F Dominicus Blog : Debts

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...

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....

It seems a financial tsunami is building up.

Friedrich Dominicus — Thu, 10 Jan 2013 08:14:00 GMT

Well it can not surprise an Austrian but it may be the "unthinkable" for the current main stream voodo economists.

Just some things about Europe: http://www.zerohedge.com/news/2013-01-09/20-facts-about-collapse-europe-everyone-should-know

It surely shows how the credit expansion break down, leaves many hopeless people. Yes central banks can print money, but they can not make every one "rich". Just those near the central banks and those getting the new printed money first gain. So the biggest gainer up till now are the states.

Anyway that does not help really. Because there is one barrier no-one can get around. In the end you can just distribute what you have. The fed can of course distribute new money. But that does not make "more" produced goods. So it's clear the money de-evaluates against any good. Of course there are speed differences. And that makes it impossible to see the real effects on all the money printing. You just can see it in the figures of falling prices and falling output. The crisis we have are a direct result on all this distribution, and lies.

Take Greece as an example. Let us assume the money supply for the last few years would just be constant (no credits from the EU to pay the debts of the bonds hold by european banks) and assume that the production really has lost somewhere between 10 - 25 %. Then there is less to buy but the money still is there. So the prices of the most needed things must raise and in the end that means things for eating and housing. Now assume you have lost your job also, that means the money you used to earn not there, but it's somewhere else, how much harsher is it getting for you then?

The US are in another death spriral, because they can not even nearly pay there bills without new debts. So the US state needs the FED to give them credit. And the FED delivers. It's the biggest holder of new issued debts in the world. So the cycle is the FED accepts bonds as "security" gives out now money for them, and the states distributes it. And again those getting the state money first (that are of course the receiver of payments from state) do get fresh money first, but they do not produce anything. So they can buy more than the less lucky non state workers and so they are "loosing" against them.

And now we have another problem, private debts for all kind of things, which means more and more must go deeper and deeper into debts. The most prominent example are the debts for a university training. And guess what happens now the state wants to give them the money to pay for the debts. But of course for every $ they hand out another 0.33¢ of new debts has to issued, and again the winners are those which get the new money first and those getting it latest are even more squeezed"

The situation now get more problematic by the way. More and more are dependent on state payments, the state needs more and more money for that, and must make new debts and those getting the new money first profit and on the other end the dependence on state payments raises.

We know this can work for a while, but you also can see that this can not hold forever. We the Germans know what this can do to an economy. And even from Mises has phrased it clearly: "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

I'm more and more convinced, that the total catastrophe is more desirable then stopping credit expansion. Because I can not see any really effort to stop the credit expansion. Currently it seems the money is just "going" around in the system and we use credit to pay for other credits. It's impossible that this can work....

It’s just show time

Friedrich Dominicus — Sun, 16 Dec 2012 09:29:00 GMT

well or you can name is political theatre time.

If it wouldn’t be so serious one could sit back and enjoy the show. Anyway the US democrats and republicans will simply raise the debt barrier again and so the so called fiscal cliff will just vanish like snow in the sun.

Nothing will change, the fact that the USA is bankrupt. Not just in the tight sense of having nothing more but debts. But even in moral standards. The wars are unjust, the surveillance against the civil rights. The FED is an illegal construction and the green-buck with being backed up by something like gold or solver a sham.

So the system will break down. We do not know when and how. But it’s now unavoidable. The US with just 5% of the world population just stands for 42 % of all the NEW DEBTS. And every year now there is a deficit beyond 1.2 trillions (Yes I got that figures right).

So what we see is the last and biggest credit expansion ever. There’s nothing but too much money, and it helps the defrauders to expropriate those which still do have something of some value. The payments for the bank workers have nothing to do with fair payments. It just shows the owner have not way on stopping this Bankster. The bankster also have the advantage of the politicians on their side. (Who else should take the new debts) and the worst problem is absolute central the central bank FED. She will got down the drain and take the state with her.

Maybe the citizens will keep away the power of the parties. But chances of that are slim…. Maybe the go back to the core of the constituion, because one thing is for sure, the Deldefs and bureaucrats have broken it…

Three things a state should not do

Friedrich Dominicus — Wed, 12 Dec 2012 16:05:00 GMT

It's not that difficult to write down but impossible to follow for "politicians"

manipulation of offers

manipulation of demand

control a countries money

Well you might think how could that be true. Well the point if if you do not let the people decide and work for themselves. Then nobody will know what the people really want. And always any of the above points leads to higher prices. There is not escape. If you forbid something, the alternatives are more expensive.

You may ask what of the above points it the worst. Well you can't tell really. If you can escape the manipulation of an offer, you might reach your goal on a different way. You can see this e.g with the demise of the light bulbs. They are "forbidden" you can use some "energy saving alternatives". Well they are around 10 time as expensive as the old light bulb. But you can "escape"

For the second in Germany we have an excellent example. The renewable energies. Well they are subsided and the alternatives are highly taxed. So you can bet the prices will raise and indeed we have some of the highest raises in prices the coming year. It can't surprise anyone just able to add 1 and 1, but it's impossible to accept for deledefs.

