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
This surely will work at lest as good as in Atlas Shrugged. We must do something, Mr Galt we promise you everything do something but don’t take away anything from us…
So what will happen. Some comments express it: The stuff will be sold and they shop’s won’t buy more because they are simply loosing money with every purchase. So how long can you “survive” with just losses? Well you are not a state which just can try to take away more. And you still can not afford to loose money all the time.
So the end is clear, poverty for the masses and everything else for the “socialists”. Do we really need this reminders over and over again?
Two entries on the zerohedge log:
and one that leads me to:
That’s the difference between states and firms. States to make firms suffer and firms have to see how to get out of it with their own money. States never get out of it with “their” own money. They just steal more (that’s called tax)
The booms are introduced by to cheap money. And money without worth. That’s the point. If the US would have to gurantee their currency with something of value. They would not be able to pile up that many debts. So it’s easy, they export Dollars and get something of some real value in return. The Dollar owner just can “hope” that he may be able to buy something with an paper later.
The USA overall lives on the expenses of the world and still they have sky rocketing records of the food ration cards. In the end it means the debts are somewhere cycling around without being used for highering the the real goods output. And that fits perfectly. The debts we have in the states are circled around. Greece can not pay so they got “new money” read “new debts” from the EU. And the banks which take in the money are buying new “bonds” of states. Handing it out as “security” to the central banks and there is it the debt. The so called “assets” (bonds) read debt claim is the highes in all central banks ever in non-war times. So that means the central banks are the biggest holders of “promises” of states to pay back their debt.
Well that’s a neat system isn’t it. The states to guranteee the mony monopoly to the central banks and the central banks take the parity value of the bonds from states as “given”. So how long would you expect such a system to be trust-worthy?
If it wouldn’t be so serious one could sit back and enjoy the show. Anyway the US democrats and republicans will simply raise the debt barrier again and so the so called fiscal cliff will just vanish like snow in the sun.
Nothing will change, the fact that the USA is bankrupt. Not just in the tight sense of having nothing more but debts. But even in moral standards. The wars are unjust, the surveillance against the civil rights. The FED is an illegal construction and the green-buck with being backed up by something like gold or solver a sham.
So the system will break down. We do not know when and how. But it’s now unavoidable. The US with just 5% of the world population just stands for 42 % of all the NEW DEBTS. And every year now there is a deficit beyond 1.2 trillions (Yes I got that figures right).
So what we see is the last and biggest credit expansion ever. There’s nothing but too much money, and it helps the defrauders to expropriate those which still do have something of some value. The payments for the bank workers have nothing to do with fair payments. It just shows the owner have not way on stopping this Bankster. The bankster also have the advantage of the politicians on their side. (Who else should take the new debts) and the worst problem is absolute central the central bank FED. She will got down the drain and take the state with her.
Maybe the citizens will keep away the power of the parties. But chances of that are slim…. Maybe the go back to the core of the constituion, because one thing is for sure, the Deldefs and bureaucrats have broken it…
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….
The Greeks vote again. And Europe may come to an end. At least the Euro Europe. In Germany the system press, paints a picture black in black. According to the comments
the Euro is a showpiece of a project that brough us Peace, Wealth, Rightness. Sorry I’ve to stand up and run to the toilett.
Here I am back. The Euro was not wanted from most of the Germans, it was warned to introduce a common money without a common social and economic base. The idea obviously was
with the money comes “sanity”. Well that so stupid that it hurts
Hardly never in history sanity was really high on the list. Just see the wars, just see the biggest crime the introduction of central banks and fiat-money. The wars since 100 years could not have been fought with “sound” money. But with Fiat-money printing is not even to be mentioned. Just print and fine you are. Well now the wars are the biggest destroyers of wealth. but I guess they will go on telling us it’s for a higher good.
Never before in peace times, the debts were that sky high. And this what we get from welfare states. It’s an Oxymoron, the only things states can do is destroying. They can not build they just bring misery over anyone living in them. The states start small and protection of the individual is first high on the list. but now see what our states are, defrauding systems. And the destroyers of civil rights try to get rid of as much responsibility as they can. I’m not sorry, you politicians simply and plain suck.
And now they are starting to sucking us out really. And down we go the path of poverty. …
Well now we see another template example of interventions.
