Schlagwort-Archive: lies

Getting back to my predictions a year or so ago:

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JFYI https://mises.org/Community/blogs/fdominicus/archive/2011/02/03/my-predictions.aspx

There you have it:

  1. money still is printed and it seems some prices are starting to show it. (so I guess this can be seen as: On it’s way)
  2. money hardly can get cheaper (wrong. As it turns out at least the ECB has lowered the price for money again one trillione for 1% for up to 3 years. So with this we do have negative yields.
  3. well the Dax has risen a lot in the last year and even since the starting of the year. So indeed it seems I got that right
  4. it’s to early to decide but at least it holds for all the over-debted countries. where everything goes down investements will also. And that is all too true e.g for Greek, Italy, Spain
  5. This was on the point. You can see that all the plans for „saving“ just means more taxing.
  6. Well the first level surely was reached. You can check any statistics about Greece and Italy and will find capital exports. (So well I guess we’re on a „good“ will say bad day here.
  7. ) Absolutly on the point. The suppression of simple democratic rights, can be seen with the „non-election“ of Mr Monti as prime minister in Italy, the ESM, the change of bought Greek bonds form the ECB which were the only one who get a full nominal value of the bought bonds. Whereas the Privates were disappropriated. See all the laws for more surveillance etc. So yes this has come even worse than I could imagine.

Now it’s obvious

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As written yesterday I was going to a demonstration against the ESM.

In short the outcome feels devastating. We were just around 200-300 participants. So now we probably got on idea on how the last democrats at the end of the Weimarer Republik may have felt.
95% of the Germans seem not even know what ESM means. Those who have to decide upon it seems to be eager to sign the next Ermächtigungsgesetz. Indeed roughly 800 000 Germans have protested by some mail etc. That’s well 1% of the population. And now one can see the „merits“ of democracy

The majority does what it wants and the minority has to obey. That’s great. And so we may have more than 50% of the inhabitants taking one of the other subsidy of the state. And the other nearly 50 % have to do what? Pay. (and pray it won’t get more)

It really feels the world has gone mad. Normal behavior is now some kind of absurdity. And stealing from states a „blessing“. Well so be it. Anyway even if it would have been me alone, I would not care. It’s not of anyone that I’m doing this „stupidities“ it’s because it’s for me. One day this system of slavery comes to an end and maybe my children remember one thing. Father has not take part into it, but tried to fight it wherever he could. This times have one strange new thing. Things I write here may stay here for a while. Even beyond my death. And so there are others we do not forget. Think of the books of von Mises, von Hayek, Rohtbard. They are still there to guide us, and warn us and see the Motto of the old Mises blog: Proceeding Ever More Boldly Against Evil. It’s not those wanting to leave in peace and sound money who are the evils, and if there is not much we can do we still can write, think, speak. I will proceed with it, do the same and we’ll be maybe not fine but at least better 😉

Next stop for me is to file a suite against the ESM at our Bundesverfassungsgericht, I do not believe a second that the majority will decide against ESM and that our Bundespräsident will not sign this Emächtigungsgesetz. He speaks of freedom, we’ll see what he means. Signing ESM would just be another broken promise and I assure you that would not be of any suprise to me. I even dare to say the Bundesverfassungsgericht will not stop this Ermächtigungsgesetzt. But if there is one left who may do, it’s this highest court of Germany.

I dare to say you US citizens are not better of either… We’ll see what your supreme court will tell us about the ObamaCare…..

Anyway this systems come to an end. Maybe not today, maybe not tomorrow maybe not in even 10 or fifty years, but they will go done. And that’s a good thing.

Some small thoughts about value

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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.

Saying and Doing.

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A nice story from our political establishment here in Germany.

Mr Eichel (ex finance minister) has said he would invest in bonds of Greece as the „show“ started. Now we learn (he was just joking or simply lying). He wanted to buy for the enormous amount of 1000 € (well now tell me about investing) but unfortunately one had has to buy for at least 5000 € . Well one can call it bad luck I guess

His excuse of not buying now any more is even more „fantastic“. He can not buy bonds with a yield of above 20 % that would be to speculate.

