Dissidentpress

April 23, 2015

GROWTH IN THE ERA OF IMMIGRATION SEEN FROM EUROPE

One key issue during the immigration era

If you prefer a pdf-version: http://www.lilliput-information.com/growth and immigration.pdf

Economic real growth:

Welfare must be financed either collectively through taxes or by private insurance, while the countries must be able to maintain and even develop their technological skills, because welfare funding sources originate from earnings. The value of the profitable production creates wage basis and tax basis, of which welfare can be funded either privately or collectively. There are no other sources.

More production to meet demand for consumption is the problem, it appears to be valid. More production requires more resources. Germany is not self-sufficient in energy resources, the UK is not in agricultural products and food, Norway has focused mostly on financial investments and homely infrastructure improvements, but invested very little of the wealth in real production outside the oil industry. What you are not self-sufficient must be purchased abroad. With econo-mies in a near standstill, there is no solution in sight that can be exchanged enough goods and services to be able to support twice as many welfare payments and by no means 3-4 times as many as in Germany and the UK.

Real growth in Norway, Germany, UK and Denmark was respectively 0.6, 0.5, 1.7 and 0.4 per cent. in 2013. Real growth is the growth in the profitable production adjusted for inflation. In the EU28, the overall real growth of 0.1 per cent. in 2013. And in the first quarters of 2014 even real stagnation.

Can sufficient difference or margin be realized by a lower level of production, implemented production in earning companies might continue at the lower level, also in terms of employment, if the best alternative is worse. The latter is not the case when we look at the situation in most of the welfare-ridden European countries. Passive return outside the production line or production abroad may be preferable. Therefore, the purchasing power flows to private capital outside the production line or out of the country. The labor-intensive company relocate in these years, and it did not come as a surprise here in recent years. It began with the increased international competition already from the end of 1970s. US and UK took the first steps to adapt to this inevitable development.

Businesses/companies do not invest due to price margins, but due to sufficient profit-making price/cost margins. The problem is not one-dimensonal, but at least two and often multi-dimensional. The economic reality is that it is the manufacturers who drive the economy forward in any country, the savings are con-sidered to be fuel in the process. Private consumption and government consumption produces nothing but maintenance of production equipment with no new initiatives, state debt (especially in a foreign dependent country like Denmark) and waste.

What consumers give out or expect from the future make no walk in the economy, but consumption maintains as mentioned the apparatus, possibly to sleep; the second has never happened and will never happen. Sometimes we hear economics commentators report that the cost of private consumption represents so many percent of the total demand. It has no other meaning than that private consumption rises even more damage to the immediate funding problems countries face with and draining the undertakings to the capital. The country’s leaders are still of the opinion that their initiatives will work regardless it never happened.

October 1996: The 1000 major Danish companies are planning to invest 45 bill. kr. and create 50,000 jobs outside the country for the next 5 years (1997-2002), reported in the study done by Monday Morning Weekly. It was the very beginning to discouragement at home. There are worrying feature at all levels of the country’s competence pyramid. Denmark to focus on creating jobs with high knowledge content. There is no future in low-wage production and ditto jobs. They will greatly move abroad caused by globalization of markets (ie competition) , as it is impossible to protect themselves against with anything other than by trade restrictions. It was 18 years ago. Workers of free travel for work is almost entirely relevant in Europe. High-IQ immigration from Southeast Asia began to USA and UK in the 1980s, and there is no more to get.

”30 percent of school leavers do not get a professional education and training (1996). Large unemployment. Criticism of content and effect of the adult educations. Increasing criticism of the folk school results. High-tech and knowledge-intensive environments is not only created in businesses, but the basis is created in the research, vocational schools and already in the early years of teaching. Knowledge intensive jobs is an end product where the quality of what goes on in preschools and elementary school, also plays a role, and in what can be called Denmark’s competence pyramid. It beginns down at the pre-school, creches, then comes Primary school, so working without business skills training, upper secondary and vocational education, higher educa-tion, public and private research, production methods in business and finally business products” (Monday Morning Weekly wrote)

November 5, 2014 survey shows Entrepreneur Of The Year, the number of companies with strong growth in Denmark has fallen by 16 percent in one year. It’s the same companies that create new jobs.

