F Dominicus Blog

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

July 2012 - Posts

If it wouldn't be so cruel
one could ROTFL. (TD till death ;()

Really I posted that the central bank is not allowed to finance states. Well fact is the EZB has bought bond on the secondary markets. Well obviously for lawyers this makes a "big" difference. The economic result still was the EZB has financed especially Greece. Now as you might know there was a haircut for Greece. This has hold for all BUT ECB. ECB did get new EU covered "replacements", Privates were ousted. So far so bad

Anyway there is no limit to absurdity. Now the ESM should be established, this should be allowed to buy whatever junk it likes and now come the pure irony, and ECB should give them money straight on the face value. Which means Spain issues Bonds. This bonds have to be treated as as good as "gold". (well no paper but you got the idea) And for that Spain should get "fresh" money.

Well ECB dos not finance states directly ESM does and ECB must take all junk from ESM. You get the hardly fine taste of irony?

It's obviously for everyone just not completely ignorant of either economic or political things. That this is a template of a Ponzi-scheme. Maddoff has been given 150 years in jail for that.... Seems it will be much less dangerous for deledefs. May I say I'm massively angry about such "stuff". Hardly glorious bastards but still murderers

You want to be heard?
Well to all the colorful socialists out there.

If you are pro justice and just "men" handling. Why are you for socialism? If you have money in your pocket every cent counts. You and nobody else decides what's something worth for you. You want to support childcare? Well where's the problem just take your money and do what your mouth says.

I'm puzzling how comes that you are fighting this easy and most honest scheme? Maybe you can tell me what you win, while suppressing others to do as they like. Can you really think your way is the only one?

You want fair wages, Why don't you let the people willing to work work then? How comes that you support unions, which only work for the insider. And how comes that you allow unions to set the prices for all? Where's your sense of justice here?

Really I simply can not understand who you can fight something that offers that to everyone? Are you plain dogmatic or could there be a sensible idea somewhere?

Preparations for Great Depression II
well the stupidity and arrogance of our current elites are working toward the GD II.

The central banker of today claim that they've learned form history. This is a plain lie. It's very eay before GD I the manipulations started. Easier credit and establichment of the FED (1913). And what happens? Well they were starting printing money. And so we seen a big bubble in the stock markets. It's as usual, if there's money it looks for investement possibilitties. Every stock broker knows, easy and cheap money is the driving force behind raising stock prices.

Of course they will not argument with the "sheer" amount of "money". They will say something like: We expecte higher incomes (well yes you can inflate any income and it really seems to be that more was earned) but that's a plain stupid lie. Another plain stupid lie is that prices for land and stocks are not covered with the inflation rate. So there may be in some areas hardly any price movements, but it could be that the prices are exploding in the house markets. The US have seen it before, UK and Ireland have shown it. Currently the "most" problematic countries are Norway, Finland and Switzerland. The problem is that there are so many countries near a default. And still many do stop believing in the words of Deledefs, and they are trying to "save" their property.

You can see the action so socialist Hollande. It currently drives the more rich French into the UK: What do you think will happen in any country if just 5 % of the most rich will leave the county? Well at once there will be much less poor people (because this is calculated on the average of the income, a stupidity higher as Mt Everest) and surely much less demand of this people. They will live in London and find producers for their needs, you can bet on it.

Now another think you can see eurowide. Is more regulation, higher taxation and extending government activities. Governments activities always just consume resources. And because of the inflexibility of this demands the private consumption must be cut back. If something is consumed by the state, it can not be consumed by the Privates. Currently we have no free market any where. All the markets are regulated all this regulations cost money. A thing states simply can or are not able to understand. So a new regulation leads in the end to higher prices. This can just work for a time

Now the system needs fuel, a lot of fuel. And the fuel is "paper-money". As long as one can make the people believe the inflation of paper is sustainable, the longer the boom and the higher the mal-investements. As with every system on earth there are limits. E.g. any central bank could print or create a 1 000 000 000 000 000 note. This would be enough to pay all the debts world-wide and still have a lot of money left. But it's obviously that they can't do it "now". They can print another 1 000 000 000 000 (that was done e.g some three months ago) and this will have an effect. But you can not print every day another trillions. So there are "limits" this limits will of course be extended. E.g in 1945 it was unthinkable to have another 1 000 000 000 000 debts because the amount of debts was somewhere in the billion area. But you can see the US currently raised there debt with over a trillion !!! a year. So another trillions more or less does not count.