Our banking systems are broken beyond fubar

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Well the longer the crises lasts, the more obvious it gets. Our banking-system is a sham. It allows banks to
generate money out of nothing and even worse it allows defraud on the banking customers.

You don’t believe me. Well then let me ask you just one question. I fyou are holding sight deposits, will banks lend them?
Yes they will that means they are lending money which is not their own. And this means also if every holder wants to get his/her sight deposits, the bank will be bankrupt (bank runs)
And does government anything against this defraud? No it is supported and backed up by them and so we get „gurantiees“ on our sight deposits. but not fully oh no, just around 100 000 whatever.
That means if you are holding 200 000 in sigh deposits the guarantee is just well half of YOUR money. That’s a crime

And banks do not have to care for customers, they just have to care about central banks. And guess what central banks do. They just generate another round of money out of the blue.
Or do you think the 1 trillion of new debts here in Europe are covered by anything? Well think again.

Overall this system is fubar. One can not expect it to work and it is unfair from the ground up. You can not build trust on such kind of ground. But hey, the deledefs know better and you just have to believe them…
For me it’s more likely to imagine hell freezes over but believing any deldef or central banker….

Fuel prices

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Well here in Germany we are near the top of the prices for fuel. And the politicians blame the oil companies for the high prices. Fact is we do have
an oligopoly here. That’s in itself not too bad, but together with regulations it hurts.

Anyway did you know that well around 60% of the price is caused by taxes? So let’s see 1.67 somewhat is the price for fuel. So we have to pay 1.002 €/l on taxes.
Can you believe the comments of the politicians? So in fact without the taxes we’d do pay around 60 -¢/l. instead of 1.67 €. Or put the other way of the base prices raised by 1 -¢
we’d have to pay 2.5 -¢ more together. So with just 10 ct different we have to pay a quarter € extra.

And yes do not forget the evils of Co2. So people curse the state because of it, and the state does blame those earning less from each liter but themselves. They want lower prices?
So why do they put 60% taxes on fuel? No they enjoy it. And they do nothing for lower prices. On the contrary, they are even enjoying the benefits of 1 trillion of new Euros without any value.
So where do you think the prices will go?

Indeed because the ECB is printing money the prices will go up. And in the not all to distant future we have reached the goals of the greens. 5 DM (that are 2.55 €/l). What will stop the prices from soaring?
Well nothing but a crash, either the crash of the currencies of crash of the „social democratic“ systems. And as we know from Mises, if you do not stop credit expansion. Credit expansion will stop currencies.
And we’ll here the new song of the guilty speculators

What is your „inflation“

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Well as we all have learned from our deledefs. There is no inflation. So well yes, that’s what they told and tell us. The FED still is printing money like mad but that’s not inflation that’s QE.
Anyway have you checked your personal inflation rate? What were your findings?

We’ve q big taboo zone here. The government does not even try to calculate a inflation rate. They even manipulate the data and differentiate between core inflation and other inflation. Guess what
food and fuel is not included in the core inflation. They have their reasons for that, because taking that into account would raise the inflation considerably. And you know it can’t be what should not be. So you do not have inflation. In other words, they lie at you again with a straight face, and giving you the impression of being a mad men. Well fact is they are liars and cowards. One does not know what’s worse but they really
want to tell you: „You are stupid and we have everything under control“ The have not.

Fact is the manipulation of inflation rates and unemployment rates have nothing to do with reality any more. It’s data which they think they can give us without us freaking out. But in the end it’s just another big lie on their dung heap of lies. Again I ask you why do you still believe them and are still voting for them? Can’t you stand the truth or are happy to be lied at? I just suggest you keep book of your expenses for a two years and then you can see how much they lie to you. Maybe it’s time to concentrate of the constitution, there gold and money are used interchangeable. That’s the right thing, that you get your deledefs away with their fiat-money is your biggest mistake. Don’t you think it’s time to leave this mistake behind?

