Wednesday, April 15, 2009

The endgame II

What is coming next? If the printing of money do not stop, and that is regardless of the current crisis is temporarily ”diverted” or not, the next crisis will be worse than anything previous in history. Why? Because the amount of money being put into the system today is already starting to reach Weimar proportions. And worse than that, it is happening in most countries. And EVEN worse: it is not going to stop any time soon. More bail-outs and more stimulus will mean more money in the system. They are printing like crazy and it is even easier today than 90 years ago, today all they need to do is to press some keys on the computer.

If you want to take part in the fun and play this game and need some pointers: Nowish

If you want to know which wheel-barrow to buy: Nowish

If you want to look at some scary video, press play here:

Or if you want to know where this is heading, watch this picture and see that oh so funny quote below.

“I’m seeing the world move together at a speed and on a scale without precedent in modern times”.
/ US treasury secretary, Tim Geithner

The endgame

Make the choice
Most of you who reads this will not really understand, but we are at the cross-roads. A decision needs to be made and you need to make it. I didn’t start this blog because I really thought the world is going to end, that’s more of a persona, an image, but this current crisis can lead to something that, at least, gets close to what you can call apocalypse. It can because we have got ourselves so far down this road that it’s hardly any way back. And if you decide that this road paved with borrowing, newly printed money and big and even bigger government is a good thing, this is going to end very badly. Most of this worlds governments have decided to throw more printed money on this road and they are borrowing even more to get us out if this crisis. Common sense tells almost all of us that getting yourself deeper into debt by borrowing even more in combination with making more money by pressing some keyboard, is a bad idea. None of us regulars would do that to get out of debt. Still you listen and most of you even cry for more. Why?

Socialists are happy
Most of the politicians and people of this world believing in big government and collectivization are, right now, having a great time. More regulations are imposed on the market every day and governments are throwing money around like there is no tomorrow. But the thing is; there is a tomorrow. The debt needs to be paid. And if the productivity doesn’t increase significantly, the only way of paying back the debt is through higher taxes and more printing of fictive money which leads to higher inflation and yet another, even worse, crisis. The only other way is to cut costs, in other words to fire lots of nurses, social workers, police officers and so on. Since most of you don’t like that kind of policy, it won’t happen.

Socialism at fault
A lot of people are saying that this is a capitalist crisis. Nothing can be further from the truth. The real-estate market collapsing in America did so because of government’s interventions and governmental institutions making people borrowing money they couldn’t afford buying things they really couldn’t afford. In most of the western world the governments have been borrowing money to keep all of you spending, something that never would be possible if we had capitalism. And this is one of the reasons why we have a crisis. Another reason is that the government and big business have been sleeping together for a long while. Almost every restriction, every tax and every subsidizing have been in favor of big business and been devastating for smaller companies. This even most socialist agree with me on, of course they call it capitalism for some reason, it’s not. A third reason is different wars that the US and others are fighting. This cost a lot of money, both the war itself, but also rebuilding and in lesser trading. Again socialist will tell you that this is capitalism fault. But who started it? Who gains on it? Throughout history there is only one entity that ever started wars; government. How much do you think someone can gain on bombed buildings? How much profit is there in dead people? The only time investors and businesses in general might gain value on a war, is afterwards, helping rebuild. A war is the ultimate destruction machine, it destroys capital, not make it. The merchant (as collective) have never and will never win anything on wars, but a government does. In a capitalist world war wouldn’t be an issue, there are no profits and governments would be so petite that they wouldn’t have the means to start a war.

In Japan the government is into their 12th (depending how you count) stimulus package of staggering amounts and things are not getting better, they are getting worse. Suicide rates are going up, unemployment is rising and trade is slowing down. Still they choice to throw even more stimulus at the people. Hungary got 20 billion EURO last year in extra bail-out and they are getting poorer by the minute. And even if the stimulus packages are raining down all over right now, they are not the first ones. Even before this crisis really unfolded, several countries had similar solutions. Back then it was in order to keep things rolling, keep people spending, keep GDP up and growing. Now it is to do the same thing. Why didn’t it work back then? And why does anyone think this is going to work now? The only thing it might do is to send some chock-wave thru the economy getting people to think “that’s a lot of money”, and then they go out spending and borrowing again. That’s the only thing that all this money can do in a “positive” way. And I think you all know and realize this on some level so don’t let this trick you. It is a scam to get you to throw away your last savings, do not do it!