The basic problem is that we simply have no other nature granted in Denmark to do good than salt, lime, clay, a little oil, a little gas, a little farming and beaches if we do not educate ourselves by the market and IQ dictates and provides production results of our knowledge. Everything else should be purchased abroad. But sooner than many imagine it will not do to buy raw materials and other things abroad because we have become so expensive even with our goods and even much lower educated compared to earlier when goods prices are taken into account, fewer and fewer will buy the products that come out of it from here. Denmark has simply been dormant (with a few notable exceptions in business) since the beginning of 1980s under the successive governments that have promised this and that; Unfortunately, without really knowing the consequences of what they were doing prematurely and what they did not do in time.

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 accepted from high-fertile low-IQ countries/regions, of which half or less than half are suitable for training and labor: The following percentages of the foreign origins are unfit for work and education in Denmark (DK), Ty (Germany), No (Norway) and in the United Kingdom (UK):

                                                                            Percentage of foreign origin not skilled for work and education
uegn
1 January 2014 48.5 to 52.8 per cent. of all immigrants and their children in Denmark had a foreign origin in countries with less than IQ90 on average (depending on choice of birth rates in the projection model for IQ). That is, more than half are not suitable for education and work in Denmark. With IQ average of 90 or less in a group, regardless of ethnic background less than 50 per cent of the individuals in the group is suitable for education and work demonstrated by Arthur Robert Jensen (1923 to 2012). With the new projection of 6 April 2015 and proposed birth rates (CBR) of Alsagerskolen: The percentage of foreign origins with IQ less than 90 grew from 39 to 59 per cent. from 1980 to 2015 and continues steadily to 66 in 2058 and 71 per cent. in the 2072.

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 cannot 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 production 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/make it 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 go-vernment 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.

The production process in all its ramifications consists of a myriad of complex stages in earnings. The total combined cost of all these stages/levels of labor exceeds the cost of consumption in the traditional sense significantly. As an illustration, one could imagine the value of the total fixed capital stock gradually put into final consumption; it will only take place over several years. US consumer spending was estimated at only about 8.5 per cent producers’ cost of production factors and other producer goods already a lifetime ago. That is, almost 12 times greater than private consumption (here almost 12 if 8.5 per cent carefully assumed). What is spent on consumption – private and public – come from the production, while production comes from capital (including the cost of factors of production, in which wages would include central), as in the first part comes from savings. Therefore, it is the case that more savings the more ca-pial is formed and accumulates in order to produce, and there can then be consumed more. One could abide by the following fact: government spen-ding and private consumption do not stimulate, but drain the economy. This is true whether you find these expenses and/or consumption righteous.

EDP created international competition from the 1970s – a comparable if not similar competition upheaval in the 1800s was better prepared.

The agricultural crisis in the 1800s was in one way bigger and more important for Europe because absolute dominance of agricultural activity in the occupational structure at the time when the cheap grain from the United States, because the hard steel-manufacturing process via the bessemer method and the puddling sub-process became possible, resulting in super sturdy rails and thus just because of that far low freight rates from the US Midwest in 50-tonne trucks for disembarkkation ports. 1800s European agricultural crisis was also larger than we today might imagine, but at the same time the initiatives for the necessary restructuring chan-ges (including for livestock production) in Denmark were taken by the farsighted/lucky leaders who began agrarian reforms in the 1700s. This time the responsible has not been willing to listen to farsighted and insightful, but guided blindly by an ideology devoid of rational sense.

Inventions promote living conditions – ideologies hinder them.

J. E. Vig, M. Sc. (Economics)

11 December 2014 and 6 April 2015

May 8, 2014

THE COST OF THE MASS-IMMIGRATION TO EUROPE

fahne Danemars
Politikerin-von-Somalier-ermordet

Sources:

Switzerland, short facts:

Was die islamische Immigration Europa kostet – Eine Abrechnung mit einem Mythos – Beispiel Schweiz og

Concerning Denmark Daniel Pipes and the Dane Lars Hedegaard have given some information: New York Post. It tells among other things about 4 per cent. ‘Danish Muslims’ consume 40 per cent of de Danish sociale consumption [and this certainly is not true, as muslims are not counted in any Westerb country, we can tell, and we inform the about 11-13 per cent of those living in Denmark in 2013, originate from a islamic dominated country or area.]. We correct this below.