The only way to get rid of those liars is not vote for them but anyone else. I propose you look after a liberal one. With record of it’s liberalism. And do not forget. He/she should support „end the fed“. Without sound money you will not have the slightest chance of recovery. It just means some take from your without any service in return. Don’t believe them they give back, it’s just another lie.

A small question to the US voters

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sorry guys, but why are you voting for those with the deepest pockets and biggest lies?

The last vote campaign of Obama has cost > 1 billion. So why are you still voting for them after you’ve learned vote after vote that they kid you? Why are you know cheering such loosers as Romney, Chim.whatever?
What has come after all the promises?

Was government cut? Did you get less laws and some freedom back? They tell you they will, lower the taxes, give work (how ? , does Uncle Sam needs some extra cannon fodder) or are you just speculating to get paid by government? Did they even start to stop subsidizing the banks? When was the last time you got an bail-out (which can not work because the Uncles Sam has not money at all for that). Have they ever done anything to keep the value of your currency? So be honest, are you too stupid to recognize you are tricked over and over again? Or is it your wish to just live on anyone else’s expenses? Or are you not able to see where credit addiction will lead to?

So why are you again working for Obama, or Romney ? Have you really gained so much through Obama that you can live as robber? Is this what you want using force against others to get their money?

Do you feel beeing treated unfair? Well guess what most were treated unfair by government every day. Was it you who had to pay or got paid? Well AFAIKT your congressmen still are getting paid. Do you realize that it’s your money they burn day in/out. Do you know your father,mother, sister, brother etc are dying for them? How does it feel to know you lost someone because your politics though it a good idea to go to war? Do you know how many were killed in the name of democracy. Doesn’t it hurt?

Why are you still choosing slavery over freedom? Is is that great to be a slave?

So tell me what drives you still to choose for Obama and his biggest contenders? Masochism?

Yesterday was a good day

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Finally German-´y was downgraded. We deserved a much higher downgrade, but it’s hopefully the start to end
this miserable „social market economy (well this is an euphemism I know it it pure socialism at work)

Anyway neither the US nor Germany deserve an AA- they deserve maximal a grade which states.
„will pay for it debs for at least a while“. Every Austrian see the marks of the end coming. They just need one look
Fiat-money and debt, and they know who is doomed. We Germans are the US is and many other countries are also

The sad but true answer is: There is not one country on this whole world with sound money. So the „social democrats“ are the old, and current plague.

You can make it happen

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I warned you years ago for the man without ideas Obama. I warned for the other candidate also:
http://fdominicus.blogspot.com/2008/10/keep-this-on-record.html

It’s up to you to end this. Watch closely what the candidates have done in the past and how they acted. If you feel that freedom is not
just a seven letter word, you probably just can vote for one candidate. So don’t hesitate to do the right thing. You were ruled by liers for decades and government has shown more then once
that they are for „big money“ and big companies. Don’t you think it’s time to give those a chance which earn your wealth. Yes GM and the big firms partly do own your wealth. But there are those „little“
craftsmen. There are those mechanics countrymen etc. They care for you as customers, they offer value for money. If GM has done wrong it does not try to serve the customers better. Thy sit down in
an plane fly over to Washington and are whining how great they are for the US an how under appreciated they are.

This is a plain lie. But hey government just sees 10000 working places in danger. We have to do something. That they drive out of the market ten times as much. That’s not what they care for that „normal“ risk.

Don’t you think that is unfair? If yes again watch closely what the candidates have done and how the acted in the past. You may come to the „right“ candidate then.

Last but not least you will have another choice in 5 years to vote for someone else. But it could be different this time. See your constitution and vote for whom stand for it. You grand fathers did know right from the start,
what dangers large government brings with it. That it has come so far, is not their fault. They’ve given you the means to avoid that. So think about it and choose in their remembrance.

Thumbs up for the last ratings

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The only problem I see is that the downgrades were just to low and not complete enough

It still is completely ok to downgrade the EFSF. It’s simly a package of lies. It’s good hat this lies are not bought by the rating club.

