June 2012 - Posts
they day that proved the austrians superiority about everything else.
If there ever might be a discussion about the superiority of that school it was proved right yesterday. We know that you just can one
freedom or socialism. Yesterday it was voted pro ESM and well aboard in the US the Obamacare "disaster"
So there's not third way you can not have just a little socialism. Socialims starts with one intervention and upon it one has to pile up tens of others and soon you are
just "intervening". The ESM ist just another credit expansion facility and we know how that ends also.
We were right and the others are just suckers.
Some of you follow this blog, And you can decide yourself. I'm in the end a Rothbardian and I think this shows in every entry. And you probably will see I'm coming from
a liberal point of few with at least some minimal state. But as history has proved every minimal states grows bigger and more demanding. The US and Eurozone are but two examples.
In the end they all collapse.
Yes I mean you, you my reader.
You have pushed the page access to a never seen high of over 1500 hits/day. This is remarkable much. In comparison on my outer mises blog in Germany I have hit 2000 hits
a month in May. And I found this at least worth be mentioned.
Do I hope you like what you get here? Well it depends. I guess most from you are "Austrians" and so I'm writing for those well one must write who do know. So I take it as a
"Yes you're (mostly) right". If there are fans of big government and big corporations I surely wish they do not like the stuff I wrote at all.
Anyway it's nice to have you hear. Don't be shy, just comment as you like.
all states will tumble and fall. And every non market money will fall also.
I gave it up to expect sanity in the deledefs minds. They live in a world which still is real, but because they can take whomever they like as hostages, they do not
have to face the reality. They got their money from the states and so it's "sure". If they are high enough on the lists of their party they will get re-voted, even if they fail in their
home base. They are invited to talk and well you hardly are very pressing to a guest you have invited or do you put down your guests?
They do not have to base their decisions on voluntarism. They do not have to ask the people if they really should do this or that. They are free to decide to their liking.
You can write letters, petitions you name it, they might read it still chances are high they don't. If they decide something they can put the while force monopoly behind it. You are robbed through a law.
Well bad luck, if you don't obey you will go to jail and in extremes you will get expropriated. Nothing new under the sun.
Nobody can stop them to vote for higher taxes (they will not name it higher, but more fair taxes) and in the end you can not stop them to sell of all the citizens to whomever. Yes there are highest courts but well they are not that high a hurdle. E.g everybody in Euro land can know that the ESM is against all democratic rules. But still they can decide for it and the highest court will probably just nod. If they would take it serious they might object, but with a few compromises here and there we are fine. It was done so with the ECB and it was done so with the no-bail-out rule. It was a sine qua no in Germany and still it's gone and the Bundesverfassungsgericht simply has not done anything about it.
So no it does not pay of to count on rationality with Deledefs. Politics is the art of lying and get through with it. And that's what nearly all the Deledefs do. The people are corrupted and so the system is corrupted also. So no we can not expect any support for us from our Deledefs. So in the end there's just one thing on or side, reality. Deledefs can ignore reality for a long time but not forever. You can see that bank-saving, state-saving really has solved the real problem. the massive overhand of credit . We all know how credit expansion must fall, so what we just can do is taking as much of an advantage of the coming break-down as we possibly can. So If I can harm deledefs I happily do that. if I find a while in the tax injustice, I will try to make use of that whole. If I can take advantage of a law in a financial way I will take it. (You remember the PVS stuff I put on my roof?)
I simply have not choice here in Germany any more. I just have shadows of disaster, that's what I have. There is but one party (which is not in any parliament) I can choose. And it's unlikely that they will get over the 5 % hurdle. Anyway I will vote for them as long as I can and possibly even join them. I'm quite just sure I will not give into the systematic corruption. I do not want to rule but I also do not want to get ruled. And so I will try my best to bring down this apocalyptic states.
To end the starting of this blog entry let me just write:
In the end, reality will win. Ayn Rand has named the rules. Man has to obey them, all the Austrian economics know, you have to deal with the limits of reality and make the best out of it. Nothing else will work, and it's clear they are right and all the other are just ignorants.
Well in my opinion there is an order of imporance for our money system.
The base is the fiat-money has to go. Nothing else will help the honest. All fiat-money systems are systems of defraud.
The holders of the "money" are states in the form of central banks. So it's clear central banks have no use in a 100 % gold backed currency. In fact central banks
are those which manipulate the amount of money to their liking without anything but their will. And with the monopoly of force behind them. No one would accept written paper to be money
if he does not know his counterpart and if he would not be coninced one could something for the offered money. The precious metals (especially gold) have their advantage, it's
wanted world-wide and there is not country where gold is not precious. So everyone know Gold delivers.
So I'd propose the following order.
