Dissidentpress

August 15, 2015

BEHEADING IN ISLAM – VIDEO BY AND WITH DR. BILL WARNER

Source: Dr. Bill Warner: http://www.politicalislam.com/beheading-in-islam/ (video)

When you hear of beheading, do you assume that Islam is involved? Beheading is an integral part of Islam. Mohammed repeatedly ordered people beheaded and the Koran even includes beheading. Beheading is threatened to settle arguments about Islam. Men were … Read More>>

…………….

Extract from : http://10news.dk/?p=1633

“…European cities today: houndreds of thousands of Muslims live in them, they are born and raised in our humanistic, democratic societies, but still they stick to their own culture and values. and still so many of them – probably a majority of the young – support the literal, violent, jihadi version of Islam: Generation Jihad is here! 80 percent of young Turks in Holland see “nothing wrong” in waging Jihad against non-Muslims. 27 percent of all young French and 14 percent of all young British under 25 sympathize with the genocidal terror organisation Islamic State. This includes most probably the vast majority of young Muslims in these two countries. These horrific numbers fit well with the fact that 75 percent of Muslims in Europe think that the Quran must be taken literally…”

“…Lots of horrific, must-know statistics here: Who is Generation Jihad and Surveys: Majority of Europeans is against spread of Islam…”

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June 11, 2015

Jihadist Ideology and Strategy – not understood by the West

Published first time 2007

The Key to Jihadist Ideology and Strategy
By: Lawrence Auster
FrontPageMagazine.com | Monday, August 16, 2004

When trying to explain the Islamists’ global campaign of mass murder, both liberals and conservatives, despite their fierce mutual disagreements, make the same underlying mistake. People on the anti-war left believe that Al Qaeda attacked us because we’re imperialist, or because we’re racist, or because we don’t do enough for Third-World hunger (yes, there are people who actually believe the hunger argument; most of them are Episcopalians). By contrast, many people on the pro-war right, especially President Bush, believe that the Islamists hate us for our freedoms, opportunities, and overall success as a society. In other words, the left believes that the Islamists hate us for our sins, and the right believes that they hate us for our virtues. Both sides commit the same narcissistic fallacy of thinking that the Islamist holy war against the West revolves solely around ourselves, around the moral drama of our goodness or our wickedness, rather than having something to do with Islam itself.

A very different perspective on the Islamist challenge comes from Mary Habeck, a military historian at Yale University. Speaking at the Heritage Foundation on August 13, Habeck said that the various jihadist groups base their war against non-Moslems on the Islamic sacred writings, particularly the Sira, which, unlike the Koran, tells the Prophet’s life in chronological sequence. Using Muhammed as their model, the jihadis live and think and act within paradigms provided by the stages of Muhammed’s political and military career. According to Habeck, this internally driven logic of Islam, and not any particular provocation, real or imagined, by some outside power, is the key to understanding why the jihadis do what they do.

The first stage or paradigm is Muhammed’s early life in Mecca, a non-Islamic society where no Islamic way of life is possible, and where Moslems are powerless and oppressed. The second paradigm is the hejira, the escape from Mecca to Medina, a new place that is more pure and where a true Islamic society and state can be founded. After this Islamic state is formed, the third paradigm kicks in. This is jihad, organized violence against non-Moslems for the purpose of building up the wealth and power of the Islamic community and bringing the world under a single Islamic state. Jihadists conceive and rationalize their own activities in terms of these paradigms. Thus when Osama bin Laden left Saudi Arabia for Sudan, and when he later left Sudan for Afghanistan, he saw those journeys as corresponding with the hejira, leaving a corrupt land, where he was powerless, for a more pure Islamic place from which jihad could be waged.

In addition to the three stages in the growth of the Islamic community culminating in jihad, there are three basic approaches to waging jihad, called collectively the Method of Muhammed, that various Islamist groups respectively adopt toward the ultimate goal of establishing the world-wide rule of Islam. The jihadis’ choice of method depends on whom they see as their immediate enemy in that larger struggle; each jihadist group, moveover, is defined by which of these methods it adopts. The first method is to fight the Near Enemy prior to fighting the Far Enemy. The Near Enemy is anyone inside Islamic lands, whether it is an occupier or someone who has taken away territory that used to be Islamic. The second method is to fight the Greater Unbelief—the major enemy, which today is the United States—before the Lesser Unbelief. And the third method is to fight the Apostates first, and then the other Unbelievers. Apostates are false Moslems, people who call themselves Moslems but aren’t, a group that includes secularist Moslems such as Saddam Hussein as well as Shi’ites, who are considered heretics.

It is these notions, deeply embedded in the jidadis’ reading of the life of Muhammed, and not determined by what is happening in what we think of as the real world, that determine their major strategic directions and whom they choose to kill. For example, the terrorists who murdered 190 people in Madrid on March 11, 2004 did not target Spain because of its involvement with the U.S.-led Iraqi reconstruction; the group had been planning the Madrid attack for two years, going back to before the American invasion of Iraq. They attacked Spain because it was the Near Enemy—a formerly Islamic land that they hoped to win back for Islam. Similarly, regarding the all-important question whether the Wahhabist Osama bin Laden would have been willing to work with the secularist Apostate Saddam Hussein in an attack on America, Habeck says it is entirely possible, because bin Laden believes that his primary enemy is the Greater Unbelief, the United States, and therefore in the short term he would cooperate with an Apostate such as Hussein. Then, after America had been finished off with Hussein’s help, bin Laden with the enhanced power and prestige gained from that victory could redirect the jihad back at Hussein and other Moslem Apostates.

The key point is that, while specific actions by the West might provoke the jihadis to greater attacks, their fundamental strategic and military decisions are not determined by anything done by the United States or Europe or by other major enemies of Islam such as the Hindus, but rather by which Method of Muhammed each jihadi faction follows, and each of these strategies has its own internal rationality, though it is not a rationality that makes sense in non-Islamic terms.

The same is true for Wahhabism itself, says Habeck. Wahhabism began in the 18th century when there was no Western colonial power in the Islamic world; it was not set off by any Western intrusion into the Moslem lands. Similarly, the contemporary Islamist idea that America is the center of all that is evil in the world, making America the “Greater Unbelief”, was conceived by a Moslem scholar between 1948 and 1951 when he was residing in the United States. This was decades before the U.S. had any large-scale involvement with Israel, and decades before its culture spiraled downhill, though, from the point of view of that visiting Moslem, America was already quite decadent at that point and ripe for destruction.

What is most striking in the Method of Muhammed is the utter absence of any transcendent notion of morality. Unlike in traditional Western religion and philosophy, where God or the Good is the measure of human actions, in Islamism (which after all is simply a pure form of Islam) the measure of human actions is the shifting power tactics and military strategies of a desert brigand and war leader.

Lawrence Auster is the author of Erasing America: The Politics of the Borderless Nation. He offers his traditionalist conservative perspective at View from the Right

Recommend this site

What the West Needs to Know (wait 25 sec.):

May 1, 2015

A NEW STOCKHOLM WITHIN 6 YEARS – in Danish and English plus a video in English

Dette er den nærmeste fremtid i Sverige

Den svenske politiske elite har planer om en ny by (i Stockholm), finansieret fuldtud af de svenske skatteydere for at tilpasse til den massive bølge af tilstrømmende immigranter. Denne radikale plan indeholder også forslag om konfiskation af sommerhuse og konvertering af gamle historiske bygninger og kirker for at tilfredsstille de nye immigranter. Imidlertid, det svenske velfærdssystem er frit faldende, da politikerne lider af Stockholm syndromet i forsøget på at være en humanitær supermagt. Hjemmehørende svenske er udvalgt til at bære klodens vægt, hvor eliten vil ofre de hjemmehørende svenskere på multikulturalismens alter.

Trods advarsler fra FN i 2008 besluttede EU i 2009 med Lissabontraktaten som såkaldt forpligtende dokument at indsluse 50 millioner flere ikke-vestlige immigranter, endda 50 millioner afrikanske arbejdere, foruden de mindst 50 millioner ikke-vestlige, der allerede var sluset ind i Europa. Og så er der de andre:

annie-loof

“Partileder i Centerpartiet, Annie Lööf, mener Sverige kan ta imot over 30 millioner mennesker. Dette for å hjelpe på “morgendagens behov for velferd”. Det er som bekendt ikke nødvendigt – så langtfra – at vide noget eller at kunne fatte noget pr. logik ved brug af hjernen for at få taleret og have endog de kraftigste talerør.

UN and the little lady above:

Despite warnings from the UN in 2008, the EU decided in 2009 by the Treaty of Lisbon as so-called binding document to smuggle in 50 million more non-Western immigrants, even 50 million African workers, in addition to at least 50 million non-western already was channeled into Europe. And then there are the others:

Party leader of the Centre Party, Annie Lööf, believes Sweden can take 30 million immigrants more. This to assist with tomorrow’s need for welfare.” (Mine: ?????). It is of course not necessary – so far to know anything or to comprehend anything per. logic by use of the brain to have the right to speak, and even with the most powerful voice.

This is the nearest future in Sweden

The Swedish political elite have plans to build a new city, funded entirely by Swedish taxpayers, to accommodate the massive wave of incoming immigrants. This radical plan also proposes the confiscation of summer homes and the conversion of old historical buildings and churches in order to facilitate the arrival of new immigrants. Meanwhile, Sweden’s welfare system is plummeting as politicians suffer from Stockholm syndrome, trying to be a “humanitarian superpower.” Native Swedes have been chosen to carry the weight of the world, sacrificing themselves on the altar of multiculturalism.

Kilden hertil med supplement: http://snaphanen.dk/2015/05/01/a-new-stockholm-to-be-built-within-6-years/

April 24, 2015

EUROPE DRIVEN TO SUICIDE

…The real economic downturn (the lack of growth in production) due to competition on wages, other labor costs and a sea of charges, leading the labor-intensive productions away to low-wage areas or to knee and closure. Since we can not compete in the same productions with wages that are 8-10 times lower than under the Danish taxation-welfare-wage level, was a conversion of programs, productions and industries essential. This situation of wage competition will be in effect for many years to come, and the transition has been neglected the first least 35 år.The tax base is simply being eroded while the reflag and closures continue with increasing speed. In addition a dominant immigration has been ac-cepted from højfertile low-IQ countries/regions, of which half or less than half are suitable for training and labor: The fol-lowing percentages of the foreign origins are unfit for work and education in Denmark (DK), Ty (Germany), No (Norway) and in the United Kingdom (UK):

Government debt has to be settled at least kept strictly under control in Germany, England and Denmark, and in addi-tion growing aging problems to become bigger and bigger throughout Europe with additional public expenditure on older upheld the approach to the working ages increasingly deteriorated due lack of births. The problem with the lack of births over Europe was created by pervasive welfare systems elitist promoters (not citizens). Since the effects of which turned out to mainly lack of population reproduction, the same responsible felt the need to consider the most fertile immigrants to come. The ideology promised just the elite that education was simply a matter to anyone who came here.

