The Mises Community

It's slaughthering time again

Friedrich Dominicus — Fri, 10 May 2013 12:31:00 GMT

It's getting a bit annoying. The last few weekends you could rely on a new strike against gold. The old saying is: First time is an accident, the second time it's an inccident, the third time it's enemies at work. It seems the paper gold "market" has left the real market little bit too far behind it. And it seems the try to get the prices lower in the hope that people get rid of their gold. At least this seems to be quite plausible. The problem is that judging from the reality, the price of gold and precious metals should be soaring.

The central banks are in money printing mode
The states are back in full swing to create jobs through more debts.

You can even see some prices soaring as in the crack-up boom. Bonds are higher than ever, stocks are higher than ever. All with quite bad economic figures, they do earn less and less, but especially banks are emitting new stocks every minute. That means the earning / share are going down.

I have to admit the problem that gold is measured in Fiat-money makes it problematic. I do not loose anything in real "value", the gold just sits there and it happens nothing to it. But during slaughter times one sees the "value" measured in USD going down. That makes you nervous. I've gone through this over and over again and in between I just think. Don't worry. The gold is there in physical form, and it's not yet another prohibition of gold in sight.

But going back to the header, the problem really does not look like fortune any more. And so if you are "forced" to sell you will loose really bad. The gold is gone and you got paper instead and you know this paper is printed in the millions every day.... It's not worth it. Just keep enough in cash to stay afloat and see that you do not can be forced to buy your gold during slaughtering times..

Ride the wave

Friedrich Dominicus — Wed, 08 May 2013 04:37:00 GMT

but be prepared, every party comes to an end eventuallly

We see cheap money working. The stock markets soar, and that means the dangers are getting higher and higher.

You can try to ride the stock inflation wave as long as possible, but be prepared to get burned on your way. Do realize some gains even while the stock seem to know but one direction: up. You can not be surprised that the central banks party this as their "our policy is working" and not "oh shit, we're inflating a bubble". But after hights with no underlying the awakenign will come. Yes try to get as much out of it as you can, but be assured this gains are just gains in trading units. You are not reacher till you have something which "survives" the break-down.

Be assured the break-down comes, it's just the questen when and how it starts. It's sure anyway that it "comes". So enjoy the ride, as long as you can, but fear the crash and or prepare for it.

Well this subsumes why I'm thinking that way: http://www.zerohedge.com/contributed/2013-05-07/why-america-fell-so-far-%E2%80%A6-so-fast. The writing are at the wall, the debts are there also, and they will get paid in some way... That's as sure as Amen in church.

The road to serfdom reloaded

Friedrich Dominicus — Mon, 06 May 2013 04:47:00 GMT

Well it can' be a suprise to anyone, "The just state" is on it's way.

Now every larger central bank is in full "let's print us out of this mess" mode. Which just shows, the desparation. They print more and expect to "print" debts away. That surely won't work as ever before and never will do. But it means of course that savers must be discriminated against. You need the proper vocabulary to "justify" the state measures and which fits the stupidity of the voters.

You can't say. Let's take it away from a special group.You must argue wiht something like "higher taxes" for the "rich". Which eatself is just an expression of the phrase "eat the rich" but it sounds better it gives you more support from the looters. And that's what every totalitarian state justs loves. You must get the support from larger parts of the voting population, then y you have best chances to establish kind of thouhgt police.

You can really watch it here in Germany in all it's glory. The greens go into the next election with. "More taxes = more justice" . In Germany the voters of greens are not poor, they are those which get's paid from our state their whole life. So ever expanding government fits them. They control large parts of the "thoughts" of journalists and have the majority in schooles. And there we go. The are are against capitalism and they succeed, because enough see the capitalists as evil itself. That's brain washing, and it works really good here in Germany.

So what?

Friedrich Dominicus — Thu, 02 May 2013 05:18:00 GMT

Dear Mr President tolds us. that Guantanamo

does not work against terrorism
is expensive
and damages the reputation of the US

Well that it's against and civil and human rights. No word. So you can draw your own conclusion. Word are cheap and Presidents natural liars.

