupt and I would be happy it has. If you feel I'm attacking you, well yes I do and it's my opinion. Do what you like, it's your live and your data. Anyway I can name something stupid if I thin it is. I may be wrong. Maybe it's me who's stupid. May all be, but my data are mine not theirs.

Getting back in time
It was before the last election of the "president".

There I wrote: http://fdominicus.blogspot.de/2008/10/not-encouraging.html

I ended with: "Time will tell "

Time has told the US citizens are really that stupid. Anyway if you feel this may relief you. The Greek and Germans are not better. There are just shadows of worse. The US will vote for either Obama or Romney (that one really can be that stupid, it still amazes me"), we in NRW have voted for the red/green socialists which do not have socialist in their name but "social" democratic. The Greek have voted for the left of lefts. We are so fubar.

Ok it does not make sense to appeal to the sense of the people.There is none of that in a mass of people. They are too dumb and too lazy to think for themselves. And so they get and "vote" for others who please should think for them. If it would be there own business, I would not have any trouble with it, but no this dumb people vote for those who make my life hell. No thanks for that you dumb ...

I once though one could appeal to the sense of people But I see I was wrong. It's more useful to empty the Bodensee by hand, but trying to get sense into masses. I always felt like completely deranged in a crowd. Now I understand . It's because man alone may be able of reason but masses of men and masses of voters aren't . You have to appeal to the lowest feelings of man: envy and distrust.

I've to thank you to show me that that clearly about the masses. So yes go on to suppress others, it'll be your turn sooner or later.

Do you really think you're better of?
Dear US citizens, do you really think that?

Well ask you in honesty what Obama has done the last few years? Is there anything better than before?

Aren't you still printing money as mad and don't your Helicopter Bend thinks, he can print the US out of the misery?

Aren't your soldiers still killed world-wide? And don't your government put you all under terrorism suspicion?

I just can see you're going the way of serfdom. So do you feel that is better than what happened here in Euroland?

Well for an out/insider it should get more obvious. You're doomed as we are. It's just a matter of intellectual curiosity who will win the race to doom.

God shows sometimes mercy, but the fiat-money gods bureaucrats won't. I can assure you bureaucrats are best at killing. We learned that in Germany, and your prisoners in Guantanamo learn if from your "unusual questioning methods". Bureaucrats love to fulfill their given duties, especially harming others is high up on the "I like" ranking.

You as we are rapped and robbed every day. Just have a look at "what has government done to our money" and then compare your money do ours. Is there any difference? No it's money just because the government declares it to be money and threatens everybody with jail if one does not accept their notion of money. You are so fucked, up. As we are, yes both blocks are just marching deads. Land of the free? Well no....

"Must" readings
I'm reading quite a lot and well I am arrogant enough to write that I found great writers and economists which have expressed much better what I thought to be true as myself.

Once upon a time I was learning farming. I worked on a paster station and I worked on a farm specialized on pig breeding and pig fattening. My father was a farmer as were both of my grandpas. So yes it seems I would be farmer too. And I started with it. I loved my work. At least most of it. There were jobs which were just gruesome. We had a disease under our pigs which one could not heal. So you have to kill fresh born shoats. I can assure you nothing is more terrible than to slaughter small ones. But that's another story.

Why I did not get farmer in the end. Well to my "misfortune" I had (and I guess still have) an idea what makes economic sense and what no. So the later farm was somewhere at the edge going bankrupt. But the problem I saw was that

  • everything was regulated
  • and even worse subsided

And last but not least to earn something around 50000 DM would require a farm well valued above 1 000 000 DM. That are roughly 5% with all the risk and all the work. Well this cut it for me. I would have other sources of income but I did want to "earn" my living myself with a "fair" return on investment.

Anyway the point I want to come back to are subsidies. To that time I had discussions with my father in which I told him subsidies are wrong. Under any circumstance. So most of my income would be not paid for by people wanting to have my stuff but subsidies this was a thing I could not want. And this was a point my father and I were of a completely different opinion. To that time I did not even know about the austrian school of economcs. How should I? I was grown in a higher school and my teachers were paid for by the state. You can not expect from paid public servants that they serve the customers (in this case the scholars) or anything critical about state control. All they had to teach us was and still is state controlled. Oh yes they will tell you it's for the better to use all, but that's just another lie.

