That’s an awful message:
You can not produce where you want any longer? Or how else does one has to understand it.
Well one can see it the US is deledefs land of plenty….
Maybe it’s just an example on the how bad subsedie really are. I’m not sure, I can not see why the government should sink money in Boeing. But if they did and
Boeing just tooks the money well then I can understand the troubles. But it would be easy to fix. Just ask Boeing to pay back the subsedies….
However one might see it. It’s big business and big government and both usually are catastrophes in itself. Put them together and it’s fourth as worse…
Well now this year is nearly done. Let’s see what has happened with freedom and responsibility.
1) Obama has got his Obamacare which means force and new bureaucratic hurdles. Shell will be saved by politics… So by all liberal means, this just means freedom was diminished
2) the EU has introduced bailouts for nations. That means written contracts were broken deliberately. So another disaster
3) The central banks have made money cheaper than cheap. If you save money you have lost value (again)
All has worked against self-responsibility, the thieves saved themselves with special laws and or have broken them as they like. So one can conclude arbitrariness has grown again. We still have no money of value just more fancy nice confetty, just they (the deledefs) name it “money”
It still can get worse in developed country if one sees the judgement about Chodorkowski. It just shows what we can expect. The Deledefs will make more and more laws and breaking them will get punished ever harder the harder the grip on freedom. The newest attacks on freedom will probably driven by
1) Fear is easy done, just tell the people that while not following the politicians indescribable bad things will happen. Every new terror attack will be instrumented to surrender more and more to those “who” know…
2 is even easier. Just introduce new laws and make them very soft. Nobody will know if one is within its bounds or not . Add the possiblity of “instructions” to it to the bureaucrats than you still can be sure people will get more unsure
3) doubt can be more or easier achieved. If you have uncertainty doubt will raise without further “work”. However as a prudent politician you try taking away doubt with just a few words. “We don’t have alternatives”… I bet this will be one of the most stressed phrase in the near future.
So I’m afraid this year was a disaster for freedom and it surely was against anything just remote connected to liberalism. A few more such years and the breakdown is unavoidable.
this is the question. The Dax is up around 1000 points that are roughly 16,67 %, let’s see what the Dow has done:
up around 1000 points also that are roughly 9.6%. Well let’s see Gold: roughly up 300 EUR from 750 EUR beginning of the year, that are
gains of around 40%. Now is Gold a Bubble? Well it very depends on your point of view. Unfortunately neither the FED nor the EZB, show us a graph of the
money expansion and so we must deduct it from second sources:
http://www.goldreporter.de/wachstumssprung-bei-geldmenge-m3/news/545/ states that M3 grows was beyond 13% in 2004!!. So with all the buying of bonds, one can assume that M3 has grown beyond that limit in 2010. So we never will know really. How much money was generated out of the blue during the last three years and what’s the development of the prices. It could be that gold is a bubble, but it seems more likely that money was bubbled much more. So if we just assume a growth of 8% of M3 in 2009, and 2010. We should have seen a raise in the BIP of at least that much. This has not happened, and so the question persists where was this money spend? It seems very likely the distrust to paper-money has driven many people to buy sliver, gold, platinum.
Now we can bet on the next years. There is not strengthening of money policy in view. Bernanke just wanted to buy another few bonds at or around 600 Billions. in the EU the discussion is on to introduce “Euro bonds”. That are bonds backed up by the EU, backed up by different countries. This suggests that money supply will be plenty the forthcoming future. So I’d think we see another raise in all kinds of assets. (real ones not that funny junk bonds of any EU country or the US).
Where will this bubble end? Well we have learned in 2008 that there is no one-way street to higher prices. And we all know that even the sky has it’s limits. So either the central banks start contracting money or the bubble will burst with a loud bang. I’M very pessimistic that the central banks start acting responsible. I bet they fill follow the lead of the Japanese central bank and government, which now try for more than 10 years printing out there way of their recession. The result is that Japan has the highest rate of debts of all developed countries. And still it does not work. No-one is surprised but the Deledefs and it seem they believe the only way out of debt is collecting more debt..
Well this will not work and if the money bubble will burst, you hopefully have something of real value to trade or pay with. Gold is but one instrument. So I expect an extra raise of the gold price. And I expect it to inflate even stronger the more the central banks try to print us out of this crisis. If the gold prices starts cantering, all bets are off.
I really am curious which country first will draw the correct conclusions. The country which will end this fiat-money madness, will gain everything, people, money wealth. All others will end in misery and this misery has meant war in the past….
