(Crazy) economy news

[Skybird]

German comparison site Svada offers the first credit with negative "interests" (-0.4) for private customers. Life is fixed to 36 months. Limit is 1000 Euros. You lease 1000 Euros. Three years later you pay back 996 Euros.

Before you think this is good news, think twice. Its a sign of how desperate and insane the market situation is.

[Jimbuna]

Hasn't this already happened previously in some Scandinavian countries?

[Skybird]

^ I don't know, I have never heared of that.

---------------

This bases on official statistics of the German federal office for statistics. It calculates how much worth 100 Euros today would be if you had saved them back in the years of the list. The calculation bases on the inflation rates in Germany since then. The exchange rate D-Mark - Euro has been considered as well.

100 € = 195.58 DM

The term "inflation" means that the ammount of money tokens and book money gets "inflated". This makes money more expensive, and reduces its value. - No, this is not contradicting. If you had bought five items of something costing you 100 Euros lets say 15 years ago, today you would get for the same money of 100 Euros just 4 such items. - In the past you had to invest 5 such items to get 100 Euros. Today you already get those 100 Euros for just 4 such items you have to give.

Inflation does not mean that "prices go up". They do go up to compensate for the devaluation of money, but climbing prices it is not the primary meaning of the term inflation, but just a consequence of inflation. Inflation'S primary meaning is increasment of the ammount of money, and by that devaluation of it. Prices going up are not he the cause, but a following symptom of it.

And consider this: with for example a gold-standard currency, you cannot have inflation. To create inflation, you need a planned currency of unlimited availability: paper money that bases not on securities of limited availability that would hinder its inflating.



Stable currencies? Stable Deutschmark? Urban legends. Not with paper money, my friends. Where they talk of wanted inflation, this compares to reducing the content in precious metal in a "gold thaler" or a silverdollar. Originally, such coins were pure precious metals. The coin had the value not because of a value commanded for it by somebody, the state, but because it contained the amount of precious metal printed on it - Dollar, thaler, and so many other names of currencies of the past were weight units by original meaning, like Karat for diamonds. "1 dollar" means 1 weight-unit (dollar) of silver, and was worth what the market paid for that lot of silver. It thus was not important who minted the coin, and so there were private mints. - Before the American civil war, the American dollar was minted by over half a dozens mints, you literally had different silverdollars, and I think most of those mints were private ones, not state-run. No problem in that. That a state must "control the money making", is a lie thta serves state/politician/gangster interests:

When kings and states started desiring to spend more than they could afford by their possessions in silver and gold, they started to secure the minting monopoly for themselves, killed the private competition by law or execution, and then started to reduce the ammount of gold in a gold thaler, silver in a silver thaler. ( Very brief historic summary, I know, I just focus on the main strain here, to keep it simple.) By this, they created forged silver and gold coins, and had more of them, claiming their value to be that of the original amount of precious metal in them that they no longer had. This way, they could buy more stuff and pay more bills. But a silver dollar does not have one dollar of silver in it, and a gold thaler has not one thaler of gold in it. It is less.

Its as if you buy a tetrapack of 500ml with milk, and they print on it: "1 litre".

Penultimately it led to the creation of forged paper money with no inherent value at all, and the banning of precious metal-covered money. Politicians can raise unlimited promises to get elected only, when they have unlimited amounts of money available. Gold and silver set natural such limits, and therefore they had to be destroyed, from the gangsters' point of view.

Central banks know all this, that is why they hold so enormous ammounts of gold in their treasury, over 40 thousand tons, I think, but I am not certain. If they were right in their lies they tell the people - that gold is no money and is stupid to hold - why are they so eager to posses as much of it as they can afford, and some even buying as if there is no tomorrow (Russia, China, India as well with its private gold prohibition since earlier this year)...? Because they know that these things represnt real market value , while paper money does not. They violate their own advise they give to people, and they do so on purpose . Because they want the real value of gold from the people, and want the people to trade it for forged, worthless paper money that notorioulsy gets devalued by inflation.