So I did not follow into the farmers shoes (a thing I partly regret, because in this crazy times it is good to have something to get you fed). I still started my other "career" I'm now software developer (and to be honest I love it).

But back to my "readings". As you can see I start blogging around the time the first bail-outs were "done". (See http://fdominicus.blogspot.com) even to that time I did not know from the austrian school. How should I? I was grown also on a state controlled university and you can bet what the national economics are. They a breed on a state controlled school, and are raised than in state controlled universities paid for by the states. So no you can not really expect an austrian economic in universities. But as you can read through my other blog and my blog here, I did not know them as I started blogging.

And still you can see I'm a clear fan of open markets. Nothing could be more fair is my strong opinion. And during the last 4 years I learned about the austrian school and there it was. My feelings expressed in great books. I guess it started with something from von Mises (I can't remember really but it could have been human action). Well since then I read more and more about it and found my intuitive findings supported. And still I can understand that stuff (after all maybe the education at the university pays of for me, at least some parts of it are about critical thinking ) and there we have them: von Mises, Hayek, Rothbard. Now I have to get over 4 decades to learn anything about it, now tell me about mind washing....

So know I can clearly tell everyone which books to pick up to "get" something real. It's indicative that von Mises never has tought much on a university, hell the austrians are the devils in person of all the good-doers in every positions of the state. And still they are the only ones which saw it coming. NO OTHER SCHOOL WAS ABLE TO DO THAT. You can bet whom I do believe more. You have one guess free ;-)

Anyway they have written down what I has somewhat mangled up in my mind. And I'm delighted that I found that what I call horse sense (as you know I'm not an educated national economist) has some theoretical background and was the only school of thinking which could see it coming. So yes I see this as a confirmation of my reasons to even start my blogs.

You can call me arrogant or whatever you like, but it pleases me that things I figured out by myself are supported by the greatest economics the world has seen till now. And yes I'm proud that I figured this out by myself and that I could even see my bad feelings about the education at our "universities" have a sound foundation. So yes was able to figure that out myself but the books just showed me that I could not be that wrong. And yes I'm feeling also happy that I can name charlatanism if I see it. And yes the biggest crime ever was and still is the establishment of fiat-money. So we know it's evil and so we should stick to the von Mises motto: Tu ne cede malis, sed contra audentior ito (Latin: Do not give in to evil but proceed ever more boldly against it) and demand to get our money back and we have all the right to demand: "End the central banks".

And one thing I (the I in very Big letter) will never forget: It started with the feeling of a 19 year old boy learning farming, which figured out some truth (maybe even some eternal one) himself while condemning subsidies. I know it does not mean anything to anyone else, it makes THE difference for the man in front of his screen and keyboard...

Go if you think it's better.
Dear Grees, you do not like the "solution" done by your Deledefs? Well you are not alone. I don't like it either. You should have not given any money, despite everything else that is the law. But find now you took the money, well then I've some news for your. You must hold contracts. I know that's old fashioned but it's the only way things can work.

You don't like to hold the contracts? So fine just return the money and go your way. I know you have burned the money, so you won't pay your debts. Anyway if you think that's ok go. But don't expect anything or anyone to help you against your than alone ruling Deledefs. You think you're better of without the Euro? Well that could be but your Deledefs will explain to you that it must be a new fiat-Drachme. Well if you think you're better of with that, I have really bad news for you. You Deledefs will print money as stupid. That means you shining new Drachme will be devalued right from the start in a speed you hardly will believe. Here's my take on it. The inflation will raise over 10% (I do not think that 25% are the upper bound) That will say in the first case within 7 years your wealth is halved. How do you like that?

If you think to go is better than think about what you do to your deledefs. I suggest sending them to hell. That's the place they belong to. Insist in a currency as value and do not cry. Getting away form addiction is hurting. And you have lived so long on debts, that not getting new stuff will be hell on earth. Anyway you've t pay the debts in one way or the other. Either with honesty (this is the most unlikely outcome) or by defraud. And you can bet you deledes will rob you. Anyway if you think that's better go. But don't come along crying how unfair you've been treated. You lived on a boom not backed up by anything but hot air. The balloon is busted, and it was you and the promises of an ever expanding state that has lead into that mess. You can try to learn or don't. It's up to you, so choose wisely....

surprise! suprise? suprises everywhere.
Oh it was another wonderful day of surprises (well if one can still be surprised)

A bank is in more than knee deep trouble. And surprise, the CEO of this bank has asked for a Bad Bank at the beginning of the year. Surprise, surprise, the politicians play a major role in that bank. And surprise an insolvent bank is taken over by an insolvent state from Deledefs which have driven the bank in insolvency. Surprise.