1) the new gold currency is just the weight of gold for prac tical use it might be a good idea to have coins of special weigh (g an kg are all we need for it, but even ounces would do)
2) the central banks can be kept during the introduction of gold as currency. There only duty is to fetch the gold let it coin an release it. The gold of the central banks is owned by everyone and so it could be the base for the money states have to use to pay their bills.
3) after that the central banks are closed down.
That's all. Everyone will tell us that is impossible to do, because of the sheer amount of free-floating paper (otherwise known as money). But we can find every quotient to make the amount of gold fit the currency in circuclation. it can' t be a problem do define one dollar worth 0.000001 g if that is what is needed. We roughly know the current amount of money and at least the central banks should know how much money they really printed.
Even Greenspan has has his light moments before he took the chair of the Fed. to that time he was exactly right. Why he lost it on the chair? Who knows.
Even if it may be difficult, it can get solved now or it will get solved in the future. Currently I'd think there is some kind of control possible, I doubt this will be true later. If the currencies and economies break down it's usual "fight" time. And as much as I hope it can workout without violance, I'm sure it will be violence....
is it just me or does anyone else see it that way also?
As we know the states to participate on every income in their region they rule as monopolist or dictator. Well so far so bad. Anyway
a state can not produce anything, they just can consume. So far so bad.
In most states there is not a flat tax (which is unfair enough) but progressive tariffs. Well that just means the more someone earns the progressive move has
he/she give to the state.
Now and still are suggestions to take away everything over a certain amount. In Germany someone from the left has drawn the line at 40000 € /months. Yes that's much but anyway
the tax for such income is well beyond 50 % even these days. if you take away everything over the 480 000 € /year. Who will ever earn more directly. So isn't it schizophrenic to just
even think about 100 % over some level? It will produce much less taxes and if you want to have as much as you possibly can get, how can make a suggestion on
a move that cuts down the tax income?
If it's not just plain stupidity ( a think all politicians are prone to) than it's schizophrenic.
Well I don't know if anyone has written it down better. But IMHO one thing holds:
"There are two things all governmental "solutions" have in common:
1) they are the most expensive, most bureaucratic, most inefficient, of maximal stupidity
2) and none of them works."
A little more extreme. If you want to have an extra problem, just ask government for a solution".
It's not just that governments is just annoying it's just the most dangerous thing on planet earth. It's death toll every year is in the millions.
Corruption, defraud, expropriation you name it and states do deliver
to read the comments on price development at least for Gold. I tend to day it does not make sense at all to expect anything of worth from stock "experts".
Can one talk about a down for gold if it's moving just 0.5%? Well I think no. And what's worse, this opinions must make your head spin. Ask yourself has anything changed
the last two days which really can have any big influence of the prices?
Well Greece will get more money, money that we don't have and if the states want to give it away they just can do on one way. More debts. So again we see some new bonds in any form
and well these bonds may get bought. At least not from me but that's unimportant. Some banks probably will add some "risk-free" bonds of states to their bad debts of states. We have not heard of a bigger QE or the like and so not much has changed really. And indeed the prices just floats around a bit. That's it.
And still you can read "cut back" for gold, the other day it's gold on the raise and the explanations are not even a thing worth laughing. So just ignore it and ask yourself a few question. Do you think money printing does matter? Do you think the debt crisis was solved at least a bit? Do you expect the states doing something or nothing. That are the base questions.
I for my part have answered the questions this way. Money printing does matter it inflates the money base and will lead sooner or later to devaluation of the currencies. So if you want to save your money somehow you probably are not doing much wrong with some precious metals. It was nothing solved also. The debts are still raised and the stupidity of believing one could fill one while digged by debt with other debt is as insane as can be. However what I don't know will the people consume much less? I'm sure the privates people will I do not expect anything like saving from states. They will raise the taxes for their endless appetite. for money. So will the bankrupt distort the currencies immediately or later? We simply do no know. But we do know Gold will always have some price, it scarce and people know that gold is money. So still some precious metals are a good idea. Now will states stop interventions? No they will not, they will extend the "control" (well as I wrote yesterday or so, this is just the imagination of control, states can not control much theses days) The sheer amount of debts is devastating. So what will happen I can not imagine a sane approach. So I just think the money printing will get on and so I'm back to "the case for gold".
I'm quite sure they will consider making private gold holdings illegal again. But don't think this will happen world-wide and still in this case I have at least some "confidence" that the highest courts will rule out the expropriation. That may just be wishful thinking but it's the only chance we have. So having gold in your own country and abroad is proably one of the better and more intelligent things to do and have. And if you see it that way there is no excuse not having at least some gold. I have take my share of it, and I speculate that I'm right on this. Well I base my confidence on the work of the economists of the austrian school. And I think this is the safest bet you can have. Nobody else has pointed out the maniac behavior of the states and all they told and written has come true. That's now true for more than 100 years, and as long as man has to do economics, this will not change. Yes agreed they are not explicit pro Gold but they do know Gold has worked as money and there's not reason that is should not in the future... So do you want money? Take gold or other precious or not so precious metals.