Argentina, has obviously left the area of markets due to the “politics” of Mrs Kirchner and her spouse. In a side-note
of the newspaper of my wife I found: Inflation 25% and official course between Peso and $. And what has happened before.
It started with good running exports and higher as usual prices for the exported goods. So far so normal, then comes the Kirchners and what did they do?
They spend this money on welfare (and if there is but one way to get money burned faster, really burn it). This has bought here enough votes (yes the merits of democracy) to
get re-elected. and it has come as it always comes.
The prices for the export goods are falling and she does not have enough money for their “welfare” operations. Well one might think well one must cut them back. That’s normal thinking, but not the
Deledefs way, and so they make more debts (one just can say as usual) and started to make restrictions on free trade. Well if you mess with the markets the only answer there is appears, the prices start
raising. And indeed even the stupid newspaper of my wife at least has to “admit” that inflation is beyond 25%. 25% means in a little over 3 years your property halfs in money value. You can bet the only things raising as fast as inflation are always the all-day-needed goods. And so the poor start paying the bill immediately.
Now the people act logically and try to get rid of the Peso and that means they buy other currencies, and this get the next reaction. Controls on the money export/exchange and indeed this is what Frau Kirchner and the Poligangsters did, they “forbid” exchanging into $ and now $ are scarce and a scarce thing does what? Exactly it raised in Price, now the official exchange rate and the “paid” exchange rate differ around 40%.
Very “appealing”, the members of the parliament (probably of Mrs Kirchners party), do what? They buy more Dollars and they can, so much to “equality” before the law
So the end is coming, and the interventions gets more and more by the hour. People which have gained at least some wealth are not expropriated by the inflation initiated by interventions of the state. The sucker spiral turns faster. I guess within the next 5 years Argentina will fall back below 3rd world level. So dear Argentines, say “thank you” to your deledefs. And bite yourself because of your stupidity.
well yes there are no good news. There are currently just bad and worse news.
Now it’s the spanish banks, another 100 billion. I wonder from where that money comes. And you know the answer. It comes from new debts and this debts
have to be beard by the tax payers. Oh yes they won’t honestly higher the tax immediately, but the invoice will come. And it’s always those who have and live within
their financial limits, which have to pay. I guess it will be as usually. The inflation will be driven up, the tax is driven up and those not paying taxes will not even recognize, that’s somebody get’s robbed.
The different loosers in the different countries are cheering another looser. Really they tell, what a good thing that Spain takes the EFSF money. Well you can see it’s not the idea of market which prevails. It’s from a to z socialism pure. And every socialist country get bankrupt within around a live span of a man.
And again the best safety net for the savers would have been sound money, and there you have it. The last we get is sound money. We’ll see more money printing, more card houses of debts. I know it’s stupid, people with at least a slight idea on economic thinking know it’s stupid and yet those who know will get overturned by the majority. And as we can see e.g in France the majority just is stupid as wood. I really wonder how the French think Hollande will pay for all “his” promises. They really must think the state is a money spender. And they simply do not get it that it’s robbery which keeps the states afloat. One should not wish bad for others, but I feel it is needed that they suffer under exact the conditions they seem to prefer.
And it’s now starting to get really worse. The banks are bankrupt and the states a bankrupt, and the stupid people still believe the state can steer anything. They are steered and it will show, and the more they deny the facts (money has to be earned) the more devastating the outcome.
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 a German Magazine the prices for land are soaring. Within just a few years a hectare has seen an increase in price from 5000 USD to 30000 USD. That’s a raise or 600 % and you can bet
this is the next bubble. Fueled and fired by the ever expanding credits (called money from the FED). It all happens because of new laws and the mania to subsidy “renewable” energy. But of course the base for that
all is the zero or below zero interest politic from the FED. In short money printing at work. The Fed sucks
The other big driver is the granting of patent privileges, enforced by the all so loving state. States suck.
The magazine write about the vanishing middle class. What a surprise if you take from the middle to pay the top, they surely will not get richer. Anyway the middle classes believed also in “easy” money, while using credit for buying houses. Too much credit and now what has happened this bubble has busted. And now they are in trouble, what a surprise. It’s not alone the fault of the authorities (but they have made it so easy to get credits) but also the believing that this could be sustainable. Sorry vanishing middle class you suck also. You’ve build on credit and you get what you deserved. Not needing credit is the way to go for the middle class. Especially not using credit to pay consumption. Sorry guys, credit sucks very badly.