A country like Norway might make such an idea real due its oil fund and the country’s huge outstanding debts, but it did not. Every country has to create an active future, a dynamic business and educational development with demand generation and earnings purposes. Otherwise welfare can not be financed in the long run. UN warned against the taxation financed higher education with free access already known in Danish Perspective Plan II in 1974. The listed problems, Europe can not solve at the same time by changing some of the items on the finance laws, cut a little here and there, order some more payment instruments issued and thus create nominal or only inflation growth, so the increase in pro-duction display similar to real growth, but is nothing more than nominal growth equivalent to inflation or less. This will just worsen the problems and slow down/impossible to do any conversion. It is the traffic that is driven so far in this country. Not only Denmark is threatened by the killing stagflation (stagnation and inflation at the same time), but also the other European countries with a few exceptions. With negative growth for three consecutive years, while the government debt increased with the increase in domestic consumption has been running and was started with the so-called financial crisis as a result. The expansion must therefore be ensured by production life to get a solution that is not tempting inflation-prone….

Read the entire analysis in pdf-file: http://www.lilliput-information.com/Europe-driven-to-Suicide.pdf

April 6, 2014

VOICE FOR THE VOICELESS – BILL WARNER – VIDEO 1&2


May 31, 2013

MUSLIMS MUST REJECT JIHAD

Tommy Robinson, leader of English Defence League (EDL) speaks out about the public beheading in UK

Tommy Robinson, co-founder of the English Defence League, sounds off on the horrific public murder and mutilation of English soldier Drummer Lee Rigby in the Woolwich area of London. As Robinson explains, the savage attack indicates that the dark future awaiting the United Kingdom is closer than most realize.

He used to be a plumber until Muslims spat on his soldier-friends returning from Afghanistan.That made him angry and he decided to risk everything to stop Islam. He is regularly harrased by both the police and Muslims. Take a few minutes to listen to world famous, straight talking Tommy Robinson:

Se videoen med Tommy Robinson: http://frontpagemag.com/2013/frontpagemag-com/tommy-robinson-on-woolwich-islamist-terrorist-attack/ (have 1/2 min. patience)

What the West needs to know (have 1/2 min. patience – and send further out anyway)

April 4, 2012

‘IT’S INCREDIBLE HOW CRIMINAL THE SWEDISH HAVE BECOME’: 16% growth of the population since 1975 but 875% more sexual crimes

Filed under: Alliances, crimes, Demographics, Education, hate-crimes, History, Research, Statistics, sweden, Terror, War — Tags: , — jensn @ 1:57 pm


 

You read this on Affes Statistikk-blogg:http://affes.wordpress.com/2012/02/08/sexualbrott-1975-2011/

Unfornately there few possebilitities to relate subpopulations in the country to socioeconomic variables (as crimes are); but again a little less limitations compared to matters in Denmark.

To get through you have to use my correction: http://www.lilliput-information.com/index-population-account-corrections.pdf

The European Defence League (lead by the British EDL) has not chosen by random to make the next stop in the town in Sweden that represents the most rapes in the country. They visit several towns in Western Europe in 2012 and are not afraid of anything.

November 30, 2011

WHO’S THAT MAN?

He is the president of EU

Pat Cordell tries to report the truth about what happens, and what you have to do

The common budget that Pat Cordell mentions has been decided last spring:

http://danmark.wordpress.com/2011/03/24/hvis-nyhederne-24-marts-2011-ikke-melder-hvad-l%c3%b8kke-har-sagt-ja-til-bruxelles-i-dag-har-du-det-her/

August 15, 2011

TWO ALTERNATIVES FOR EURO – SEEN FROM EUROPE: ONE IS A NEW DEFACTO-ALLIANCE

The first alternative is bankruptcy States Collection without foundation, the other can lead to war

‘Who will pay’ (?), the situation in the shortest form in Euroland. We have not concealed anything in regard to this from the euro’s introduction. And we do not fear the Danish Law of Jante. It went, as we previously indicated it would.

The top in France who demanded DM Mark abolished and stopped the originally planned tough Euro to accept the reunification of Germany is now home to have the debt and deficits in France looked after – a strong Euro would have been impossible in Europe because it was bound to be the ruling-remedy of something too different.

The German state-debt amounted to 78.8 percent of gross domestic product (GDP) in 2010, where the arbitrarily chosen politician-made limit in the Maastricht Treaty and further confirmed in the newly agreed EU’s stability – and growth pact is decided the highest 60 percent of GDP.

Without a strong real economy behind the euro it is no surprise that it’s exchange-rate should be down without someone to pay, defending currency speculation or euro as a Petro-Euro. It remains up. Why? New-mercantile currency floating in oil with Europe’s the real economy in stand still, does not seem as possible way to go1). We have not yet reached the deficits and losses on loans to the old Eastern Europe, several countries admitted as EU members. EU member countries thereby plus nation-states alone even in addition has secured quite-out-the-hemp-loan arrangements including housing loans in Eastern Europe with various banks as intermediaries.

Euro and its primary tasks: to assume that the common compulsory money unit should reflect the real economy of Europe and suit this, we have apparently misunderstood. Similar to Spain’s disastrous management of the gold experience in Latin America in 1500s, it seems that the euro at the best neo-mercantilist view via trade settled in euro, for example oil trade from the Middle East for much of the globe should form the generating momentum, causing the necessary change in Europe with more than 20% unemployed and excluded (officially 9% unemployment) and a huge and growing debt, of which it is almost impossible to draw an unambiguous picture anymore. Jean Monnet – one of the ancestors to the EU project – claimed precisely in 1950s that the compulsury single currency would be used to lift a political union in full scale in place. It was the form, not content, that counted, we can note.

If for example one of the Maastricht convergence requirements for example dealing public debt, which must not exceed 60% of GDP, effectively has validity, the consequence would be that the half to two thirds of countries would not meet this requirement by without accepting stabilization crises with IMF’s intervention. This can be extracted from the real information, which escapes from time to time.

Under Mercantilism, which historically ended with the Napoleonic wars, very simple methods were used to acquire wealth. Today it is so conceived that economic stability and development are measured by a price index a debt ratio by a exchange rate or at a different ratio. I.e. when, for example, some quantitative standards are met, so this is a stable currency, stable economy and stable development are secured (with reference to the five completely arbitrary convergence criteria originally included in the Maastricht Treaty). Economcs stability and development include the dynamics of the capital formation, security of the investment process, knowledge and competences acquisition, new technology and high productivity and economic real economic growth in a country, to its leaders can be said to take voters seriously. All this can not be obtained or estimated based on some static concept, a key figure or five for that matter.

France and most other countries was originally opposed to the so-called stability pact that could have ensured that central bank acted as the old German Bundesbank and held the reins completely tight, but from a different starting point than that of today. It was decided at the Dublin Summit in December 1998 to drop Stability Pact and in the years 2002 and 2003 France came out with too large deficits of public finances in relation to the Maastricht rules and Germany just as for the past more than five years.

The battle for who should appoint the president of the ECB was decided in Dublin. It was France. The German Bundesbank was very out of pace with the German political, financial and industrial elite. In contrast, the bank was very popular in the German public opinion. Therefore, the politician former Bundeskanzler Helmut Kohl was very hard pressed between the German and French political Establishment. The French Socialists have built their requirements for euro in the subsequent treaties. Now with Kohl completely gone and the current German Chancellor (in 2011) is even a Centralist. EU has in turn recommended a German as head of IMF (International Monetary Fund). Kohl also had to eat that there could be purely automatic sanctions against a country that has sustained losses.

Now is required (after Amsterdam) 2 / 3 of the weighted votes of the active participating EMU countries to make sanctions when it goes wrong in a country. France had also approved a so-called Stability Council and thus a direct political role led into the monetary policy by that example formulated exchangerate-guidelines for the euro now. It’s quite crazy. France has secured the former French Finance Minister Christine Lagarde as managing director in IMF. If this indicates that France now exert its influence equally in the ECB and in the IMF (President Jean Claude Trichet), it certainly was perhaps an idea to have a check of the French economy. It looks like more inflation have to be expected in the future, but we can say with this any absolute certainty.

Introduction of the pure (economic) stability pact without countries in order their real economies, leads expectedly to real political instability. And can money quantity is not discussed over the entire euro zone, because it must be determined by a tough ECB, then the consequences for certain areas immediately be so insanely hard, that there is political instability. Not only Italy, Spain and Greece are examples where the way has been shown. This is not a proposal for flexible euro money, but a demonstration of the euro’s impossible integration in the EU.

To relieve the pressure, you can introduce that the more strong-going countries must “deliver some means from their public finances or even commit to this in advance”. But the problem is that nobody can or will or should do so to the less well-country, Spain, Italy, Belgium, Greece, Portugal, Poland, and that is exactly what the recent confirmation of the Stability and Growth Pact prescribes. This tightening political steering instruments, and the citizens of individual countries and thereby their politicians cannot agree to this. The next step may in consequence be the function of taxation to be transferred to the EU. This means initially in plain Danish that public expenditures should be managed crown for crown throughout the euro zone from the EU. This is common fiscal policy. Under this assumption the very little extravagant actions must quickly be closed in for, but also many others.

When you were judging by the declining DM and the increasing Italian lire in 1997-1998 market might get the impression that there was talk about a soft manageable euro at its establishment. There was simply unknown, but colossal Italian lire-volume should have ‘a forever defined’ euro exchange rate in July 1998 (so they said). How could this be possible? Since the exchange rate for Euro was reported to public in advance, speculators began to speculate of cource, especially when national currencies drove on for some time.

Already in 1996 one could foresee the consequences if Germany, France and England would take over Italy’s huge debt mountain at a time – it has happened apparently, we wrote back then, but could not know because we did not know debt figures. It would simple has destroyed the euro from the beginning and led ECB to also take care to guarantee the solvency from then onwards for both Italy, Spain, Portugal and Belgium and all the other violent debt burdened participating countries such as Greece, and what else could to be expected to introduced as EU-members in Eastern Europe in general. Therefore it happens now.

With the many new deficit countries inside, there would also be created an alliance with Amsterdam Treaty voting weights, which could put pressure on the ECB and get it to act as though it still has control over the monetary policy without it really does. Reel EMU severity by the book multiplied by three or four is what should be expected now if it is to succeed in creating economic stability in the current situation – without a strong leverage from outside.

Thus loosing the political stability is status quo and it is likely to be, and disappointment of the project will then lead to resistance to the whole euro project. Therefore they still act ‘as if’. The fear of competition inhibits rationality: globalization trivializing means the unrestricted movement of markets, including capital market. This globalization many argue destroy the democratic welfare state and the nation state. It does so only because we have no longer an international monetary system to prevent it. Free movement of capital undermines the ability of states to regulate. Especially in terms of employment. Wage pressure and cuts may intercept what threatens to be lost of jobs, particularly by outsourcing. Global financial markets are not subject to any self-regulatory competition mechanism, and induces crisis to crisis – Asia, Mexico, Russia and country in Latin America – if there is no order in the real economy. Crises will deepen because of the many debt securities, which amplify the difference between the nominal and real values of the nations. And all because you have chosen to supply the measuring tape instead of using the measuring tape to measure.