Well according to the press the ND has got 30 % of the votes. Well that's not even in deledefs meaning enough to be seen as clear winner. And it surelly isn't even in the crudest
deledefs dreams the majority. So do the Greeks have voted for the Euro. Well at least we no that nearly as much and probably many of the non-voters do not
favour the Euro. But it could be that the Greeks know what they have with the Euro, a shield against their own deledefs. And it seems they do trust at least this
shield more but their own deledefs.
That would at least make sense to me. I wrote it here and pointed it out. With a new Fiat-Drachme currency the way into inflation and degradation of the currency is
as clear as the moon and the sun in the sky. You can pretend it's not there but you know they are there.
So should one congratulate the Greeks for that vote. Well know, they have voted for the same parties, and some of them want to go on with the party without bearing the consequences.
Greek still is bankrupt and it's not heard that they have minimized their state "workers" that much. We've not heard or read that much was done against corruption. So Greece still troubles the same
problems as the day before yesterday. A state way to big. way too much statism, and strangling of free enterprises. The (nominal) taxes still are increased and in the name of fighting corruption, it seems
they just have introduced more "rules" which it seems not to many bother for really.
It's also not recorded that the property rights were enhanced. At least I have not heard and read about it. I'm interested in any moves they did to really clear the mess. But sorry, the mess gets IMHO bigger by the day.
The Banks are near bankrupt (well that's fair indeed) , and the will to really cut into subsidies etc is no where in sight and so they "hope" for the next round of debts to get them out of the trouble caused by debts...
That haven't worked, does not work and will not work as long as there is an economy.....
Ah well now it seems to get catastrophic.
The Greeks vote again. And Europe may come to an end. At least the Euro Europe. In Germany the system press, paints a picture black in black. According to the comments
the Euro is a showpiece of a project that brough us Peace, Wealth, Rightness. Sorry I've to stand up and run to the toilett.
Here I am back. The Euro was not wanted from most of the Germans, it was warned to introduce a common money without a common social and economic base. The idea obviously was
with the money comes "sanity". Well that so stupid that it hurts
Hardly never in history sanity was really high on the list. Just see the wars, just see the biggest crime the introduction of central banks and fiat-money. The wars since 100 years could not have been fought with "sound" money. But with Fiat-money printing is not even to be mentioned. Just print and fine you are. Well now the wars are the biggest destroyers of wealth. but I guess they will go on telling us it's for a higher good.
Never before in peace times, the debts were that sky high. And this what we get from welfare states. It's an Oxymoron, the only things states can do is destroying. They can not build they just bring misery over anyone living in them. The states start small and protection of the individual is first high on the list. but now see what our states are, defrauding systems. And the destroyers of civil rights try to get rid of as much responsibility as they can. I'm not sorry, you politicians simply and plain suck.
And now they are starting to sucking us out really. And down we go the path of poverty. ...
Well now we see another template example of interventions.
Argentina, has obviously left the area of markets due to the "politics" of Mrs Kirchner and her spouse. In a side-note
of the newspaper of my wife I found: Inflation 25% and official course between Peso and $. And what has happened before.
It started with good running exports and higher as usual prices for the exported goods. So far so normal, then comes the Kirchners and what did they do?
They spend this money on welfare (and if there is but one way to get money burned faster, really burn it). This has bought here enough votes (yes the merits of democracy) to
get re-elected. and it has come as it always comes.
The prices for the export goods are falling and she does not have enough money for their "welfare" operations. Well one might think well one must cut them back. That's normal thinking, but not the
Deledefs way, and so they make more debts (one just can say as usual) and started to make restrictions on free trade. Well if you mess with the markets the only answer there is appears, the prices start
raising. And indeed even the stupid newspaper of my wife at least has to "admit" that inflation is beyond 25%. 25% means in a little over 3 years your property halfs in money value. You can bet the only things raising as fast as inflation are always the all-day-needed goods. And so the poor start paying the bill immediately.
Now the people act logically and try to get rid of the Peso and that means they buy other currencies, and this get the next reaction. Controls on the money export/exchange and indeed this is what Frau Kirchner and the Poligangsters did, they "forbid" exchanging into $ and now $ are scarce and a scarce thing does what? Exactly it raised in Price, now the official exchange rate and the "paid" exchange rate differ around 40%.