Anyway there will be a side-effect of money printing. People stop believing, if that happens hell breaks loose. This is what happened in the late 20ies of the 20iest century, and it was a catastrophe. We'll see something comparable within the next 2 decades. I guess we'll go on with printing for another 5 or so years. After that I guess the "believe" in paper will be diminished beyond a critical point.... So we'll end up in a Great Depression II, just say "thank-you" to paper money and brainless governments and way to many bureaucrats.

I have tried my best to warn about it since the start of any of my blogs (I started my first one around 2008 at http://fdominicus.blogspot.de/)) And here in 2010. I know this area here is the exception. Here people do read which at least understand the problematic of state inference with markets. So if I wrote about stupid Americans or Europeans it was clear that I do not count the readers in. We obviously see the problems of democracy. The majority is mostly stupid and disinterested. They simply love to see themselves as victims of the system and they are stupid enough to believe the big words of politicians. And so they vote always for "more justice" in form of an ever expanding government. They have to pay for it, but the elites are clever enough to not give them a choice (at least not here in Germany). If you get paid all the deductions are in effect you just get the net income (that means you've paid your taxes and social welfare programs) They see it's much and they then want that the "rich" get at least that robbed. That's their usual way of thinking. And so we have the deledefs we have.

The problem is that more and more is not decided any more by customers but bureaucrats. And so the prices are completely distorted, and investments are running wild. To keep that running is the "only" think the Deledefs want and they try it with more and more credit. As you can see the people still do not believe in that any more. And so Greek is down the drain, Spain will follow within the next three years. France will not take much more than 5 years and if the all fall Germany will surely fall also. I don't know who will be the "next" . But in the end they all will fail and fall. I'm just hoping we get along without another big war. But this is against better knowledge, this is so big a thing that violence is inevitable. It seems the US- "authorities" at least go that, you can see they spend a lot of money on arming the security forces, they will act as the Syrian regime in the end.

We're so stupid
let's do it again

First debt cut for Greece 70 %. Gone. Changes none. Now a second debt cut (around30%) is in "making" (you just have to guess once whom to thank for that)

I guess in the mean time every cent Greek spend may consist of > 40 ¢ new debts. But hey we must keep Greece in the Euro. Otherwise otherwise, oh yes they would be gone...

Theft and disapprobation climbs new heights by the day. You remember the first bailout from Paulson. The same gone. You see all the "doing" of the US government, stupidity driven to the max. And still the stupid American will vote for Obama again.

I'm not any more sorry, I just tell those of you, who support Obama and the current parties, you suck. You suck not a tiny bit but really big.

And so do all the voter in Germany which have voted for any party in the parliament, do suck also. They honor, lies, deception and theft. I'm through with them, And indeed I wish them all the worst.

Now to you which probably are part of the minority. I'm terrible sorry for what is done to you, anyway I think I do not suffer less under stupid government and/or this slave paper money system. I hope we can hit them very hard one day, and get back our money....

Gone with the wind?
I don't know why but my last entry is gone. It was a message to Mr Draghi: Here are the relevant part of the rules for the ECB:

Alticfe 104 1. Overdraft facilities or any other type of credit facility with the ECB or with the central banks of the Member States (hereinafter referred to as "national central banks") in favour of Community institutions or bodies, central governments, regional, local or other public authorities, other bodies governed by public law, or public undemkings of Member States shall be prohibited, as shall the purchase directly from them by the ECB or national central banks of debt instruments.

So what does this bloody bastard do not understand. No financing of states.

There's no limit
to the foulness of men never having worked honestly.

Now again an example that this bastards have no idea about mine and yours. This time it's the chief of the Unions. And what does he demand?

Exactly the middle class have to take forced loans. Ah well indeed what a "brilliant" idea. We should give more of ours to deledefs which can not even handle theirs. Disappropriation as "solution" to a problem which was mostly caused by stupidos not being able to know what property rights are.

It's not the first who as suggested it the DIW (the "think" tank of the governments) has suggested that before. They do not stick to any limit. It's not their fucking stuff and I will not give it to them voluntarily. I've sold all my assets from any state: http://fdominicus.blogspot.de/2009/10/done-i-sold-last-asset-from-country.html I sold it three years ago and never ever will by any bond or whatever from any state world-wide. One should not say never, but I'm dead serious about it. If you give them anything you are a oppressor.

If such forced loan will come I will do whatever it takes to not take it. And I wish everyone to hell who demands that.

Tell me why
I hate politicians and bureaucrats tell me why.

At first they are living on my expenses without given much in return

They take my money and run with it

They are intruding my while life, my whole family.

They pervert all the good things and turn it into some foul stuff.