Stands the proof of time

Friedrich Dominicus — Thu, 25 Apr 2013 10:27:00 GMT

Well it's not new for any Mises fan: http://mises.org/daily/6415/Come-Back-to-Gold

He's proved right every decade, every year, every month. The statism of states and the money monopoley of central banks is the foundation of more evils than nearly states.... Well you know and I know during money = gold times, the authorities have always made the money more unsound. I do not know how much it's has gone down for the Eulen of Athens, but the gold part surely has dropped but that's the difference to today.

Everyone knew back then.These days just von Miseans and followers "know". Well and those who really have understodd the false-money systems world-wide...

It fits

Friedrich Dominicus — Thu, 25 Apr 2013 03:51:00 GMT

Again I just have to wait a few day, and there it is another answr to my has the fight against terrorism has made the US more save?

Not save enough, without even more restritctions on civils rights. http://www.zerohedge.com/news/2013-04-24/guest-post-how-boston-bombing-already-being-exploited-introduce-tyranny. The bastards are on the run again, and they will not halt, even if it means "It's murdering time again"..

Note to Larry Lessig: Shall we amend the Constitution, but ignore possible reforms to limited liability corporation laws in the fifty states?

TokyoTom — Mon, 22 Apr 2013 09:18:00 GMT

[Note: Cross-posted from my HLS blog.]

When Larry Lessig launched his "Anti-Corruption Pledge" last year, I commented on the Wiki page he set up for it, and left a copy in an earlier blog post.

Larry responded the next day. I copy here both his reply and my counter-comment:

But even if Limited Liability is a more fundamental problem, which I’m not convinced it is, but if: You still need the means to address it, which you don’t have till you address the money problem first. Lessig 10:44, 5 March 2012 (EST)

Larry, thanks for your comment, but I’m not sure I follow you. I think it is a fundamental mistake to ignore that corporations are created in states, despite their tendency to accept if not push for the federalization of corporate law.

Sure, we can try to address money in campaigns at a federal level, but that’s no reason to turn our back on the leverage that we have in fighting for more responsible corporations – and corporate owners. It’s alot easier to win at least one small victory when you’re also fighting in 50 smaller fora rather than just one big one. TokyoTom 14:44, 17 March 2012 (EDT)

Count the many measures

Friedrich Dominicus — Mon, 22 Apr 2013 05:27:00 GMT

of dear Mr President.

Slapped because of his anti-weapon war. Solved with selling more weapons http://www.zerohedge.com/news/2013-04-20/obama-sell-10-billion-weapons-israel-saudi-arabia-and-uae

Costs to bring down one terrorist: 1 Billion.

So tell me about the countless measure there are. What's up with the deledefs? They are running amok themselves.

Italies fine time has not come to an end. A 87 year old, working for how long now for the government, should get Italy on some track? So where? Nowhere land? Grillo is now put more an more in the facists edge. Does it deserve it? Isn't it that we are overtaken by soicio facists, since at least now 5 years.

Who remembers TARP, the program that should have healed it all? And how much was done since then?

Good news for the Italians

Friedrich Dominicus — Fri, 19 Apr 2013 08:09:00 GMT

After now 2 months or so they still weren't able to choose new president.

That has bought some time for the Italiens. They should get there Euros out of their banking system, go into some precious metals and open accounts in other non Euro countries. They will be the next who will get stolen from the EC.

So get your money out of Italy as long as there are any presidents around

Good luck

Does the fight against terrorism has made the US more safe?

Friedrich Dominicus — Thu, 18 Apr 2013 10:22:00 GMT

Well after Boston one can see it has not worked that fine. Now does it have helped to control all air passenger data targeting US airports?

Could it be that the fight against terrorism just supports the fight against the US? Let us assume the US forces have killed a faimily in Afgahnistan, there is just one survivor and it's clear that they had nothing to do with any terrorism. Now his family is dead, would you think he does not think about revenge?

Ron Paul has warned in the past and asked to get your soldiers back. Did the Obama legislation have followed? No the US soldiers are around the wold an figthing terrorism and with every new innocent casualty the hate get's larger and larger, Should one think to follow Paus suggestion now and just see that the bombs won't explode in the US itself?

It's the base of terrorism that it always hits the "wrongs" more than the "rights". And every casualty on both sides just increases the hate. You will never ever get all the terrorists but you will suspect more and more to really be terrorists. That's a very bad way to think about your own population. The price has to be borne not by the adminstration but the people in the streets. Can that be worth it?