You can see how well deserved the downgrades are if you read things like „Germans must help Italy“ and the like. There is not must there is just a must not. But
this is ignored. But still I won’t forget the breaking of the contracts and laws. If you follow this blog you know that I’ve always expected them to follow their own given rules.
They won’t and don’t, so let them go down. So lower their ratings quite a big further an I’m happier.

Now it’s official

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The non-plan about a „voluntary“ debt cut, is gone. Wel if you have followed this blog you know this hardly can be told to be a suprise.

At first If I’m having the bond I have the right to get my money back. It’s up to me and the debtor to figure something out if he’s not able to pay.
And there is the possibility to get an insurance about a non-paying debtor. So if I’m having the bond and such insurance. Why should I disclaim
my rights.

I swore myself some years ago never ever to buy any bond of any government any time again. And so I was out of this bonds in 2009.
So it’s should not be my business any more. But now the states decide to hand out money they to not have to other governments which
are broke. You can imagine how I feel about that. This is theft in it’s worst form. But it’s theft from governments, and then it’s not theft any more.
That’s ridiculous.

Anyway the private bond holders have said. We are not convinced and now it’s obvious Greece is broken. And the „saviors“ of the other EU countries are on there way to
be broken also. Even the rating companies, finally realize that. But still they are givign most of the states something with an A in it. That’s stupid and another lie.
Fact ist all but a few countries are broke. Manys in the € zone and we do not have to talk about the US anymore. They has a debt increase over 70% in the last 3 years. They
are completly broken also. So neither of them deserves that anyones trusts them any more.

It seems that trust has gone down the drain. And that’s a good thing. I hope we’ll see the end of this Fiat-money system soon. And I wish this that those which have put us there, get their
deserved fait.

Do voters appreciate honesty?

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I’m wondering, is this the case? If one sees for whom they voted, it seems the answer is „maybe“.
AFAIKT Obama has lied. He promised to close Guantanamo but still this violation of human rights is still functional.
I do not even start talking about his slogan „Yes we can“. The base is Obama has not shown any particular strength in economic knowledge.

He still believes in the magic of the printing press and has nothing to show for paying back the few trillions of debts of the US.

So overall he has lied in more than one way and still one considers voting for them. That means honesty is not what is expected from Politicians.

But if one prefers to be lied at one gets only liars voted. Will this make your live easier?

It’s happening under our all eyes

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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…

Don’t believe

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in anything you hear from any state. You can bet 99,99 % of it are lies.

I give you but one example: The purchase of Greek bonds. In 2010 the German government asked the banks to buy Greece bonds. A year later they
declared that half of the value of this bonds are „gone“. And it’s of course the speculators which did not buy or sold the bonds which they do not have trusted any more,
which are the defrauders.

It of course not that the deledefs of all countries have collected debts as if they were the most valuable things one could have.

So I repeat myself. don#t believe any promises of states. And do not believe that states will pay their dues. If you believe, you are doomed.

So run to sel all the bonds of states you have and let them crumble. See that you have good relations to producers of food and shelter. Even better see that you can produce food or shelter or
have deal with someone who can. Yes the problem is if you are bound to a country, you are bound to the disposal of the „leaders“. But they can not take everything from you, if they try they sooner or later
will die a miserable death. And it’s not that they want to die, just remember they want but one thing. Live on your expenses.

So I repeat myself don’t believe in anything from deledefs…..

Now what’s up Fed?

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Isn’t it time for QE IV? You still think you can print yourself out of the misery with even more worthless paper don’t you?

Just one question. Why hasn’t it worked in the past? What’s can be the problem? Are the printing presses to slow?

Well I bet the are not and adding a 0 here or there (what’s that among friends eh), could make us all trillionaires. But still there’s nothing more produced with
any printed cent. Production needs time, (saved money) and effort to get somewhere. A 100 Dollar bill printed today, just costs a few cents but „claims“ to be
a value. How funny is that. I’m printing something on a sheet of paper, use my force monopoly and tell every one that is you value. That’s kind of absurd isn’t it.

