Posts Tagged ‘Euro’

Socialism Crumbleth, Part 3: The Terminal Patient

May 31, 2012

We are now seeing the final stages of Socialism crumbling around the world. Europe’s crisis was and is an event just waiting to happen. Even without the massive burden of paying for U.S. military protection, as the American taxpayer is doing, the Europeans didn’t take long to spend themselves into socialist poverty, while below there feet in Africa, hundreds of millions starved and slaved for a dollar-a-day. Funny that their loving socialism never dripped across the Mediterranean and fertilized Africa, if it were such a good system? The Europeans certainly have had enough wealth since the 1980s to have developed the African standard of living up to their own if their socialism had really worked, and they had really loved their fellow men as they loudly proclaim all the time. But they got used to the cushy, unexistential lifestyle that the affluence of the printing press usually brings to a society for about twenty years. The similarity of socialist deficit financing of their ever growing entitlement lists, through the printing of fiat currency, and amphetamine addiction, is quite striking. About twenty years and then the systems, economic or human corporeal, fail. America has lasted a lot longer because of its pre-war wealth, and because it was tops economically after WWII. It also probably had more Libertarians who ranted and raved against Socialism than Europe had at that post-war time, so American Socialism didn’t really take off into phase two until War Criminal Lyndon Johnson announced his plan for the “Great Society”. Fifty years on we can see how “great” it is.

The Greek crisis serves to show just how impotent politicians are in controlling economies, as any Austrian economist would have told them, save for those politicians who would let free-market Capitalism operate with the utmost latitude like Ron Paul and Gary Johnson, while retaining the fraud laws and probably many OSHA regulations designed to prevent the kind of worker endangerment that used to be rampant in industrial America, and which still is in many industries like coal mining, as we can see from the mining and oil disasters that occurred well into the Obama Administration’s taking over OSHA. But apart from frauds like food adulteration, counterfeiting rare coins and selling them as genuine, rewinding odometers on used cars, altering gasoline pump meters (usually in the station owner’s favor), etc., there would be absolutely no restrictions on the Liberty of Trade in a Capitalist society. All the aforementioned frauds would still be crimes under Libertarian Capitalism, and the sentences would be far longer than currently, since the jails would be emptied of 70% of their captives with the decriminalization of the possession of drugs under a Libertarian Administration, and there’d be plenty of room to hold business frauds for longer terms of incarceration.

And since Socialist economies around the world are dependent on this Socialist Ponzi scheme’s keeping rolling along, the fall of Europe is going to derail them all. We can see it in the last few days as China not only slows industrial production but is starting to have trouble with its own Commie Banks, if such a phrase is not an oxymoron. And America’s slowdown will also hit China, like someone suddenly blasting AC/DC on a boombox in the middle of a church service.

The long predicted world Depression has finally started to hit a few weeks ago, and from now on its going to be down down down.

It could have been avoided in 2008, but American Socialists voted for Barack Obama or John McCain instead of Ron Paul. Now it is too late, unless somehow Ron Paul or Gary Johnson are elected President. Then there would be a chance that in a few years we’d be back in an economy that provided most of the benefits that Socialism promises, but without the coercion.

Government should be a tool, like the body, that runs efficiently, but of which one is virtually unaware. The ego is unaware of the body when the body is healthy; it only becomes uncomfortably aware of it when the body malfunctions. And so too with government. The government that doesn’t stick its nose in its people’s private business, but rather promotes their Freedom, is like the healthy body. It is the government that sticks its nose into its people’s private business, when there has been no property rights aggression by the Individual, that is the sick diseased government. It is also the current government of the United States under Barack Obama, but it is not the government envisioned by Thomas Jefferson, James Madison, and George Wyeth.

In a nutshell, Socialism fails because it has no accurate pricing mechanism for capital goods. This is Mises’ argument in essence. And currently in Europe you can see the failure of the various shades of the Socialist system in action. Simulataneously it brings both inflation and depression, and that is what we see today, as millions of Socialists slip into abject poverty due to the greedy system they so clamoured for. Their greed has been rewarded many times over. Yes, Socialists invest greed to produce poverty the same way  Capitalists invests their surplus labor, objectified in their money, to produce Capital. Only the Socialists are better investors in this instance.

The Hitlerian dream of Germany uber alles Europe is fast fading along with his peabrain Socialism which still, 67 years after the wonderful news of his death, is massively popular in Europe. Germany thought it could ride the Marshall plan into the 21st century, continuing to milk her defense costs out of the American public, which scheme of course was supported by the Quislings of the Democratic and Republican Parties, both riddled with Socialist principles. (For example, what modern Republican would dare speak out against the restrictionist Minimum Wage Laws or the immoral Farm Subsidies, except Ron and Rand Paul?)

Euro-Socialism is bringing the continent and China to their knees, and the election of either Obama or Romney will bring American Socialism to its knees within their term. Unless there is a worldwide revolution in economic thinking, Socialism will breed more and more chaos in society. But the brainwashing of Socialist thinking pervades all facets of modern society. The visual media, the Hollywood propaganda films, and Government Radio (NPR, BBC) all contribute their subtle conditioning, so that the listener or viewer is easily lulled into thinking the way they want him to think. And Corporate propaganda goes hand in hand with Government propaganda, as if they were both called in by the President to the same meeting. The Corporate commercials always reinforce the image that Government itself wants to convey. And then the same Government funnels enormously lucrative contracts to these same Corporations. And the lemming voters keep voting Democrat or Republican as they let themselves be ripped off.

