Schlagwort-Archive: central bank

Watch carefully

It’s end-game time on Greek.

It can’t surprice anyone having followed either this Blog or any other “libertarian” Blog. Just check the postes on Just look for bloggers influences by Hayer, Rothbard.

Anyone have ever read the books from Roland Baader? And many here probably will have had read “Human Action”, or man economy and state or the way to serfdom or maybe even Atlas Shrugged.

It can not surprise anyone WHO wanted to know, really. All the surprises ones are those which have not the slightest clue what the really stand for. Do you know anyone who proudly tells you I’m socialist.-  I bet if you ask one really, they will point out the are for free markets, but then there will follow this small word: but

the but is. We have to control it, we need government for keeping it “civilized” or such kind of things. The end ist they do still trust government to solve the problems they are facing which are made by government. There’s but one word to describe them clearly and easy enough: dumb.




That’s way too ridiciolous

even by lowest standards and even the lowest standard I hold for the FED

The P/E is as high as nearly ever.

So if the the head of the most influential central bank world word, does not get that right. Then we’re sure in tales land.

I still can’t believe what she is saying about it. It’s denying in it’s most cruel-  form.-  And that will fire back, one can be sure about it.

It never rains but it pours.

Well we see the catastrophes coming.

Spain, Greece, Ireland etc. have suffered (and are suffering) severly under a credit expansin. We know that this will lead to a catastrophe sooner or later.
Von Mises has told us, Hayek hase told us and many others also. Currently it looks as if the Deledefs world-wide would like to be the template for credit induced defaults.

Anywa that is not all that has hit Greece, Span or Ireland. The other big big big problem are the subsedies of the EU. This money was of course not given to the people but other governments for “developing” their countries. And so they did. New streets of highes quality, bridges etc. All a bit larger because of he “expected” growth. Anyway in a free market that never would have happened (at least not so long and that absurd) and now they are hit not only with overwhelming credit but with a infrastructure too big (but anyway one has to support it or it will break down). I guess for the next few years thise cuttings will come and with it another wave of defaults (this time in the building industry)

The problem shows that one fault often leads to another while trying to fix it. And this time they are completly wrong. The problem was credit expansion but now they want even more form that and ECB should finance the states. That surely will not do. It’s the biggest faule they can do. And so the header will struck with force but it’s the Deledefs own fault. They never understand and work for markets always and ever for ever expanding government. Surely the way to hell.

It’s happening under our all eyes

The ECB is now officially financing insolvent states.

Despite the laws for the ECB. How is that done?

Very easy the ECB does not buy bonds directly of states but in a perfidiously way. As you have read yesterday the ECB lends out money to banks with 1 % interest for 3 !!! years.
Now this money is just given with “securities”. The securites of the banks are?

Promises of the states to back up the papers deposited by the ECB. Especially Italy has done that. And so you see it insolvent states back up securities for insolvent banks and insolvent
banks are using bonds of insolvent states as securities.

Now tell me anything about a sham…

Money printing the ECB way

Great news for all the inaptly European banks out there.

The lender of last resort, does what the FED does for ages, they are printing money. Well it’s not named this of course. Because we live
in time of double-speak. It’s to avoid a credit crunch. And of course the hope is the inaptly banks buy bond from inaptly states.

Is there a way we can influence that? No chance. the ECB is independent and it does not have to follow anything, but usually their laws. And stretching them
is probably the thing Draghi likes the most. And so we go. The ECB funds the defaulted states. What a happy news….

Worst ways

or, why deledefs love Fiat-money and their money monopoly.

Well as we have to realize that we have a debt problem world-wide. (USA > 15 trillions of debt, just remember in June or so they have raised the debt level vom 14 trillions), The EU somewhere between 18 – 20 trillions.
Japan a few trillions also and China which claim to have one trillion in “securities” from the US. And so it goes on and one. There is currently not one country world-wide with absolutely no debt. Now
tell me about insanity

How can that happen? Well its a “perfect” construction for parasites. The parasites are the politicians, bureaucrats, and big banks. Banks may live without a state, but a state with out banks is well historical hardly to find.
Now it makes sense for both sides to work “together” the banks are the only ones which are able to sell all the trillions of bonds. And with every selling, the earn quite a bit. Now what’s the advantage for banks. Well they got “political” cover from the states. Either directly as e.g. the Landesbanken in Germany and/or the Sparkassen or indirectly as you can see with the bail-outs. Why do states accept this. Well a bank is not just the seller for bonds but also the holder of deposits. And here comes the worst of all. The banks to take this deposits and lend them out, either directly while buying bonds, or just for other credit facilities for the state. Now this money is not theirs and if the state would not try to “save” the banks, the deposit owners may not get back their deposits. So banks and states are working with everyones property to satisfy their never ending appetite for money.

