Schlagwort-Archive: end

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….