The endgame
Time is up. Not even governments and countries can keep spending money that doesn’t really exist. There is a point when this becomes impossible and that situation is kind of what got us into this mess, but they are still trying it. This time however at a scale, at a magnitude and with such staggering amounts it’s unbelievable. The total amount of all the bail-outs and stimulus in the world right now surpasses anything in history, by far. You can throw together the cost for every war in the last century and you still wouldn’t have this amount, not even close to it. And here is the plot; it is almost only borrowed and newly printed money. There is not productivity behind it, it’s not even taxes, they are borrowing and printing this money. Please understand this. It is complete madness. If you, the people, do not understand this then we are going to have what can only be described as the endgame. The last time we had this situation we got Hitler and other fun figures that started WW II. In the aftermath we got Mao, a strong Soviet Union and the cold war. This time the fall is bigger, granted, we are richer today. But that also makes it even worse. The economy is global and we are richer, which means when this crisis really hits us, it will truly be a global meltdown and the fall is so huge from our position that the consequences of the Great Depression will seem like a fan blowing in a hurricane. There are already several really horrifying parties and potential leaders waiting in the wings here and there and with this crisis their number will increase. And do you know what we have today that they didn’t have in Hitler’s time? Weapons of mass destruction.

I know I sound like those doomsday prophets that I loathe myself and I know it seems like a terrible thought, but do not kid yourselves. This can turn very ugly very soon. If you do not choice the righteous path with less of this madness and instead go for the socialist road, it is all downhill. Make your choice and hopefully you can stick it to me in the future and tell me how wrong I was.

This is bad, but it could be a lot worse

The Swedish government presented their spring budget today and it was nothing surprising with it. It is a world crisis, the worst since the 30’s, unemployment is rising and the deficit will grow by $20 billion the coming years. The finance minister Anders Borg did however also presented a couple of socialist solutions to cushion the fall. First of all; some more billion to the local councils that cannot handle money and are as wasteful as ever. The government should of course cut back on state bail-out to local politicians, but that’s not the socialist way. In addition to this wastefulness the government also wants to increase education for unemployed people and increase the number of places at the unemployment office. This might sound good, getting educated and get help during unemployment, but everyone who ever gets in contact with those mad institutions knows it is just a big waste of time. And again it is the socialist way of handling things.

But the Swedish populace should be kind of happy over having a sort of responsible government that is not throwing away every little penny they have. Sure they are borrowing some and printing some money, but that’s nothing, not even close to what the brainless idiots in the opposition wants to do. Anders Borg is doing the right thing not wasting everything right now. The government should - of course - not waste anything and instead cut costs, reduce government and bring in some capitalism, but at least socialism in minor doses is less horrible than pure Marxism. This crisis will go on for a long time and to put every little ‘krona’ in the same big basket right now would be complete madness. Of course the left is complaining over this budget like the irresponsible monkeys they are. But if you believe in the Keynesian crap about government spending in bad times, at least have some thought behind it. This way at least the government still have some ability to act in the future, which will be necessary (if you believe in left policies). If the socialist opposition were in charge they would do everything now, and when the crisis worsen later, have nothing to do but to declare state-bankruptcy.

This socialist crisis is created by to big governments, to much interference in the market and the socialist complete idiocy of borrowing and printing money as often as possible, will last for a long time. We are in the beginning of it, not in the end as some morons would like you to believe. And so far the Swedish Government is getting kudos for standing up against the wastefulness that everyone else in the world is doing. But it is still not enough. The way to handle this crisis is to let the rates be handled on the market, cut expenditures and stop printing more money. The answer to save Sweden and the rest of the world from a full bloody depression is: capitalism. The crisis will hit no matter what, at least with the capitalist solution (that would work in opposite the socialist one) it would be shorter and the country would come out of this much more intact than the idiotic countries around the world. It is time to face it people. We have all been living on a pipe-dream hidden behind a smoke-screen. It is time to fess up, grind our teeth and dig in. We cannot live on borrowing and spending, we cannot live on bad productivity and the gigantean cost of big government. Either we do something about the growing socialism now and that will hurt, or we do it later and that would be suicide. Yes, you, the populace, are going to haft to pay for this socialist crisis and you will continue paying forever if you don’t realize the truth about things. The truth is you cannot keep spending what you don’t have, you have to produce first. You cannot magically make money, you have to produce first.

This budget is too much of a socialist solution to a socialist problem, but it is still waged and there is a thought behind it. Be glad that Mona Sahlin and her communist cronies aren’t in government at the moment. Be very glad.