The biggest thing of course is creating money out of nothing. Absolutely impossible for money as value (read gold as money). If the banks give a credit there are suddenly the credit euros or dollar there, and they do not have backed up completely with their own money. It’s just a digit in a computer. So you can create more and more credit, and you just can “hope” that the investments done with credits will be paid back. That is (un) fortunately true most of the times that works. Well in fact if the just loose the normal 5-10 % of the given credit sums, they still earn big. Anyways this system comes to a screeching end if the overall debts are way to high. That’s the case currently the states have to many debts and people do not believe any more that they will pay back. So anyways the whole money system is a big Ponzi-scheme. Banks and Politicians are allowed to run it but if you do that in a private enterprise you got to jail (which is correct)

Why can that all work? Well the easy answer is the states do own the “most” weapons and they do write the laws. So if you do not comply you’ll get to jail. So people must be afraid to work against this stealing because otherwise they would get harmed. Not to forget the state have currency monopolies and central banks. That another level to obfuscate the wrong-doing. They name it “lender of last resort”. Does that not sound “wonderful”?
And it’s a plain lie again. central banks are backed up by state promises. And that’s all there is. I don’t know how you see it, but for me this promises are not worth anything. Governments are lying most of the time, and mostly then if it’s especially embarrassing for them. Just read about anything from Obama, Junker, Baroso, Merkel and Sarkozy in this regard.

And you can see the greediness of banker and deledefs. They make new laws to save themselves for prosecution. And the state just claims some banks are indispensable. And so we got the worst one can get.

Such system do break every few decades. This system now works for around 50 years and we’re nearing another end of such a deception cycle of the follies of deledefs.

The non interest earning gold

This is a very crude way to discuss. If you’d read Rothbard you will see he never talks about some fiat-currency but gold ounces and that even those earn their interest.
That it’s not so with current gold is simply because gold is calculated in whatever fiat-money you can think of.

And you do not lend Gold but “money” , as we know this money is not real money, but that’s another story

Still since 2001 gold has risen from around 300 USD/ounce to well over 1800 USD/ounce in 2011 that means the you need six times more money today to buy one ounce.
That are a little below 20% raise for now 10 years, and the last 3 years the raise has risen to 27%/year. So if you’d spend 1000 USD in 2001 in Gold you know could get back 6000 USD and well the inflation rate is quite a bit lower

On the other hand the interest yielding Euro money today yields 1.976 % for 10 years. In Germany we’d have to pay 0.4xx % taxes on it and inflation rate is near 2.5%. You’re loosing a percent every year.
If we just would calculate with double the interest for the past 10 years and you’d invest 1000 USD for 10 years you and without taxes you’d now have 1343 USD. Now talk about the “great” interests this money earns….

Because all central banks and politician try to devaluate their currencies one just can buy gold, sit back and watch. The madness will come to an end. Do you think you will fare better with fiat-money or Gold?
Well I for my part have decided that for me….

Can one be happy about the death of a man/woman/idea?

Well if you think happy is much to strong. How about being relieved?

Was the day of the death of Alexander the Great, Caeasar, Hitler, Stalin, Lening or you name it a “happy” day? Well I guess it very depends. If you had been supressed or conquered you surely was happy that days. But all in all, you did not know what would come next. Still if the infrastructure of slaughter still was in place (and even aver HItlers death the ward did go on for 4 months. And theses months were terrible for “the normal soldier”. If you’d not been killed by the “enemies” you would end in front of firing squad.

If you did not catch the right timing you were shooten by some own fanatics in the name of the “Endsieg”.

Now can one be happy about the death of Osama. I guess with some assurance at least some were happy that day. But still does it have meant the end of Al Quaida? Surely not. So one devil is gone (which probably is seen as a saint from others) but still Osama happily and readily wanted to kill Americans whereever he could. So anyway I guess many were if not happy quite relieved.

Now if one can be relieved about whom’s death one could be relieved these days? If we see the damage done by fiat-money and central banks. I’d to admit I would kind of be relieved of seeing this entities die. Agreed that are not men directly (because even if E.g Obama or Merkel would be gone, the infrastructure of suppression and misery are still in place. So we would not really win a grain of freedom. Anyway I would be happy to see the complete idea of fiat-money and central banks die. However the days of this fiat-money round are counted. Every new credit for “saving” whatever is just digging a little bit deeper….

So yes I would be happy about the death of central banks and fiat-money. And I would not be happy or relieved but it would be a kind of satisfaction if the current deledefs would have to go…..

to bubble or not to bubble?

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: 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….