Well the whole Fiat-money system is a sham. It’s the modern means of slavery. States demands your work and your income to keep itself going. And what’s the
aim of a state? They tell it’s about safety, security and last but no least justice. Bu in the end it’s a system of exploitation. The productive ones have to work and get hindered every
centimeter on their way. You want to open a business? Go to buraucrats? Maybe there’s even the obligation to see a notary for whatever paper work you are supposed to do, to
offer something. But that’s not all if you start offering a thousands of other laws come into play. And after the thing was produce and sold. Now the paper work goes on. Yes you might do YOU bookkkeping
by yourself also. But you’d do it as you find it useful for you. Stop, you simply can not do that.

You have to obey another few hundreds of laws for book-keeping. And don’t you dare to be „unfair“ (in the meaning of buraucrats). You’d say I’d deduct a car in the year I buyed it. No you don’t you have to obey the guiddlines of yet someone else. The governments tells you what you are allowed to do or not. After that all you get taxed. Again there is not „obvious“ service in return. It’s just that they decide how much you have to pay. and don’t you think two of you are treated equal. Assume the same job, the same in come and you’ll see hardly the same taxes. One may have saved something guess what he has to pay taxes again on this savings.

So in short you are just working for a small part for yourself. The rest is just to keep the vermins going. That’s the modern way of slavery. You are not free to do as wish, you are just free to wish what you long for in the bounds of the „insights“ of government. Just tell me one reason that you have to pay land taxes. It’s you land and you have to pay for it as if it’s not yours? How pleasant, you just have to earn at least so much to pay that. If you don’t your land will not stay you land. It’s robbery or even worse it’s slavery.

I just wish all the parasites that they will get what they deserve. And then they look at you and tel you this plain lie. „We are here to serve you“ It’s exactly the other way round. Correct is.
„It’s so nice that YOU have to serve us“ that’s what they „mean“ and they are not the slightest ashamed of it.

I guess I found it

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The national anthem of all deledefs.

Go here and here:

The „King“ of Pop for the Kings of debt, defraud deception.

It fits and I think it should be made obligatory to be sung before any new meeting to save the

  1. world (because of the climate
  2. the euro
  3. the fiat-money systems
  4. the banks and central banks

Every time we should be „saved“ for whome or whatver than the should sing this song.

And before they sit down do do anything. The people must have the chance to see:
Big Brother

Alternatively Animal Farm

That would be just fair game…

Socialism at work

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Well yes it is still at work, and getting stronger by the day.

  1. the SPD wants a stability and growth union in europe (that’s newspeech for, we want to gain more control and put all in misery, but pst don’t tell anyone)
  2. the dictatorship gets into another round in Russion. Putin Medwedew are just chaning positions.
  3. The USA and GB are heading for a new war in Iran
  4. Last and least the FDP member do not vote against all this socialism, and those who do not vote against it are working for it

Overall it’s getting worth every hour. It’s as if the leaders want to go to war again, just for their survival….

Worst ways

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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.

Let’s think a little bit

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Well maybe thinking is a litttle to much maybe speculate would be the better word.

As you may have read, Euro land is in as deep trouble as the US. It’s an open question who really is the worse, but well that’s another story.

Now we have read a lot of ideas about saving. One of the ideas of saving was a tighter „cooperation“, well it probably is a asked quite much to synchonise 27 different countries, but welll that’s another story again.

But now something changed the ideas slightly. At first Greece is finished. Well just remember the vote then the note vote etc. Anyway Greece just stands for around 350 billions of debt. If you look over Euroland this really is not much. Anyway with the default of Greece bonds french banks will get in knee deep trouble. So far there’s nothing new.