Very "appealing", the members of the parliament (probably of Mrs Kirchners party), do what? They buy more Dollars and they can, so much to "equality" before the law
So the end is coming, and the interventions gets more and more by the hour. People which have gained at least some wealth are not expropriated by the inflation initiated by interventions of the state. The sucker spiral turns faster. I guess within the next 5 years Argentina will fall back below 3rd world level. So dear Argentines, say "thank you" to your deledefs. And bite yourself because of your stupidity.
belong to you. Feel free to give them away to whomever you like but don't be surprised if it backfires.
With every new day and new news about Facebook I'm happy I'm not "in". If you just google for my name you can get a lot of information. And
I know this will stay forever. Yes I'm unimportant and nobody but maybe one or two cares. That's fine with me. But I write what I think and "reveal" what
I want and what I decide.
With Facebook I know all my data are in access to Facebook, who am I to know to whom they give access even if I would not agree?
I simply do not know. Facebook needs desperately new sources of income. There stocks still are hell of expensive, and they must earn much more to get
just near somewhat rational regions. So If they'd earn 10 billions one might things that 90 billions are "fair" priced, But
So what else but your data should drive it's profits.
If you feel Facebook offers something to you then fine use it, but I for my part have decided that I want mine to stay mine. I do not want even more advertisements in my
mail box, nor do I like to get stuffed with it every day, every click. In Germany the biggest advisor for debt handling Schufa have announced to start collecting user information
on facebook for their credit rankings. How would you like that? I can just say, I'm not amused.
And within 5 years I'm sure you state agencies will put pressure on Facebook to get hands on our data. Of course all for the greater goog of the american state. And they will tell, those who do not have anything to hide can simply disclose that information. Well I guess they will do it even more "subtle". I bet Facebook will find a way to provide them with your data. Backdoors, hacker attacks, viruses, trojan horse, I don't doubt it a second that NSA should be able to crack accounts in the hundreds of thousands if they are inclined and told to do so. Your data? Not if you give them away that freely.....
well yes there are no good news. There are currently just bad and worse news.
Now it's the spanish banks, another 100 billion. I wonder from where that money comes. And you know the answer. It comes from new debts and this debts
have to be beard by the tax payers. Oh yes they won't honestly higher the tax immediately, but the invoice will come. And it's always those who have and live within
their financial limits, which have to pay. I guess it will be as usually. The inflation will be driven up, the tax is driven up and those not paying taxes will not even recognize, that's somebody get's robbed.
The different loosers in the different countries are cheering another looser. Really they tell, what a good thing that Spain takes the EFSF money. Well you can see it's not the idea of market which prevails. It's from a to z socialism pure. And every socialist country get bankrupt within around a live span of a man.
And again the best safety net for the savers would have been sound money, and there you have it. The last we get is sound money. We'll see more money printing, more card houses of debts. I know it's stupid, people with at least a slight idea on economic thinking know it's stupid and yet those who know will get overturned by the majority. And as we can see e.g in France the majority just is stupid as wood. I really wonder how the French think Hollande will pay for all "his" promises. They really must think the state is a money spender. And they simply do not get it that it's robbery which keeps the states afloat. One should not wish bad for others, but I feel it is needed that they suffer under exact the conditions they seem to prefer.
And it's now starting to get really worse. The banks are bankrupt and the states a bankrupt, and the stupid people still believe the state can steer anything. They are steered and it will show, and the more they deny the facts (money has to be earned) the more devastating the outcome.
As I hear from Stuxnet it was clear to me: The US is (again) in an undeclared war.
It seems I was right with it. Now let's see if someone attacks the US-military complex is it terrorism. If the US-military attacks other countries is that what?
So indeed the US are in war and the worst is, we don't know whom will be next. According to some other information. It's also inner republic war time:
http://www.policymic.com/mobile/article/id/9163#comment-share-link. They are in war with someone who wants to end the US wars. I'm sorry, USA but you sucks.
Especially most of your politicians, you CIA, FBI, and your armed forces. If you do not stop them, they will stop you. You can bet on it.
So let the flaming of this (me) German begin.
on how to escape the greedy hands of states. It would be:
Don't buy any bonds of states.
This is what you can decide, an no state can force you to do it. If you think the bonds of states are safe. You really do not have lived and read anything the last
4 years. Then I just can tell you, go ahead, buy your "safe" state Bonds.
Anyway if you have seen the actions of the last few years, you have no choice. Any bond you buy is a contract which harms our neigbbor and not the state. You can beleive me there
can be not better thing to do than harm states. They will send you to war with a smile. They will name you "hero" if you are killed. Words are cheap in this regard.
So first guideline for investing. Don't believe states, and don't give them your money voluntarily.
At the stock exchange. 3.4 % down with the DAX
and believe it or not 3.4 % up (for Gold)
I do not know when else I've seen such a spread.
Well let's see what the next week brings. I doubt it that the crash will come now. But well yes it'll come.
The race to the bottom is either in full swing or nearing the end. I don't know. But I guess it's high time anyway.....