Was die islamische Immigration Europa kostet – Eine Abrechnung mit einem Mythos – Beispiel Dänemark

schweiz

Switzerland:

„The welfare was made for the Swiss native, but it is used by foreigners. The Swiss social state has an immigrantproblem. Investigations show that 80 per cent of the social services go to foreigners, to asylumn seakers and people that recently have become Citizens of the country. [4] [1]

The share of employed immigrants was 53.4 per cent in 1990, but 17 years later (2007) is was 30.2 per cent. In plain text : 70 per cent of all foreigners, that immigrate to Switzerland turn directly to the welfare. [2]

Social benefits : 43.7 per cent to individuals of foreign origin. With a share of foreigners in the population of 20.5 per cent the risk of becoming a consumer social welfare is higher than that of the Swiss natives. [7]

„But the immigrants have neither language skills or the working skills with them, and they are not prepared for further education, to Men indvandrere har hverken sprogkundskaber eller arbejdsudddannelse med sig, og er at videreuddanne sig passende, let alone ‘to become integrated’. Unskilled labor without language skills are in the specialized labor in Switzerland hardly a chance.” [8]

„Thanks to our generous social systems often lack an incentive to continue with further education or to intensify job search in global labor markets. In Switzerland, we can not move relatives or spouses who (in many countries) to pay for the unemployed, but unemployment insurance and social assistance – and thus the contribution and taxpayers. The result: the proportion of foreigners of welfare recipients in Switzerland is above average and is growing steadily. Relating the foreigners who account for a proportion of the population of 20.4 percent, 43.8 percent of social assistance and more than forty percent of (Hartz) IV-services.“[9]

[1] Roger Köppel: „Zuwanderung in die Sozialsysteme“, Kommentar in: Die Weltwoche, Ausgabe 14/2007.

[2] Adrian Amstutz, Nationalrat: “Ausländische Sozialwerkplünderer gehören ausgeschafft” Die “Balkanisierung” der Sozialwerke, in: Radio Kempten, 9.8.2007.

[4] ebd.

[7] Schweizer Bundesamt für Statistik.

[8] Adrian Amstutz: „Die “Balkanisierung” der Sozialwerke“, Schweizerzeit Nr.22, 7.September 2007 (http://www.schweizerzeit.ch/2207/sozialwerk.htm)

[9] ebd.

Demographische Bombe: Zahl der Muslime Europas explodiert

“Were there all 600,000 Muslims in Europe in 1945, there are already over 50 millions. The Lisbon Treaty, Europe has committed itself to receive additional 50-100,000,000 Muslims in Europe. Within 2050. Mostly from North African countries. But increasingly the regions in the so-called black Africa or Central Africa and Equatorial Africa south of the Sahara. 90 per cent of all since the 90s of last century, who came to Europe as immigrants were Muslims”.

In southern France, there are now more mosques than churches. 30 percent of the French population to 20 years are Muslims. In Nice and Paris, whose share is already 45 percent . 2027 20 percent of the French population will be Muslims. Within 2050, France being an Islamic republic. In the Netherlands, in 2025 half of the Dutch population is Muslim. In England it was growing Muslim population in the last 30 years by 30 times from 82,000 to 2.5 million. Mediator has spoken to over 1000 mosques – many of which were previously churches. In Belgium 25 per cent of the total population was already Muslims in 2010. 50 per cent of all newborns in Belgium already Muslims …”

……………………………………………………………………………………….

Danmark, Tyskland, Sverige:

– Welfare consumption in Denmark: 30-35 per cent of the welfare expenses was used on non-Westernes in 2010. In 2010 that was 226-266 bill. kr. of a total of 752.

– In Germany was consumed in 2011: 28 per cent of alle social expenses on immigrants and their children: 2011 that amounted to 131.4 bill. EUR.