But here we go. The interest Italy has to offer are exploding. We are now well beyond 7%. That means a doubling of your debt in „just“ 10 years. Or the other way round with 7% interest and 1.8 trillions of debt (official!!), Italy has to pay interest of 1.8 trillions in 10 years (with 7% interet). No that are as much as 180 biillions a year the budget of italy is well below that of Germany that are around 300 billions. So let’s assume 250 billions. You can see 180 billions are way too much. So saying that Italy is bankrupt also could be seen as fact.

Now as you know ESFS III should be leveareged to over 1 trillions guranteees (which seems to be illusory) just see my entry on my old mises blog at: http://mises.org/Community/blogs/fdominicus/archive/2011/11/09/extension-to.aspx

So with high likliness this all can not be expected to work. Now the „new“ idea is to split up the euro zone into a core zone and a „rest“ And now comes the information I found most „revealing“. This is driven by France and Germany. Now we know France and Germany have seen itself as „engines“ of the eu process. but guess what the french banks have a hell of outstanding bonds from Italy of around 270 billions!. Now the budget of France surely is in that areas. So if italyy defaults France is „finished“ also. They can not bear another 270 billions alons. If you see that with the work on the core europe one can come on some ideas….

Extension to

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my blog entry a few days ago, about the sustainability of the ESFS.

  • Fact 1) the „auctions“ were bad. And the ESFS has to offer much more interest then Germany bonds alone (guess how many would „back“ up this bonds)
  • Fact 2) neither the Chinese nor the Japanes, nor the Russion are willing to buy ESFS bonds
  • Fact 3) hardly and private held bank „invests“ in this bonds also the only ones taking some of the bonds will probably be government controlled banks.

    • Just imagine the last auction was just over 3 billions now how will they get the leverage on 1 trillion?

    I’m not afraid but sure, that ESFS III can be judged a big failure. Well for liberals and libertarians this can’t be a suprise, but even for normal people this is good news. It means there
    is some natural limit on the manipulations of markets and this supports my other entry:
    http://mises.org/Community/blogs/fdominicus/archive/2011/10/21/in-the-long-run-markets-will-prevail.aspx

    I’m still as sure that we did not have seen the end of the interventions. The deldefs world-wide will try to find another way of prolonging their „dicatorship“ and I’m sure everyone will have
    to suffer under this decisions. But in the end they will end on the dungheap of history. A new round will start but then I’m afraid again. The spongers will come back. And the honest again will suffer.
    Freedom is just a seven letter word for them, they have absolutely no bonds with it….

    Forget my last entry

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    It seems the vote is not held. This is interesting in two ways. At first it would be a democratic thing, that it is not held show that the deledefs do not want too loose anything they may get. Now anyway there will be some vote for a new Parliament, but I’m wondering what anyone else can do. The debts are there and have to be paid. If every party stick to this they do not have a choice. Well the only choice they have is how to “pay” back. Socialists can not reason in an economic way and it seems most of the Greek (which could and had have enough) have moved their money out of the country. This money is not accessible to the socialists they can not tax it (or if they try, the money will not be show again officially, I guess most of the money brought above will be “unofficial” anyway). Now they have big unions and so the way to more free markets will be a very tough one. They can not go along as before, because nobody is willing to pay for their granted benefits anymore.

    So no party but a true liberal party has any clue about solving the Greek debt problem. And you know a true liberal party does not exist world-wide. So they are stuck with their socialists of any colour. I can not see how any of the parties in Greek will be able to handle that and so we’ll see a lot of manouvering. The base for them will be: How do we get the EU money without too much work on our side.

    Anyway if they will not make it in the forseeable future. the other EU “partner” will have to send down money there over and over and over again. In Germany we have this clearing between countries. And in the German history just one has gone from taker to giving. (That was Bayern if anyone is interested), the other countries like Bremen, Hamburg, Berlin and surrounding just burn money one year after the other and they tell us they can not to differently. That is what Greek will be a country depending on support, they will take this route because it’s more appealing to spongers. And Greek has a lot of them….

    So we see everything turned out to be bad for those having to support such countries. But that’s the race to the bottom. It’s not honorouble to make it by oneself no the deledefs of all countries will try to get as much from others and the others will be their excuse also.”Well we could not do anything about it it comes from …”

    Yes the spongers work hard to make their life most comfortable while harming every one else. That’s their “reason” for living…..

