Posts Tagged ‘Euro currency’

The Fourth Reich Panics: Germany Bans Short Sales

May 18, 2010

It is both interesting and instructive for the student of Austrian Economics to watch the predictable panic and superimposition of Draconian economic measures that Socialists always display when their economic Ponzi schemes start to unravel.

And so it is that that angel, Angela Merkel, and her German BaFin financial controlling body, have gone berserk in the face of the continued fleeing of investors from their Euro, and banned “naked” short selling of both Euro bonds and 10 large banks and insurers. You can be sure that when major world markets like the Euro-Socialists start imposing ad hoc rules, out of thin air, to try to control their markets, then panic has set in amongst the Socialist politicians. That huge Socialist rip-off, known as the Euro, is being shown for what it was; an attempt to give everything to everybody, without any pain, in the name of that eternal Socialist rallying call, “social justice”. I wonder how those who were not receiving any socialist benefits in Europe must feel as they see the value of all they’ve saved lose several years bank interest every few days, from currency devaluation. The little people of Europe are realizing that not all Socialists live east of the Berlin Wall. Indeed, it was more like no Capitalist ever lived to the West of that wall, until you got to America, and even that is stretching it a bit, given America’s 40% Socialist system.

Of course, things like trading bans are just red flags in front of bulls, (yes, I know they’re colorblind) or rather bears, and tonight’s reaction in Europe, as the rules are suddenly changed by the Germans out of thin air, should be of great interest to the Austrian School of Economics student. Those investors with some knowledge of history know that trading bans are merely Fascist impositions on the free-market, whether carried out by Hitler, Mussolini, Franco and Mugabe, or Merkel, Geithner, Obama, and (now thankfully gone) Mr. Brown. And those impositions are not taken very fondly to heart by millions and millions of investors.

Merkel says she is in a war with the speculators, and she will win. But she is actually at war not only with the “speculators”, as she so disparages Free-Market Capitalists, but also with vast numbers of small investors. And when they hear “trading ban” they know that something is rotten in Denmark (or is it Frankfurt and Brussels?). If she thinks that she is so powerful that she can micturate into the financial winds and not get the gift of blowback, then she is just another Socialist politician, with absolutely no idea of what the Free-market and risk taking means. But politicians all receive their paychecks from the government, not from consumers like real Capitalists must.

The German dreams of their Fourth Reich ruling over all Europe are fast becoming a National Socialist beerhall hallucination from the past. The Draconian financial Putsch announced only a few hours ago put an end to all that.

Capitalism uber alles!

Hooooooooooooooooooooooooooowwwwwwww! — Silverwolf


Socialism Crumbleth, pt.1: The Death of the Euro-PIGS

February 13, 2010

As Silverwolf sits and watches the Revolution take place, comfortably ensconced on his mountain top,  far away from those European shores, which is the best vantage to watch revolutions, he reads of the chaos of the PIGS as European Socialism begins its long-inevitable crumble.

A mighty oak can grow and swell to several yards in diameter for hundreds of years, but one day, inevitably, it will crash to the ground, and the vultures of ants, termites, larvae, and woodcutters, will descend on the corpse, all to make use and recycle it for their own pressing needs of life. And so it is with Euro-Socialism, or rather with the whole Keynesian fabulation, which also pervades North America and Asia. Europe is just the first obvious victim of Socialism, because it has been the most vocal in supporting a basically Socialist economy, or a mixed economy with a huge Socialist element, for decades. It’s not only the Swedes and the whale-butchers of Norge who were big fans of Socialism. Remember Bismarck’s Social Security scams, and cushy giveaways to German civil servants; recall that it was Winston Churchill, of all people, who brought in many of the Socialist welfare schemes right after the Second World War that became axiomatic to English life after the dole. Not that they didn’t ameliorate a lot of suffering in the short-term in war-bankrupted England, who came out of it far worse economically than Germany did, but in the long-run they developed the welfare mentality in England, and straddled it with the chastity belt of Socialism that makes  culturally-fertile impregnation so difficult. The victors got the drippings of the Americans’ noses; the Germans got massive foreign aid which turned them into the Treasury of Europe. That’ll teach those Brits to fight the war for two years on their own, in place of America, eh what?

So Silverwolf has been observing the slaughter of the PIGS of Europe, those four basket-case economies, Portugal Ireland Greece Spain, acronyming to the little porcine devils. These countries have racked up debt so phenomenal in the short time they’ve been in the Eurozone, that it’s now realized that Socialism has already eaten the cake, and now all of Europe is going to have to live on blanched acorns for the next four winters. The Greek debt alone is a mind-boggling $419 billion dollars worth for just eleven million people. Now that works out roughly to about forty grand for every man, woman and child. And the retzina-quaffing Papadapoli of Maroussi are internationally-known for their vast Capitalist economy, aren’t they? Or has someone been pulling Silverwolf’s hind paws again?

Now $419 billion plus annual interest sounds like an awful lot to Silverwolf when you consider eleven million people owe it, plus annual interest. Not even Brother Obama and his honkies in Congress can rack up debt at that rate. He only racks up a Trillion a year, but that’s for 300 million people, about 28 times the population of Greece.

But then, this is just the beginning of the headache. Because Ireland, Portugal, and Spain, are also in similar straits. Not as dour, perhaps, but not much better. And Spain has a population of 45 million, and the fifth-largest economy in Europe, so if Spain goes down, then the Euro will be demi-castrated, and we will start to see the beginnings of the end for this centralized experiment in forcing “brotherhood” on over 350 million divers people, most of whom have been butchering each other by the thousands, for thousands of years, over thousands of yards of soil. And judging by the animosity which economic problems bring out in people, and the latent nationalism which still infects most of Europe (witness the soccer fan behavior, and the continuing passion for competitive nationalistic sporting events), the “socialist ideal” of bailing out your brother at the cost of higher gas, food and jeans, is one that will quickly bring the “Deutschland uber Alles” pack to its hind legs again.