– In Sweden consumption of social welfare in 2012 showed a share of 57 per cent on immigrants and their children with I Sverige forbrugtes i 2012 andelen af samtlige socialbidrag 57% with an over-representation of 7.1 times. I 2007 290 bill. sv.kr. corresponding to 22.3 per cent of total tax revenue of 1300 bill. sv. kr. in 2007.

– In Norway Næringslivets Hovedorganisasion
has given af press release, as a bomb under the information of what the immigrantcost officially should be in Denmark. Danish official reports has estimated expenses to 15.7 bill. kr. per year. The Norwegians has now estimated the Norwegian expenses to about 60 milliarder n.kr. i 2011. But this has to be wrong, because Norway has much more immigrants than Denmark although more employed.

– France consumes ar least as many Euro on the project as Germany does.

and we have just concentrated on the econonmic all destroying.

Bruxelles, Antwerpen og Amsterdam has been taken. Belgien og Holland are taken 2030.

—————————————————————-

The ideologies Liberalism and Internationalism reached concensus:

The liberales would have the tax-based welfare system abolished even though they have aggreed introduce it. Internationales would have a new dictatorship to aime for, after the Sovjet Union collapes. If it should be clergy dictatorship with a new legal religion did not play a role. None of the influential players understood that every ideology is as any other ideology. …or did they?

J. E. Vig, 2. februar 2014

October 30, 2012

Europe Schaffs Sich Ab

Turks in Germany gives no meaning if Germany has to compete internationally

http://www.handelsblatt.com/politik/deutschland/studie-erheblicher-geldverkehr-zwischen-deutschland-und-der-tuerkei/7319120.html

Turks in Germany/Türken in Deutschland

57 procent of questioned have private income/”57 Prozent der Befragten verfügen über ein eigenes Erwerbseinkommen…”
[…]
“Almost every second Turk in Germany shows, moreover, to have real estate in Germany and Turkey. Any third party operative like immovable property in Turkey. “These values underpin the desire of many Turks after a security in the event of return to their homeland …”/
[…]
Even of those who received transfers in Germany, more than a third of real estate, 16 percent in Germany and 27 percent in Turkey could./
“Fast jeder zweite Türke in Deutschland gibt überdies an, Immobilienbesitz in Deutschland bzw. der Türkei zu haben. Jeder Dritte verfüge dabei über Immobilieneigentum in der Türkei. „Auch diese Werte untermauern den Wunsch vieler Türken nach einer Absicherung für den Fall der Rückkehr in ihr Heimatland…”
[…]
“Auch von denjenigen, die in Deutschland Transferleistungen erhielten, hätten mehr als ein Drittel Immobilienbesitz, 16 Prozent in Deutschland und 27 Prozent in der Türkei.”

Half of Turks are not skilled – The German avr. IQ is 99:

May 18, 2011

The Norwegian Employers Association calculates almost as badly as I do

‘The Norwegian Employers Association calculates almost as badly as I do’

Source: http://www.nho.no:80/article23322.html

Næringslivets Hovedorganisasjon in Norweigh has publiced a press release that almost is something ‘not suited for the net’ under the system with information that totally (let’s say) undermine the official Danish immigrants’ costs. Twice the Danish official reports and also recently estimated the costs to less than 20 billion DDK yearly. Now the Norwegians have calculated the costs concerning immigrants’ load in Norweigh to about 60 billion N.kr.

[take into account that our total public budgets are at least 20-30 times smaller than the budget of USA]

……………………….

It is more than most peculiar taking into account that children born in Norweigh and naturalized is not included in the calculation (that alone shows that 60 bill. N.kr. does not do it), that has become custom all over the Western hemisphere. Add to that a much smaller number of immigrants and their children in Norweigh compared with the number in Denmark. In addition immigrants in Norweigh much more often are employed compared with those in Denmark.

Danish net expenditures concerning immigrants

Precisely five years after we began the blog:  http://Danmark.Wordpress.com   

Thank you Norweigh: http://www.youtube.com/watch?v=LUtiIMZIVOU

May 18th 2011,

 J. E. Vig, M. Sc. (Economics)

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

February 9, 2010

Day Of Denmark – Day Of The Western World

The time is characterized by form without contents

In addition

Praeterea censeo….

