F Dominicus Blog

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

Extending it does not make sense

Well I wrote some weeks or so ago. that it does not makes sense to follow the "writings" about the gold price.

It does also make no sense, to do so for stocks. The problem is the markets are very dysfuntional, because of the number of monopolies and the sheer amount of debts. No one can deny that ALL countries but maybe a handful do have a serious debt problem. Countries are not alone with that, banks and Privates have that problem also. The system is rotten from the ground up. In Germany we have another saying. "Der Fisch stinkt vom Kopf her" I don't know if one can translate it but it means the stunk comes from the head of the fish.

What the head here? Well the head is the money system. It has stretched beyond nearly any historic defrault. At first it is build on nothing more but promises and force of states. Well to other times the currency still was grounded of something with a value, e.g gold and silver. The deledefs have cut this bound and so the manipulation starts going wild.

The first catastrophe was the great depression. It just took the Fed around 20 years of money printing and hell has break looks. We are nearing us this 20 years. Just let the ECB print money for just another years and we are in great depression II. It's inevitable because the deledef do not end the credit expansion but are trying to prolong it. They are fighting every problem (caused by too cheap money and to much credit) with even more cheap money and even more credit.

I don't think that even just the official debts can be borne. But this is just the ip of the ice berg. The problem are the shadow budgets and costs resulting from the promises to pay the rents. This has broken GM (and GM would be out of business just because of pension obligations) and so US will fail on this obligations as will Germany and unfortunatly ever other Euro country.

This is currently not even on for discussion. Just the current debts are the problems. And so we started with Paulson 700 billion bail-out and ever since have cumulted another 3-8 billions or so debts world wide. And this just in the last 4 years. There's not return in sight. So we now are starting of really. The US is bankrupt and corrupted, the EU at least as much.

So overall there is just one theme really driving anything. That's the debt avalanche. As long as this won't stop we see absurd up-and-downturns. We may even see the infamous crack-up boom. But this all will sooner or later result in rasing prices for "money", this will either end with the end of a hyperinflation and after that comes the depression. I don't think the right ones will be blamed for it and so we'll start a new round of a central bank based paper system.....