    Why now and not a year or so ago?

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    Well I’m just puzzling why Greece does this vote about the EU help now and now a year or so ago. The reasons for doing it were the same a year ago. And in fact it could have made a difference. So I’m under the impression that the problems were underestimated a year ago. It feels as if the leaders just played on time with their old same dirty tricks. Not telling the truth directly but just so much one can not hide.

    After this year and a hundred billions more, the truth is even dearer. I wrote here some months ago Greece is bankrupt. And by any means it was bankrupt a year ago.

    So I think it’s the right way but to the wrong time. I’m under the impression, the greek politicians now can not deny the trouble they have caused any longer and are not looking for “relaxation”. In a way it feels as if they want to lighten the burden and blame it on the “heartless” other partners. Yes it feels to some extend as being black-mailing. And I think Papandreou had to inform the other EU politicians about this before he initiated this vote.

    Anyway let them decide, and we’ll see what we have than…

    What was won with ESFS III?

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    Well I’d like to write. „With ESFS III“ we are now on our way to correct things.

    Unfortunatly one can not write anything about that. It’s not that we started making less debt, au contraire. It is tried again to fix something caused by debts to cure with more debts
    The voluntary „cut“ of the banks of around 50% is absolutly open. I very depends what positions the banks take. If they think they can gain more by a open default of Greece, then they will follow that path. Anyway the problem is every bank will have to decide for themselves.

    Because of the CDS we don’t know how bad it would hit the banks. Maybe they are on the side of getting th assurances. Than the problem will be of their counterparts. I just know if anything would come from any government I would be very skeptical about any advantages supposed to hold for me.

    Just remember last year the governments actively asked the banks to „invest“ in Greek bonds. Well if you’ve done that you’d have to bear quite a loss now. There won’t be any advantage.
    And see that the bonds of states were treated as if they do not have any risk. And so they are treates nearly as equity. Not it turns out they are everything but risk free. And now the states require higher equity to back up their bonds. So you can see, the states do everything they can to get more under their control.

    If you give into the sirene songs, you are in deep trouble. So I just can recommend the same as for ages. Do not hold any bonds of states or you will be sorry sooner than later.

    leverage <> leverage

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    Now you may be suprises leverage under different circumstances do have a different meaning.

    Meaning if used by politicians: „more fire power“, hardly „more“ risk, telling markets stories of drunkeness and cruelty sorry, sedation. It’s just for the „bigger“ good. Just well the base for this leverage still is money they do not have in the second case this is named differently, here it is named saving the taxes of the population.

    Meaning if used by not politicians, greed, high risk if done with money on does not have speculating on credit. Ah yes Lehmann was gone because of leverage but you see leverage is not leverage every where.

    In short the politicians use what the doom in the private economy. To be true, I guess we have to go back far in time to find a similiar decision day in parliament. Last time it ended in WW II.

    Deledefs is just to kind to this kind of men…..

    If anyone says one could not know

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    I looked through my outer Mises Blog and found this:

    Spare the money now, spend it later

    The Failout plan can not expected to work with an acceptable certainty. In fact I’d bet 1:10 it’ll fail.
    But if you throw out the money now , you have nothing else if this failout plan fails. It’s high time to prepare for a recession phase. The prices for home equity will fall, maybe crumble. At least down a third IMHO. That will distroy a few Trillions of value, this fall can not be held with 700 Billions.
    So keep the money, now and see how to spend it one something which will work with higher probability. Building of houses will dry out, however the US infrastructure needs some overhaul.

    You have to face the fact that Oil is sparse, and you have to face the fact that Water is sparse also in many regions. In the forseeable future California and especially Las Vegas will suffer under water shortage. You’ve to come back an invest in your own country in the producing industries. The cars are build sloppy, the houses often also, this sloppyness will cost you dearly.

