F Dominicus Blog : burning money

A few things, just to keep some record straigt:

Friedrich Dominicus — Wed, 06 Mar 2013 05:53:00 GMT

Well now we know it Getting killed by your government is fine

In Europe and the US are the Booms not cumulating. We have near all-time heights in stock prices. That shows but one thing: Inflation at work.

Here in Germany the Deutsche Bahn spends another few billion on but on railwas station (Stuttgart 21) The costs have soared from 2.5 billions to now 6.5 billions: Not much was achieved during this time. But we are told that stopping burning is more expensive than putting some new petrol/gas into the flames. Yes that is meant serious.

The Austrians have voted for yet another "social democratic party". Well known to burn money also (but let me ask you straigt away) Do you know any party not keen on burning money? More taxes and less rights?

Another 100 billions burnt yesterday

Friedrich Dominicus — Fri, 20 Jul 2012 04:46:00 GMT

Oh, yes it's getting more absurd by the day.

Germany's parliament has decided to save Spanish banks with 100 Billions. Well one myth is that Spain guarantees for this 100 Billions. This is very very very absurd. A state short before a default guarantees 100 Billions. Yes indeed, a thing I surely "believe".

The system press in Germany cheers this as a wise decision. (One may ask for whom, but that's problem to selfish a question) The real absurd thing about it. Spains prime minister has told us in 2005 that Spain will get more wealthy than Germany. Well no, that probably has not worked. But who cares?

Fundamental critique

Friedrich Dominicus — Wed, 24 Aug 2011 06:31:00 GMT

Well I know this may get boring. However the stock markets were temporarily high up the last few days.

So be it. Just it does not change anything IMHO. We still have have the same problems as before and they are worsen every day, with every new bond. We have debts everywhere. Not even our money has some value, it's just an I.O.U. Making the billion dollar note is just as expensive as having one-dollar notes. We have hundreds of thousands inproduktive workers at or around e.g the president. See e.g: http://blogs.law.harvard.edu/philg/2011/08/23/obama-is-my-kind-of-war-president/. The delebets burn money in masive amounts for what?

So whatever will come, it's clear this kind of economic is not sustainable. For having sustainability we need: 1) sound money 2) sound finances 3) less money burners and bureaucrats. 4) less politicians everywhere

So my suggestions still persist. Don't buy any bonds of any state. Buy some or more gold or anything which has proven it's value over the centuries. Tell everyone about the austrian school and try to get this into "mainstream". We have had enough voodo-economics now for too many years...

Mission impossible

Friedrich Dominicus — Thu, 28 Jul 2011 05:25:00 GMT

The US has entered a way which can not work.

It's not the deficit it's the spending stupid. 60 years of overspending and undersaving, show clearly in every corner of any legistlation,.

The money never is enough because the needs of men are in principle without bounds. One of the worst examples on stuff which makes thinks expensive is the Obamacare. There is no incentive to avoid doctors if all the things get paid. It's the same in Germany, the prices for health are sky rocketing. And it's getting worse by evey law which "regulates" health care costs. Doctors can not charge what they want or possibly can, no every action is categorized and has a fix price. You speak to your doctor 21.34 €. He takes your hand 10€ etc. You can not just get along as doctor and offer you services wherever you want. No this is "decided" by bureacrats. Kind of one doctor / 1000 patients.

Another price driving thing is that prices can be set by the supplier, and the diverse things are "protected" by patents. That means you invent something which is a block buster, you can earn literalyl Billions of it, an that for a few millions of research. The prices for the stuff are fixed, They do not go up or down. It's the same as a license to prin money, and we know all that way waits hell...

The US founders were very sceptical about government and big business, but Obama has cultivated the growing of government and big business (in form from banks) That's surely is against the constitution, but he does not care. He wants the power for him and his buddies and so he "attacks" the Parliament . That way lies Facism, and too many of the US citizens have paid with their lives for fighting it now they just will get in in the US? What good can that possibly be?

Stimulus at work

Friedrich Dominicus — Mon, 16 May 2011 08:50:00 GMT

http://www.powerlineblog.com/archives/2011/05/029042.php Just one word: devastating.

What have we won

Friedrich Dominicus — Mon, 09 May 2011 05:39:00 GMT

or didn't we have won?

Now that the "top" terrorist is dead, will we be safer?

According to this http://thebonnieblueblog.blogspot.com/ at least not on the railroad. So Al Kaida wanted to attacke the railway infrastructure.

So at least they are weakened a bit. They were able to use plans for the prior attacks. Now they "just can go by train"? But still we need to "react" on threats of them? So what did we have won then?

It seems whatever there is there can just be one answer. More control, more buereacracy and more unproduktivity. Just imagine how much money did Al Kaida spend to bring down the twin tower? We can assume a few millions.