Daniel J. D'Amico — Mon, 15 Apr 2013 16:23:22 GMT

Yes, there's a problem with "Libertarian Wishful Thinking." But there's hope, despite Bob Higgs' clear-sighted glumness.

TokyoTom — Mon, 15 Apr 2013 11:23:00 GMT

Robert Higgs, Senior Fellow in Political Economy and Editor at Large, The Independent Review, has a piece up at The Independent Institute (last Tuesday, April 9), "Libertarian Wishful Thinking," that is worth a "gander".

I'd like to focus on the paragraphs excerpted below, and then give Bob and other lovers of freedom a little "goose".

Says Mr. Higgs:

As a rule, libertarians incline toward wishful thinking. They constantly pluck little events, statements, and movies from the flow of life and cry out, “Eureka! Libertarianism is on the march!” With some of my friends, this tendency is so marked that I have become amused by its recurrent expression—well, there he goes again!

Some of this tendency springs, I believe, from their immersion in abstract thought and writing. ...

One who maintains, as I do, that the existing system may crumble little by little, having heedlessly sowed thousands of poisonous seeds of its own destruction, but almost certainly will never just roll over and admit defeat, may seem to be a defeatist. But nothing is gained by entertaining an unrealistic view of what liberty lovers are up against. Even if one believes, as I do, that the existing system is not viable in the very long run, it may last in episodically patched-up forms for a long, long time. There are no magic bullets, such as abolishing the Fed. The state can use other means in the highly unlikely event that it should no longer have the Fed in its arsenal. The same can be said about most of the system’s other key elements. ...

In truth, the time for liberty lovers to make a stand that had a fighting chance of success was a century ago. But that chance was squandered, if indeed it ever packed much punch. ... Wishful thinking about the impending triumph of liberty may be uplifting for libertarians, but it avails neither them nor the world anything of real importance.

But it seems to me that while there is a great deal of truth here, simply acknowledging that vested interests are large and block change is not particularly productive and suffers from a failure to see the weak points in Goliath/Leviathan. Are there really no "magic bullets"? Are there no productive and achievable ways to "patch up" the system?? No leverage to apply to overthrow "this fascistic Rome"?

So I left the following comment; your further thoughts, here or at Bob's post, are welcome:

While I think Bob is right that libertarians should lose their wishful thinking, I also feel that the real problem is that libertarians aren't really putting on their thinking caps and thinking creatively.

"There are no magic bullets," Bob says. But there ARE pressure points on which to focus.

Like attacking the corporate risk socialization that has fuelled upset citizens to act as Baptists in the charade so well played by the Bootleggers in building the Regulatory State.

Like using the states as experiments to create many agents of Creative Destruction against the Federal Govt and the crony capitalists.

Some thoughts here:

http://blogs.law.harvard.edu/tokyotom/2012/05/07/note-to-larry-lessig-on-his-anti-corruption-pledge-limited-liability-corporations-are-the-taproot-of-both-growing-government-and-anonymous-rent-seeking/

http://blogs.law.harvard.edu/tokyotom/2013/03/22/as-bob-monks-says-corporate-governance-has-failed-and-its-time-to-move-on-so-whats-next-unleash-the-hounds/

http://mises.org/community/blogs/tokyotom/search.aspx?q=limited+liability

I don't think we need to throw our hands up at all, or to lose our optimism. Rather, we need to start finding ways to rein in risk socialization and the "Other People's Money" game by requiring economic actors to have MORE personal "Skin In the Game."

Hopefully,

Tom

TokyoTom | Apr 15, 2013 | Reply

Whatever will happen

Friedrich Dominicus — Mon, 15 Apr 2013 06:55:00 GMT

but it seems the next break-down will be thoughly. Never before in history 4 very large blocks are eligible for a break down.

The four are

Europe
USA
Japan
China

This break down itself is for about 1.1 + 0.32 + 0.35 + 0.12 = 1.89... Or around 2 billions of men. You can bet it will influence the other 5-5.2 billions very massively too. Unfortunatly this blocks are the ones with quite advanced economies, and mor then enough weapans to kill all the inhabitants of earth quite a few times.

Never ever before in history such "break-down" has taken place (just because of the lack of masses) and it all comes back to one base fact. The Fiat-money system and fractional reserve. The debts never ever would have gone astray with a money as value and "democratic" counties. You can see what democracy really buys you and only those who think there could be a good reign can be surprised. Our whole system of corporatism and oppression of productives has done all this harm.

