Schlagwort-Archive: too much debt

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.

If I could give you but one suggestion

on how to escape the greedy hands of states. It would be:


Don’t buy any bonds of states.

This is what you can decide, an no state can force you to do it. If you think the bonds of states are safe. You really do not have lived and read anything the last
4 years. Then I just can tell you, go ahead, buy your “safe” state Bonds.

Anyway if you have seen the actions of the last few years, you have no choice. Any bond you buy is a contract which harms our neigbbor and not the state. You can beleive me there
can be not better thing to do than harm states. They will send you to war with a smile. They will name you “hero” if you are killed. Words are cheap in this regard.

So first guideline for investing. Don’t believe states, and don’t give them your money voluntarily.

Some really got it

There’s a saying in Germany “Gut Ding will Weile haben” it seems the english counterpart is “haste makes waste”

At least a few probably have risen their head to see the light. They now tell us: “There’s no Euro crisis” (which is true because) “we have a debt crisis” which surely is true. Just leave aside the fact that
our money in the end is debt. So all our money is part of a really debt problem. Money should not be debt but value is the way to go in the shortest possible run. But indeed the Euro is not responsible for
careleless debt piling. Nobody in Greece was forced to accept debts and more debt and even more debts.

So let’s see debt not as the “money debt” but the debt of bonds etc. The bankrupt of Greece would not make the Euro suddenly worthless. Just the debt of the bonds would be “gone” (well more or less) So quite a few billions of debt would “vanish”. (Agreed they do not vanish into nothing, but Greece would see the result. If it ever will come back for asking fresh money in form of new bonds. People would surely require a premium. Despite anything this would be a good thing. If you know you have to bear quite a lot of intereste you’ll be cautious to improve your ranking and you will not pile up debts that fast. Unfortunatly this is not a “never ending story”, but that’s another “party”.

Now to see this debt problem and not make it worth with even more debt would be prudent policy. But as we now prudent and policy do not have anything in common but the first letter. Now with the inprudent policy of giving away 110 billion !! a year ago. The imprudence has make it a lot worth. Instead of let’s say 600 billions debts Greece now has 700 billions debt. And guess what it does not have lighten their burden in fact the landing will get harder. And do not add another unwise step the politicians should face it with a straight face. Greece is bankrupt now let’s see that we get over it without civil war. The way always is the same. The debitiors must bear the bill. If some of them will broke over it, then we must let them go also. I guess this later implications is what the deledefs fear more than anything else. So they probably will not “face” it but prolongate the suffering….