To all the bank critics

Posted on 2012-02-22 by fdominicus

Well banks are guilty of many things, but they are not the reason for the debts of states and it’s their right to expect that bonds they bought will get served.

Anyway banks in the current form a nothing more than fud machines. At first banks lend out money they do not own. That’s what happens if they lend out demand deposits that is defraud.
This money is guaranteed to be available for the account owner. If you lend it out not all the owners can get this money at any time. This is a crime

Bonds from states are treated as beeing without risk. So it does not matter if you have dollar and/or bonds from states. This can’t be. No bonds is without risk and the risk especially from government bonds are not neglectible the threat the survival of banks. Anyway it’s would be good risk managment to be careful even with bonds. It seems banks are just starting to realize the problems. But banks do not have the biggest problems with it. That are retirement fonds etc which are “enforced” to invest in “excellent” debt. Now if anyone here things bonds of any state to be an “excellent” risk well then I guess you have not even started readin von MIses.

As you have seen in the EU zone I thin 1. x trillion were offered to banks for 1 % or so in 5 years. Now the banks have taken this and you can see they are fueling the stock markets with it. So the central banks have kept the interest on a level well beyond anything realistic. This means that banks were relieved to find new money. They just were “given” it for free. In fact with 1 % interest and 3 % of inflation the ECB has handed out 0.02 * 1 000 000 000 000 = 20 000 000 000 for nothing. That is the EZB finances the the banks with 20 billions. This is robbery. And it shows the last actions of the current fiat-money system. Banks do participate and again it’s not the customers they are working for it’s for the governments. That sucks.

Anyway this does not change the fact that government have issued bonds banks have bought them and insist on repayment. Anyway what anyone should do is

a) write to your congressman and ask him what he’s going to do for keeping your moneys value

b) do not buy any bonds of any state anytime again. There are and for ever will be alternatives. Buy bonds of corporations. Buy shares, by land, by whatever but do not buy any bonds from states.

c) get rid of your depenceny of banks. Yes I know you can’t really but what you can do is

  • get rid of your debt. If you keep it you will be in the hands of banks and you won’t get a few trillions to help you out
  • move your money outside your country. Yes I know the pastures are not greener elsewhere, but if the break down starts to set in and you are
    bound to one country, then you are bound to the disposal of your deledefs. (don’t count they will think of you while saving their skin)
  • Currently you still can by precious metals without any problems. Don’t count it will stay that way but if some gold is kept in a safe in your country or in another
    does not make a difference for you (it’s yours) but it makes it impossible for the deledefs to get to it if it’s another country. It’s unlikely that all the countries will start
    to expropriate you. So search for countries with extreme high standards for property rights , and open an account there (it will be a bank you can bet ;-(

All the best you can hope for is if you fight against the fiat-money systems. They are though by bureaucrats and politicians for all to good reasons. It’s the first time that you do not even have to degrade the coins. No you just add a few zeroes at the end. It’s the perfect system of exploitation. Just see that Utah as agreed to reintroduce gold-$. Insist on them everywhere.

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Time for a book?

Posted on 2012-02-20 by fdominicus

Dear readers it seems I have to suggest some literature for you.

Check out the following books: “Bailout nation”, “Credit Card Nation” and “Human Action”.

In 1998 there was a nation-wide negative saving rate at work. And you know that was also the time of the Internet bubble. Now in this extra 13 years nothing has changed. The debt has again more than doubled and it’s still raising. You can not have wealth without saving. You can not get rich on Credit. So fact is with debts everywhere the end can not be avoided. Kredit expansion is according to von MIses, incurable either one stop is or the currency will break. And if a currency breaks, poverty is the new “middle” class… Now with forgetting to save things the middle class is starting to go down. I propose you check the diverse countries in the US and you will see where people save there will be much less suffering.

