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
Well in my opinion there is an order of imporance for our money system.
The base is the fiat-money has to go. Nothing else will help the honest. All fiat-money systems are systems of defraud.
The holders of the “money” are states in the form of central banks. So it’s clear central banks have no use in a 100 % gold backed currency. In fact central banks
are those which manipulate the amount of money to their liking without anything but their will. And with the monopoly of force behind them. No one would accept written paper to be money
if he does not know his counterpart and if he would not be coninced one could something for the offered money. The precious metals (especially gold) have their advantage, it’s
wanted world-wide and there is not country where gold is not precious. So everyone know Gold delivers.
So I’d propose the following order.
1) the new gold currency is just the weight of gold for prac tical use it might be a good idea to have coins of special weigh (g an kg are all we need for it, but even ounces would do)
2) the central banks can be kept during the introduction of gold as currency. There only duty is to fetch the gold let it coin an release it. The gold of the central banks is owned by everyone and so it could be the base for the money states have to use to pay their bills.
3) after that the central banks are closed down.
That’s all. Everyone will tell us that is impossible to do, because of the sheer amount of free-floating paper (otherwise known as money). But we can find every quotient to make the amount of gold fit the currency in circuclation. it can’ t be a problem do define one dollar worth 0.000001 g if that is what is needed. We roughly know the current amount of money and at least the central banks should know how much money they really printed.
Even Greenspan has has his light moments before he took the chair of the Fed. to that time he was exactly right. Why he lost it on the chair? Who knows.
Even if it may be difficult, it can get solved now or it will get solved in the future. Currently I’d think there is some kind of control possible, I doubt this will be true later. If the currencies and economies break down it’s usual “fight” time. And as much as I hope it can workout without violance, I’m sure it will be violence….
Well on is for sure, the French do think of themselves as a grand nation and I guess we Germans are not that loved.
That has quite a bit of potential. Let’s hope that Hollande will win, and so France will like to end the EU experiment. And well if in doubt. “Blame the Krauts”.
And indeed Hollande started this sound. I guess we Germans should not be too suprised.
I do not wish the socialists in France anything good. I just hope they got that kind of hell they seem to prefer. I’m sorry about the last liberals west of the Rhine.
They will have to pay the bill. Everyone but the Deledefs know that they can not generate value. And so they are a waste, and someone has to pay for this wasting.
That are the rests of productive workers.
So with Hollande we have higher chance that France will break down under itself and a Euro without France, well, that might get “interesting”. But well better we end this
socialists Euro sooner than later…. Let the French live and do as they like, let’s just hope nobody else has to pay….
It’s not secret that I’m strictly against central banks. Anyway here’s a small calculation on the last moves of the ECB.
They made 1 trillion Euros out of the blue. Now a trillion written is: 1 000 000 000 000. How can they do that? Oh it’s simple they just say the money is there and
“it’s” there. Now if we assume a Golf costs 25 000 then VW could build 40 000 000 of them, they may have build around 30 000 000 Golf have been build. The Golf now is around 45 or so years
in production. So if VW can has produced 30 000 000 Golf in 45 years, they can produce around 666 667 cars year. So they would need around 60 years to produce the 40 Millions of it.
Guess how long it took the ECB to create this out of the blue. 0.1 sec. Effort none, and well paper money with a value of 0 also. But assume how this diminishes the information of prices. There are one billion more of a constant amount of things. And it was not earned by individual with their preferences, it’s there from now on. And well it gives the impression of being richer. But that is simply a lie, in the end it just makes the prices go up.
And what is is in the end? Just credit expansion. And that means we’re on our way to broken currencies. And this after war the most dangerous things one can face. So the ECB does not do anything to fullfill their order just to keep the system running while trying to prolong the boom. We all know that can not work. And no it will not be different this time.
Not all debts are born equal. And even those being born equal may change over time.