As you can see currently the fiat-paper monopolies lead to catastrophes. The people are getting more indebted every second. That can't work and it will break down complete economies.

If you really do not believe that you should check history. You'll see in some way or the other the authorities have broken the above rules. You can do that in the beginning with very less implications, see e.g starting collecting debts for the state budget. The debts were so tiny that, it really does not hurt. But then the debts piled up. And now even a normal interest rate would not be bearable for quite a few countries, among them the USA. And so the FED prints money faster and faster. Anyway you can not get heat out of a compression with more compression. We are coming to a natural end of the manipulations. Countries do break down regularly it's just that in the near past countries broke down which haven't such a big economy as e.g the USA or EU. You see how problematic the break down of Greece really is. Not even 2% of the BIP of the EU countries, and it will tear apart the EU (in the end)

This just because the money system is not really a money system but a credit system. People have bear interest for freshly created money. That can't work also, as we know from the Austrian school economists.

And you can also see that one manipulation just enforces the next. And so we are in a spiral of regulations, which no-one can oversee any more. So the criminalization is just growing. Everyone is a suspect of being a terrorist in the US. The financial authorities do not stop for black-mailing or anything. If you are a US-citizen you all you accounts must be published to this gangster. That's a thing which an not work in the long run.

Reality bites

Friedrich Dominicus — Sun, 11 Nov 2012 07:41:00 GMT

Well after the election, the "profane" reality strikes back.

Suprise suprise the debt ceiling is broken again. 2 trillions more , just 2 or so years ago and still it isn't enough. Well after democracy comes kleptoracy q.e.d.

The debts are still on the run

Friedrich Dominicus — Mon, 20 Aug 2012 10:09:00 GMT

Well dear reader, there is no turning point in sight.

The central banks still do what they can because they "own" the paper money. So indeed they all are printing. The US deficit is still just terrible every year a trillion new debts are there. And the following statistics says: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/07/UBS%20Hyper%203.jpg

A quater of all expenses are nothing but new debts. How serious can one day that we have less debts? That's a plain lie.

I can not understand why anyone believes that the US still will pay back all that. I do not understand how anyone can ask for even more debt for investements. So no the debts are running and they are increasing their speed by the day.

We may had have a time to stop it some 4 years ago, but it seems now it's too late.... And what's the problem? It's just the next election between two which have now own idea about debts. Just spend the money they do not have. And they are still extending their controlling of all citizens because of some obscure terror mania.

Contracts, Law or not

Friedrich Dominicus — Wed, 09 May 2012 04:31:00 GMT

Well we learned the Greek do not want to pay their debt any more. Ah well it fits. Who cares about contracts? Who cares about saving in time? Who cares if the states sprawl epidemic?

The socialists of all color are at work. We know that from the diverse books ob von Mises (in this case Bureaucracy) And with too man of them (as e.g in Greece) the arbitrariness comes

It's clear that if you do have got paid from states (which means someone else has to pay for you, without the need of any delivery from your side), you like to keep it that way. And so if you go to the vote you will not choose for those "taking away" from you. Oh well yes who cares? Promises, light money, deledefs, central banks every part enough to send you into default.

Now I'm interested how the other defrauders will act. Saving? Come on let's be serious., that's nothing deledefs can. They just can take more from the productive, burn more money and grow like pestilence. You see the actions. Nothing really way saved, au contraire, the debts have grown even faster, and the levels of bureaucracy are still increased. Oh "yes" that's what we need more thieves.

And you can bet the laws are getting worse. It's more and more a means of oppression, it's not to save the individual of their states, it's to save the states for their people. It sucks very badly. And the states or nothing more than crooks. I hope they will have to pay their debts and misdeeds this time. (I know it's more likely that hell freezes over)

Time for a book?

Friedrich Dominicus — Mon, 20 Feb 2012 08:14:00 GMT

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. .....

Now it's official

Friedrich Dominicus — Sat, 14 Jan 2012 05:50:00 GMT

The non-plan about a "voluntary" debt cut, is gone. Wel if you have followed this blog you know this hardly can be told to be a suprise.

At first If I'm having the bond I have the right to get my money back. It's up to me and the debtor to figure something out if he's not able to pay. And there is the possibility to get an insurance about a non-paying debtor. So if I'm having the bond and such insurance. Why should I disclaim my rights.

I swore myself some years ago never ever to buy any bond of any government any time again. And so I was out of this bonds in 2009. So it's should not be my business any more. But now the states decide to hand out money they to not have to other governments which are broke. You can imagine how I feel about that. This is theft in it's worst form. But it's theft from governments, and then it's not theft any more. That's ridiculous.