Unfortunately nothing was learned. As you may have registered the stock markets are going up. Well the suprise is not that large. There is so much funny mulitcolored paper available. Once it was known as curreny but it’s does not have any worth. So Gold is up over 80% in two years. And the stock have gained nearly as much. Currently you can even use this funny paper too buy houses for quite less of it. That bubble has burst around 2 years or so ago. Now the next bubble is raising, maybe it’s time to get rid of as much of this colorul paper as possible and take something no-one can raise artificially (at least not to a large extent). I propose investing in land. See that it’s fertile. The day will come where you’ll have to pay too much colorful paper to get full.
How it will come to that day. Well the argument of the deledefs and bureaucrats will be: “We had no choice…”
Have you ever considered, why inflation is accepted as something inevitable? Well guess again, it’s not inevitable. Check out the diverse books form von Mises,
Hayek, Friedman and you can see why inflation is the every day robbery of those having control over the money. Even a simple line of deduction can tell you, inflation is
very gladful accepted by well you can say every politician. How comes? Well it devaluates the money. And so if the governements want credit, they issues some bonds. Some of them are very long running (up to 30 years). Now agreed they have to pay interest on it. But if we asssume an inflation rate of 2 % the value of the bond is nearly halfed in value after thos 30 years. So the other half was stolen. And remember you have to pay taxes on the interest also. So if we assume just 1/3 of tax on interest and have a nominal interest rate of 4%, and a “nominal” inflation rate of just 2% then the calculation is. You have to pay 1.2% of taxes on your intereste 2% is stolen from it so you are left with “astonishing” 0.8% “gain”. Well you can imagine how nice governements found this kind of stealing. They blame everything else for the inflation rate. But they want more an more credit. Saving in this context does not mean putting aside money, but issuing less credit than the normal BIP grows. This again ist simply a plain lie.
Inflation must not happen. Just imagine the following scenario.
– Reserves are not longer allowed (what does it mean?) Well if you have a reserve rate of 10% you just need 10 Currency Units to lend 100 Currency Units. And well a Bond on one side is an asset on the other side. The other banks lends’s another one the money and see money appears out of the nowhere. No imagine a 100% Reserver. That means you can not lend more than you really have. This is the “normal” situation for anyone not bank. If you own 1000 Currency Units you can not suddenly borrow 10000 Units. With such a “simple” approach, all the fuzz which has happened wouls simply vanish, and “too big! to fail can not happen. It’s really as simple as that but no one in the policits and especially the federal reserve banks won’t work on that simple solutions. They will insist on just another few layers of control. And well you can bet who has to pay for it.
– Now imagine a constant money supply. How can anyone get “richer”?. Well for that to see in front of you just check the IT industry. Since their beginnning they have to cope with falling prices. Now if the money supply is constant but the prices do fall everyone get’s richer one day after the other. This would be savers paradise. You know if you just keep your money, you’ll be richer tomorrow and this is reality. But no in the this system would stat it that clearly as long as they are “on duty”. Just see the remaks of Greenspun about gold backed money. Before his time, he was in it. After he get chef, he started printing money.
You may ask how can something grow beyond than? Well it’s “easy”, if something new comes along (like computers) people suddenly start buying these kind of things and are of course demaning less of anything else. And so even with a constant money supply growth can take place. It would be sustainable growth. This piling up of “securities” as we have seen it just “wishful-thinking” and unsustainable.
You could choose for a much better future of us all putting pressure on the politicians and bureaucrats. Just demand one thing. “stable money”. If you insist on it and will not get them along with ther lies, you won’t e held hostage for THEIR faults any more…. The only trouble with it is that we MUST comply, otherwise they send us someone along with a gun in his/her hand. Arguing in front of such is simply stupid, if you’re dead or locked away you can not “do anything” no more. And this is the most depressing news. Your own governement just is nothing more than a Kidnapper. If you do not believe me. Well try the following things. Don’t pay no tax anymore…., try to start digging for something of vale on your own ground, do not accept money issued by the governement no more but insist on anything else. Well you’d better be prepared of some stay on in of the “nice” prisons of your country. So fact is there is a layer you’ve to feed with any money you accept or spend. So if you buy anything for some currency units, you pay for those making your live difficult…. It’s perfect system of exploitation. And well they all live from your money….
Well let us assume you’re looking for a new car. You have your ideas about how your car should work or look.
Fortunatly we can choose among quite a few car sellers. Now let’s conclude you like a car for up to 7 people
not too, tall. Fine there are e.g Sharan and Galaxy here in Germany. Well in the past this was the same car just
branded differently. Now assume you find a Galaxy for 25 000 EUR and a Sharan for 25 000. Now you choose
Sharan. Be cautius if car buying would be like anti-discrimination laws. Ford could sue you. Simple reason you have discriminated against Ford
while you a) don’t like the color b) don’t like the sales person c) because the Ford was sliver instead of yellow
What would you tell Ford? Well if you are moderate you’d say: “Mind your own business”. With high probability you’d say. “Go to ….”