You can bet it’s another round about Greece. So yes Greece has emitted bonds. (so for so bad). Now it’s getting a bit crazy. During 2010 these bonds were accepted as security for
other debts (so far so bad), but now after a year it tuns out this debts were to high. And now it’s get interesting The ECB is not allowed to finance the deficit of states. Now a few weeks ago the bonds were
“exchanged”. And hadn’t to bear the looses for this “debt cut”. So great the debts were born equal, but after finding their way into the ECB they got different. So indeed there are debtors and debtors. The Private companies do have to bear the losses but not the central banks. Well so far so much worse.
But know who has this exchanged debts? Well it seems the tax payers of europe do hold them now. Now that is really “great”. The ECB has accepted junk as security. Before the junk turns out to be junk it was
given to the tax payers of Europe. Now what is something I really call bad.
So indeed if you ever consider buying new bonds from states, be aware if banks get rid of those bonds as “security” for new credits at the ECB. You will be a last class debtor. So if you are really that stupid, I suggest to buy
another few bonds of Spain, Portugal and whatever state is in financial trouble. It’s a wonderful way to get you debts not paid and even “better” you are allowed to bear the costs of the losses in the banking system also, especially the ECB “losses”. Now tell me anything about theft…
Well dear investors, it is time to conclude. One can not rely on economic data any more. The central banks do
manipulate the interest and keep it on record lows. This just means you do not even get the proper interest to account for the inflation.
In short the central bank, inflate the amount of funny colorful papers. Nothing was produced, nothing save, just a few numbers in a computer.
the number looks like this 500 000 000 000 for the new “offer” of the ECB. Well this is not an offer but calculated theft on savers. It’s as every time.
The debtors rob the creditors. That’s the sad but true fact.
Again more credit is used trying to solve a problem caused by too much credit. Now tell me something about stupidness… So the disease will
proceed and more and more will get infected. And then one day one has to recognize. Credit are not accepted any more. And BOOM.
Central banks , states needs for money and fiat-money a deadly combination….
According to von Mises the Bust is the cure and the Boom the desease.
So the way out is chrystal clear. As long as we try to prolong the boom the harder and harsher the Bust.
Now we have to pinpoint the problems in some logic congruent way. So we know that the states ever have expanded their activities. And this activities are by definition unproductive.
States do not server any customer but themselves. States can not produce anything, because they have no way of calculating (according to Rothbard). So we then have one point where change is needed.
The ever expanding government must be shrinked
Now how could that be achieved? Well as you know the state has a few monopolies themselves and gives grants to other monopolies also. The most urgent problem and most dangerous monopoly is the money monopoly.
A state who can declare what it likes as money and under physical threat to accept this as “money” is THE problem . So the money monopoly has to be taken away from states. (I know the FED in principal is private, but it is established as a monopoly by simple force of the government) So we have to replace money as debt with money as value (as it is meant to be)
This solves another problem, brining money into existence out of thin air. The Fiat- money system is established slavery. And therefor it has to be abondoned. After the monopoly is gone states can not expand their credits as much as the like. They have to pay back in dear things not with some sheet of paper. So we need to abolish the fiat-money currency. If we do that a lot of other things fall into place.
Governments can not make debts that easy as now. So they must limit their activities.
If we have less debt the state does not have to always try to expand their tax base and taxes.
After that we have to ask ourselves. What can states really provide for the well-being of their citizens? We know a) that government can not calculate and b) government can not produce. So what may be the thing a government can provide. well the only think I can see is to guarantee the property rights of anyone living in it’s boundaries. But if this is the only thing they probably can offer then you can see how much money can be spared for other things. We do not need laws which limit the risk for big companies if they are doing things wrong. They must be aware that they have to pay for it. So BP probably would be in big trouble these days. But with government limiting the risk for them they go on as usually. So fact is (unfortunately) the government does not even guarantee property rights properly. So in the end. I know it harms everyone but the non guaranteeing of property rights should be paid for by government and its workers. They should at least have to take some responsibility on their doings.
Currently no country starts solving the problems this way. The are establishing more and more even more unproductive layers. This will not work. Again they won’t be held responsible for this. As soon as I and you changes to “government” the responsibility is gone. Bureaucrats just obey the written papers and if as long as they do that they can’t be responsible. And the law-makers itself hardly ever get in trouble for establishing any stupid law.