A criminal scheme is going on.

Lesson of it all? You cannot create wealth by printing money. In fact you loose wealth by printing money, and the more you insist on the dogma of a wanted inflation, the more you try to extinguish the fire by spilling fuel into it.

[Onkel Neal]

Good post, Sky. I agree, we're in strange times. Just look who is President of the USA

[Skybird]

Originally Posted by Onkel Neal

Good post, Sky. I agree, we're in strange times. Just look who is President of the USA

Two quotes from the master himself:

"The gold standard did not collapse. Governments abolished it in order to pave the way for inflation. The whole grim apparatus of oppression and coercion, policemen, customs guards, penal courts, prisons, in some countries even executioners, had to be put into action in order to destroy the gold standard."

"The illusiveness of this concept of national income is to be seen in its dependence on changes in the purchasing power of the monetary unit. The more inflation progresses, the higher rises the national income."

L.v. Mises

"Strange times", Neal? Absolutely terrifying, I say. Beyond "dug deep in and take cover", I have run out of advice.

[Skybird]

https://mises.org/library/money-supp...-105-month-low

Lets celebrate. Maybe not. No, better not.

[Skybird]

Eu explores account freezes

https://www.reuters.com/article/us-e...-idUSKBN1AD1RS

No real surprise, but nice to see a smoking gun. Maybe it makes some more people think. For my own part, I finished my preparations by now - what I think I can do in this messy situation, I think I have done. Maybe not one year too early - who knows. Things can turn nasty in ten months, in ten days, or in ten years. It is this total unpredictability that made me withdrawing completely from stockmarket transactions. You do not need an uncertainty indicator of 90% - chances of 50:50 already means that evertyhing is possioble and all outcomes realising are totally random.

And what is the result of these efforts to keep failing banks alive? You keep alive banks that are not able to live by themselves, and all others pay for this. Like subsidizing economic branches that are not competitive, and subsidizing companies that without subsidies would die. This way, you constantly increase the need for for more and more subsidies, since the uncompetitive actors get artificaly kept alive, and caus eplenty of fallout.

Its part of market economy to let unhealthy players down. The opposite to market economy, is planned economy. And we know from amyn historixc examples - and currently Venezuela - where this leads to, inevitably. From weakening to collapsing, from collapsing to dying.

[FireDragon76]

Originally Posted by Skybird

Two quotes from the master himself:

"The gold standard did not collapse. Governments abolished it in order to pave the way for inflation. The whole grim apparatus of oppression and coercion, policemen, customs guards, penal courts, prisons, in some countries even executioners, had to be put into action in order to destroy the gold standard."

"The illusiveness of this concept of national income is to be seen in its dependence on changes in the purchasing power of the monetary unit. The more inflation progresses, the higher rises the national income."

L.v. Mises

"Strange times", Neal? Absolutely terrifying, I say. Beyond "dug deep in and take cover", I have run out of advice.

That's old hat that happened almost a century ago, for a variety of reasons, some good, some bad. More significant is Nixon's creation of the petrodollar to shore up America's economy by forcing countries to buy US dollars.


The guy that educated me on the petrodollar and what it was (I had no knowledge of this stuff in school, they don't teach it), was an ex military intelligence analyst.

[Rockstar]

The days of paper currency are soon coming to a close.

The Federal Reserve is taking what may be the first significant step toward launching its own virtual currency, a move that could shake up banks, give millions of low-income Americans access to the financial system and fortify the dollar's status as the world’s reserve currency.

The idea of creating a fully digital version of the U.S. dollar, which was unthinkable just a few years ago, has gained bipartisan interest from lawmakers as diverse as Sens. Elizabeth Warren (D-Mass.) and John Kennedy (R-La.) because of its potential benefits for consumers who don’t have bank accounts. But it’s also sparking strong pushback from those with the most to lose: banks.

https://www.politico.com/news/2021/0...-dollar-493548