It gets worse when all the state leaders continue net borrowing more and more. Crises sharpen the social pressure with needed for cuts. The pressure leads either to dissolve the democratic welfare states, to dissolve itself into interconnected defense the blocks (blocks as the currency Euro, Dollar, Yen and Renminbi-zones) or fall back in the old enemy images that characterized the nation in advance or in a combination of both scenarios. With the dissolution of the democratically founded national and social state globalization triggers itself eventually, because it can not stand for their countries’ populations/voters have to carry larger and heavier loads without any security for himself to be covered against the worst.

Euro-Union is the prototype of this development. Its thinly disguised double-motive was a) fear of dollar dominance and competition, and b) fear of the new reunified Germany with the D-Mark-regime.

Anxiety are always based on a false analysis. Non U.S. dollar threatens Europe’s market shares in world trade, but Europe’s lost knowledge-, competence- and technical-terrains and especially Europe’s inertia with reforms and innovations are concerned. Not Deutschmark hardness and strength prevented the development and integration, but from the “Maastricht” the goal was abolition of the Deutschmark, and it has happened. The rationale was that just the Deutschmark should have driven the current euro-participating countries then into a string negative developments aimed at reforms and social limitations. Alone these fallacies and incorrect assumptions permits no realistic expectations a hard euro. Inflation is preprogrammed. Then blow more air in and let it float in the oil first, but the collapse thereby becomes even greater. All participants member-states are deeply indebted and running all at a loss. Already at the euro start the national governments were loosing their management instruments (exchange rates, interest rates, money amount and flexible budget) to ensure monetary values and regulation of labor and the social- and ecological standards which the same politicians had introduced.

Structural and competitive differences will without elasticity from the state be offset by the market. There must be real exchange rates, but definitely not in the euro-design, i.e. with a compulsory common currency, be course it can’t bear the structural differences that characterizes Europe simultaneously.

The main battle is now the labor market, social and ecosystems. The labor market suffers from the middle class is reduced, salary and social competition from workers in the southern EU-poverty zones, and there is an inevitable liquidation of the previously existing (national) unions’ rates and the minimum standards for the social level. The market is sweeping them away, employers rely increasingly on their threat potential in moving production to very favorable (salary, social, tax, eco-cheap) EU-zones and even to Asia. Wage rates, social standards and environmental requirements in Euroland will have to harmonize downwards. Social Democrats, Folksocialists and the trade unions claimed them, but also other people’s naive belief that these things finally could be improved by a signature on the Maastricht treaty. In Euro-Union labor and social policy finally wave goodby – and it happens in full connection to/acceptance of Social Democracy, Folk Socialists, the trade unions and others believers.

March 2007: http://danmark.wordpress.com/2006/05/25/euro-float-in-oil/

Union is suitable as it looks only into submission – Islam means submission

Euro-Union is not a mean towards globalization triggering the employment crisis. There is nothing special about the nature of this ‘globalization’, it newspeake; international competition is the right word. Euro-Union reinforces the power of capital and state powerlessness in the role that could do something about unemployment without having the necessary tools. It is “progress”towards the 19 century (here, an attempt was also the right management tool), not towards the 21 century.

Euro-Union is no counterbalance to the antisocial tendencies of globalization, as incompetent analysts from the left side view, it enhances them further. It obliges to adapt working life to the money economy that take commands. The European Central Bank (ECB) may lead full common-policy for at first 12 since 15 and 16 differently structured countries in the euro zone, without they can take back to the exchange rate as equalization valve. In order to prevent capital from leaving the euro zone, the central bank raise interest rates or simply centralist prohibit the export of capital (as in the Soviet), but this reduces activity and increases unemployment even more. Such a union can only end the states themselves in conflict from which no help is to find – unless it gets extended to a transfer union or a federal state with public financial equalization between the old and new participating countries, something like patchwork U.S. or the German Federal republic, but without the Deutschmark.

Once the transfer of these models in the Euro-Union proves impossible or meets much resistance the question arises: Are there plausible alternative models that can save the peace? As it is now running: Europe and the Arab world has already begun to work together economically in a de facto alliance that it was pre peeped in North-South Dialogue from 1968 and the European-Arab dialogue from mid 1970s. Egypt, Jordan, Morocco and Tunisia decided in 2006 to setting up free trade zone, and Algiers, Lebanon, Mauritania, the Palestinian Authority and Syria were invited to participate in the great free trade zone.

Egypt may be on to becoming an Islamist state, expected to be fully occupied in free trade group. However, the EU has negotiated with all 10 Maghreb countries, part of the so-called Barcelona Process about the cooperation between the EU and its neighbors around the Mediterranean to the south.

The ultimate goal of this Barcelona Process is to establish closer ties by-touching trade and social issues (immigration!) as well as political (islam!). This must after the politician-proclaimed lead to the creation of the Euro-Mediterranean Free Trade The zone of 27 countries. It is possible that European productions in the future must take place in North Africa, Middle East and Eastern Europe, until they have come up, and we have come way down. It is a matter of people here find themselves in it.

February 4 2010: Pressure er mounting across the Atlantic as Greece, Portugal and a handful of struggling countries that use the euro have to two pay-off mountains of debt accumulated from years of profligate spending.

February 13 2010: Axel Weber, president of Germany’s Bundesbank, warned that German economy will contract this year (2010). It did with 1,7%, after 2009 with -5,2%.

The latest: Spain’s Unemployment rate reached 20% in the first quarter (of 2010), doubles the euro zone’s March average. Euro-zone inflation, mean while, rose to the highest rate since December 2008. The official Unemployment Rate!

1) “Ever since the continents started interacting politically well 500 years ago, Eurasia has been the world power center “(opening book” The Great chessboard ” 1997, by Zbigniew Brzezinski). Eurasia is all land east of Germany and Poland, the stretches all the way through Russia and China to the Pacific. It includes Middle East and most of the Indian subcontinent. The key to control Eurasia, says Brzezinski, is control over the Central Asian republics. And key to control over the Central Asian republics is Uzbekistan.

He also notes clearly (p. 53) that “any nation that had become dominant in Central Asia would directly threaten the ongoing U.S. control of oil-resources in the Persian Gulf.” By reading the book it becomes clear why the U.S. had a motive to take over the $ 300 billion Russian assets in 1990-ies, destabilize Russian currency (1998) and to ensure a weakened Russia would have to turn to the west, to Europe in order to survive economically and politically, instead to look south to Central Asia. A dependent Russia would lack the military, economic and political influence to penetrate and influence in the region and the weakening of Russia may explain why Russian President Vladimir Putin has been a willing ally of U.S. efforts to date.

A New Monetary System

M. Sc. (Economics)  Joern E. Vig, 14 August 2011

Mark Steyn on “After America,” London Riots and Keynesian Culture: Scribecast, the
Podcast of the Center for Media and Public Policy

July 26, 2011

Very Popular Video On Exponential Calculation In An Easy Way – But Something Does Not Add Up When It Comes To What Is Illustrated

This video gives me associations: http://www.youtube.com/watch?v=F-QA2rkpBSY

 

Exponential growth: Population – Energy + this supplement:

 

All the production that is labor intensive and often also the most energy consuming is being outsourced now. What remains is the company cars, private cars and what is left of household energy consumption. In the West we will use much less energy in the future and finally nothing, as you will see below.

So energy consumption here has certainly not the consequence that we should lower the Western birth rates, as suggested in the video, because the West’s energy-consumption according to the video is much too high (it looks like a reprise of the arguments from the Club of Rome: ‘Limits to Growth’ in 1970s). The consequence is simply that Western populations are becoming extinct regardless of everything else and leave the area for immigrants and their descendants from areas with lower average IQ than here. But before that happens, do we will watch a dramatic decline year by year basically.

Demography is a terrible calculation, and it is logical, consistent and almost irreversible in reality it is used on together with the birth-giving women.

Exponential growth is one thing, the curve inverted, you could call exponential ‘shrinkage’. And such a public funded and privately consumed so-called welfare to accelerate the time of death closer and closer every minute. A welfare system is also just partially introduced in the U.S. that has just hit the debt ceiling. Oh, my God!

The war may continue in Europe – the old playground. I type ‘continue’ because it has been going on for years. It began again in the West in the financial systems, as with fault-immigration and the corresponding lies, and then in the stakeholder countries in the Middle East and North Africa.

But basically we are being destroyed by inflation and indebtedness made by mad and deeply naive, even over appraising politicians.

The current central issue is quite another than the West’s energy consumption:

With an official Western fertility in Western Europe at 1.38 – even some what lower, as I have shown – it will take at least 80 years (3-4 generations) to change the fertility back to the required 2.05 (not 2.1 or 2 , 11, 2.05 is probably because infant mortality has just been reduced to the bottom in the West). And in that period (80 years), we can not keep the area with the aging, which also occurs as a result of the protracted fertility decline … .. without very drastic measures.

The only adequate birthgiving peoples descend from areas with low average IQ compared to IQ here, and the same with their descendants born in the West. We definitely can not use them fully in productive activity due to of our even increasing need for IQ, because the wage-intensive productions have just outsourced to low-wage-areas. Where you find low wages and average high IQ, development combined with little developed, privately financed welfare, they will not emigrate when it goes well, and it would, as I mentioned, not do any good here if they did, the fertility is still too low.

Welfare systems and fault-immigration, which was set finally 40 years ago are accelerating the deroute even more, because immigrants on average is af load with a considerabely more than 3 times more of the welfare-yield for just 5-7 years more in the West, then the system goes kaput, at least here because pensions and housing benefits are not to be financed to retired people with anything that is a priority almost as high. It is that simple.

We have even counted at least two generations from now before there probably will be Western Europeans, with enough resistance to halt and reverse the influx of lower average IQ. Western Europeans (as we have experienced several times)  will then prefer their greatgrandfather’s generation for the grandparents’ and the parents’, because in the first, after all, were a few that made an effort to correct madness up …. , Western Europeans will anyway be a minority in just two generations from now, given continued immigration, and even a considerable minority of the young / younger ages  in 40 years. It is not the relative size that makes it, necessarily.

Whether the international monetary system can be designed in time, properly with real exchange rates and hence the zero-inflation as one alternative and dictates as a second, before we become totally disabled by immigration from areas with lower average IQ than here is an open question. They presumably chooce the precious metal coin basic, although it is purely a historical relic related specifically to the emerging industrialism’s frenetic growth: So there is something to speculators too.

Greater instability could easily come soon, for it is easier than the perpetual negotiation of conflicting interests with fewer an fewer opportunities for consensus and simultaneously increasing the creeping low inflation to keep the madness going combined with zero or negative real growth, while more and more anxious subjects will show themselves. With great instability perhaps we get some things put in place.

This can not be understood by but a small minority, some reject my English (you should try Danish), others because they think they live in an imaginary world, and still others because they do not understand logic. Now, 128 is not always preferable to 1-3.

J. E. Vig, Denmark, 26 July 2011

July 8, 2011

LONDON: Terrorist Bomb Attack 7 July 2005

56 killed og about 700 injured

Two month ago:

A protest by hundreds of Osama Bin Laden supporters sparked fury outside the US Embassy in London today as they staged a mock ‘funeral service’ for the terror leader.