Where they are there is lavishness.

Where they are is freedom dying.

Every reason way too much for any liking. Now see what it bring us the Greeks, the Spains etc. There is a growing poverty,because they took it all and the took it from the future. They raising of payments to bueracrats and civil servants have exploded and still are not going down. And the privates have to pay that all. So I tell you why I hate them. They are destroying life.

Now another example why not to trust politicians
I guess outside of Germany this is a no-brainer . Any way Rheinland-Pfalz is the main owner an operator of the Nürburgrin.

The main "driver" was and is Kurt Beck https://de.wikipedia.org/wiki/Kurt_Beck. He has promise some years ago that the money they wanted to spend on the Nürburgrin infrastructure is "well invested". Well AFAIKT they "invested" 300 millions. And well they burned it as "usally". Kurt Beck is a main player in the SPD and now comes the joke.

Gabriel the main "boss" of SPD tells us he wants to put banks under control because the do black-mail politicians. Well no they don't that's alone the doing of the politicians which do not let banks fail. But guess now a party which is the main driver of the bankruptcy in Nordrhein-Westfalen (yes that' SPD land since ages with just a short intermezzo of the CDU some 5 or so years ago. NRW cities are the most bankrupt cities in Germany. Sad leaders are Oberhausen, Gelsenkirchen, Dortmund and Hagen... And well now Mr Beck has sunk another 300 Millions ins the Nürburgring.

And now the same party members claim to overtake the bank control. That's so vain, I'm short on words on this.

Another 100 billions burnt yesterday
Oh, yes it's getting more absurd by the day.

Germany's parliament has decided to save Spanish banks with 100 Billions. Well one myth is that Spain guarantees for this 100 Billions. This is very very very absurd. A state short before a default guarantees 100 Billions. Yes indeed, a thing I surely "believe".

The system press in Germany cheers this as a wise decision. (One may ask for whom, but that's problem to selfish a question) The real absurd thing about it. Spains prime minister has told us in 2005 that Spain will get more wealthy than Germany. Well no, that probably has not worked. But who cares?

A small reminder
Now in Euro land there is now a defined death zones of the height of the interests governments can/must/have to pay.

This "magical" border is 7 %. Well yes that is much anyway in the 80ies to 90ies. Germany has to bear nearly 10 %. Who has cared to that time? Well Germany alone. And today this should be impossible?

Sorry, but the interest has some real meaning and if Spain, Portugal and Greece have to offer more then 7 % one can see, how "low" the trust is. But instead of accepting the inevitable, the simple rule to solve such crap. Is asking for a "safety chute". I can't tel how disgusting I find that.

I havn't a good feeling
The Bundesverfassungsgericht (BVG) will decide upon the ESM in September. Now it's of course better it is later signed than ealier, still I have my problems with it.

For me the ESM is against the constitution. And I think the judges should come to the same conclusion but if that is clear "now", how comes it will take 8 week or so before the BVG will decide upon it? I'm very wary, that the may try to find a way to let it slip through in the way. "Yes but... ". If it is clear that it's unconstitutional why would they need 2 months?

Maybe it's that I see just enemies around. But the BVG has decided that it's ok to have the Euro. But they insisted on the bail-out-clauses. And just because of them they decided it's not overly risky to allow the Euro. Well we know what has happened with the no-bail-out clause. We know also what has happened with the deficit rules. Germany and France were above the 3% new debs (yearly) but nothing has happened. So in fact all rules which should keep us safe were broken. The ESM does not even claim to be bound to something.

The ESM Board of Governors, has in the original version any immunity you can think of. The ESM can not be tested in Court, but in the case the Board agrees. There is also no limit to the base capital. It will start with 700 billoin (Germany's share is 211 billions or so) but if they run short on money the can demand in addition. Now Parliament has to agree upon that. So really it's one of the most undemocratic things the deledefs wanted to start. It reminds me like helll on TARP (you remember Paulsan wanted 700 billions or the world would come to a halt) and you know what has happened the TARP money is burned. Why should be be different with the ESM?

Germany will go down the drain
It's inevitable. To many here do not understand the simplest economic rule any more.

On of the new "pets" (in fact dragons in disguise) is called base income payment for every german. No question about work no question who has to pay. Every German should get a certain payment (let's say 800 €) without any further request from whom?

Guess once

Guess twice

From the state. Now what a "nice" idea. One stupid question who pays?

I guess the answer is clear:the COFH (Capitalist Of Hell) .