NO CLIMATE CHANGE CAUSED BY MAN
Link: The Great Global Warming Swindlehttps://www.youtube.com/watch?v=52Mx0_8YEtg
Shown as clear as the day in 2007 (click at the arrow above)

January 14, 2010

Economics: The Brief Truth Primo 2010

The industrial production is continual decreasing, lately with a slightly lower slope, and the same is happening distinctly with the world trade in 2008, 2009 and 2010. Protectionism is very tempting to reach for, and the omnipresent cult of environment and climate freeze more than it loosen for the new perspectives including the reorganization to the international competition in the Western hemisphere.

In addition all these initiatives started to end up in the financial crisis, subprime loans and more debt, grants, easy money and easy credits, negative interests continues unaffected. Debt and insecured liabilities and continuous official expectations about higher taxes underline what certainly does not have to be done. The last-mentioned is in force in USA, Europa and Japan, Japan with 20 years recession and old- perhaps neo-keynesian errors of judgements has ended in deflation. It is not much better in Europe. No, nothing point to the right direction as matters look like right now in the beginning of 2010, regardless the share prices shortly showed small local increases over time in the beginning of 2010.

40-50 years of excesses and more than 10 years of loose monetary policy with consumption-economics and hot air bubbles first in market of shares then in market of properties are not nullified in a couple of years. The Keynesian or if you wish the Neo-keynesian treatment is still in front at the mainland of Europe:’The more the households consume the poorer they become, the more the states consume the richer we all become’. With a South- and Eastern Europe put away to Jericho under the regime of Euro, the defending rises of interest from EU, trade obstacles and other kinds of protectionism (the capital flow east- and westwards, and the inflation threatens Germany and France), starts a downward spiral leading to a collapse combined already with deflation in the one half of Europa and an dawning inflation in the other (including France and Germany).The alternative is even more issued means of money, bigger consumption, higher taxes, zero interest and more debt upon the mountain of debt, and this make everything even worse: ‘The patient should not have more of the drug that already made him ill’.The last relates naturally to the fact that some of laws of economics are almost natural laws.The ruling and media have completely missed this, because they believed on and in this world and in unresponsible of the agenda.

The gold price approaches $1200 per oz. from a price of $250 in 2005. And the gold market is not like any other bubbling market as those of shares and property, as we had to hear from the media, and not even just the breeding ground of the speculators. If this price rise of gold continues stronger inflation must follow, and the collapse we have seen until now is then just the summit. The problem is that insecurity at both the market of real production and at the market of currencies almost forces the investors to go for gold, provided the means must be easily and quickly to realized.

Remember, when the retarded dolls in the media report their advises of investment, always to do precisely the opposite. Everything has an end, and the latecomers are the majority, they are the ones to pay for the game always. Do you remember the bubble of share market created by sailable paper and of course false or no real expectations, almost in the style of Bernie Madoff. Once in August 2001 you could read in the papers: ‘Let the children, indeed’. They were invited to invest the savings in the share market. ‘Everything went so well, and we became and shall become very rich’. And it was a lie. ‘More speculation, please’ was the title of an article in Berlingske Tidende. Apart from the title the article contained just empty nonsense, it was without any useful information.

I suppose a majority at the summit expect the problems with a new and for a long time needed international monetary system solved by imposing some kind gold standard. But this has never been the solution to the selfmade problems, and a continuous rising gold price will show, where we really stand when it comes to inflation, unemployment and state debt, but the gold standard is just meaningful in an extremely expanding world economy, as under the birth of Industrialism, and it will make everything worse today, when it is artificial draged out of its historical context, because lots of people cannot look at two phenomenons occuring at the same without to imagine a connection of reason between the two.

A real globalization of all markets naturally demands a new globalized international monetary system. The leaders of the world have to agree upon not ever in the future to be able to choose the easy way out, and at the same time impose a substantial limit the possibilities of speculation that truthfully are pure by-products of those professional-politicians-choises of the easy-money-way out.

14 January,  M. Sc. (Economics) J. E. Vig

September 26, 2009

Thw World’s Happiest People Is The Danes

http://www.berlingske.dk/article/20090925/verden/90925002/ (in Danish)

“Danes world’s happiest people

because we have ‘free healthcare’

A popular American television host claiming that Danes are the world’s happiest people because they have “free health insurance,” and it has been outrage. Smiling Danes because of socialism?….”