Until they voted Libertarian in 2012.

The terminal patient of Socialism is groaning in agony, and the ECB is giving it morphine. Within a few days or a few weeks, the morphine will prove toxic, as the pain of the necessary correction of the malinvestment causes more urgent cries from the economically confused and panicked populace.

Watching the death of Euro-Socialism should prove most instructive to future generations of Free-Market Capitalists. We can hardly wait to attend the funeral.

Hoooooooooooooooooooooooooowwwwwwwwwwwwwwwwwwww! — Silverwolf

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, Part 2: The Keynesian’s Final Hour

May 8, 2010

The Keynesian’s final hour has begun. The financial carcinoma that was instituted into the world monetary system with the triumphs of Socialism under Roosevelt, Mussolini and Hitler, has finally spread throughout the entire body of Capitalism until it is eating it alive. Just as Nobel Prize Winner Frederic Hayek predicted in his 1946 “The Road to Serfdom” (written in 1943), any amount of Socialism must finally spread and bankrupt the entire system, and those accurate predictions of Hayek’s are being so beautifully played out in Europe, that bastion of Socialist “Social Democracies”. Exactly. “Social Democracies”, without Jefferson’s fierce defense of property Rights, will inevitably descend into chaos, as they spend themselves into bankruptcy. It happened in Rome 2000 years ago, and it’s happening in Greece and Germany right now. The exact same phenomena, since the psychology of people vis-a-vis money never ever changes. The attitudes of a man were exactly the same towards capital two millennia ago as they are today in the worker who takes his money to the supermarket, and tries to shop carefully. And since these  economic attitudes and psychological “laws” are exactly the same on an individual basis for all people, across all ages, it follows that the economic herd behavior of Mankind will likewise be the same irregardless of time. We may have computers and iphones, but psychologically we are no different from the Roman middle-class patrician who wanted to grow wealthier but was afraid of poverty.

So Euro-Socialism is crashing and burning, and that even with the U.S. footing over $100 billion a year in defense costs that Europe doesn’t have to provide for itself. Euro-Socialism evidently also entails ripping off the American taxpayer, for now we hear that the Frog-German Axis wants America to bail out their grand visions of Euro-Socialism by having the IMF give, called loan, them the money, instead of Congress. It sounds more antiseptic if the IMF does it, and the Prez can go on TV and tell us how we have to help stabilize our Euro-brethren with the money we don’t even have for our local police protection.

Yes, let’s bow down and give our all to the Europeans. After all, they deserve it, and we don’t. Even though we’ve micturated away a Trillion dollars (at least 10 times 100 Billion) over the last decade alone (not including the annual interest on that amount) defending them, so they could spend the money on all kinds of sugar-coated subsidies, which the slaving class in America goes without but must pay for. No, we have not sacrificed enough, for we are Capitalists (supposedly) and therefore wicked, while they are Socialists (evidently) and therefore sacrosanct. And therefore deserving. So put a copper 5-Rothbards coin in our collection can for Luxembourg.

It’s interesting how the calmsters were quick to blame yesterday’s biggest drop in 23 years on a trader error,  for what is predicted by Elliott wave theory is precisely a very violent wave down in this phase of the wave pattern. Yesterday’s 1000 drop, the worst in 23 years is right in line with that theory, but those who think that there are simple rational explanations for all economic events, and not mass swings of psychology and mood, had to have a plausible reason for the plunge. Yet, if hitting a wrong button or typing in a wrong number can derail an entire system, the system would probably be crashing dozens of times a day, given how many incorrect orders, or buys where sells were meant, occur by obsessed, harried, and scared traders. And what of the margin mechanisms that supposedly won’t let a trader sell contracts or stock than he has not the margin for. That should have blocked such a mistake from occurring right off. No, another bromide for the twice caught bulls. They’ve forgotten their lesson after only 14 months. Greedus resurgits. (Is that really Latin?)

And Keynesian Socialism may find itself fatally gored this weekend by a Northern Rhino that will bring about the West’s Keynesian failure as the state of North Rhine-Westphalia votes on the Merkel miracle of Greece’s delivery at the cost of depressed Germany. They think they are depressed because of Merkel, or some politician, or even the Greeks, but they are depressed because Socialism by its inherent logic always ends up spending itself into poverty, and like amphetamines, while the addict is high, he’s got his energy and euphoria, but one day his bodily reserves run out, and then he crashes miserably. And Europe has been running on the amphetamine of Socialism for decades. Time to pay the piper, and have your rotten teeth fall out.

Of course, Europe should bite the bullet, even with their gums, and devalue their currency back to the Socialist level it warrants, which we’d wildly guess right now would be about 90 cents, but of course, that is to declare Socialism a failure, and it will take a few more years, or months, (or days?) of suffering for that satori to rain down upon the People’s consciousness.

Tricky Trichet has tricked them again, just as Tricky Dick did in 1973 when he committed the crime of closing the gold window. “Believe and you’ll be disappointed” goes the old saw.

A lot of Europeans, bond holders and stock bulls believed. And the price of believing in Socialism is …

Hooooooooooooooooooooooooowwwwwwww! — 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