F Dominicus Blog : deledefs, defraud

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....

Is there an end?

Friedrich Dominicus — Tue, 16 Oct 2012 10:40:00 GMT

of believing into lies?

It seems our capacity to accept lies is nearly unbounded. The newest "gags". Greece has lied and has presented figures not even near the truth. Still they get payments of other "partner". Now they told our just with harshest conditoins, this would happen again. And they mad one plan after the other which one an say were not fulfilled.

And still nothing has happened but we just send down a few other billions. And now we can here from our German ministry of debt. That Greece will not get bankrupt. Another plain lie. Greece is bankrupt and even if we carry down another 100 billions Greece still can not "get" along. So I'm puzzling when we stop believing the lies we got told from the EUrocrats. Any idea?

Democracy or: cultivating defraud

Friedrich Dominicus — Thu, 02 Aug 2012 05:50:00 GMT

Well there is a kind of agreement that monarchies are bad. But there is another agreement that democracy is "good".

I wonder why?

If the majority decides to live of the expenses of minorities, how is that different to a monarchy? If the majority in Parliament decides it's fine to take 75% of the income of people over let's say 100 000 €. How can that be justified?

Tell me what happens if a majority lives on state payments. How can it be okay that they can vote for supporting their way of living?

In Markets there is nor majority. Either you and you parter agree upon a deal or the deal will not take place. Now let's have a look at taxes. What's the deal? If I want or did not want no way, the state decides I've to pay. If I won't I've to go to jail. Then another example. I've a computer not TV and no Radio, how can it be just to have pay license fees. Or another example I'm operating a small business, why am I supposed to pay for the IHK? There is no obvious return for me, why do I have to pay for it still?

The unfortunate truth is that democracy has not special merits in regard to fairness. Markets have. And so if would have the choice between democracy and//or markets what would I prefer? I would abolish parties, stop any subsidy for whatever reason. I probably would accept a very small tax for the military, but I would not have a police monopoly. If I have an politician it would be not allowed to vote as long as he's in the executive. Because nobody controls government I would still allow voting against any law through voting of the public. (even on the dangers this majority oriented way has). But if there are costs to be expected the majority has to pay for it and not those not in favor of the "decision". If they want social welfare, they can not rule that anyone has to pay for it. It's clear if someone has not paid for it he can not take any money out for it.

I would also disallow personal bankruptcy. And I would not disallow paper money, but I would base my money on something of worth. if you do not want to pay with it, then that would be fine for me. I'd not this money on all, I would let the markets decide. If they find some currency worthwhile, they should pay with it. I would not even care if banks lend out more then they have. I would not bail-them-out. A bank is nothing special and should not get any privileges. If they do not pay their obligations they have to go out of business.

Because central banks are defrauders by definition, they would have be abolished. We can not have a sound system with monopolies granted by states.

So in the end it's markets which must prevail. Everything else is unfair.

"Must" readings

Friedrich Dominicus — Sun, 13 May 2012 06:20:00 GMT

I'm reading quite a lot and well I am arrogant enough to write that I found great writers and economists which have expressed much better what I thought to be true as myself.

Once upon a time I was learning farming. I worked on a paster station and I worked on a farm specialized on pig breeding and pig fattening. My father was a farmer as were both of my grandpas. So yes it seems I would be farmer too. And I started with it. I loved my work. At least most of it. There were jobs which were just gruesome. We had a disease under our pigs which one could not heal. So you have to kill fresh born shoats. I can assure you nothing is more terrible than to slaughter small ones. But that's another story.

Why I did not get farmer in the end. Well to my "misfortune" I had (and I guess still have) an idea what makes economic sense and what no. So the later farm was somewhere at the edge going bankrupt. But the problem I saw was that

everything was regulated
and even worse subsided

And last but not least to earn something around 50000 DM would require a farm well valued above 1 000 000 DM. That are roughly 5% with all the risk and all the work. Well this cut it for me. I would have other sources of income but I did want to "earn" my living myself with a "fair" return on investment.

Anyway the point I want to come back to are subsidies. To that time I had discussions with my father in which I told him subsidies are wrong. Under any circumstance. So most of my income would be not paid for by people wanting to have my stuff but subsidies this was a thing I could not want. And this was a point my father and I were of a completely different opinion. To that time I did not even know about the austrian school of economcs. How should I? I was grown in a higher school and my teachers were paid for by the state. You can not expect from paid public servants that they serve the customers (in this case the scholars) or anything critical about state control. All they had to teach us was and still is state controlled. Oh yes they will tell you it's for the better to use all, but that's just another lie.

So I did not follow into the farmers shoes (a thing I partly regret, because in this crazy times it is good to have something to get you fed). I still started my other "career" I'm now software developer (and to be honest I love it).

