Schlagwort-Archive: end central banks

There is no way out

of the current crises but return to sound economic action.

As long as we do not take “Human action” serious we’ll be fubar. We’ll also be fubar while keeping fiat-paper as money.

The history of fiat-paper is devastation. And there is no other word which just gets near this meaning. No inflation ob paper sums will ever get
more things produce. Yes there will be booms and thereafter there will be busts. Inevitable.

The big problem with all current schools is that they do not take humans and their preferences as base. They alway think of some kind of normed human, and
despite diversity. This can never do. Nobody can know what’s on the mind of someone else. Parents never will understand their children completely and will alway be surprised
about some of the “ideas” of their children. Well the other way round Children always will think about the grown-ups to be some kind of odd.

We can make “assumptions” about behavior and we can ask. But we can not know if it-´s just said or meant. This is one thing we can not know. The other thing is we
can not know the future. But what we can know is that there are rules men as to obey. Men never can fulfill needs for himself at once. It always takes time and time
definitely is limited. We got our 80 or so years to live and in that time we just can do one thing, acting. If we don’t act we’ll die. It’s as simple as that.

And we know also we need things for our survival. We need water, food, and shelter. Hardly many live in areas where shelter is not needed. And even id you do not need shelter you need water and food.
And you have to act to get this things. Von Mises has phrased and explained that in “human action”. It is one of the most important books about men ever written. It does not even is so important that our predecessors were apes. Knowing that does not help us to survive.

We know we simply need some things to survive. We have things Mises has written down. We can think, we can imagine. We know we’ll die if we do not get food. In the current time we still know how to get our food. Well visit the super market or farmer or visit some market. And we know also, we better have something we can trade, otherwise it will be “hard” to get something. And so we “know” having money is “good to have”. And so we offer something we can produce ourselves in exchange to money. And we can use this money helping to fulfill our needs. After the needs comes the wishes.

All this wishes have one thing in common again. To get them fulfilled we need time and there we again have the limits within we have live our life. And again von Mises has written it down in this most important book.

What we also know We can cheat, but not in the long run. And one means of cheating is fiat-paper. So in the long run fiat-paper won’t do it. And so if we want to get out of the crises we must return to sound money and the ever holding law that we just can consume what we were willing and/or able to produce. So there’s the way out. The longer we do not take them the more problematic the way will get…

Order of changes

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….

It does not make sense

to read the comments on price development at least for Gold. I tend to day it does not make sense at all to expect anything of worth from stock “experts”.

Can one talk about a down for gold if it’s moving just 0.5%? Well I think no. And what’s worse, this opinions must make your head spin. Ask yourself has anything changed
the last two days which really can have any big influence of the prices?

Well Greece will get more money, money that we don’t have and if the states want to give it away they just can do on one way. More debts. So again we see some new bonds in any form
and well these bonds may get bought. At least not from me but that’s unimportant. Some banks probably will add some “risk-free” bonds of states to their bad debts of states. We have not heard of a bigger QE or the like and so not much has changed really. And indeed the prices just floats around a bit. That’s it.

And still you can read “cut back” for gold, the other day it’s gold on the raise and the explanations are not even a thing worth laughing. So just ignore it and ask yourself a few question. Do you think money printing does matter? Do you think the debt crisis was solved at least a bit? Do you expect the states doing something or nothing. That are the base questions.

I for my part have answered the questions this way. Money printing does matter it inflates the money base and will lead sooner or later to devaluation of the currencies. So if you want to save your money somehow you probably are not doing much wrong with some precious metals. It was nothing solved also. The debts are still raised and the stupidity of believing one could fill one while digged by debt with other debt is as insane as can be. However what I don’t know will the people consume much less? I’m sure the privates people will I do not expect anything like saving from states. They will raise the taxes for their endless appetite. for money. So will the bankrupt distort the currencies immediately or later? We simply do no know. But we do know Gold will always have some price, it scarce and people know that gold is money. So still some precious metals are a good idea. Now will states stop interventions? No they will not, they will extend the “control” (well as I wrote yesterday or so, this is just the imagination of control, states can not control much theses days) The sheer amount of debts is devastating. So what will happen I can not imagine a sane approach. So I just think the money printing will get on and so I’m back to “the case for gold”.

I’m quite sure they will consider making private gold holdings illegal again. But don’t think this will happen world-wide and still in this case I have at least some “confidence” that the highest courts will rule out the expropriation. That may just be wishful thinking but it’s the only chance we have. So having gold in your own country and abroad is proably one of the better and more intelligent things to do and have. And if you see it that way there is no excuse not having at least some gold. I have take my share of it, and I speculate that I’m right on this. Well I base my confidence on the work of the economists of the austrian school. And I think this is the safest bet you can have. Nobody else has pointed out the maniac behavior of the states and all they told and written has come true. That’s now true for more than 100 years, and as long as man has to do economics, this will not change. Yes agreed they are not explicit pro Gold but they do know Gold has worked as money and there’s not reason that is should not in the future… So do you want money? Take gold or other precious or not so precious metals.

Just give it a name

the disaster can be subsumed under one small sentence.

The problems are there because of the monopolies of states. In this case the monopoly of currencies.

The FED , ECB etc, do just get their position because the state sanctioned it. It’s very easy. Just the Dollar or Euro are the lawfu payment items.
And so there is not market just the big wanter “state”.

The also do nothing against the defraud that banks do lend demand deposits. And so you just whisper bank-run and they get near a heart stroke. This system
is perverted. It does safe defrauders and punishes honest men. And that is called “fair”. It’s obviously just “fair” for those being favored by states. And the state
does do everything to get more and more supporters with bribe.

Give us our money back and we’ll recover. Do more of you interventions and we crash and “recover” therefafter. The first would be the right way but the
Deledefs of alll states, parties will not go that way, it does not suite there “idea” of “fairness”. They are suckers and hell I will name them as such.

There are debts, debts and debts

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…

Interest manipulation

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….

Starting to solve the Problems

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.

This should not be burried

in the comments of Mises. It’s to interesting and revealing.

Here it is:

One can say after the second world war inflation is the established money policy. And that means always those who saved have been punished. Think about lending your money next time…

It seems more and more are convinced

That trusting the state with our money was/is one of the worst ideas. Well of course the deledefs will never admit that.

But if this system will break down, there may be a time at which we’ll get a chance. But till then you can help us ending the central banks especially
in one way. Do not give any credit to any state any more. They can tax you, that’s an unfortunate truth, but they can not force you to buy any bonds. At least not world wide and not forever.

Our money of independence is gold. So you better do trust in gold. You an see the deledefs of all countries do not fear anything more but independent people. You can buy independence with using fiat-money as less as possible and while paying as much as you can in cash. States like Italy which are broke forbid, cash payments. They say it’s because of fighting the organized criminality. That’s their argument, but you do not have to believe it. Do you really believe the criminals start paying using bank accounts?

So I invite you: “Join us”. Let’s end the central banks before the central banks finish us….