The US has overstretched their limits and in fact it’s the biggest burner of money with it’s military machine. Military machine is just good for one thing destruction. And So the military will take it’s part in distruction of the US. And Obama has nothing done to prevent this. I remind you of my critical entries here about Obama and in fact it’s getting even worse. See e.g. http://mises.org/Community/blogs/fdominicus/archive/2011/11/20/now-keep-your-breath.aspx. Really the US is gone, it’s just a death corpse walking. But sooner or later it will crush and this will be the start of another civil war. Now around 150 years after the last , we come back to it. It’s devastating. I propose to start thinking about leaving the US. You may escape the war. But maybe not. The debt race still is open all over the world. …..

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Fed Money at work

Posted on 2012-02-16 by fdominicus

What a suprise a new bubble is growing.

According to a German Magazine the prices for land are soaring. Within just a few years a hectare has seen an increase in price from 5000 USD to 30000 USD. That’s a raise or 600 % and you can bet
this is the next bubble. Fueled and fired by the ever expanding credits (called money from the FED). It all happens because of new laws and the mania to subsidy “renewable” energy. But of course the base for that
all is the zero or below zero interest politic from the FED. In short money printing at work. The Fed sucks

The other big driver is the granting of patent privileges, enforced by the all so loving state. States suck.

The magazine write about the vanishing middle class. What a surprise if you take from the middle to pay the top, they surely will not get richer. Anyway the middle classes believed also in “easy” money, while using credit for buying houses. Too much credit and now what has happened this bubble has busted. And now they are in trouble, what a surprise. It’s not alone the fault of the authorities (but they have made it so easy to get credits) but also the believing that this could be sustainable. Sorry vanishing middle class you suck also. You’ve build on credit and you get what you deserved. Not needing credit is the way to go for the middle class. Especially not using credit to pay consumption. Sorry guys, credit sucks very badly.

If you trust on credit you trust on hot air. Only real savings yield wealth. That’s the all and ever true way.

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The "joy" of parties

Posted on 2012-02-14 by fdominicus

Dear Readers I like to tell you a story about FUD.

As you could read in my last entry. Greece is still finished but the deledefs do not admit that. That are not real news. But now it’s get interesting. According to
some blogs in Germany 40 members were excluded from the left party and the right party because they did not agree to the “saving” plan.

There are somewhat below 300 member in it. So just imagine well beyond 10 % were excluded because they did not accept a stupid and guaranteed to fail plan.
Now aren’t party great?

In fact they suck to badly that one just can day fubar. Parties are the most repressive system one can encounter and having such prominent roles as they have is
again fubar. So we are ruled by a fubar system, with fubar money. That’s a few too many things one can not even dream of to repair. In the end the end is clear.
The “systems” will break down. That means violence and yes most of the time war.

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Greece again

Posted on 2012-02-11 by fdominicus

Well if you look through this blog you always could read warnings. Just one example http://mises.org/Community/blogs/fdominicus/archive/2010/02/22/f-b-ailouts.aspx

But let’s see at the Situation without malice. For austrian economics the problems in Greece are crystal clear. What we see is the end of a boom introduces by manipulated interest rates.
Yes and it’s one hallmark of why the help from EU can not work. The greek politicians have took every cent they could get from the EC. That’s what keeping ones house means in politics. All the
expenses for things were not driven by need and sound money. But driven by the way it works in politics. You must throw out the money, otherwise you will get less next year.

Well in normal economics activities it does not work that way. You invest while you a) see some need for your services and b) you want happy customers… However you do invest usually much more careful. You do know exactly if the customers will not buy your stuff you are finished. So you alway try to get you needs in sync with the things you can offer. There is not automatic payment it’s the customer who decides. Now let’s see how this is not done in political economics. If you ever have visited Greece you know this land is beautiful but harsh. Many live in very small villages, and quite a lot of them are on islands. So transportation is a problem. Anyway if Greece is strong on one area it’s in seafaring. And indeed even many of the Italy ships are manned by Greeks. But now the trouble starts it does not make (unfrortunatly) much sense to build big streets over the islands. But this is what happened with money from the EU. That’s bad. There was money burned, because the ways can not be used economically. They are too big, but now they are there and the trouble starts. They were oversized and therrefor overprizes, and it needs much more even to just maintain them as one could answer for. And it does not help in anyway. The jounger still have left and just the elderly are living there. So who will use the streets in the future?