On top of that, Italy is also getting further into its perpetual fiscal deficits, and will probably soon be terminal instead of just very ill. So perhaps one should Italianly pluralise the acronym to PIGSI.

And Europe’s bankruptcy is all the more amazing when you consider that the American taxpayer has been primarily footing the bill for European and NATO defence costs for decades now. The American Defense spending bills approved almost unanimously by the Democrat Party members in Congress for decades, has helped to keep America a society with many poor people, and with a crumbling infrastructure, while Europeans get the best in free medical care, modern trains, and all kinds of Socialist perks not even available in America. Truly the American taxpayer has been ripped off on Defense spending by the collaborative efforts of the Democrat and Republican parties for years, as well as by the European consumer. Their actions amount to a flagitious moral crime, though they may skirt illegality according to the definition. But public education has so dulled the American’s mind, that most of them fully support the mulcting of their wealth for the benefit of Euro-Socialists.

The crashing of the Euro will be a sharp lesson to the world’s peoples of the dangers of Keynesian, fractional reserve banking, as well as having a central bank that can destroy the value of paper currency by fiat at will. They will once again learn that they have been brainwashed, as they finally watch the inevitable destruction of European Socialism, after their saying it would succeed and be a shining City on a Hill for the last 90 years. How quickly are the proud laid low.

The abattoir is open; the slaughterer has had his three cups of cafe au lait, and is all hepped up and ready for business, and the first Euro-PIGS are  coming down the chute.

As the Mob’s slogan goes, “Pay or die”.

Hoooooooooooooooowwwwwwwww! — Silverwolf

Bromide Obama: Acid Relief for the Euro-Bankers

April 6, 2009

Another day, another Trillion Dollars. President Obama is a nice guy. Silverwolf loves his generosity as he gives away our money to help our poor banking friends in Germany and France. It’s no wonder the Euro-Socialists were smiling “aux deux oreilles” — unto their two ears, at the conclusion of the G-20 meeting. With a deal like this, who wouldn’t smile.

Basically, Obama and Cardinal Geithner, his chief religious counselor when it comes to the economy (Rev. Wright imparted him with spiritual guidance long ago), and a worthy successor to Cardinals Richelieu and Mazarin, have given the European Central Bank and Trichet an easy out by committing to one Trillion dollars of new aid for the “developing economies”. This means that the Franco-Deutschland banks, won’t have to bite the bullet and eat the losses on their crummy exploitative loans to the up-and-coming in Hungary and Eastern Europa they were cleaning up on recently. The IMF, largely through American largess, will foot the bill, and the Euro-Socialists can go on their merry booze-filled way, giving their peoples all kinds of Socialist goodies once again, while Americans are forced to fight like ants struggling to get to the top of the ant heap, just to compete with the inflation which domestic welfare alone drives upwards. Food and healthcare costs already endanger anyone not on some kind of Socialist program in America, while those who are covered never experience the existential angst of being without any “safetynet” other than what their capital can procure on the no-longer free market. Now, our currency must be further debased because Obama wants to, or is willing to, let the Euros off the hook.

This Obama giveaway led to the Eurosocialist Central Bank not having to cut rates as much as they needed to, as a sop to Euro holders and savers. But of course, the strengthening this will cause in the Euro, if any, will probably be temporary, as their exports become even more uncompetitive in the universal global slowdown. Then they too will have to engage in that beautifully euphemistic phrase, “qualitative easing” — more bank talk for making the public poorer at the expense of the State.

The Socialists of Europe will make a pig’s breakfast of their EC Union, Silverwolf predicts, and it would collapse forthwith if it were not for American subsidies, both militarily to NATO, but now, also economically, through “injection” of IMF and Worldbank Funds.

By the way, if they are giving a Trillion, and China is giving $30 Billion of that, and there are 20 countries in the G20, and quite a few rather small, well, let’s see, if divied equally that would be 50 billion each,… yet if the richest creditor is only giving 30 … well, where is the rest coming from? Gold sales cover roughly a tenth, but who put up the other nine tenths?

Most of it, of course, will come from the future generations of US taxpayers and consumers (known familiarly to the FED members as “cons”, because they can be so easily conned) , either through higher taxes or through inflation. That is, if the American public continues to let itself be collectively fleeced like passive little lambs. But as taxes rise, people become more discontented. And they now know, after the AIG robbery, what is being done with the sweat of their brows. California, for example, has just increased its sales tax, and is shifting its income tax increases solely to the backs of the individual taxpayer, with absolutely no increase on corporations or businesses. At some point, that old Colonial outrage at unjust taxation will kick in, and then the Liberal politicians will see a political backlash that has been growing since the days of Senator Taft (Robert, not William Howard) and the founding of the Libertarian Party, and its philosophical sister-movement in the Republican Party, the Goldwater wing.

In the meantime, Bromide Obama, Helicopter Ben, and Cardinal Geithner will continue to distribute the largess of the American peasantry, as we so industriously slave to keep our Euro-brethren from suffering bank stock losses.

As Reverend Wright taught our new President, You are your Euro-Socialist Brother’s keeper.

Hoooooooooooooooooooooooowwwwwwwwwwwww! — Silverwolf