If you trust on credit you trust on hot air. Only real savings yield wealth. That’s the all and ever true way.
Yes the EU safety chute should get fixed. This time with “much” more hefty punishments.
If a country does not do this or that then the get very high fines. (Might be interesting trying to fetch that fine if the country is bankrupt, but I guess this is just a secondary thought.)
Biggest sin: Buying from bonds of “any” country through the ECB. Zimbabwe and FED are greeting….
So we’ll go on with this Ponzi Schemes of curing too much credit with eve more credit. I thin Japan will take the lead this time. They have to rebuild their country. And so they’ll flood th world with new money.
I come back to my predictions. It seems a lot of them will get fullfilled earlier than thought. And one day they suddenly will find “no-one” accepting this worthless sheets of paper any more. And then it will not be the states and governments which have “send everything down the drain”. Iit will be the “capitalists” …. Atlas shugged get’s more and more a documentation.
However one never should forget the perfidious politicians. After Bretton Woods private ownership of Gold was forbidden.
Who will gurantee that this won’t happen again if Utah may get drown in this curios little green bucks….
I asked the north-african people for exactly the same. Do all you can to get money with value. Don’t follow us stupid Europeans or whomever you think of. Fiat-money value
is “0” by definition. It’s the believe that this money has some worth. See the price raises in the last few months, they show that “money deevaluateion” is a question of quantity. There are too many
colorful sheets of paper for “real” values. So the price must raise, it’s inevitable.
from you stupdity and recklessness and especially expertise.
Just see what the commision writes. The crises was forseeable. Well am not aware that anyone but the Austrians or near stand-bys have warned.
And well I do not know who is in that commission, but let us assume there as politcians in it which were there 2 years ago also. And so why “haven’t” they warned 2 years ago. Well I guess they thought it would be stupid not to get-rich-quick.
You can really see them showing us how stupid we should be. And of course it was lacking regulation which let to this disaster. How stupid is that?
Everyone in the bureaucracy then has backed up this Ponzi-Schemes. And you can see of course what should help “more” regulation. The “regulation by bankruptcy” is not an option. It would probably be too hard for those member of diverse “commissions”.
Fact is: The Fed has thown money on the market as if there will be no tomorrow. Dot.
Fact is: The politicians have forced financing of political correct groups. Dot.
Fact is: They have stolen from everyone and are declaring it as “the-one-and-only-that -possibly-could-be-done”. They are liars.
Guess what with the big-too-fail superstition this will be just the beginning of a crisis. I just can hope the deledefs have to “bail” out themselves. Better sooner than later.
this is the question. The Dax is up around 1000 points that are roughly 16,67 %, let’s see what the Dow has done:
up around 1000 points also that are roughly 9.6%. Well let’s see Gold: roughly up 300 EUR from 750 EUR beginning of the year, that are
gains of around 40%. Now is Gold a Bubble? Well it very depends on your point of view. Unfortunately neither the FED nor the EZB, show us a graph of the
money expansion and so we must deduct it from second sources:
http://www.goldreporter.de/wachstumssprung-bei-geldmenge-m3/news/545/ states that M3 grows was beyond 13% in 2004!!. So with all the buying of bonds, one can assume that M3 has grown beyond that limit in 2010. So we never will know really. How much money was generated out of the blue during the last three years and what’s the development of the prices. It could be that gold is a bubble, but it seems more likely that money was bubbled much more. So if we just assume a growth of 8% of M3 in 2009, and 2010. We should have seen a raise in the BIP of at least that much. This has not happened, and so the question persists where was this money spend? It seems very likely the distrust to paper-money has driven many people to buy sliver, gold, platinum.
Now we can bet on the next years. There is not strengthening of money policy in view. Bernanke just wanted to buy another few bonds at or around 600 Billions. in the EU the discussion is on to introduce “Euro bonds”. That are bonds backed up by the EU, backed up by different countries. This suggests that money supply will be plenty the forthcoming future. So I’d think we see another raise in all kinds of assets. (real ones not that funny junk bonds of any EU country or the US).