Police stepped in to separate the protesters and members of the English Defence League amid threats of violence from both sides.

Radicals carrying placards proclaiming ‘Islam will dominate the world’ branded US leaders ‘murderers’ and warned vengeance attacks were ‘guaranteed’.

2010: From http://www.truthandgrace.com/muslimhateforengland.htm – Read about some the resposible and the victims

May 27, 2011

DENMARK: AVERAGE IQ WILL FALL 5-7 POINT MORE IN THIS CENTURY CAUSED ALONE BY THE CONTRIBUTIONS FROM IMMIGRANTS

Filed under: Demographics, Education, Fertility, History, perspectives, Research, Statistics — Tags: , — jensn @ 10:31 pm

IQ-WILL FALL 5-7 POINT MORE IN THIS CENTURY CAUSED ALONE BY THE CONTRIBUTIONS FROM IMMIGRANTS

The results we reached in the research with Professor emeritus Helmuth Nyborg show this. The article was publiced in Aprilnumber 2011 of the journal Personality and Individual Differences, journal homepage: www.elsevier.com/locate/paid.

A short abstract: https://dissidentpress.wordpress.com/2011/01/09/index-population-account-corrections/

In Germany, Britain, Austria, Norway and Denmark you do not depict the reality from the official based information when you make calculations/estimations involving ethnic descendants for research on diseases or other characters known to or expected to be descendence-related.

Look the world map and read the distribution of average IQ:

Richard Lynns’ og Tatu Vanhanen’s IQ-distribution on the globe. Smaller picture with signatures’ explanations: http://en.wikipedia.org/wiki/IQ_and_Global_Inequality

IQ-distribution on a bigger world map without signitures’ explanations: http://upload.wikimedia.org/wikipedia/commons/thumb/2/2b/National_IQ_Lynn_Vanhanen_2006_IQ_and_Global_Inequality.png/400px-National_IQ_Lynn_Vanhanen_2006_IQ_and_Global_Inequality.png

 

The same results i Germany


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March 11, 2011

A Short Era Of New-Mercantilism

 

Three Steps Forwards Two Backwards
Petroeuro In The World Economy, And What We Really Need

“So-called hard euro is lighter than oil, that is the reason why it floats”
Choose a German version

Contents

Recommend this file

From monetary system via dollar-dominans to floating nominal currencies

The domain of dollar extends

The dollar seceded from the gold

Petrodollars

IMF – debt-crises

How USA dealt with its debts-increase

The US-world-reserve-role changing

Japan in debitor’s trap

Euro and European Union

Euro and its primery objectives

Fear of competition narrows the rationality

Euro-Union and globalization

Two suppliers of internaitonal monetary means

The need for introduction of real currency rates

More English files characterised by more contents than of form

From monetary system via dollar dominans to floating nominal currency rates:
The international system of payments after WW2 that USA and Britain actual decided, while the war was going on, in 1944 in Bretton Woods, New Hampshire, USA, tranformed the dollar to a so-called reserve currency; most of the worldtrade was agreed upon in dollars. Central banks all over the world kept a considerable reserve amount of dollars in order to be able to protect the national currency when too much imbalance in foreign trade occurred, and other currencies were expected to be measured secured in terms of the dollarvalue. The value of dollar was connected directly to the goldprice, $35 per ounce fine gold. The dollar dominans in the world trade alone implied even larger dollar reserves in the central banks all over the world. The Marshall Plan after the war secured the rebuilding of Europe; but it actually did not cost USA a cent, because the dollars (-bills) obviously are much cheaper to provide than other goods and services. When dollars returned by the accounting for goods and services in USA they made trade impacts on the American economy, otherwise they did not. But almost none of them returned. At the same time USA could import almost unlimited and pay with more dollars that did not return either. Large amounts of dollars that piled up for example in consequence of the positive result of the balances of trade were invested in interest-bearing and currency secured American government bonds and other assets. With this system the leading economic power was tempted to accept large deficits on balance of trade equalized by missuse of the means of payment via this issuing of money. The result was that US received the foreign goods for free. This arrangement simply could not continue in the long run or could it? Without going into details, inflation and state-debt was introduced as an obvious possebility among the professional politicians, who did not worry particularily about nation and tradition, and certainly did not know the hard conditions. Devaluations on behalf of the nation, and the initiatives of the state itself were also included in this dismantling, and devaluations in cooperation with IMF came like af thief in the night in a row of cases, because the really needed of necessity had to be done in time to prevent this vicious spiral to continue in the nations: Finance crisis upon finance crisis around the globe.
It was certainly not new phenomenons that were introduced by the Bretton Woods System. At the peace conference, the Wienna Congress in 1815 and the bankructcy of Denmark 1813 followed a devaluation of 90%. The collapsed monetary system from 1944 that has not yet been replaced by a new one actually had some bad temptation for the politicians built in depending on the character of the leading figures. Of other decicing impacts in the long run the following have to be mentioned:

  • Dollar and petrodollar dominans in international trade with artificial values at home and abroad – totally independent ofthe real domestic economy
  • Competing European euro-system based upon an official approved politician-phantacy on the former German stability and growth, now among indebted nations with adjustment turned downwards via wage rates and minimum standards of ecology and of social level.
  • The way to real economic recovery of Europe was prevented, in addition the unlimitation of the markets was encouraged without any self-regulating mechanism of competition directed out of the euro-zone, and combined with a clossusish lack of competition in the other markets except for the market for disguised subsidies to a too expensive structure
  • Indebted nations around the globe after two generations

An explosion of the amount of means of payment and speculation that would not be possible without the built in defects originating the from birth of the Bretton Woods System, to such a degree that the real economies in the nations are totally secluded from the system of international payments, that they were meant to protect in order to protect the nation

The domain of the dollar extends:
On the other hand the arrangement was binding for USA, externally, in the world of realities characterized by practical rebuilding of production-capacity, markets and defending efforts under the Cold War. And the rest of the world could redeem dollars at the goldsprice as required, granted that USA as an economic superpower was able to secure the dollar-value settled in gold. USA was the only country to guarantee and carry out the redemption of dollars for gold as it had the largest gold-reserves. Western Europa quickly recovered, and the growth lead to large European export surpluses that at the same time created an dollar-accummulation in the export countries. As early as in the 1960s France began to redeem dollars for gold, and others followed. At same time USA was engaged in the Vietnam War and elsewhere. This brought the deficits on the public finances in an uninflated heavenward flight of the time. In 1967 the drain of the gold-reserves in USA and Bank of in England in Britain to a critical point. That France and other Eruopean countries definitely according to the agreement increased the redemtion of dollars for gold brought the dollar under pressure, given that the goldprice measured in dollars continuing was kept unchanged. It was expected that USA would devaluate the price of the dollar in relatively to gold with a continuous bigger and bigger pressure from the demand for gold, and also from USA’s deficit on the balance of trade plus the still unfinanced war-deficits on the domestic public budget. At the same time most of European countries gradually “dyed their money issuing in dollar-green”, and they also began the inflationary growth that went into stagnating production and employment with still higher inflation to end up with a rate of short interest of 21%. This was indeed the characteristic economic consequences of the welfare that substituted wealth in Scandinavia in the 1970s.

Dollar seceded from gold:
In 1971 Britain also began side by side with France to order redemtion of dollar for gold. Instead of contnuing towards a predictable collapse of the market USA left the redemtion of gold in august 1971. That actually meant that the international monetary system built up a little on gold but much more on dollars dismantled as forseen by almost everybody (among others the Norwegian negociators in Bretton Woods), and the world changed to the system with floating nominal rates of currency[1].You may also call this international financial anarchy, if you have understood that the grocer of that time could not sell the scales, and still claim to supply his freshly ground weighed coffee.

Petrodollars:
OPEC is a cartel that agrees upon a common oil price and distribute quotes of production-capacity among each other. OPEC was founded by Iran, Irak, Saudi Arabia, and Venezuela September 1960 (later on more countries joined) with the clear objective to “coordinate and unite” the oil policy in the member countries. After the Teheran Conference 1971 (where the price-settle-initiative was tranfered from the oil companies to the exporting governments) the buyer’s market for oil closed down. Now the need for a floating dollar rate emerged, if the economic worldpower USA – still with trade deficits – should not lose ground. October 1973 OPEC sent price on the oil to the sky with rise of 400%, and at the same time imposed an embargo that forbid shipping of oil to every country that had supported Israel in the “Yom Kippur War” against Egypt, and OPEC reduced the production with 25%. USA had previous reached an informal agreement with Saudi Arabia that the country could invest in USA, if USA assisted Saudi Arabia develop its economy. Apart from the tremendous oil prices-rises – there was another smaller one in 1979 – there was nothing catastrophic in the oil countries requiering more for their oil, when the reserves were limited. The profits earned by sale of oil accounted in dollars floated into bank accounts in Britain and USA, when the OPEC-countries simply could not find a better investment for the petrodollars right away. The problem arising was to allocate the money back into the productive circulation – recycle petrodollars -, now that the West rode on wave of combined stagnation and inflation at the same time. This new phenomenon – the Philip-Curve moved, but not until reality gave inspiration to loosen the premises of the theory – was caused by issuing of money-units, irreversible increases in wage rates and deficit on the public budget. [The reason why was not the oilprice rises even though that was persistently claimed (for 10-15 years) – if not it could be claimed that so-called crisis followed from the heavenward fligt of the oil prices had to be renamed to the normal state. So-called euro-dollar-bonds were issued and became the guarantee foundation for private lending from private banks to the Third World with the Bretton Woods organizations – IMF and the World Bank – in a the role as mediators. The developing countries could not provide money to the more expensive oil from other sources[2].
Petrodollar were the foundation of a huge number of hopeless lending-arrangements, and thereby also the propellant for at lot of debt-crises in the 1980s, and in the 1990s also among more developed nations in Latin America, Asia and Europe. Who created the risks, and who transferred these risks, and who had to bear the resposibility in the end?
In February 1945 USA made an agreement with the Saudi king about military protection of Saudi Arabia, if USA was given priority to the oil sources of the country. Even though the oil occurences were nationalized in 1976 ARAMCO (an association of Arabic and American companies) was controlling the production and the markets for oil outside Saudi Arabia. Surplus of petrodollars was invested in American government bonds. This market is obviously a power potentiale in the hands of the world’s leading millitary power. An example: In 1980 Iran’s and Libya’s assets in USA was confiscated, and recently organzations dealing with international terrorism suffered the same fate.

IMF – Debt Crises:
With the organization of IMF – International Monetary Fonds – a link in the international monetary- and ledingsystem, it often was a merciless fight of debt collection against weak founded states in the Third World. It was underlined from a few sources that the yearly new borrowing in Western Europe actually was bigger that the total debt of the developing countries in the 1970s. If we take the question of creditworthiness: the single states that decided the agreement of the Bretton Woods System paid in money, but most were given guarantees[3] in the foundations of IMF on behalf of the nations’ taxpayers, and in accordance to how large an economy the nations represented, so the responsibility for the many lending-dispositions in private banks, particulary to the states in the developing countries was rather often in quite another place than the initiative. How these lending-arrangements and other international arrangement was established, you can among others read in Frederick K. Listers ‘Decisi­on-Making Strategies for international Organisations: The IMF Model’, Denver, USA 1984.