This are the catastrophies triggered by subsedies. Yes agreed there must be some kind of boom in infrastructure building and maybe even housing. But Greece just has somewhat around 11 million inhabitants. So you can not build an infrastructure suitable for 30 or more millions and hope this can be sustainable. It’s impossible. Another problem in Greece is the corruption and way to large bureacracies. Again countries which more than 5 as many inhabitants do not spend that much mone yon their diverse ministries. (I read somewhere Greece has 49 of them !!!) and politicians, and it seems they are even higher paid than in many other countries with much larger population. Corruption and too large government are a clear sign mark of destruction.

So what can we hope for for the Greek? Well we just can hope they get rid of their functionaries. They must put harsh punishments on corruption (and or just take the responsibiity aware from the bureaucrats), and they needs sound money. I’m afraid this latter will not happen and there for if Greece should leave the Euro the normal population will suffer severly under extreme inflation. This will destabilize the country even more. So I’m afraid the Greece just are at the beginning of the end. And it will (unfortunatly) get much worse. As one can read the decline starts to accelerate. Hundreds and thousands of businesses are driven out of business. How could one expect from less working to have more “money”.

IMHO Greece has spiraled out of control and any “imagination” of control can be burried. No one in Greece will be able to regain it any time soon. The bureaucrats and delebets do not even see it. Of they see it and won’t. But reality strikes and it will strike the harder the longer the wrong ways are followed. Von Mises has put it:
“There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved.”

Greece was at the edge 2 years ago. I’m afraid they are beyond it now. So yes you can see exemplarily what happens to unsustainable systems driven by unsound money and too big governments. Will Greece be a warning ot the other countries? I’m afraid the answer is no, And therefor the end of Greece is just the sad beginning….

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You know the difference

Posted on 2012-02-08 by fdominicus

Today a half philosophical discussion. I just want to lead you into two different situations.

a) visiting a market

b) visiting a public authority

Just one first question. Which one do you prefer to visit?

Second question do you have an idea why?

Well for me it’s a difference like night and day. I’m sitting e.g in the evening and enjoying my dinner. And I eat e.g one wonderful fresh bread and I see that I need to fetch some new bread. Next morning I visit a bakery and what will happen? Well at first there will be some seller on the other side. She/he will kindly say. Good morning, what can I for you or the like. I tell him/her, I’d like to get my “bread”. If I’m a regular visitor I surely will be asked before. “You usual bread” or the like. They know me and they appreciate if I’m coming back. That’s voluntary exchange.

Now imagine the same for a public authority. Do you go there voluntarily? Well I for my part can not imagine one day when I WANTED to go there. I MUST. And how am I treated there? Just imagine a question about your taxes. How does that work? Well at first you won’t be alone and you even may have to take some dating ticket. And you have no idea how long it will take. You will sit down. Now think about the room where you may sit. Will it be a friendly place? Well AFAIKT the answer is no. I guess anyone know the endless corridors of such “establishments”… And there’s another difference you are irritated. You do not want to be there, you want to be somewhere else. And then the next thing which will get on you nerves. You will be treated as some nuisance. It’s not two men on the same height it’s the authorities and you. In the end it’s involuntarily exchange.

Well I know what I prefer and I guess you know it too. We are “forced” to go to the authorities for so much. In Germany we have to go to the registration office within some 3 day or so after the birth of a child. Yes it must all be kept on record. I guess they are afraid to miss some tax casualty. I don’t know how you’d feel I know how it got on my nerves to go there. Other things that one must “go” to fetch ones passport. Why? It just indicates that you are owned by some “government” and you can not get anywhere into another country without such thing. It’s like a owners dog tag. It states you are “owned” by the government.

Just think about it. When was the last time you visit a public authority voluntarily?