And everywhere men are too stupid so recognise it...

It is never enough

Friedrich Dominicus — Fri, 12 Apr 2013 05:23:00 GMT

money for all the promises of the deledefs.

There was the story that 17 billions for cypress would be enough. Even in this 17 billions 11 billion of new debts were "planned". Aside from that the disappropriation of the bank account owners took place.

Now another 6 billion are needed. And even here it's forseeable that it won't be enough. If we take some figures, then the bank in cypress should have 68 billon as assets. Now they had ot bear the EC inflicted loss of greek bonds, which mad them tumble. Anyway let's assume the sell-off price would be 34 billions, with the now 23 billions new debts (BTW that are around 24 000 € /each inhabitant of cypress) we are still 9 billions short on money.

And even with 34 billions, it won't be enough. Because now the economy will shrink at least of or around 30 to 50 %. Let us assume, that the Debt/GDB ratio with the 11 billions would be 100 %. That means cypress produces 11 billons and will shrink (in the best case) to around 7 billions. And let us also assume my figures from above are somewhat right. Then the debt will raise to 32 billons and so will go up to 32 / 7 457 %. Can you imagine that?

If anyone wants to make you believe cypress is saved, you simple can laugh at him. It's a lie from the begin to the end. It's the deledefs way...

Be prepared

Friedrich Dominicus — Wed, 10 Apr 2013 04:25:00 GMT

to hear and read astonishing figures about the EU in April. It's "budget" time. The states have to report to the EU about their goings.

And so we'll learn the declinations for "to cheat"

I will be very curious on how small the deficits may get. I' guess they won't dare to report surplused, but maybe they will (without regarding interest payments) But well I guess you US cititzens know what I'm talking about.

Be prepared

Friedrich Dominicus — Wed, 10 Apr 2013 04:25:00 GMT

to hear and read astonishing figures about the EU in April. It's "budget" time. The states have to report to the EU about their goings.

And so we'll learn the declinations for "to cheat"

Before it's getting better

Friedrich Dominicus — Sat, 06 Apr 2013 06:15:00 GMT

it will get much worse.

That's an unfortunate truth about the end of an epoch. The mercantilism systems will break down. We do not know when, we do not know how, but we do know: The end will come.

You can see the writings on the wall. An Euro is not a Euro any more it very much depends on where you have it. Do you own it overseas it's kind of money, you own it in Germany it's kind of money you own it in cypress and it's well another kind of money. You own the Euro as US-citizen -> you can buy whatever you heart desired. You own it in Germany -> you can buy whatever you heart desires. you own it in Cypress and you can't get youre hands on it even if it's yours. Assume you want to buy a car. In Germany you go to the next car dealer and count down the money. In Cypress you go to you car dealer, then you have to fill out application, and then according to the mood of the national bank of cypress or ECB you may or may not get YOUR money ot buy the car.

So in fact the Euro is non existant any more. It' s now a convertible Euro and an inconvertibel Euro. It depens where you are. That's the same as if you had two different currencies. So in fact the Euro system is broken, and because of the possibility of the "cypress" solution in other countries it won't come back. It's now a question on how long the deledefs will be able to disappropriate bank account holders before, the money just will be gone.

Every soldier in Germany at the End of world war two has to see: Is it time to stop yet? If you'd stopped too ealier, the nazi government would kill you. You stop too late and the last bullet of the war may have hit you.. The arbitrariness was the highest at the end of the 1000 jährigem Reich...

And still there is no relief in sight, the state wil be resurrected and many of the old "elites" will be the new one again. That sucks

A system based on defraud

Friedrich Dominicus — Wed, 03 Apr 2013 11:45:00 GMT

that's our current "currency system". Well in fact it does not even deserve the name currency. It's just some issued paper which is declared to be money. The same could be done with poo. I guess poo will hardly make it into "money" but it's even more real then funny colored papers.

Currency is undeserved because it's just an IOY, That means you may get something for it, but just as long as one accepts it as having some value. Which easily was destroyed more then once in the past. poo will be the "better" money. You can exchange it with food from a nursery. If you have your own piece of land it will server you much better than "the current money".