But that's not all, the diverse institutions of the EU burn money, surprise. Let's see most of the EU is not been voted but "established" from surprise the parties in the diverse countries. And guess what the EU wants more money to pay their bills, surprise.

You can see the world is full of wonders and surprises.

Contracts, Law or not
Well we learned the Greek do not want to pay their debt any more. Ah well it fits. Who cares about contracts? Who cares about saving in time? Who cares if the states sprawl epidemic?

The socialists of all color are at work. We know that from the diverse books ob von Mises (in this case Bureaucracy) And with too man of them (as e.g in Greece) the arbitrariness comes

It's clear that if you do have got paid from states (which means someone else has to pay for you, without the need of any delivery from your side), you like to keep it that way. And so if you go to the vote you will not choose for those "taking away" from you. Oh well yes who cares? Promises, light money, deledefs, central banks every part enough to send you into default.

Now I'm interested how the other defrauders will act. Saving? Come on let's be serious., that's nothing deledefs can. They just can take more from the productive, burn more money and grow like pestilence. You see the actions. Nothing really way saved, au contraire, the debts have grown even faster, and the levels of bureaucracy are still increased. Oh "yes" that's what we need more thieves.

And you can bet the laws are getting worse. It's more and more a means of oppression, it's not to save the individual of their states, it's to save the states for their people. It sucks very badly. And the states or nothing more than crooks. I hope they will have to pay their debts and misdeeds this time. (I know it's more likely that hell freezes over)

The vote in France
As expected and wished for Hollande has won. The good thing having a socialist is that we're faster through it all. That's all there is to write.

France will now try to get the EZB printing more money, financing programs for the unemployment and whatever. The result will be as one can expect. We'll see more poverty more unemployed and even more debts. In the end the system will break down as von Mises has told up. Nothing can stop a credit expansion to stop. It's sonner or later the later the bigger the devastation. France will surely have moor poors and you can bet the functionaries will be fat.

Now if you followed this blog you will know what I expect. Now with a socialist at the top we'll see even more dangerous engagement in markets. So the race to the bottom is accelerating.

Other races to the bottom
Well one might think some countries may learn from their own but also from other's countries faults. I guess I'm again very mistaken about it. As I wrote before it's obvious that the USA, Eurozone, Japan and China are racing to the bottom. One may ask why I include China the "big grower". Well very easy I say bubbles. And in China the bubble with houses are obvious. It's not yet the case that every Chinese can buy for 1000€/m² or whatever the price is. But it does not matter they have planned and build cities our in the nowhere an hardly anyone has settled there. So that's a classical malinvestement.

Last but not least Chins is a socialistic dictatorship. The PARTY is capable of nearly everything (as long as the party members are covered by their companions) I guess it would be very interesting to see how wealthy the member of the party are. I bet 1000:1 they are all much "richer" than the average Chinese worker. Every other outcome would be a big surprise

But I do not want to write about the stupidities of the developed countries. But the stupidity of socialists world wide. As you know Argentina has defaulted some 15 or so years ago. And now they start expropriating the "oil companies". Well the promises they made before the votes have cost dearly and Inflation is a serious problem to anyone living there. But hey it's not the actions to kill the market, it's the speculators stupid. Argentina has wiped our the middle class after that default. And now they want to wipe out the lower middle class also. So yes they have not learned the smallest think, neither from their own faults nor the money printing faults of other countries. So you can count in Argentina on the race to the bottom. I guess they will take the pace sooner than later.

The other stupid countries are Bolivia and Venezuela. In every country the socialists are at work and you can see it everywhere. Expropriation every where. Stealing from the people with high inflation and wiping out the small wealth the people have accumulated. So they will go down also. That's so fucking stupid and sad....

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