Libraler/Libertärer und pro-kapitalistischer Blog, umbenannt als Homage an "This time is different". Schreiblage: Von locker über ernst, ironisch bis sarkastisch und manchmal nur noch makaber. Ab Dez 2017 auch 'The next money will be different' integriert
Once a deposit is made at the bank, itâ€™s no longer your property. Itâ€™s the bankâ€™s.
What you own instead is a promise from the bank to repay. Itâ€™s an unsecured liability. Thatâ€™s a very different thing from owning physical cash stuffed under your mattress. Yet, 99.9% of people conflate the two.
Cash deposited into the bank technically makes you a creditor of the bank. Youâ€™re liable to get burned should the bank make a bad bet and get into trouble. The risk is not insignificant. Most banks gamble with their customer deposits on risky investment fads like mortgage-backed securities.
The lie about to whom the deposits belong. It’s an credit and so you never do savings in a banking account you always do investing.
for anyone who knows simple truths and is not working for/in government or parties. Hindering free trade does not work. It had not worked in the past, it does not work in the present and it won’t work in the future.
Anyone who just visited this blog just once and read more then around 10 entries, could have seen that even someone like me could see it coming.
And here we go: Bubbles. I’ve never been in China, but if they do think building houses is creating wealth, well then they are total idiots. The problem is not house building, but having houses to be build and live in. What value has an empty house? It does not serve anyone, well it may serve someone to make losses, but I’m not sure how “nice” the governments worldwide react on constant losses.
And yet there is another bubble waiting to burst YASB (yet another stock bubble). The indices in the developed countries are beyond any “real” meaning. They just have rissen with the cheap money which do not finds any other profit generating opportunity. There is the new money from the central banks and it has to go somewhere. The debts are way to high worldwide and so the people really start getting more and more cautious. The theft worldwide is on the raise also, which means people must keep their money away from where it can be confiscated as easy as on banks. And there we are. People still would like to get what they like but they hesitate, because they feel that something in the air.
It’s the smell of demise. And it’s the smell of slavery. Of course it’s not named and treated as such bit the effects are the same. People do work for banks which ask for interest on nothingness. What a brilliant idea. You have to pay interest on things the bank do not even own. And you just can get your freedom if you do not depend on credit. As soon as you take the first credit for immediate subsumption, you are a looser. And this means a total looser, the only valid thing to take credit for is for something to help you earn your living. Credit for things of the daily life, just means they got you.
And still people do it over and over again. They go into slavery and are even gladeful to the slaveholders. Nothing is more dangerous for freedom but stupid and happy slaves.
Well you have to use the ‘no’ at proper places. You want a new credit for whatever you like to consume.
Just say no. I do not need that. The bank promises you a 100 % increase in whatever you own? Just say no. The chance that you loose is there and the bank just wins everyt time. You buy a product “specially tailored” for you. You pay. You get a credit for a hous, you pay.
So learn to say no to debts and get rid of all your debts. Start saving (but be aware money on the bank is not your money any more), and stop consuming more than you have. And you will find freedom. It’s this “boring piece of freedom” which just let you sleep well.
So say no to debts and get more free with every debt burden less you have to bear. And you’ll see the light…
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.
Well the longer the crises lasts, the more obvious it gets. Our banking-system is a sham. It allows banks to
generate money out of nothing and even worse it allows defraud on the banking customers.
You don’t believe me. Well then let me ask you just one question. I fyou are holding sight deposits, will banks lend them?
Yes they will that means they are lending money which is not their own. And this means also if every holder wants to get his/her sight deposits, the bank will be bankrupt (bank runs)
And does government anything against this defraud? No it is supported and backed up by them and so we get “gurantiees” on our sight deposits. but not fully oh no, just around 100 000 whatever.
That means if you are holding 200 000 in sigh deposits the guarantee is just well half of YOUR money. That’s a crime
And banks do not have to care for customers, they just have to care about central banks. And guess what central banks do. They just generate another round of money out of the blue.
Or do you think the 1 trillion of new debts here in Europe are covered by anything? Well think again.