How USA dealt with its debts-increase:
About 70% of world trade is contracted in dollars. Oil is the most important good in the world, all countries have to get oil, and if they do not have oil they have to buy it, for dollars. That has been the reality for the last 40 years. Recycling of petrodollars have simply been the price that USA have requiered of the oil producing countries for having USA to tolerate an oil exporting supplying-cartel OPEC since 1973. For about two decades USA’s deficit on balance of foreign trade has increased most of the time. Today it amounts to about 25% of the American Gross Net Production (GNP) or about $2.5 (European) billions or $2.5 (American) trillions. In 1988 the balance of trade was in balance, and at this time USA was a creditor nation. Since 2002 the yearly public deficit has been $450-600 (American) billions, or 4.5-6.0% of GNP compared with 1.3% of GNP in 2000, when both federal and the states’ deficits are incounted. Russia and Asiatic central banks in China, South Corea and Japan have bought American government bonds and other assets in accordance with more than 60% of the total public domestic deficit, for more than 1 trillion the last three years to keep up the dollar against Asiatic currencies that actually reduces the domestic issuing of monetary means substantial compared with what it must have been without the Asiatic demand and everything equal. It also appears from the fact that inflation is apparently still under control (in spite of the fact that inflation has a delay before it reach full strenght), and the employment is rising substantial in the fall of 2004. November 24th 2004 the dollar hit the lowest point compared with Yen for the last 9 years and the lowest point compared with Swiss francs for the last 4 years. China began selling dollars of a substantial amount November 27th 2004.
In the first half of 2004 more than $201 billions assets were bought up by foreign central banks. Of these are $180 billions American government bonds. In Japan are large parts of the bonds placed as security for Japanese banks that otherwise would have gone bankruptcy, more below. In the case China, it is the result of a large new export of price-competing goods to USA, for example outsourced American, and also Chinese productions that result in the large accumulation of dollars. They are invested in American government bonds and real investments outside China. The currency rate of Chinese yuan is linked to the dollar rate – and this is not just an implication of the buy up of government bonds. This means that the yuan without the US-bonds perhaps would have been in the same boat as USA, when the dollar may fall further. A still continuing fall of about 20% or more of the dollar would lead to a fall in the stock market prices, and also lead to higher dividends, when foreign entries move investments away. 40% of the American government bonds are owned by foreigners, like 25% of the business bonds, and 13% of the US ordinary shares. Behind the placement of the US-debt you also have to take into consideration that China’s demand for energy for the industrial sector is expected to be dubbled in the next 15 years, and the Chinese demand for electricity is expected to dubble in the next 10 year, and to be multipied with four before 2019. Until now USA has been the only country that can increase its purchasing-power on the world market by issuing more dollar-notes. The US-import is about 50% or in dollar-terms or $310 billions more produced produkts than USA export (yearly). That put the country in a special situation, characterized by both power and vulnerability. Without this central, very peculiar status of the dollar and a consequent and constant flow of capital-investments from the whole world, the country would quickly heel over in a catastrophic crisis of balance of payments.

The US-world-reserve-role changing:
From November 2000 Iraque began to settle its oil sale in euro, and at the same time it converted the reserve-foundation “Oil for Food” with $10 billions to euro after an agreement with UN. Between 2001 and February 2003 almost the entier Iraqi oil export was paid in euro, about $30 billions. In the same period the euro increased relatively compared with dollars with 30%. Saddam Hussein had already offered concessions of oil extration to France, China, Russia, Brasil, Italy and Malaysia. Saddam Hussein had until then only used Eruopean banks to the limited sanction program, “Food For Oil”. He awarded the Palestinians with 1 billion euros in 2000. A short time later EU awarded the Palestinians with 90 million euros as a subsidy to show its friendship with the Arabic World, if Israel canceled its payments at that time. A few days later the European Investment Bank made an agreement to lent Syria 75 million euros after eight year with sanctions of have been shut out from making businesses with this country. A little earlier, August 2000, EU donated 1.7 million euros as a subsidy to Eritreans, Etiopeans, Somalis and repatriated asylum seekers from Yemen after the war with Etiopia and famine. Subsidy from EU in euros again: not long ago the Italian Prime Minister Berlusconi proposed an European version of the “Marshall Plan” which he characterized as a generous act to rebuild Europe. He proposed to give the Palestinians a help of a value of 6.2 billion euros in a period of five years.[These last things are included to characterize the motives and the understanding of the situation among the promoters.] From November 2000 to November 19th 2004 dollars decreased relatively to euro with 34.5%, from December 1st 2002 to November 19th 2004 with about 23.5%. A lower rate of dollar made the dubbled result, by lowering the enormous deficit on the balance of payments (an improved balance of trade and an improved balance of the flow of investments), and improve the competitiveness of the exporters that would result in higher investment, and higher employment in these exporting businesses. I addition a lot is pointing in the direction that the petrodollar adventure has ended caused by the increasing import in the oil producing countries, and the reduction of the relative share of OPEC in the total oil export.
Iraque has the second-largest known reserves of oil among the nations of the world. 45% of EU’s oil import comes from oil sources of the Middle East, 80% of Japan’s comes from the Middle East, that has 60% of the world’s known reserves. USA is not dependent on those oil sources. The shift to petroeuro that is mentioned by few is predicted to have huge effect only if Great Britain and Norweigh introduce euro that would result in North See “Brent” and the Norwegian oil supply being settled in euro. Shortly after Iraque’s move, Jordan began bilateral agreements with Iraque. August 2002 Iran converted more than the half of its currency reserves in Forex Reserve Fund to euros, and China also began to convert some of its currency reserves from dollar to euro. At the same time Russia dubbled the stock the Russian Central Bank of euro to 20% of the total $48 billions. An Iranian senior speaker of the oil industry Javad Yarjani noticed in a speech to the Spanish Ministry of Finance that “it was possible with a increasing trade between the Middle East and the European Union, and that it could be suitable to settle prices in euro. This would create more ties between these blocs of trade with an increasing trade, and at the same time promote a very needed European investment in the Middle East.”
The British Empire was brought on even keel via the need for Britain to import food, when the domestic agriculture was driven out by the industri. The American Empire may be brought on an even keel via the need for USA to import manufactured goods, when the domestic production was driven out by the financial services.
While the dollar has decreased since 2000 the price of oil settled in dollars has increased. The euro-price of crude oil remained almost the same in the four years period. It just don’t seem logic that this result should occur of simple by chance, and it does not seem to be a surprise either that others could begin supplying a dominant reserve currency. The money plans of EU has not been held entirely top secrete. It is most likely to be a result of considerations of thoroughly planning and design. It also seems as if OPEC react to the dollar depreciation in a most natural way; by increasing the oil price precisely to the point in accordance with the lost they would had to bear is removed.

Japan in debitors trap:
The rate of Japanese yen has decreased 5-7% a year compared with euro from 2001 to 2004, notice, a relative decrease to dollar of about the half. This means a yearly depreciation that makes Japanese products more expensive in Japan, and the country is far from being selfsufficient with food and energy. Japan has stagflation and did not get through the last stockshare-bubble-crash in Asia in 1997, because the banks in Japan continued to throw new money after bad money with guarantee of the government, mostly based on American government bonds. February 10th 2002, Observer notes: Japanese consumers flock round the banks to convert the quickly depreciating yen to gold bars. There is fear for the banksystem to collapse, when the deposit guarantee of the government is being removed in Mars. We wrote in 1999 that Japan-government tried to reuse the Japanese economic policy from 1920-1927: to issue billions of yennotes and new credits with which the banks bad loans could be bought up, the assets then had to be overestimated much like in the Weimar Republic in Germany. Now it unfortunately was I the period 1920-1927, where Japan handled precisely the same problem just as wrongly as now in the late 1990s that it would have the one to refer to, if we had to learn from experience. It is not true that history repete without further. But if leading figures use the same false way thinking on the same problem (for example as an act of bad faith), then the superstitious are tempted to believe that history repete.[And it is not totally false, apart from the fact that ignorance’s blind fate must be classified in categories of belonging to an earlier or the coming middle age.] Such a incomprehensible policy was really carried out, also concentrating at negative rates of interests and guarantee of the state for the banks to get the prices to rise “by stimulating the production in this way” in the misunderstood Keynesian way. The falling yen has really got helplessly stuck in a debt trap. The public debt is $5 trillions, a little less than the debt of USA that November 19th 2004 got its borrow-limits increased to $6.4 trillions. More state-debt is continuing contacted at still higher settled prices, even though it just increases the debt. The debt trap is closed, and there is no easy way out. Japan which regardless is an important industrial nation is also a substantial importer of oil. Japan’s surplus of trade from sails of cars and other products was used to import oil settled in dollars. The surplus was invested in American interest bearing government bond and other assets. The government of Japan owns 15% of the American Treasury assets. G-7 was founded to secure Japan and Western Europe within the dollar system. From time to time in 1980s statements about the three currencies – dollar German mark and yen – emerged from different Japanese sources that they should divide the world’s role of reserve under the floating nominal currencies. Until now the dollar remained the dominating.

Euro and European Union:
European Union with common compulsory money units, and a constitution is being established among EU’s 25 member-states now. That it is difficult to obtain adequate consensus among the Europeans about the common compulsory money unit is perhaps unnecessary to state. To establish an European monetary union right now, where all European countries are indebted more than ever – apart from perhaps two European countries outside EU -, dominated by unsatisfactory activity and employment anywhere in EU, and even negative growth in the three leading countries, France, Germany and Italy for the second, perhaps for a third year is more than a feat; it is an artificial, ideological construction. The national currency sovereignity has been abolished in the eurozone. The objective is obviously price stability and growth in the eurozone. For years we were lead to understand – in the open – that the currency reform guaranteed price-stable growth, even though the rules about the new currency in the Maastricht-treaty (for example: article 104C) tells something quite different; particulary concerning the newinvented, partly inconsistent and irrelevant so-called claims of convergency that can be overruled, if the Council of Ministers does not estimate the offence to been substantial. The countries – France and Germany – that put these claims into the treaty were the first to offence the rules about deficits, and the relative magnitude of state-debt compared with GNP – they did not even honor this selfchosen claim either without several manipulations with the respective budgets (redemtion of gold and seeling of pension duties) in both the countries, Germany and France, when they invite other countries to qualify for joining the monetary union on the same conditions. In 2004 it continues in Germany with selling of the pension duties of the civile mail-servants.