So let us do a rough calculation 80 million germans with 800 € monthly payments make for 80 000 000 * 800 * 12 = 768 000 000 000. Wow that's easy just 758 billions. Just a small reminder, the current budget is around 300 billions. Ah yes I'm sure that will work well.

We can calculate another way Germany average retirement payments are 700 € /month. and this costs the state 80 billions. So let us calculate with this figures. So let's say 1/3 of the Germans are in retirement, that are roughly around 80 / 3 = 26,7 million. So the costs are easy to calculate: around 226 800 000 000. So we can say 1/3 of the retirement payments have to be borne by the state. Let us just increase the average montly payment to 800 so we would have costs of 259 200 000 000 on third of this would be 86,4 billions. So just for getting near that "base" payment for retired men/women we need another 6 billions of credit.... And now imagine how this system will do if people which have retired will raise...

Again this complete stuff can not have been properly "calculated" it's unbearable, but that does not matter for the Germans. This is just and so it must be so.... This just means we are so fubar that it just hurts...

I've a big problem
which probably is unsolvable. As you know I'm absolutely no fan of democracy and even less of parties.

Now it's not a secret, I live in Germany. Well so far so bad. But in Germany there is not political influence if not in two ways:

  1. You must be a party (well hell always sends an invoice)
  2. You must be a member of an NGO which has "saving nature" as goal

It's absolutely not enough to be a citizen. So now my "big" problem. If I want to stop the madness I've join the madness. How can that work?

Here in Germany there is but one party I can work for it's called PdV. and it's a party in the "sense" and spirit of von Mises. The funny thing is they have the same problem as I have. They do not want to make politics but have had to found a party. This is so f.... stupid and disturbing.

So I have to join something I despise just to get rid of what I joined. Well isn't life great?

There is no way out
of the current crises but return to sound economic action.

As long as we do not take "Human action" serious we'll be fubar. We'll also be fubar while keeping fiat-paper as money.

The history of fiat-paper is devastation. And there is no other word which just gets near this meaning. No inflation ob paper sums will ever get more things produce. Yes there will be booms and thereafter there will be busts. Inevitable.

The big problem with all current schools is that they do not take humans and their preferences as base. They alway think of some kind of normed human, and despite diversity. This can never do. Nobody can know what's on the mind of someone else. Parents never will understand their children completely and will alway be surprised about some of the "ideas" of their children. Well the other way round Children always will think about the grown-ups to be some kind of odd.

We can make "assumptions" about behavior and we can ask. But we can not know if it´s just said or meant. This is one thing we can not know. The other thing is we can not know the future. But what we can know is that there are rules men as to obey. Men never can fulfill needs for himself at once. It always takes time and time definitely is limited. We got our 80 or so years to live and in that time we just can do one thing, acting. If we don't act we'll die. It's as simple as that.

And we know also we need things for our survival. We need water, food, and shelter. Hardly many live in areas where shelter is not needed. And even id you do not need shelter you need water and food. And you have to act to get this things. Von Mises has phrased and explained that in "human action". It is one of the most important books about men ever written. It does not even is so important that our predecessors were apes. Knowing that does not help us to survive.

We know we simply need some things to survive. We have things Mises has written down. We can think, we can imagine. We know we'll die if we do not get food. In the current time we still know how to get our food. Well visit the super market or farmer or visit some market. And we know also, we better have something we can trade, otherwise it will be "hard" to get something. And so we "know" having money is "good to have". And so we offer something we can produce ourselves in exchange to money. And we can use this money helping to fulfill our needs. After the needs comes the wishes.

All this wishes have one thing in common again. To get them fulfilled we need time and there we again have the limits within we have live our life. And again von Mises has written it down in this most important book.

What we also know We can cheat, but not in the long run. And one means of cheating is fiat-paper. So in the long run fiat-paper won't do it. And so if we want to get out of the crises we must return to sound money and the ever holding law that we just can consume what we were willing and/or able to produce. So there's the way out. The longer we do not take them the more problematic the way will get...

Mirror entry to: You know the title song from Ghostbusters?
http://fdominicus.freecapitalists.org/2012/07/06/title-song-ghostbusters/ it contains “there’s something strange in the neighborhood”…

I know have stumbled upon a few things I’ve not seen in the papers since ages. Crtitical comments about the indebted French and a critique about the easy money policy from the ECB.

Add to this mix a letter to the public in the FAZ (I think one of the highest regarded newspapers here in Germany where they criticize the latest EU meetings. This is very very unusual in the main-stream press of Germany.

I’m puzzling what’s going one. I’ll lean back and watch interested what the next few days and weeks will bring.

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