Overall this system is fubar. One can not expect it to work and it is unfair from the ground up. You can not build trust on such kind of ground. But hey, the deledefs know better and you just have to believe them…
For me it’s more likely to imagine hell freezes over but believing any deldef or central banker….
Greece finance minister warns, if the EU let Greece down.
Guess what Greece alone has 330 billion of debt. and if they fail the end will come. Well hell one might think “Finally”
All EU countries have debts beyond imagination and beyond anything in history (even after wars) and they are “suprised” that this won’t work.
That it could work is as likley as extinguish a fire with a flame-thrower. I’m really getting mad about this Bastards. They have accepted all kind of debts for
the most stupid things one can imagine. They tooks tons of money for other things from th e EU. (I bet no street was build on Greece costs alone the last 10 years)
They made working for the government profitable as nothing else, all in the clea knowledge they do not have the money to pay that all.
So in fact they’ve lived beyond any limit on the costs of all creditors, just to rip of everyone in that country. I’m so angry, that I’m not even able any more to
write anything decent. I wish all the Politicians and Bureaucrats over there a hell of time. Take that you looters.
English banks reduce their exposer to EU risks:
1:100 that Merkel and Sarkozy will name them speculates. Or traitors or such
Greeks history is near record breaking for defaulting. Just read “This time is different” and you’ll see I’m taking this out of the blue.
Much more interesting is that defaulting seems to correlate very nicely with corruption. For this beeing able to read German check:
Togehter with this time is different you’ll see the probabiltiy of Greek defaulting is very high and because of the sell of of bonds one can see, all but the deledefs think a default is inevitable.
Really I’m wondering. Is it a requirement for being a Politician to fight markets as much as one possible can (and loose always in the long run?)
Can anyone tell me what were the results of the first failout plans for banks? Are they in a better shape? Have they repaid their debt?
What was the result of cash-for-clunker?
What have we gained with expanding government jobs beyond any reason?
Really I can not remember one decision the last few years which were not against markets and the irresistible forces. They try and try and pile up debt after debt and still it’s getting worth every second.
Do we really have to destroy any wealth there is? To start “afresh”?
well you can call me arrogant but I think I found the biggest political mistakes (well I’d name them criminal offenses) which have lead to our current misery
1) fractional reserve system. I think there can be no discussion about it. if you have fractions you have leverage and leverage can work in both direction. However see the problem:
You have 100 CU (currency units), as a private person you can lend maximally 100 CU. Not in a fractional system. you can lend by fractional reserve of 10% roughly 1000 CU. Now let us assume you get the money for 1% (this is currently realistic) than in one year you have to pay back 101 CU to the central bank. Well if all went well you can expect at least 3-5 % for the lending of the 1000 EUR so if all would go well roughly 1050 EUR. Now let’s calculate 50/100 = 0.5 Now tell something about getting rich quick. But this is not the end. What will happen if 20% of the money will not get paid back? you the will get back around 840 EUR and 160 EUR are missing. But now we come to the second sin
2) subsidies you can read it also as any hindrance to free trade and bearing what was caused by yourself. Let’s proceed with the situation above. We lacking at least 161 CU. Well we do not have the money but know the subsidies come into play (you can see the results in reality for bonds of Greece, Spain, Portugal, Ireland and yet a few others). Now the “genius” strikes back. You are bankrup but now the governments jump in an guarantee the other debts. Result you get the 50% gain, risk free.
I leave it to your imagination what will result.
Well why does it happen. Now just see who really are the worst debtors. They are the governments. And so we have an alliance against those acting within their bounds. Banks want to lend money the more the better, governments want to have money in extreme Amounts, and how brings the government bonds to market? Banks. So governments to not act for the public but their own survival and growth. Their own survival just can be guaranteed in a parasitic way, if they overdraw the host will die. This is bad for any parasit, some of them are “stuid” enough to risk it. But bureaucrats an politicians have one “gurantee” of survival if there are any men left. They can find a way to seize the properties of them. You can see it here in Germany, after the world wars, money was worthless, but still something of value was left, and so they taxed this. You see government is not the solver it’s the “base problem”. The only thing which can help us is being as unfriendly as host as possible. That means, if the dedebets want more power, resist in any way.