Euro and its primery objectives:
To assume the common compulsory money unit in any way should reflect the real economic in EU, and serve the union we obvious have misunderstood. Corresponding to Spain’s fatal administration of the gold extracted in Latin America in 1500s it looks as if the euro in the best Mercantilistic way via trade settled in euro for example oil from the Middle East is meant to generate the moment that created change in a Europe with not less than 20% unemployed (official 9%) or expelled, and an enormous state-debt that you no longer can make an unambiguous sketch of. Jean Monnet – one of the founding fathers of project – exactly claimed in the 1950s that the compulsory monetary unit would be used to make the union real in full scale. It was the form, before the contents that counted, we can conclude. If for example one of the Maastricht claims of convergence about the magnitude of the state-debt that must not exeed 60% of GNP should have meant anything serious, between the half and two thirds of countries could not have met this claim without to accept crises of stability. So much can be extracted of those real informations that are released time after time. Apart from Mercantilism that according to history ended with the Napoleonic wars stability and development cannot be measured as an index of prices or some procent-figure. Or when some quantitative standards have been registered, then you can talk about a stable currency (with reference to the five Maastricht-claims of convergence). Stability include the dynamics of the capital formation, security of the investment process, economic growth, education and new technology and high productitiy in a state to claim that its leaders have taken the voters and the nation seriously. All this cannot be obtained or be calculated as some simple static concept. France and the most of the other countries were against the so-called stability pact that could have secured that the central bank acted like the old German Bundesbank, and kept the reins tight, but from quite another starting point. It was decided at the summit of Dublin in December 1998 to drop the stability pact, and France made too large deficits on the public finances in both 2002 and 2003 compared with the Maastricht provisions. The struggle about who should point out the president of ECB (European Central Bank) ended with France. The German Bundesbank was out of step with the German political, financial and industrial elite. But the bank was very popular in the German public opinion. Therefore the politician Helmuth Kohl was very hard pressed between the German and the French Establisment. The French socialists had built in their claims to the subsequent treaties. Now Kohl has gone, and the new German kanzler is a centralist himself. EU has in return recommended a German as leader of IMF. Kohl also had to eat that there were no more talk about pure automatic sanction against a country that makes continuing deficits. Now the claims is activated (according to Maastricht-treaty) when 2/3 of the weighed votes in the actively participating EMU – countries vote for sanctions. France also got approved that a so-called stability-council, and at the same time a directly political rolle built into the monetary policy so that for example guiding lines for the euro currency have to be fomulated politically now.
In addition to introduce the pure (economic) stability pact without order in the member-states’ economies would lead to real political instability. If the amount of money and credit cannot be debated in the whole eurozone, because it has to be decided by a hard ECB, the consequences would be so terrifying hard in some parts the union that political instability would inevitable be the result. Italy and Greece are obvious examples.
To defect this you can then introduce the more well-going countries to hand over “some surplus” from the public finances or “commit themselves to this in advance” (but the problem is that no state can or will do so) to the bad-going Italy, Belgium, Greece, Portugal and Poland. This means on plain English that the public expenditures have to be controled euro by euro in the whole eurozone. This is common financial policy. On that assumption every extravagant expenditure, and a lot more will certainly be stoped.
If you should judge by the falling D-Mark and the rising Italian lira in 1997-1998, the markets had to have the impression that a soft euro was being established. There was a completely unknown but collosal amount of lira that should have an eternal determined rate in euro in July 1998. How this could happen without a soft euro, would be intereting to have explained, and there were lots of other problems pointing in the same direction.
Already in 1996 you could foresee that the euro would be a so-called junk-currency – that was what the speculators called it -, if Germany, France and Britain should take over the Italian enormous mountain of debt. This would lead to result that ECB had to guarantee the solvence of both Italia, Belgium, and all the other heavily indebted member countries, for example Greece, and the countries that could be expected to join EU in the Eastern Europe at that time. In this way an alliance would be created that would press ECB, and get it to act as if it still controled the monetary policy without really doing this. That was what happened. Real EMU-stringency after the book multiplied by three or four is what should be expected, if we assume economic stability should succeed in the present situation – without a strong lever from outside. But this would imply the lost of political stability as the relations are and may be expected to develop, and the disappointment with the whole project would lead to even more resistance against the project. That is the reason why they still act as if.

Fear of competition narrows the rationality:
Globalization means the unlimited mobility of markets included the capital market. The globalization will destroy the democratic society and the welfare state, many maintain. The only reason why is lack of an international monetary system that would have prevented the worst. The total mobility of capital undermine the abilities of the states to regulate. Especially the concern for the labor market: Untercuting and cutbacks have to absorbe what threats to disappear of jobs, among other things by outsourcing. The globale markets of financing are not subject to a regulating mechanism of competition, and they causes crisis upon crisis – Asia, Mexico, Russia and Latin America. The crises will become deeper caused by the paper-mountain of the state-debt that widening the difference between nominal and real values in every community in the long run. And because you have chosen to sell the tape measure instead of using the tape to measure with according to its purpose. It gets worser when all the leaders of the states continues to borrow net more and more. The crises tighten the social pressure with requirements of cutbacks. The pressure of the crises either lead to the dismantling of the welfare states or change them into linked defending blocs (currency blocs like euro, dollar, yen or renminbi-zones) or relapse to the old enemy-pictures that characterized the national states earlier, perhaps a combination of both scenaries. With the dismantling of the democratic founded national- and social state the globalization releases itself at last, because the politicians cannot stand for that the populations/the voters of their countries have to bear heavier and heavier burdens just to offset the worst.
Euro-Union is the prototype of this development. Its bad hidden dubble-motive is a) fear of the dollar-dominans and –competition and b) fear of the united Germany with matching D-Mark-regime.
Fear always build on a false analysis. The US-dollar does not threaten the European market shares of the world trade, but Europe’s lack of knowledge, technique and initiative, especially Europe’s inertia when comes to reforms and renewels. The hardness and the strenght of the D-mark did not prevent the development and the integration of Europe, but the since “Maastricht” the aim was abolishment of the D-mark, and that has then happened. The explanation was that D-mark should have driven the countries in the eurozone (now) into a tight negative development against reforms and with social limitations. Alone these fallacies and false assumption do not allow any realistic expectations about a hard euro. The inflation was programmed in advance. It is perhaps possible to blow more air into it by leting it float in oil at the beginning, but the collapse is then going to be even bigger. All member countries are deeply indebted, and all of them run with deficits.
The national governments lost their instruments of management right at the beginning of the euro (currency rate, interest rate, amount of money and flexible budget). They can no longer secure the values of the money, and regulate the labor market, and the social- and ecological standards that the same policians had introduced. Differences of structure and of competition will with governmental suspension be equalized by the market. The battlefield number one is the labor market now, and the social and ecological systems. The labor market suffers from the diminishing of the middle class, the wage rate and social cost competition originate from the workers in the southern and eastern EU-povety-zones, and an inevitable liquidation of the decided national union-wage rates and the minimumstandards of the social level till now. The market sweeps them away, the employers uses more and more their potential of threat that is to move their productions to especially favourable (wage rate, social- and ecologic cheap) EU-zones. Wage rates, social standards and claims of environment in Euroland have to be harmonized downwards. It is the naive imagination of socialdemocrats, the folk socialists and unions that these things must be better after they have signed the Maastricht-treaty. In Euro-Union the social policy has resigned forever – and it is happening with full accept of the socialdemocrats, the folksocialists and unions.

Euro-Union and globalization:
Euro-Union is not the remedy against the employment crisis of globalization. There is nothing special about this globalization; that is an apophthegm; international competition is the right word. Euro-Union strengthens the power of the capital, and helplessness of the state in the role where nothing real can be done to the unemployment without to have the needed instruments. It is a progress towards the 19th century (here the instrument of ruling were searched too), not towards the 21st century. Euro-Union is not even a counterbalance against the unsocial tendenses in the globalization, as the incompetent analysers from the left maintain; it strengthens them further. It simply forces the working life towards the monetary commandos. The European Central Bank (ECB) has to pursue the totally same policy in the 12 different structure countries, without the possebility to resort to the equalizing of the nominal currency rates. To prevent the capital from leaving the eurozone the central bank will have to increase til interest rate; but this decreases the activity and rises the unemployment further. Such an union must end in the conflicts among the states, from which there is no no help to find – if the euro-union is not rebuilt to a transferunion or an federal state with public equalizing between old and new member states, something like the patchwork USA or the German Federal Republic, but without the D-mark. When the transmission of these models show themselves impossible or they meet resistance the question arises: Are there alternative models that can save the world peace? As it runs now: Europe and Arabic world has already begun to cooperate economical, as it was forecasted in North-South-Dialog from 1968 and the European-Arabic Dialog from the midd 1970s. Egypt, Jordan, Marocco and Tunesia decided last year to establish a zone of free trade[4], and Algeria, Libanon, Mauretanien, the Palestinian authority and Syria are being invited to join this big zone of free trade. Egypt is expected fully admited in this group of free trade. However EU has negociated with 12 Miditerranean countries as a part of the so-called Barcelona-Process about cooperation between EU and its neighbors around the Miditerranean towards south. The aim in the long run with this Barcelona Process is to establish tighter bond of trade and social questions as well as of political kind. This will lead to the creation of the Euro-Miditerranean-Freetrade-Zone consisting of 27 countries in 2010.
It is possible that the European productions in future may be transferred to North Africa, the Middle East and Eastern Europe, until they come up, and we are put totally down. It is a question if the populations submit to that.

Two suppliers of internationale monetary means:
With the last European-monetary move – if it is an experiment of establishing of the euro as a possible reserve currency or currency for price-settling to some extent in line of the American dollar – no real lift of Euro-Union will happen. “If the occasion should arise there would be to ice cream booths on almost the same bathing beach. The difference to the metaphor is that the booths are supplying monetary means to be able to live on the products of other countries instead of supplying more ice creams, and employ its own working force to produce more products and more services. The climate of investment is far better in the dollarzone of the beach, and the other products and services are far more competitive in the dollarzone. The European Central Bank is organized to prevent euro from falling; it has no means to prevent euro from rising. If ECB are going to issue more subsidy-euros that are covered by the real economy, the economy is further twisted. The deficits on the public finances in the two leading countries of euro-union are of the same magnitude, when compared relatively with GNP, like the corresponding in USA, about 4% against 4,5-6%. But here you have to take into consideration that the whole here is threathened by deflation, if the euro increases 20% further, because the growth in the three leading countries in the eurozone is close to zero. The dollarzone can expect a tremendous improvement of its tradebalance. If this zone is perhaps going towards a more sound value of the dollar, it tempting to propose the single lacking arrangement. A common instrument to prevent crisis upon crisis, deeper and deeper, and at the same time secure that the monetary means are used to what truly is their only useful aim. The classical economists, for example David Hume and John Stuart Mill proved in the 1700s that without order in the monetary relations, there will not be any order in the markets of products. Without an international order of money and credits that is in the interest of the big trading countries, it will go wrong.