    You can not help, but the chinese have over a trillion US-$ to spend, you must be prepared that they will buy cheaply if not now than just a bit later. Use the money for an “american” solution. Tha means give the people the means to help themselves. That means “fair paid” jobs, “fair prices”, you need as every developed country craftmanns which can build, repair and maintain the ideas engineers invent. So spend money wisely on education for your children and grown-ups also.

    It’s not worth hanging to just one plan, (which in fact is none). Search for alternatives, discuss them and then make an educated choice. Currently you give yourself none but one choice and that’s exactly as useful as none plan at all. If in doubt, do nothing, that’s at least an alternative….

    How deep is the trouble (Greece)?

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    Well it’s difficult these times to get some non mainstream reports on Greece. It’s impossible to find much critique in any german newspaper or magazine.

    But there are few side remarks borrowed at the end of some articles sometimes, and one can get a little bit more infromaton on the Neue Züricher Zeitung. (Which fails unfortunatly miserable on Swiss affairs)

    So this are the information I gathered. Today in the BNN. The greek government has calculated with 30 billions extra taxes, now is was reported. The supposed payers are owned by the Greece state and most of them are bankrupt!!! 30 billions means that this money simply is lacking in the „income“ of the Greece state. With the information from here:
    http://www.focus.de/finanzen/news/staatsverschuldung/griechenland-hat-ein-bruttoinlandsprodukt-bip-schuldenkrise-kommentar_2542983.html
    Greece Gdp 240 billons
    Income (taxes) 75 billions
    Expenses 105 billions
    new debts30 billions.

    Well just double the debts with this, and we are in the region of new debts well above 20%, of the GDP. Which still is shrinking. If anyone can see this as sustainable, I’m afraid he should see ones doctor.

    Another information from the NZZ stated. That even after a year, the government does not know how many really do work in government or government owned corporations. Now this is a another bummer.
    Add to this that the calculate with more than 25% of the working population, is working for government (currently known) and you see how deep their troubles are.

    In fact all the figures they’ve come up with are not even guess work, just wishful thinking. So m conclusion is Greece is completly messed up. There is no way that they even will be able to pay more than 20% or of their debt. So in fact the 300 billions of debt must be depreciated to maybe 30 or so billions. So a definitive loss for the creditors of 90%. I’ll bet neither Sarkozy nor Merkel will mention it. So fact is the money we gave to Greece is lost.

    My conclusion is harsh but simple: „Game over“. There’s no way Greece can get out of this without a terrible loss of anything. I’m afraid poverty will be the logical consequence. Because the young Greeks won’t find any work in Greece, they will emmigrate. And the GDP will shrink even more. Because of the irresponsibility of the „leading“ Greeks, we’ll see what may happen to us. During the great depression, states do not had have anything like that many debts as we’ve before. Imagine the interest payments….

    I can not quantify is as anything but devastating. The state of Greece will not survive (at least not in this form), I won’t exclude a military coup.

    The non interest earning gold

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    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….

    Who could be suprised.

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    Ok the debt ceiling was risen and surprise surprise Obama want a new program of around 300 billions to „stimulate“ the economy.

    http://mises.org/Community/blogs/fdominicus/archive/2011/08/01/what-a-suprise.aspx

    The Addicted get another round of their stuff, and they are using it. This time for „something“ good….
    As if there ever was anything else but „good“

    I stick to my opinion about Obama. He’s a liar and has no clue about real economics. He lives in the same land-of-plenty, where one just prints money and everyone get more rich.
    I’m really fed up with this deledefs

    So here we go again the State can not initiate productive work, just conuming, and of we let us assume we need 100000 USD for a new jobs you can „calculate“ how many news there might be. Don’t forget to count those loosing their job because the state thinks, it knows better….

    After all this years.

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    The same simple questions, I asked 3 or more years ago remain unanswered.

    How can even more cheap credit solve a problem which was caused by too much credit?

    Now 3 years later and 4 000 000 000 000 later, the question still remains unanswered? How could it ever get better with even more „debt“?