January 2013 - Posts
Obama has now find another area where he want to "lead". He wants to get at the top of the climate fighters. Or was it against the
Now I guess it will get "interesting". It seems the USA were on their way to cheaper energy. I guess that's nothing all too good for the gooddoers.
In Germany the Greens were just thinking about 5 DM / l price tag for fuels. Well we hit the 1.6 €/l the last year (still around 0.9€) below the original 5 DM.
We have such a crude think as CO2 "zertificate" exchange in the EU. One has to imagine, states do not just make money out of thin air. They even make
air a bureacracy. So we have it, I'm afraid you will get it too.
One songtext in my background: "You'r as cold as ice, you're willing to sacrify" (well then comes "our" love). There's one extre sentence I'm currently hoping for.
"Some day you'l pay the price". This is my deepest wish, that the Deledefs and Bureacrats, and "servant" of the states do pay the price.
Well I know it's more likely that the next war will just kill besides a lot of "soldiers" some of the bureacrats and politicians too. But the rabble-rousers wil surivive. It's obviously
the balance of nature that some take pleasure to suppress and repress. We need a robust constition to survive those malice doers. Anyway we still have a chance that we get
more liberty. It will take ages, decades, centuries and even longer. We'll see and ever will see up and downs of personal freedom. There will be fascists times that we currently are entering,
and there will be freedom after their break-downs. And the spiral will start turning again.
What we do have currently are such fine Blogs as here on Mises or other sources of informatoin about economic and personal freedom. If you are unsure start lookign around here.
visit the pages dedicated to von Mises, Hayek, Rohtbard, Bastiat and from there look after the readins lists and start judging yourself. You always can and should ask whose right and whose wrong.
Does war on whatever really is war against that whatever or whom else does it serve?
Take the action after 9/11 and ask yourself. Is the world more peaceful place? Or was the opposite reached. Now you ask how long have the US fought their wars. What's wih this war on terrorism, has
it ended or is it just starting?
See the debt mountains of the states and ask yourself. Whom do they serve? Is the net wealth really that much higher? See the promises of the presidents, how many do they really have fullfilled?
If you see the did not reach their goals then name is such and even better write it down. This blog was just started because I wanted to express the things I found to be right and wrong. And currently I just can see a lot of wrong-doings. I came to the Austrians during the last 4-5 years. I've studies also economics and political economics, and I can tell you not once during my time at the university von Mises, Hayek etc were even mentioned. That says a lot about german universities. But don't be surprised, they are paid nearly 100 % of states. That tells you a lot about the educational system. Anyway it's not forbidden of impossible to break out this main-stream thinking. Just do it.
Two entries on the zerohedge log:
and one that leads me to:
That’s the difference between states and firms. States to make firms suffer and firms have to see how to get out of it with their own money. States never get out of it with “their” own money. They just steal more (that’s called tax)
The booms are introduced by to cheap money. And money without worth. That’s the point. If the US would have to gurantee their currency with something of value. They would not be able to pile up that many debts. So it’s easy, they export Dollars and get something of some real value in return. The Dollar owner just can “hope” that he may be able to buy something with an paper later.
The USA overall lives on the expenses of the world and still they have sky rocketing records of the food ration cards. In the end it means the debts are somewhere cycling around without being used for highering the the real goods output. And that fits perfectly. The debts we have in the states are circled around. Greece can not pay so they got “new money” read “new debts” from the EU. And the banks which take in the money are buying new “bonds” of states. Handing it out as “security” to the central banks and there is it the debt. The so called “assets” (bonds) read debt claim is the highes in all central banks ever in non-war times. So that means the central banks are the biggest holders of “promises” of states to pay back their debt.
Well that’s a neat system isn’t it. The states to guranteee the mony monopoly to the central banks and the central banks take the parity value of the bonds from states as “given”. So how long would you expect such a system to be trust-worthy?
Well it seems I'm not wrong:
The "social security system" . It's maybe a misnomer. It probably should be the state promised poverty bomb. The official debts are 16 trillions. Now the social "security" alone should cost hat much... Guess that the peinsion promised have not yet counted also.
So the debts are not "just!" 16 trillions but probably more above 50 trillions. Now the world gross product
is around 74.540.000 (2010) (see e.g http://www.welt-auf-einen-blick.de/wirtschaft/bsp-absolut.php) Millons that are roughly 74 trillions. So the USA alons hold official and inofficial debts around the world production. I guess this is a "little" bit too much for
just 350 millons americans.
The US sucks in money and emits more debt that any other nation in the world. I guess that means the US will default not to far soon in the future.
Well it can not surprise an Austrian but it may be the "unthinkable" for the current main stream voodo economists.