Anyway the private bond holders have said. We are not convinced and now it's obvious Greece is broken. And the "saviors" of the other EU countries are on there way to be broken also. Even the rating companies, finally realize that. But still they are givign most of the states something with an A in it. That's stupid and another lie. Fact ist all but a few countries are broke. Manys in the € zone and we do not have to talk about the US anymore. They has a debt increase over 70% in the last 3 years. They are completly broken also. So neither of them deserves that anyones trusts them any more.

It seems that trust has gone down the drain. And that's a good thing. I hope we'll see the end of this Fiat-money system soon. And I wish this that those which have put us there, get their deserved fait.

Going back in time

Friedrich Dominicus — Fri, 13 Jan 2012 07:05:00 GMT

One of the nice and bad things about Internet is that you can find things you once wrote. This is what I found: http://fdominicus.blogspot.com/2008/09/watch-closely-what-candidates-do.html

Now what has changed? Obama still is clueless. But no other has any more clue but Ron Paul. So nothing learned in 3 years and another 8 trillions of debts later. That's really poor.

Think about it

Friedrich Dominicus — Tue, 03 Jan 2012 05:31:00 GMT

even if not for all to long.

What has Obama said before he was voted? What of these things has he fullfilled?

If you find he has delivered what he promised, vote for him again. If you think he has delivered too less. Just do not vote for him. It's everyones decision to vote for or against some candidate.

If you think for the US for a while and see your bills of rights. Can you find your US in there?

If you think about the debts the US have, think about what will happen to you if you are that deep in debts.

If you have thought about this for a while, you may get an idea for whom to vote. Feel free to share that view with others.

Now I understand what Obama meant

Friedrich Dominicus — Wed, 28 Dec 2011 16:33:00 GMT

in his past tries to win this election (which unfortunately he did win)

His motto was: "Yes we can"

I was always puzzling, "what the hell does he mean with "we caan" ". And now I know. He just mises a few little words. Yes we can, make more debts".

And they do, they make more debts as if there won't be a tomorrow. And well if they proceed, there surely will be no tomorrow for them quite soon.

Because I see loosing them (the deledefs) as an advantage. I just can ask the member of the parliaments kindly. "Would you mind to give Obama another few trillions please". The next vote is just a little over a year. So maybe Obama can ruin the US till then. After that the people may consider what has made the US the economic giant,

If they figure that out, they may vote for a better president... It would serve us all.

Let's think a little bit

Friedrich Dominicus — Thu, 10 Nov 2011 06:11:00 GMT

Well maybe thinking is a litttle to much maybe speculate would be the better word.

As you may have read, Euro land is in as deep trouble as the US. It's an open question who really is the worse, but well that's another story.

Now we have read a lot of ideas about saving. One of the ideas of saving was a tighter "cooperation", well it probably is a asked quite much to synchonise 27 different countries, but welll that's another story again.

But now something changed the ideas slightly. At first Greece is finished. Well just remember the vote then the note vote etc. Anyway Greece just stands for around 350 billions of debt. If you look over Euroland this really is not much. Anyway with the default of Greece bonds french banks will get in knee deep trouble. So far there's nothing new.

But here we go. The interest Italy has to offer are exploding. We are now well beyond 7%. That means a doubling of your debt in "just" 10 years. Or the other way round with 7% interest and 1.8 trillions of debt (official!!), Italy has to pay interest of 1.8 trillions in 10 years (with 7% interet). No that are as much as 180 biillions a year the budget of italy is well below that of Germany that are around 300 billions. So let's assume 250 billions. You can see 180 billions are way too much. So saying that Italy is bankrupt also could be seen as fact.

Now as you know ESFS III should be leveareged to over 1 trillions guranteees (which seems to be illusory) just see my entry on my old mises blog at: http://mises.org/Community/blogs/fdominicus/archive/2011/11/09/extension-to.aspx

So with high likliness this all can not be expected to work. Now the "new" idea is to split up the euro zone into a core zone and a "rest" And now comes the information I found most "revealing". This is driven by France and Germany. Now we know France and Germany have seen itself as "engines" of the eu process. but guess what the french banks have a hell of outstanding bonds from Italy of around 270 billions!. Now the budget of France surely is in that areas. So if italyy defaults France is "finished" also. They can not bear another 270 billions alons. If you see that with the work on the core europe one can come on some ideas....

Who could be suprised.

Friedrich Dominicus — Thu, 08 Sep 2011 08:10:00 GMT

Ok the debt ceiling was risen and surprise surprise Obama want a new program of around 300 billions to "stimulate" the economy.

http://mises.org/Community/blogs/fdominicus/archive/2011/08/01/what-a-suprise.aspx

The Addicted get another round of their stuff, and they are using it. This time for "something" good.... As if there ever was anything else but "good"

I stick to my opinion about Obama. He's a liar and has no clue about real economics. He lives in the same land-of-plenty, where one just prints money and everyone get more rich. I'm really fed up with this deledefs

So here we go again the State can not initiate productive work, just conuming, and of we let us assume we need 100000 USD for a new jobs you can "calculate" how many news there might be. Don't forget to count those loosing their job because the state thinks, it knows better....