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Depriviation of rights

Posted on 2012-02-06 by fdominicus

I guess it’s nothing new for someone having read Hayeks (“The road o serfdom”)

In a hard fight to get into it: Europe and the US. The current newest strike comes from Europe. The “politicians” name it “fiscal union”. It does not mean more or less
that national parliaments can (and must be?) supervised by some european well not parliament. It’s not spoken about it, but well some eurocrats. It seems the preferred solutions
are the chiefs of the countries without a way that they could be voted for. (Well very indirectly through some votes in the diverse countries)

But what is a vote good for if the laws are changeable without a way that one can ask for the responsibilities of the voted? I don’t know. But Hayek had known. He explains the road to serfdom and one
could think it was a blue print for the current political ways. Too many in Europa and US are not “supported” by government and so it’s not talked any more about expenses. They are caling it rights.
Rights for this, rights for that, But in the end it means. Everything of you properties belongs to the government and it’d decided there whose deserves what support. And it means stealing from those
still being able to work and support themselves. But what freedom it is if you know, the harder I’l the more will get stolen?

You can read this blog right from the start, and you’d see the patterns and warnings. By every mean we’re fubar. You must look outside Europe or the US to find a somewhat less influential government. I’m afraid there are just a handful of countries left in which property rights are “enforced”….

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Obama it's getting worse

Posted on 2012-01-26 by fdominicus

If you have read hear just a few articles you know that I think Obama should not be president.

Now he gave a talk about the “Future of the US” and there he mentiones something like egoistic money jugglers.

Well it’s not the egoists I’m afraid of. Imagine you get along somewhere (let’s think a market), and you want to have something let’s say a pot of honey. You want it (egoistic) and now what is the next you ask?
Well it will be “How much is it”. And you will get an answer. This answer will be the base on which you decide, well yest it’s worth it or not.

Now you are a non egoistic but politician. The same market. You see something and think well those or those may have a need for it. You take the stuff and inform the other side that’s for the greater good and that he has to
agree. If he won’t you will just pull your gun and say again. “Sir/Madam you want to give that to me for free, I know better what to do with it”. The latter attitude is that of Obama and hit gang (bureaucrats etc) It’s not me that is alone with this see the big dispute about a visit to your president here: http://www.huffingtonpost.com/2012/01/24/tim-thomas-boston-bruins-white-house-obama-politics_n_1228156.html

Who is the problem? AFAIKT it’s not the egoist. He knows he has to give to receive something in return.

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Extension to completely actual

Posted on 2012-01-25 by fdominicus

Well it has come as I expected more than once.

Now the next German Solar supplier will probably go bankrupt. And what did I post yesterday? Which itself was quire some “old” stuff? And
burning money what did I calculated there.

It’s depressing to see your money (yes I’m one of those still paying taxes) burned that way. Now if I would have invest my money with German Solar panels suppliers and started with this investment just 6 years
ago and would have held till today I would have lost > 97% with each. Very sustainable. Now I do have done that and still I have to pay for the panels on the roofs. But as you also know I placed some extra on my roof also I mentioned it
How to maximize damage to states

I hate to say it, but it’s kind of war time its defending one’s one property against theft, robbery, and black mailing. On the other side are the states and their workers.. It’s a shame.

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Completely actual

Posted on 2012-01-24 by fdominicus

t’s unbelievable what politicians come along these days. Till now every “plan” (should I dare to name it that way) was put into pieces. And they still do not get it. The problem is not too less money, too less political influence and the like. There’s just on thing really too less. Personal responsibility. As long as the plans just do everything to minimize that, they will sink Billions and trillions of money, till they can’t do any more.

The people having robbed out the majority, must stand to their responsibility and give back. Currently everything is done to keep them “at the top”. That’s bad, how can anyone expect normal people building trust if they see how those people for the “get rich fast” won’t pay to have their bill.
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So is the bottom reached. It’s not even in sight. For Germany I predict we’ll test the DAX lows from 2003 or so, for the Dow at least 1/3 to 1/2 losses is not that uncertain. Will we see bankrupt states. Well we’ve seen Iceland and we see what happens to Argentina…. Don’t say it can’t happen to larger states. If we in Germany throw out all the money we do not process….

At least we in Germany have experiences state bankruptcy two times in the 20ies century. One after World Word I and the second after Wold War II. Unfortunately our politicians do not take that possibility into account…. with the half billions parachute for banks, we may start outstretching our luck….

Guess when this was written
you can check here Down the drain

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