F Dominicus Blog

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

Breaking laws

I'm puzzling. How can one expect that breaking laws help in building trust?

I doubt that anyone can argue that any of the modern states lives within it's financial bounds. The USA e.g has to make 1 USD new debt for every 3 USD of expenses. Well how can anyone think this can to on for an eternity?

The ECB has been prohibited to finance states, but still they are buying bonds of states. One can not argue that this is illegal. If Mr Draghi says short running bonds are not for financing states, well than he's simply lieeing

If people recognize that states do break the laws, what should keep them back to try the same? So how can you build a society in which one depends on the other where you stop believing that the other part stick to the given contracts?

IMHO that is not possible. At least not in the long rung. The people will try and find away around the "laws". It's like in Germany after WWII the state wanted to dry out the black markets, but everybody was active there even the highest bureaucrats. If you are hungry you don't give much on a law which may starve you to death. So the black markets were there and they kept many alive. And so it will be again. If the states extend their control the black markets will raise again. It's more dangerous but the only way to survive. So people will go that route. And if they do not trust the paper anymore they will go back to barter and/or using silver/gold coins. Because they "know' this things will keep some value.

Every new breaking the law will lower the will of the people to do the same and in the long run no state can exist without the support of it's citizens. Even in their own interest it would be better for the deledefs to stick to the laws. But I guess they are just interested to be state paid even after the next vote....