F Dominicus Blog : EUR

What we really need

Friedrich Dominicus — Mon, 17 May 2010 04:42:00 GMT

is in first line stable money. Fiat-Geld has proven that it can not cope with it. Well that's not suprise for anyone a little bit interested in "History". If I have the choice between two beliefs than I'd prefer always "the market" over anythin from the deledes. Just one example on how I think markets get it "right" sooner or later. The gold price has "topped" all-times highs expressed in US-$ and EUR. And if you see a long-time chart the raising of the gold price has started in 2006!!!! where obviously a lot of people have recogniced something's wrong. Maybe they've seen the housing bubble starting I don't know. I just started my gold carreer in 2008 after the FmStg and TARP had started. Now since 2008 the prices has doubled. Is it a bubble? Well might be, however it's obvious that the fiat-money bubble was inflated much faster. It seems also that the central banks are intervening to support their Fiat-money. It's one of the surest sign that something is terrible wrong with currencies. Unfortunatly one can expect an alliance of Politicians (deledes) and central banks to do whatever they can to disqualify the gold price. The US helds a lonely record on that. After giving out the bound to gold they "forbid" private ownership of gold. That's one of the most ridicolous laws ever passed to save the "defrauders" from their fate. I'd not be suprises if they come along with something similiar in the not too far future. What can one do against it. Fortunatly there are more free countries as anything in the EU or the US. So it probbably is a very good idea to open an account over there and put something of value in it. The choice which country to prefer is very simple. Those countries which value private ownership the most are the favorites.

Creditibility

Friedrich Dominicus — Wed, 28 Apr 2010 04:45:00 GMT

from Greece is in free fall. Now it's Junk-bond status. The interest has risen to above 10%. Well Greeks the EUR is just "paper" money. So there's always the "solutio" of hyperinflation. Unfortunatly you are not alone with the EUR. So you are a bit more lucky this time, Politicians can't get away that easy as usual. Now start thinking. Wouldn't it be good to get rid of your Politicans ans Buerocrats. Just one quater is working for the governement so 75% are "not" working for the the governement. How about getting this figure a bit higher. I guess 95% not working for governement should be more than sufficient... I propose that after getting rid of them, you see that you get corruption in the governement banned. Let them earn their money, don't allow them to black-mail you any longer. See that you get rid of most of your military stuff also, and get back to the ostracism. And revive. If you follow your current "stuff", well be prepared for really hard times

Moral hazard² or not?

Friedrich Dominicus — Thu, 25 Mar 2010 05:42:00 GMT

Just a reminder the EU president Baroso, wants an action to help out Greece.

The Maastricht Vertrag is very clear about this:

Die Union haftet nicht für die Verbindlichkeiten der Zentralregierungen, der regionalen oder lokalen Gebietskörperschaften oder anderen öffentlich-rechtlichen Körperschaften, sonstiger Einrichtungen des öffentlichen Rechts oder öffentlicher Unternehmen von Mitgliedstaaten und tritt nicht für derartige Verbindlichkeiten ein;

Read the union if not liable for the debts of any other country.

So the presidents asks for exactly the opposite. And he's still in charge....

Another "paper tiger". the EU countries are not permitted to have more than 3% new depbs of the GDP. Well there's probably just one or two countries around adhereing to this.

And again it shows, Fiat-money always falls back to it's intrinsic value -> nothing.

A new round of insanity

Friedrich Dominicus — Sat, 20 Mar 2010 07:00:00 GMT

Ah, well somone would call it "Living in interesting times". I'd rather read it like, going to die.

The EU considers now (b)failing out Countries, our first try Greece, next stop (who knows) but it can't took that long
till it's Germany. I guess this will be the mother of all failouts. I wonder which country can affort to buy out us Germans. I don't expect the USA beeing capable of that.
No bailout has worked till now but that does not hinder politicians to try again with another trillion...

Howerver if there are laws against such things. In short it's. "No country has to guarantee for debts of another country". So yes it was "never" allowed to do so, but
they're trying hard to "revert" that. And from there on moral hazard is all there will be. Who will judge which country to bailout and which one will be allowed to fail.

The end will be poverty everywhere and with high likliness, war. It never has been different and I'm not that optimistic that this will change. After the war there will no welfare any longer
just what people will do to help another. And the buroeaucrats will linger in the background, waiting patiently to show there cruelty again...

It's depressing.