The need for introducing of real currency rates:
The ruling monetary system until 1971 was not the agreement that the chief-negociator of England maintained for a long time was best to be chosen. To protect against crises and inflation J. M. Keynes showed an internationalt emission-agency with an international monetary unit that was not fully negotiable. It could be bought for gold, but not the other way round. Only if the states of their free will stop the inflation-orgies and the state-borrowing or devaluate (by compulsory) or let the money amount and the credit be ruled by others, it is possible bring harmony into the international system of payment, Keynes maintained. The incitament to speculation is removed at the same time. A monetary measuring instrument without banknotes to determine real currency rates, and it is certanly not suitable to force out national currencies.
Real currency rates are the present nominal currency rates corrected for inflation. We have seen in the last half of 1900s that inflation is a distinctly harmful phenomenon. If inflation had made a country’s products lesser competitive, the country could just devaluate the nominal currency rate relatively to all other countries, and in this way benefit by the lower price of its export products, and higher prices of the import products; the exhange-relations to other countries has then been changed. Regardless if this trafic had to be repeated to have any effect – except for inflation – it was the way countries used to go not long time after The Second World War and the reparation.
There must a possibility for countries to make inflation for limited periods, caused by some structural or developing matters that have to be arranged. Such a possibility must excist, but in such way that other countries are not harmed by this inflation. The country that need inflation have to devaluate at once in advance. It is easy to incount inflation into the currency rate. By this are all other countries protected against inflation, and also against deflation, where the negative growth can lead to standstill, if the right monetary intervention are not carried out in time, as we saw it the 1920s and 1930s. No national currency must be brought into the international monetary system. We have had a much similar system under the so-called gold-coin-basic that was especially connected to the appearance of industralism, its early development, and the worldtrade via City, London. Goldstandard (a looser system) became the pivotal point, but the gold was at the same time a good of trade and therefore it did not have a settled value in itself, but the price was decided by supply and demand from the central banks, lastly a politically decided. An international monetary unit a little corresponding to the ECU – originaly the voluntary European currency unit emitted from an independ organ; it could be exchanged when needed, but for the present aim just a unit of account. A unit of account in an published, settled amount, and at a settled price, an account and reserve unit. No saleable instrument that get impacts from any supply or demand. And international arena where both debitor and credit have to pay interest on loans with the new reserve unit as guarantee, so we prevent lending out at random, and if it does go wrong, ordinary people should not be cheated every time, and it should also prevent crises of finances from overturn one deloping or misinformated country, one upon the other. You can call it a nationalbank of the world as a foundation for the international trade. It is simplicity that everyone can understand: we cannot control the national/international markets of currency from a national central bank, if the international montary unit is for sale, and thereby has become a multi-lend of all national currencies.
I knew that when I was 21 years old in 1971, and USA ”left the gold” as it was expressed, but selfconfidence grow with experience. I learnt little of economics that offered me a more solid ground to argue from.
And we perhaps have to go through another catastrophe before the leaders understand, what their predecessors did definitely wrong, or were lead to make definitely wrong from their in many respects marionet positions.

Supplementary readings:
Economics of Tide:
Big recessions and recoveries in the 20th century : http://www.lilliput-information.com/economics/tida.html (part 1)

Big recessions and recoveries in the 20th century (including the role of private company with anonymous ownership):http://www.lilliput-information.com/economics/tidb.html (part 2)

Goldstandard in all combinations:

Gold as an international unit of account for values – a historical statement: http://www.lilliput-information.com/economics/gol1/gol1.htm (part 1)

Gold as an international unit of account for values – a historical statement: http://www.lilliput-information.com/economics/gol2/gol2.html (part 2)

Keynesianism, the misused of J. M. Keynes theories:

J. M. Keynes’ theories, the moment that actual inspired the last dependence: http://www.lilliput-information.com/economics/keyne.html.

November 27th 2004,

M. Sc. (Economics) Joern E. Vig, Denmark,


[1] We remember how the nominal rates of currency sometimes were devaluated by one country or a group of countries at the same time. We were sure it must be some kind of advanced swindle with the values. We wondered that the other countries accepted it, but we did not fully understood the consequence of fraud then, to all of us. Other arguments than the need for working capital were certainly used.[3]The roles were exchanged from the beginning, The World Bank was no bank, but a foundation, and the foundation was a bank, so let’s describe the first: ”With a share capital of $10 billion distributed among 100,000 shares that should be taken over by the member-states participating in the maintenance of the bank (mine: that certainly was not a foundation neither from the beginning or later on). Admission to this was given to states, that were members of The International Monetary Foundation, but later on other states were given admission too. That was the reason why only $9.1 billion of share capital was supplied at the founding meeting. 20% of the capital should be paid in, of which one tenth in gold (in reality then just 2%), occupied countries could postpone a quarter of payment in gold for 5 years. The main task of the bank was via (mine: private) lending or guarantees to promote the reparation after the war og hereby contribute to the delopment of the international trade and increase the productivity and living standards in the long run. Direct lending should be effected, if the borrower could not achieve a private loan or a gurantee on fair conditions. The management of the bank should be organized after the same principles as the principles in the International Monetary Foundation.” The former Danish Prime Minister Viggo Kampman wrote so as a civil servant in 1944. The italicized originates from the present author. [4]Free-trade-considerations usually result in more than free trade, when we look behind the political rhetoric, and let the experience count.

February 10, 2011

Meltdown of the monetary system is not new

Meltdown of the monetary system is not new

From the laws of nature versus laws of humanity

– no insurmountably terminological shallow-like clichés included

 

Real capital is the quintessence of those goods that produces the means of our consumption, and that maintains itself while the production is going on. Capital as a function. The permanent real capital are bind for a longer period in land, buildings and equipment, eventually in inventory. The floating capital is bound in the input of factors in the process of production while this process is running, and eventually in the inventory. The process of production will typically be repeated.

Private capital is characterized by the sum of rights that permits unearned income (often in form of interest and profit due to appreciation), where it is not possible to show any connection to productive activity.

The capital formation should be concentrated in production to satisfy the all kind of needs including the needs of meaningful activity of the labour. The natural order will always turn capital formation in this most profitable real direction among human beings in the long run. But there has never been and never will be a natural order thanks to the politicians acting within an ineffective constitutional protection of the citizens.

Only with this interference the capital formation is directed the stream into private capitalization instead or abroad. As it gets worser the politicians have to incur debt by the international bankers, because all the money issuing at home gets the prices of our goods to rise further than the competition allows. The papers (shares and bonds) in the private limited company and the state-debt-bonds make it even worser. The purchasing power has been pulled out of real production by to high wages, made too high by the too high taxes, both of them simply drains the real capital to private interest earning capital outside the production.

You cannot claim that all political leaders are just as insane as all the others all the time.

An example:If you get a public subsidy covering a part of the cost in order to prompt you to renew your apartment houses but without collecting the necessary amount of money by taxation, perhaps I would ask why you did not renew the houses without the public subsidy, and while you are being very fond of the public subsidy, perhaps I will also try to get a public subsidy to renew those houses of mine. The raison to the public interference is the political problems in this case following the increasing unemployment also caused by political interference and the monopoly (read close to dictatorship) of the trade unions. They are talking about renewing the towns. That is a lie. There are several other cases collected from the ideology on the life of the so-called good people that every modern politician literally has to live on. With the public subsidy the rents of the apartments increases perhaps 15-20 p.c., and the so-called value of the apartment houses increases with the capitalization of this increase (the present value of the yearly of monthly increases). When the total rent of the apartments of Copenhagen from 1914 to 1926 increased with more than 40 mill. ddk. a year the fine originators have without the society had become richer created about 500 mill.ddk more private capital, realized, when the apartment houses were sold. That is the capitalization of 40 mill. ddk. a year anno 1925. A big part of this amount ran into consumption. In WW a surplus capitalization was made by the share and bond markets and by loans used to pay dividends accounted on a false basis of the values of inventory and equipment.

Denmark was very close to the limit of bankruptcy 1923 thanks to our fine President of the centralbank Rubin and Brandes in the Department of Finances, who prefered to finance the unsatisfied needs and the unpleasantness of the war by loans, and then planned to let the small-holders’ values collapse after the war.

While they were dancing and at last were dying in paper money issued by fraud in USA the prices double more times in Denmark in the beginning of 1920s. Enormous fortunes were collected on private hands, while the state just through bonds into the market. If the state had collected a taxation on fortunes once and for all in 1919 instead of telling the people that you can finance a war with nothing, Denmark would not have had any very serious problems later on. Instead they let the inflation run directly into deflation, where all values (real capital) began to be destroyed.

You have capitalized the possibilities of the future yield and trained the propertied classes to believe that war is a good business, the best investment at all. But you forgot to give them a lecture on the uncertainty of exchange rates, of the rate of interest and of the purchasing power to unspecialized (uneducated) individuals.

The real problem is not that people do not live twice here on the Earth. Their experience is just imperfect when it comes to reality, to real life, and this fact has been used time after time.

Some will try to learn from books and studies. But is not easy even if you are pretty clever. In four years 1935-1939 the concept state debt totally lost its meaning. In 1935 it meant everything, in 1939 it meant nothing. If you asked the logical question following this nonsense in the 1969 you got an answer from the professor saying between the lines that you had not understood anything at all. You certainly have to be strong as a 19 years old country boy.

A little from accurated financial history

A few quotations: Under “Must national debt be paid back”?

“…it is not a natural law that national debt ever should be paid back. The state must naturally pay back a loan, when the payments have to be paid, but if it is not convinient to decrease the debt, the payback can always be done by taking another loan… It is true by both raising a loan and by paying back that the only thing that matters is in what way it effects the economic life or the welfare of the society. There can not be given grounds for paying back national debt, if the effects that the paying back has is not wanted. If there is strong demand for labour under full employment at a moment in the society, the result can only be higher wage that necessary will lead to a rise in the prices, then it is perhaps convinient to collect more tax than necessary to cover the running expenditures, that means pay back the debt, because in that way the demand for resources will decrease. Before such condition has occured or better, before you wish to reduce the demand and the income of the society or a least stop its increasing, there obviously can not be given grounds for reducing the national debt…”

“When the state (on the other hand) is paying out money, it always receives the most of the amount from one or more citizens, and directly it creates an income in this way that correspond to the expenditure reduced by the part that goes abroad. If we for a moment assume that there is balance of the payments understood, as to every increase in import there is an export increase of the same amount, there is created with every expenditure an income of the magnitude in the society”.

“If the state in the same tempo, as it gives money away, collects taxes that are paid of means that the taxpayers otherwise would have given out for demand, or raises a loan that is yielded from money, that on the other hand would have been given out for labor and materials, there will obvious not neither be a smaller nor a larger total income in society, the only thing that happens is that the state now confiscates some resources that on the other hand would have been confiscated to private purposes, or would have benefited other persons than those who have the money now”.

“If the state on the other hand get the concerned money by taking it from its account in the national bank and the national bank does not tightening the credit elsewhere, or the state borrow on the market of bonds and the national bank by convinient buying of bonds prevents a fall in the courses, the expenditure of the state means (not alone) that there is created directly a whole new income of the same amount, but that those, who receive the money, again give some of it to people, who once again increases the expenditures. In this way an expenditure of the state creates for example within a year an increase in the income of the society in the same year, an income that perhaps is 23 times bigger than the paid out amount of money, and because the taxes in this country with the existing laws of taxation are about 25 p.c. of the income, will such an expenditure in the concerned or the next year perhaps give the state and municipalities an increasing tax income to an amount the half or three forth of the amount that can be the basic of the new expenditures or it can be used for lowering the taxes”.