But back to my "readings". As you can see I start blogging around the time the first bail-outs were "done". (See http://fdominicus.blogspot.com) even to that time I did not know from the austrian school. How should I? I was grown also on a state controlled university and you can bet what the national economics are. They a breed on a state controlled school, and are raised than in state controlled universities paid for by the states. So no you can not really expect an austrian economic in universities. But as you can read through my other blog and my blog here, I did not know them as I started blogging.

And still you can see I'm a clear fan of open markets. Nothing could be more fair is my strong opinion. And during the last 4 years I learned about the austrian school and there it was. My feelings expressed in great books. I guess it started with something from von Mises (I can't remember really but it could have been human action). Well since then I read more and more about it and found my intuitive findings supported. And still I can understand that stuff (after all maybe the education at the university pays of for me, at least some parts of it are about critical thinking ) and there we have them: von Mises, Hayek, Rothbard. Now I have to get over 4 decades to learn anything about it, now tell me about mind washing....

So know I can clearly tell everyone which books to pick up to "get" something real. It's indicative that von Mises never has tought much on a university, hell the austrians are the devils in person of all the good-doers in every positions of the state. And still they are the only ones which saw it coming. NO OTHER SCHOOL WAS ABLE TO DO THAT. You can bet whom I do believe more. You have one guess free ;-)

Anyway they have written down what I has somewhat mangled up in my mind. And I'm delighted that I found that what I call horse sense (as you know I'm not an educated national economist) has some theoretical background and was the only school of thinking which could see it coming. So yes I see this as a confirmation of my reasons to even start my blogs.

You can call me arrogant or whatever you like, but it pleases me that things I figured out by myself are supported by the greatest economics the world has seen till now. And yes I'm proud that I figured this out by myself and that I could even see my bad feelings about the education at our "universities" have a sound foundation. So yes was able to figure that out myself but the books just showed me that I could not be that wrong. And yes I'm feeling also happy that I can name charlatanism if I see it. And yes the biggest crime ever was and still is the establishment of fiat-money. So we know it's evil and so we should stick to the von Mises motto: Tu ne cede malis, sed contra audentior ito (Latin: Do not give in to evil but proceed ever more boldly against it) and demand to get our money back and we have all the right to demand: "End the central banks".

And one thing I (the I in very Big letter) will never forget: It started with the feeling of a 19 year old boy learning farming, which figured out some truth (maybe even some eternal one) himself while condemning subsidies. I know it does not mean anything to anyone else, it makes THE difference for the man in front of his screen and keyboard...

Saying and Doing.

Friedrich Dominicus — Mon, 12 Mar 2012 05:34:00 GMT

A nice story from our political establishment here in Germany.

Mr Eichel (ex finance minister) has said he would invest in bonds of Greece as the "show" started. Now we learn (he was just joking or simply lying). He wanted to buy for the enormous amount of 1000 € (well now tell me about investing) but unfortunately one had has to buy for at least 5000 € . Well one can call it bad luck I guess

His excuse of not buying now any more is even more "fantastic". He can not buy bonds with a yield of above 20 % that would be to speculate.

Remarkable

Friedrich Dominicus — Sat, 13 Aug 2011 06:13:00 GMT

Saving the delebets way does not mean cut one's expenses but highering ones income. Now this time it Italy. A higher tax for the rich, a higher tax on capital gains etc, but not mentioning cutting down the expenses FIRST. I guess that's what GDP related debt mens. All you property belong to use. We just decide when and where we take it.

Another astonishing development. Forbidding free trade, you think that some stock are to high and do start selling them, empty. It's now forbidden in three or so countries here in EUR land. France, Italy, Spain. Remarkable? Not really that are those which most distruste. As I've seen yesterday even buying Puts short should be forbidden. That means you can not express your opinion that markets are too high. And that will surely help. It will make everyone feel much better. Or not?

It fits very nicely to my predictions that the worse the state of affairs get, the more the delebets will try to "steer" control. The delebets do know they are wrong-doers but they would never admit it. So they are looking for scape-goats and there they are speculants.....

So one can see the usual lies are not langer sufficient, now they introduce some newer ones. BPOHs

The three golden deledef rules

Friedrich Dominicus — Fri, 22 Apr 2011 14:13:00 GMT

Translated from: http://fdominicus.blogspot.com/2011/04/das-mochte-ich-hier-festthalten.html

1) a politician never is guilty

2) if a politician is guilty 1) takes immediate precedence

3) if a politician is guilty an lying, it has to be blamed on the markets

Just have a look at a few entries on the mises log in the past few days: http://blog.mises.org/16587/when-in-doubt-blame-the-speculators-%E2%80%93-again/ Just an example from Germany, The taxes on fuel are well beyond 70% IIRC they are even near 80%. Who get's blamed the oil companies. Well they are responsible of 1/3 of the price but with every cent more the deledefs get 0.7 cent more robbed cents. That's the "truth" and no-one can deny it, but the deledefs do over and over again....