Where will this bubble end? Well we have learned in 2008 that there is no one-way street to higher prices. And we all know that even the sky has it’s limits. So either the central banks start contracting money or the bubble will burst with a loud bang. I’M very pessimistic that the central banks start acting responsible. I bet they fill follow the lead of the Japanese central bank and government, which now try for more than 10 years printing out there way of their recession. The result is that Japan has the highest rate of debts of all developed countries. And still it does not work. No-one is surprised but the Deledefs and it seem they believe the only way out of debt is collecting more debt..
Well this will not work and if the money bubble will burst, you hopefully have something of real value to trade or pay with. Gold is but one instrument. So I expect an extra raise of the gold price. And I expect it to inflate even stronger the more the central banks try to print us out of this crisis. If the gold prices starts cantering, all bets are off.
I really am curious which country first will draw the correct conclusions. The country which will end this fiat-money madness, will gain everything, people, money wealth. All others will end in misery and this misery has meant war in the past….
in old times we had dictators. Now we are a bit beyond we have the welfare state. Well it’s not that much a difference. At first the diverse parties have the saying. In Germany we have 4-5 parties and just two which have come into existence the last 20 or so years. The others all keep “social market” in their names in their Sunday prayers etc. But the all established the most perfidy system in the world and they sell it to us as “without alternative”. It’s the fractional reserver system and on the top are institutions like the FED, EZB etc. They all do but one thing, stealing money from everyone. You don’t believe me. Well then let me ask:: “What’s inflation” how comes that a US Dollar from just 100 year or so ago is just worth 4 ct.? It must be that way, well that is what they tell you. But it’s no secret they lie openly and not so open. This is still the biggest lie ever invented and hold up. There were times this would be named theft but not since the first world war. From there on we just get fancy colorful paper, no “real” money was seen since….
And because they have win some time. They can buy with self issued money whatever they like and worst, the central banks buy bonds. And well bonds are an asset aren’t they? And if you have an asset you surely can print another few colourful notes, don’t they? The illusion that it still has some worth buys them time. But in the end we are will pay dearly. but the bureaucrats and politicians. If all will break down and no money will buy you bread, than it’s time for them to establish them as the saviors of the world. They will steal it from those having acted responsible. And so it starts again. At first they will see that markets will be allowed to function again, then comes the tax. And then the promised of the land of plenty. build on debts or worthless money we are doomed to accept as real money. And the round of booms and busts will start. The sums will get absurd and they will alway tell you “Oh no problem we CAN control it.
Believe them and you will pay not one, not twice but forever. See what you have to pay for and see what you really need, draw your conclusions and be wise enough to not buy any bond from anything related to government…..
Unfortunately nothing was learned. As you may have registered the stock markets are going up. Well the suprise is not that large. There is so much funny mulitcolored paper available. Once it was known as curreny but it’s does not have any worth. So Gold is up over 80% in two years. And the stock have gained nearly as much. Currently you can even use this funny paper too buy houses for quite less of it. That bubble has burst around 2 years or so ago. Now the next bubble is raising, maybe it’s time to get rid of as much of this colorul paper as possible and take something no-one can raise artificially (at least not to a large extent). I propose investing in land. See that it’s fertile. The day will come where you’ll have to pay too much colorful paper to get full.
How it will come to that day. Well the argument of the deledefs and bureaucrats will be: “We had no choice…”
well the economic knowledge of Obama and his Gang is near non existant. Even before the US citizens have voted for Obama I have written, that he does not have an economic expert knowledge.
If you can find my writing about it here: http://fdominicus.blogspot.com/2008/10/keep-this-on-record.html
And he shows this gapping hole again. If he really has said that Germany profits from the “open” US markets. Well then I’ve some extra news about it for Obama. The German market is (at least for cars) as open as the US market, but people do not buy american cars. And they have good reasons. I bet the Americans also have good reasons to wish for german cars. If that will get more expensive, who will gain from it than?
The other gap is that Obama really seems to believe that introducinb barriers to free trade will do any part anything good. It’s as if you’d say alcohol is good for alcoholics.
I warned you before it all I warn you again. If the Fed and governement do not start striving for sound money, you will all get really poor. You than just can hope to have enough land to grow your own food. If that is what you want just follow Obame. He’ll manage to look this times as heaven on earth….