Under “The balance sheet of the state”:

“If you actually want to operate with an idea of balanced sheet of the state as an expression of its economic situation, it must be the ability of the citizens to pay taxes compared with the expenditures that state is planning..” (unquote of the later Professor and Rockefeller Fellow Joergen Pedersen in: ‘Topical Economies Problems’, 1939)

Keynesianism, that Joergen Pedersen here is making marketing for, deals with problems of the society in a very unrealistic way. They are made to formulations of problems in a mathematical language of symbols or something just as limited, there has to be cleared up (as here) a logical, coherent chain of thoughts that neither fit the problem, as it really is, nor include all those things that practically effects the solution of the problem.

For example the influence on the economy of the funds, and the inflation have an inferior place in the works of Keynes and in the works of his epigones.

The same can be said about the national debt, as it appears. The new system (at that time) that should be built up in the after war period, should give exactly free admission to incur national debt. And it certainly did.

The targets for the society are always something like employment, activity and similar. The effect of the public sector on the economy is not interesting to a Keynesian, and you will at once be in doubt if the declared targets for the economy are anything but to ‘the exterior’ opinion, as Keynes himself called it, before he won the Nobel Prize (se below).

The whole entrance to the Keynesian way of thinking gives evidence of a fatal need of interest of reality, for example if the assumption all together and each of them draw a true picture of the reality at all, and then this cyberspace reality that they seek to give predictions to. It will be a special problem to the Keynesian to try to cover himself up behind assumptions all the time, so what he has said, is logic, when all assumptions have been remembered. If these logical relations, scholastic rides tell anything about the effects of different political economic actions from the authorities towards some correctly described phenomena in the society do not in principle interest the Keynesian. Here he has secured his retreat. It is a very central part of the Keynesian learning to train this. I have trained myself until I could not take more lies. My upbringing simply forbad me to continue the lies.

Therefore I must say: Do not listen to the Keynesian, he will coax you to do, what he believe in, and if you do not understand, what he is telling you, he will explain to you at last by referring to your lack of education (scholastic).

Precicely the same method that what used about 100 years before when you was explain why the gold standard what mattered

I have to inform you that the Danish Joergen Pedersen, who became a Rockefeller Fellow, perhaps could have won the Nobel Prize instead of John M. Keynes. Pedersen was not very known in the Swedish Academy, and many of his earlier writings were not written in English. The practical rediscovery:

From 1994 they are talking about paying back the national debt in Denmark. But nothing of the kind happens, the debt still rises every year until recently (2006). If the national debt was beginning to be paid back the unemployment would increase, the keynesians would tell you. The unemployment in Denmark is between 500,000 and 700,000 or 17-24 p.c. of the laborforce in 1999. I have tried to give an total presentation of the unemployment-accounts-problems on: http://www.lilliput-information.com/economics/led/index.html (in Danish).

Pupils who always work and always talk, tell you that the unemployment in Denmark is less than 150,000. That is the figure when you when you concentrate on the unemployed members of unemployment security system. The expelled ones do not exist. They did not in the Soviet Union and DDR either.

In 1933 the unemployment was 33 p.c. (the highest ever in Denmark) of the labor force (accounted in 1933). In September 1939 (when the World War II broke out) the unemployment increased 16,000, even if 20,000-30,000 were called to the military forces. In the years before unemployment had been reduced by public occupational work (‘New economics’, ‘Recovery’ or ‘New Deal’ made in USA), by exporting more to Germany, which were preparing for war, and by national debt, that means transforming more and more real capital to private capital.

At this time the unemployment were especially reduced by the Keynesian so-called ‘kickstarting’ operations. That the money was destroyed in this way did nearly nobody discover, because the war also made a new international monetary system that was based entirely on credit economy alone and and paper that is the same.

That the effect of this blind using of the theories of Keynes led to a public sector ruled by bureaucratic principles, a public sector that was a good deal larger than the things ruled by private, individual dispositions, and a colossal national debt ought to have been foreseen, but the theories did very convenient not tell this, the theories that were followed blind for 70 years. The dictatorship based on the nonsense writings by Karl Marx also lasted for 70 years. Nothing has been left to uncertainty if you look in right direction.

How should an unskilled individual know what to do? That is the reason why I got the right to vote.

A little accuracy about the between war period: 

John Galbraight still maintains the German economy recovered from 1933 by civil production, and he intend to let us believe that the German method was a kind of the so-called new economics. He seems to want us to forget a lot. In 1932 4.1 mill. Germans were unemployed. Two years later the number had been reduced to 2,4 mill. In 1998 (the election year) the unemployment in Germany with nearly the same population as in 1933 was officially 4,3 mill. The SPD-politicians just before the election to the Bundestag maintained that this number was not correct. The real or the true number was about 10 mill. (the same four years later at the next election 2002). In the late 1920s and the beginning of the 1930s the motorization came as a gift from the technical knowledge, the arming had been started, and productions and development of arms had long been going on in cooperation with the Soviet Union (unofficially). A restrictive control of the currency, tax discount tickets, and especially the suspension of the trade union wage rates was the axis of the German recovery policy from 1933.

From 1924 Hjalmar Horace Greeley Schacht was commissioner of the the Reichcurrency i Germany, later on President of Reichbank. April 7th 1924 his attack on inflation began with the decision to stop credit. This led to the Dawes Plan og August 16th 1924. The interest rate rose to the sky and the share prices were reduced to the half. With a short pause from spring 1930 to spring 1933 Schacht continued as the highest in charge in Reichbank under the Hitler regime until November 26th 1938. Schacht actually fought the deflation in Germany.

Some do still think that the way Hitler (or Schacht) went to get rid of the unemployment was to print notes. On the contrary as just mentioned. Schacht was not a Nazist, and he was highly respected in every central bank of the Western world. He opposed to Hitlers plans of war and chasing. Schacht ruled the emission of money issuing, decided the economic and monetary policy and controlled the effect. In 1938 Hitler accepted a proposal by Hermann Göring to introduce 4 years plans like the 5 years plans in the Soviet Union. At the same time Hitler intensified the chasing of judes. Then Schacht decided to go (January 1939). He was called back twice but left to join the forces fighting against Hitler.

Hjalmar Schacht got the claims of reparation, first decided in with the Dawes Plan of 1924 (after Worldwar I) reduced with the Owen D. Young Plan (1929). The original claims on Germany of the Versailles Treaty in Paris of 1919 would have brought Germany in famine with thousands of deads. All the industrial network found its way through the international lines but the ordinary germans without the knowledge of what was happening and possibility to use this knowledge went either bankructcy, lost their savings and got hungry. J. M. Keynes documentated this very properly in his excellent book The Economic Consequences Of the Peace (of December 12th1919) in which he took the Versailles Treaty apart. All qualified economists of the time agreeded with Keynes, e.g. Gustav Cassel and Bertil Ohlin and a lot of other. The year before (1918) Hjalmar Schacht wrote in his diary:

“Violence not even Money/Is shaping the World/Intellectual Power and Traditional Trade and Living/Prevail upon Worlds to Alter” (translated from German). Back to capitalization:

This process of capital formation towards private capital or out of the country is speeded up in a society where capital is a stronger and stronger condition to live in freedom and security.

“History do not repeat. Oh I see, people are becoming better and better all the time”. It is tempting to take dismantling for development, I must say. To the first sentence of the last paragraph, try : http://www.lilliput-information.com/economics/gol1/gol1.htm

But no sound production has been carried out caused by the Danish (1993-2000) public subsidy either. The money has been circulated, and the citizens still believe it was sound. But the prices are beginning generally to rise. At the same time the politicians have artificially lowered the interest rate in order to get activity to increase, and by this they stupidly hope to reduce unemployment. Instead they tempt the capital to leave the country. Let us take the subsidy (there are hundreds of issues as well):

Public subsidies draw the initiatives and the money to those areas that the politicians especially are concentrating the subsidies on. The activity then increases for some time, and the suppliers notice sales are indeed growing too. If the subsidies are increased all the time the Economy Of Command and the State Of Civil Servants grow, so does the distortion of the economic natural order. When subsidies stops or they are just not increased further all the time, the depression slowly becomes deeper and deeper, and the end result is even worser than before the subsidy. The raison for this is that politicians deal with problems that do not excist without the politicians almost all the time.

The thirties were also dominated by this subsidy-economy. New Deal it was called, in reality mostly inspired by J. M. Keynes from England. The economist who designed the Bretton Woods Aggreement. Jacques Delors, a French Socialist and the former President of the European Commission, said in 1995 that he was very fond of subsidies like those used in Denmark. Now he is a member of the Bilderberg Group.

Today company emptying is going on (much more explanation to this on: http://www.lilliput-information.com/economics/gol2/gol2.html#priv it continues while some of the authorities participate themselves in double parts. Just one tiny example more of what is going on, also in Denmark. The state issues bonds at a discount with a constant interest rate on to call in purchasing power that should have benefited the society as real capital, but that is not enough. On this route of death the fine leaders have also tried for a period of ten years now to collect foreign currency abroad in competition with all the other European debt and deficit countries by selling the bonds for foreign currency. They are tempted by the constant rate of interest and secured from collapse of exchange rates in countries they use to buy from. Loan debt in fairness is the most pressing burden.

They built on a lie, they continue on lies until they are dead. Then their fry of the devil takes over the visible power based on more fraud. “In the long run we are all dead”, wrote Keynes.

It is the same all over Europe – except for Switzerland, Ireland and Norway. The real capital has not yet been totally destroyed by war, mostly by secret abundance public consumption in the public and union foundations, much more than the highest taxation of the world managed to finance. Wage confiscation must be the right word, when the rate of taxation exceeds 50 p.c. of income – today all in all about 65 p.c. In Europe an abnormal amount of paper, and even under favourable possibilities of production it would have been a scandal to talk truthfully of prosperity at an acceptable rate employment. But Europe is even lacking of innovation, low technical level and false education at the same time they are constructing a new compulsory and political ruled currency of unit. As a result the direction of the capital formation is e.g. USA and unearned private capital. They try to protect themselves from the truth an responsibility, not as they use to say the Europeans from Globalization, in reality they believe in, what their friends the multi trillionaires abroad told them: “You shall become the real power brokers in a centralized and politically correct European Empire”

I would correct it to: Take your position in the line of Cesar, Filip II, Louis XIV, Napoleon, Stalin, Kaiser Wilhelm and Adolph Hitler.

To secure that we will not return to real life again they even transformed our children to animals. Steady and persistent for a period of 150 years: http://www.lilliput-information.com/economics/wu.html.

And that is also the reason why I look forward to (economic) Globalization without ideology, and the reason why I made some outlines of a new stable international monetary system: http://www.lilliput-information.com/economics/intmo.html

It is better for the all peoples to die a natural death than to be executed by the devil’s servants here on Earth. The natural death what so ever makes the few survivers stronger than before. The devil’s servants in contrast to this always execute the strongest.

To go further I would propose:
http://www.lilliput-information.com/economics/gol1/gol1.htm

and
http://www.lilliput-information.com/economics/tida.html

M. Sc. (Economics) Joern E. Vig, Denmark

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