Now let’s change this so person searching for a job. They are both the same age, the have the same grade, hell they even have the same marks.
But one is as handsome a guy could be the other a girl at least that handsome. Your shop runs with 20-30 year old Nerds, which are full of Testerone.
Whom would you “choose”. Well bad decision. You either discriminate the handsome guy or even worse you discriminate because of “gender”. So what would
you tell the bureaucrats?
Well you better find a sound excuse for your choice. If not you may in for around before the court.
Well how do we make choices? Sometimes they are based on figures, sometimes they are a gut feeling. We simply do not know. But if you make an educated choice for a car.
everyone agrees it’s your business, if you make an educated guess with whom you like to work together, well be assured, someone may object and start crying: “Discrimination”
Now this was not unique but at least a nice statement of good-doers.
In Germany there are quite a few limits on gambling. In fact there is a kind of monopoly on it for the governement. Now the EU has judged, that this does not
conform to EU law. First statment of the leader of the opposition:
“We need and will defend this monopoly”
Of course it’s just to save us from getting addicted to gambling…. Of course and the money gained from it surely is spend only and exclusively on helping the “poor adictives”
Well I leave this further uncommented.
Today in the BNN (one might thing of an independent press). Well the same, stated with a few other words but the essence is “Monopolys controlled by governement are good, addictives under “governement control” are good..” Bad is an monopoly not controlled by bueraucrats and sure all the addictives running around not under bureaucrats control are very very very bad.
What the h…. driving this people? Don’t they realize that they are thought-police? What’s are the famous lines from Pink Floyds, The brick in the Wall?
We don’t need no education
We don’t need no thought control
More lyrics: http://www.lyricsfreak.com/p/pink+floyd/#share
Well our whole system of education is just to make us all:
“another brick in the wall”
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….
I’m quite sensible about anything governement. IMHO this whole stuff is just established to feed vermins. So I’m extremly paranoid if it comes to data
in the hand of the governement (let’s name it shorter enemy). I’m a regular reader of comp.risks and this is “breat-taking”.
Date: Fri, 03 Sep 2010 10:35:59 +0200
From: Peter Houppermans
Subject: German goverment ID already cracked
Surely this is some sort of record.
“Public broadcaster ARD’s show ‘Plusminus’ teamed up with the known hacker
organization ‘Chaos Computer Club’ (CCC) to find out how secure the
controversial new radio-frequency (RFID) chips were. The report shows how
they used the basic new home scanners that will go along with the cards
(for use with home computers to process the personal data for official
government business) to demonstrate that scammers would have few problems
extracting personal information. This includes two fingerprint scans and a
new six-digit PIN meant to be used as a digital signature for official
government business and beyond.”
Unfortunatly in my day-to-day life I have to live with other monstrosities under “tight” governement control. It’s about the waste-management
companies here in Germany. Probably after the tax laws and work laws, this is the most convulted field one can imagine. Their newest master piece is named
EANV. This is a combination of the worst of governement (really massive data allocations) and indstriy (bureaucratic as one just can imagine) witht cost probably in the Billions every year. And well anyway the name gives away the intentions very clear (that does not happen often) , it should be that to ease the “contro”. So yes
all the companies are bleeded to get them under tighter control……
Well I’m against that kind of control it’s BB at work and BB is governement. So of course I’m against it….
It’s very actual as you can see. And it does not shade a good light on the supporters of the man-made climate change.
Now if we consider what has happened the last half year in this area. We probably be well advised to distust claims and
laws put on us for fighting global warmth.
There’s one question left. Why has this been upheated that much. How does it come that science has not obeyed their
own base of success? could it be because of all this are paid for by mostly governemental organizations? As you can see the route to
more “politics” and less “freedom” is nearly universal. Laws have been made and “artificial” markets be established which deal with CO2 emissions.
See the last laws in the EU but also in the US the “health care system”. It’s always less for those beeing productive and more and more for unproductive
jobs etc. It’s like a mania, we can and will control everything, every aspect ot anyones life. And only the deledes know how to interpret that, they are the “only” ones
seeing. And failure is a no-no-no-no-no word for them. If they fail it’s just because they still havn’t enough power and or bureaucrats.
Trial-and-error is the way of science. There is not progress if you do not try anything, there can’t be any progress without failure. One can not “decide” that e.g the IT industry comes along,
one can not “decide” to create a new product out of thin air without trying what things work and what won’t.
How large the hybris must be that one believes that having success comes for free? How can one believe that the success of free markets just happens by “accident”. How comes the believe that
one not working under economic laws knows better about economics, than anyone working under the economic “realities”. How comes the believe in academics without
economic experience that those “know” how economics work?
How comes that so many believe that kind of nonsense?
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
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…