Keep that in mind and you have much easier times to understand, their actions.

I like it it subsumes everything nicely what's happening in EU or US country. Strange enough one does not hear such garbage from Neu Zealand, or Australia. Well the Japanese are similiar and the Chinese are well "different". We know the lie (but how does not) but they are culitvating their own bubbled. I can not see a city without population as a good investement.. See e.g: http://blog.mises.org/16436/the-inevitable-result-of-central-planning-chinas-ghost-cities-and-malls/

It goes on and on

Friedrich Dominicus — Wed, 16 Mar 2011 06:34:00 GMT

Yes the EU safety chute should get fixed. This time with "much" more hefty punishments.

If a country does not do this or that then the get very high fines. (Might be interesting trying to fetch that fine if the country is bankrupt, but I guess this is just a secondary thought.)

Biggest sin: Buying from bonds of "any" country through the ECB. Zimbabwe and FED are greeting....

So we'll go on with this Ponzi Schemes of curing too much credit with eve more credit. I thin Japan will take the lead this time. They have to rebuild their country. And so they'll flood th world with new money.

I come back to my predictions. It seems a lot of them will get fullfilled earlier than thought. And one day they suddenly will find "no-one" accepting this worthless sheets of paper any more. And then it will not be the states and governments which have "send everything down the drain". Iit will be the "capitalists" .... Atlas shugged get's more and more a documentation.

The usual stupidity

Friedrich Dominicus — Fri, 04 Mar 2011 06:13:00 GMT

of politician sorry deledefs.

This time in the name "of saving mother nature". This times by mean of bioful. According to this: http://www.welt.de/wissenschaft/article3131881/Biokraftstoff-verbraucht-mehr-Energie-als-er-liefert.html

One needs more energy to produce bioful than it yields. I guess this should be the political counterpart of a perpetual mobile.

I guess nothing can be too expensive or stupid to ruin the whole mankind. This time we need more energy than before to have even more CO2 produced in the name of CO2 reduction. Now tell me anything about stupidity.

Strange enough my predictions bear fruit. I told we can expect raising prices, and yes we have raising prices. But in the land of arbitrariness through the concept of core inflation. This is not counted as inflation. So the defrauders conceil their wrong-doings. Or even simpler, the raising prices are due to speculation. And fighting against speculation allowes for even more laws to "fight" the bad speculants. And so spiral towards the abyss. More bureaucracy means more waste and more wrong-doing. And there is no correction for it because bureaucracy is just supervises by itself. The way is chrystal clear... Anyone but deledefs can see it.....

If it comes to debt

Friedrich Dominicus — Sat, 08 Jan 2011 08:32:00 GMT

nobody can beat the USA. The unbelievable sum is somewhere around 14 000 000 000 000 (14 trillions) the new debt every day is a around 4 000 000 000. That are new debt of around 1 200 000 000 000. And yet it's not "enough", As we learned Geither wants the "right" to make even more debts. It's interesting, a problem caused by too much debt trying to heal with even more debt. And we are talking about the "official" debts, one can not even imagine the diverse hidden debts. Fact is if the Chinese will start selling bonds, the USA is "finished".

And yet the live as there is no trouble nearby. They initiate programs which are unpayable. But they still pretend it's "social" justice. I guess it's very "just" if we head for another kind of civil war. Not ever in history there was so much debt out there, which lacks nearly any substance. Sure they've build houses like mad and what has happened, they are unsellable. There are regions where you can buy a house for few dollards, but after that comes the gruel awakening. You will get taxed, you will get taxed like mad. And this is "just"? California is bankrupt, and still they are doing as before.

I wonder when they will see that debt <> richness. Some of the deldedefs are dreaming of the "perpetuum mobile". It does not matter if money is backed by anything it's just important to throw out even more money at every problem and steal it from every living men in the US. They think people are so stupid to never realize that debt <> wealth. And yes the grow up there own lower class, because we know democracy is great and equality is even greater one men one vote is the "most just system imaginable". If it means having the lower class vote for oneself because of benefits..., than it's an easy deal

Make saving a "stupid" thing, make debts the "real" thing, tax away hard working people and give it to the spongers. And because you do not want to have it that obvious introduce a new bureaucracy which has to look after the sponger, and say you need this bureaucracy to see that they do not live on expense of the others. This is to keep the honest people calm. Or even better try to make them all addictive. Addictive to the benefits of the great fair nannystate. Give those left right-doers the impression it's them who are guilty of any poverty and that just the big government can do anything about it.

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.