Just some things about Europe:
It surely shows how the credit expansion break down, leaves many hopeless people. Yes central banks can print money, but they can not
make every one "rich". Just those near the central banks and those getting the new printed money first gain. So the biggest gainer up till now are the
Anyway that does not help really. Because there is one barrier no-one can get around. In the end you can just distribute what you have. The fed can of course distribute new money. But that does not make "more" produced goods. So it's clear the money de-evaluates against any good. Of course there are speed differences. And that makes it impossible to see the real effects on all the money printing. You just can see it in the figures of falling prices and falling output. The crisis we have are a direct result on all this distribution, and lies.
Take Greece as an example. Let us assume the money supply for the last few years would just be constant (no credits from the EU to pay the debts of the bonds hold by european banks) and assume that the production really has lost somewhere between 10 - 25 %. Then there is less to buy but the money still is there. So the prices of the most needed things must raise and in the end that means things for eating and housing. Now assume you have lost your job also, that means the money you used to earn not there, but it's somewhere else, how much harsher is it getting for you then?
The US are in another death spriral, because they can not even nearly pay there bills without new debts. So the US state needs the FED to give them credit. And the FED delivers. It's the biggest holder of new issued debts in the world. So the cycle is the FED accepts bonds as "security" gives out now money for them, and the states distributes it. And again those getting the state money first (that are of course the receiver of payments from state) do get fresh money first, but they do not produce anything. So they can buy more than the less lucky non state workers and so they are "loosing" against them.
And now we have another problem, private debts for all kind of things, which means more and more must go deeper and deeper into debts. The most prominent example are the debts for a university training. And guess what happens now the state wants to give them the money to pay for the debts. But of course for every $ they hand out another 0.33¢ of new debts has to issued, and again the winners are those which get the new money first and those getting it latest are even more squeezed"
The situation now get more problematic by the way. More and more are dependent on state payments, the state needs more and more money for that, and must make new debts and those getting the new money first profit and on the other end the dependence on state payments raises.
We know this can work for a while, but you also can see that this can not hold forever. We the Germans know what this can do to an economy. And even from Mises has phrased it clearly:
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
I'm more and more convinced, that the total catastrophe is more desirable then stopping credit expansion. Because I can not see any really effort to stop the credit expansion. Currently it seems the money is just "going" around in the system and we use credit to pay for other credits. It's impossible that this can work....
Well it seems time's running out. The US state does need 0,33 ¢ new debts for every $ they spend.
Even an idiot can understand that this will not work. It fits perfectly that the citizens got poorer by the day. That' s clear, just printing on some paper
does not make one richer. The FED is the biggest holder of US bonds and if you believe they mean what they said: "That they won't buy as many bond as before", you're in for a big surprise.
The fiscal cliff was -- as expected no problem. You can read this blog for such kind of things. I just remind you of the last time the debt ceiling should be raised....
The Americans learn now that having debt does not mean being rich and have a lot of not paid cars does not make one rich either. Debt is the problem and
it will not simply get away with making new debts. I wrote about the stupidity of the US-citizens and elsewhere. This is still true, but it' not just the dumb overall which fail.
It's the dump elite which stands in front of their "models".
No Austrian can be surprised an AFAIKT non really is. We wrote and write about the impossibility of central planning, central banks and wealth redistribution, we know about the impossibility of
states to produce anything. We know about the problems of money as debt. So it comes as our great writers have predicted, it comes also as we all warned it will come. You can simply read through the old blogs, you
can read any of the books here you can find the writing in the net. But you won't find them in Germany in news papers. And it will be hard to find them in US news papers also. The claims awareness of much more importent things like
divorces of prominent, the buying of new and larger houses, cars, planes etc and such important things like "dancing with the stars" or such kind are much more important, for those not living on food ration cards.
Hell it's even more important if the president stands up with his left or right foot.
The american dream is just a joke, and was replaced with live a live according to the bureacrats and you'll be fine. The payments of state workers are going through the roof and well we do not talk about their pensions. But hey you now
have Obamacare, that probably counts for another few billions of new debts.
And if you think this is bad, wait for the worse to be come. If the people do not take the greenbuck serious any more you are really in trouble. And the day will come. I don't know when, but you can be sure the days of this systems are running short on time.
This stupid German has warned you also since I started this blog. I do know it does not help anyone, but me. It's kind of intellectual pleasure (kind of morbid humour I guess) the writings have given me. I wished more then once to be
proved wrong this was just wishful thinking. Not just the moon is a harsh mistress, the imbeciles in the top positions are much harder. And there's no Computer which will save us from this imbeciles.....
Remember the entry I've made on 2012-12-16. Where I wrote what will happen about the "fisacl cliff"
Well the cliff was not that high, it was just a small stop on the way up. And so the parties have "agreed", some more taxes is the only change.
Were anything done to stop the money burning and printing? No, of course not.
So we are in for a new round of debt piling up. I can not tell how embarassing I found that. Such a crappy show. And such an obvious outcome
That was again one of the worst about politics. Not solving anything but to steal more from those who can "afford" it.
I wish Mr Obama a very bad holiday. I wish him, that he will have to suffer under the things he started. But I know he will later travel along America an tell
everyone how great he has been. It's really disgusting.