How much did it cost to hunt down Osama? Well the US and Nato are now more or less at war for at least tens years. If the US . The "official" costs for the military is somewhat around 600 Billion (I just do not believe this figure for a second) and so 10 * 600 billions are 6000 billions or 6 trillions. Let's be generous and say half of the money was spend because of Osama. Then we are talking about 3 trillions.

So let's come to efficiency. Osama let's say 100 million, USA 3 trillions Faktor is 100 000 000/3 000 000 000 000 = 0,0000333 as effective. Well we can say we just need 5-10 Osamas and the USA is finished. They would have spend all there money on "fighting" the terrorists. all the GDP would be burned. So in fact one just needs a Billion to bring the US down. Now tell me anything about the best equipped military complex of the world.... In fact Ghadaffi should have enough to handle that. ... he#s a bit unfortunate nevertheless, because he has probably not so "fine fanatics" among his followers. So it seems Ghadaffi would be well advised to finance Al Kaida. They have enough fanatics, and he has the money. .... Would be deadly for this kind of US....

Our minister of finance

Friedrich Dominicus — Mon, 06 Dec 2010 15:24:00 GMT

He's really a babe. Just imagine, we Germans have not lost anything because of the Euro, we are "even" richer than ever before. Very well, he's right to some extend. We have more nice and colorful banknote. We need them dearly because if you go just for buying a few edibles. Oh, yes we are a unthankful rat pack. We did not wanted the Euro as it was introduces (at leat most did not want it) but now we are just unfair.... Oh, yes you can't beat delebets on betraying. They alway have the upper hand. Fair enough, a normal citizen goes to jail while defrauding, a politician gets promoted. That's the delebets land of plenty. Plenty of citizens to abuse, plenty of money to make nice and cuddly fire places. There is nothing like the smell of burning money, there's just one thing more satisfying for that kind of people, the smell of burning flesh.... Of you think I'm angry, or even sarcastic. Well you can bet I am.

If you like money burnt

Friedrich Dominicus — Tue, 21 Sep 2010 05:22:00 GMT

then I just have on advice to you. Ask for more political intervention. The examples on how efficiently money can be burned are legion. Let's see the biggest burning places for money in Germany. 1) budget for "social issues" 2) subsedies (well in EU land you get subsedies for nearly everything, so getting money is just knowing how to feed the bureaucrats with proposals and you get such strange things like subsedies for ski lifts in Denmark (a country well known for it's flatness) 3) EEG (this is a law which enforces the corporations which produce energy to buy currency from photovoltaics or other regenerataive sources, currently the price is around 10 ct /KWH but the companies have to pay astonishing 46,75 cents for energy feed in by PVS dating back to 2008. So the extra stuff are costs to be beared by every single consumer of currency. The last calculations tell that every work place in the PVS industry is subsedied with arounc 150 000 EUR. Which well is quite beyond every reason. However our politicians (sorry delebets) love this and sell it as a success story. Well yes it's a success story of hybirs of them, but you know as much as me, that they live in an ivory tower. And nothing related to reality can touch them.... 4) building oh, yes that are really nice burning places. One of the last most infamous examples Stuttgart 21 (a while railway station should be placed underground, you might thin oh fine let the DB do it. Where are you living. The DB is mostly governement contrrolled and one can not sink too much money in supporting this "clean" alternative. And so the costs have rissen from an initial 2.1 Billion! proposal to around 4.1 Billion in 2008 (which is the "last" barrier which allowed them to sign for starting the build) to estimats well beyond 10 Billions rumoured these days. (Last "serious" estimate was around 6.8 Billion.) So let's see that nealy 5 times the initial "proposal" this was done around 15 years or so ago. So the "inflation rate" is roughly 12,5 %. That is roughly 4 times as high as the "official" inflation rate. Let as assume they really made it till 2019. Let us assume the inflation rate would stay at 12.5 %. Then the end price would be (assumng 7 Bio as "middle estimate" ) 7 * 1.12 5** 9 = 20.20 billions. The studies done by DB itself state that the build makes economic sense up to the price of roughly 4.8 billions. "Für die Deutsche Bahn sei das Projekt bis zu Gesamtkosten von 4769 Mio. Euro wirtschaftlich." (see: http://de.wikipedia.org/wiki/Stuttgart_21#Kostensch.C3.A4tzung_von_Dezember_2009) If you can read German just see the conditions for them beeing "economical sound". If you do not care here's but one figure for it: 1.3 Billons that's the "costs" for the DB. Well I bet all the other costs have to be beared by evry single tax payer. Now tell me about a nice warm fire place. Get near our governement and you never will freeze again, you may get burned but well the wounds will be paid of by tax payers also eventuallly. Sorry delebts is a weak name for such terrorists....