And still they even do rob this figures from the banks. That's the cypress deal... And it will struck down Cypress as sure as whatever.... I suggest you visit Cypress now and then again in 5 years you'll see what desparation makes out of a country. Those being able to leave will leave and those living behind will learn the meaning of poverty. They will be happy again to have their piece of garden for their most urgent feeding needs. And just the payments from out-of-the-land, will keep them afloat. That's the result of ECB and EC. They have destroyed the lives of so many, but won't see the invoice. The invoice goes to the European tax payer....

You can see the taunting smile of the "leaders". Just hope and prey it will hit them hard this time...

zerohedge got it

Friedrich Dominicus — Fri, 29 Mar 2013 05:17:00 GMT

http://www.zerohedge.com/news/2013-03-28/take-everything-you-know-and-burn-it-recantation-six-simple-lessons

and http://www.zerohedge.com/news/2013-03-28/guest-post-cyprus-deal-and-unraveling-fractional-reserve-banking

This blog has warned over and over again. All the blogs on Mises have warned. But here we go again. Arbritrariness driven to new highs every few hours...

"Peace project"

Friedrich Dominicus — Wed, 27 Mar 2013 05:46:00 GMT

I guess this will be another big sham and lie of government.

See how our rights go down the drain. You can look wherever you like Be it EC, or USA or South Amerika (Argentinia, Columbia, Bolivia)

This time it's nearly the same as around 1789. The leaders fight against their people. And most of the people do think the belong to the "leaders". Stupidness is all around. See the "solution" for Cypress. And the politicians of cypress do sell that as a "win". The german government goes back to "Verbrannte Erde".

This blos has alway written against that. And I have even pointed out alternatives. It's highest time to send the deledefs to where they belong: Hell. But let's be generous and let us just let them work for their living. That would be their personal hell...

Blue print Cypress

Friedrich Dominicus — Tue, 26 Mar 2013 08:12:00 GMT

well yes that's what banksters really like.

States do disapprorpriate the customers of banks to keep the banks alive. I guess that's social justice.

And guess who finds capital controls a good idea? Any taker? Krugman

And so we know we're doomed. I wish one day John Galts come over this bastards.

crack up boom? crack up boom!

Friedrich Dominicus — Mon, 25 Mar 2013 09:44:00 GMT

It's now clear, we're in.

The solution in Cypress with dis-appropriation is honored with a jump of 1.5 % in the DAX. That means that people now either cheer the possibility to get stolen, or they want to get out of the cash. Because you can not dis-appropriate someone holding "things" so easily. Well it lasts not very long we're now with 0.5% in minus. Well maybe men now recognizes what has taken place....

The "save" is of course doomed to fail. Why should anyone invest in Cypress any more. You may awake the other morning and your "money" will be gone.

And the EC puts another 11 billion into it. That's roughly around 15714 €/inhabitant. Now talk about "sustainability"...

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Debts, debts, debts

Friedrich Dominicus — Fri, 22 Mar 2013 09:06:00 GMT

Have you had enough horror the last few days? If not here we go again:

http://www.zerohedge.com/news/2013-03-21/global-financial-pyramid-scheme-numbers

It goes without saying that the every Ponzi Scheme comes to an end, The most dangerous times are short before the break-down.. It seems we are currently in a very critical phase. Law abiding was abolished and it's clear states have not problem with murderring.

You just can make yourself as independent as possible. Avoid debts, collect precious metals and land you can live from. Everything else is asking for near-death experiences....

My 7th Prediction

Friedrich Dominicus — Mon, 18 Mar 2013 06:14:00 GMT

I cite from myself

"This leads to my last prediction. We will hear more often the Phrase (it's as all just a word we have for that in German "alternativlos" (you can roughly translate it as "we have no choice", unparalleled, the one and only choice) . If it comes to more control they will probably not name it as such. It will be "laws against speculation", "program-to-enhance-competion", "law-for-equal-opportunities" or such but in fact it means. "We are right, you have to comply or we bring you to jail! (7 th Prediction)"

You can see the action in cypress as an example of what may happen. Theft is ok if it's for a "greater" good and our Bundeskanzlerin even find this the "right way" (you have able to read german to find and understand it e.g on: http://deutsche-wirtschafts-nachrichten.de/2013/03/18/merkel-zwangs-abgabe-in-zypern-ist-ein-guter-schritt/

Rights there you go, abolished "democratic parties"...