————————————-


We love to be underestimated:

We may add that it is free to join the ambulance and it is of course free to be treated in hospital. The reason is doctors, ambulances are free  and nurses and other health workers in Denmark are working as volunteers or slaves, what means they receive no pay. That is why it is free.

Yes, we have a tax-financed welfare system, with metastases to all corners of life, and the latest is that the wealthy get a new environmentally friendly roof on the house with a subsidy from the State, namely the monetary transfer from agents with little purchasing power, the state has no money other than those the state itself issues out of thin air.

It has been the way in Denmark for two generations now, and we hoped Larry King also would pay attention to the results, before continuing the adventure story of this unreal community lifestyle that Danes never asked for, and which therefore has now been thoroughly tested on reality:

http://www.lilliput-information.com/engvelg.html (English version)

http://www.lilliput-information.com/velg.html (Danish version)

The results certainly have materialized. So far. Be so good to eat.

April 16, 2009

Predictability and responsibility, ruthless optimism and blind self-sacrifice

tarski

Predictability and responsibility,

ruthless optimism and blind self-

sacrifice

Jehu Lentius – 2.12. 2008

Dansk version

Let us add some own reflections about this ‘baby boom’ phenomenon, by some naivists seen as a welcome and beneficial rise in the ‘European fertility’, by others as the ominous first stage of an accelerating replacement of the British population by another one, i.e., mainly by Muslims and other Third Worlds immigrants.

To make own calculations we must understand that, if the ‘maintenance’ fertility of a population at 2.1 means that the population remains roughly constant, then a fertility of 1.05 (the lowest fertility within the EU is near to 1.1, the average at 1.4-1.5 1)) means that within a human lifetime (about 3 generations) the population will shrink to 50 %, which not necessarily is a bad thing in one of the world’s most densely populated region. But it is fatal, if at the same time and in the same place an Oriental fertility of 4.2, which means a doubling to 200 % instead, takes over. It is fatal for the European culture, for its wealth, for its freedom – it is just the often warned-for way into dhimmitude.

The situation of a rapidly shrinking population means in principle that the normal ‘pyramid’ of a rapidly growing population, 2 parents, 4 children and 8 grandchildren, is turned around: 4 grandparents have 2 children which have 1 grandchild. Western Europe’s endogenous population is today half-ways into this situation and has to be cautious to stay in control of its own fate. Instead, it is embezzling its demographic achievement (of peacefully coping with its own overpopulation) by importing the Third World’s potential for marching straight into the ‘overpopulation trap’, which for underdeveloped populations seems to be unavoidable, when only voluntary means are applied (see the significant difference between India, Pakistan and Bangladesh on the one hand and China on the other).

If Muslim fertility is threefold the fertility of non-Muslims (as it is in Britain), this population exchange will pro­ceed surprisingly fast, faster than in many other countries. You may study the curve for France, calculated for actual reproduction (= fertility) rates of 1.4 vs. 3.8 in the chapter about France (page xxx): The same process in Great Britain could be even faster. The ‘break even point’ for France is about 2087 (or earlier) – the one for Great Britain could come around the same time. The prediction by Bernhard Lewis that Europe will be Islamized at the end of this century (2100), which is doubted bay many naivists, could turn out to be still optimistic. What world do we, by deliberately importing Muslim fertility into our own countries, hand over to our grand­children? A giant Gaza North Bank, a British Waziristan – or just a giant European Libanon? Is is possible that the World will see both ‘The Balkanization of the West’ (Stjepan Mestrović), ‘The Disuniting of Europa’ (Arthur Schlesinger jr), ’The Clash of Civilizations’ (Samuel P Huntington) and ‘Eurabia’ (Bat Ye’or) come true, and all four processes happening on the same European ground. The resulting deluge of exilants and refugees will be appalling. The prospects that America, at that point of time, still is a safe heaven for Europeans are bleak. Maybe the waves of fugitives will seek their way to the Eastern countries of the former Soviet block, so long protected by a ‘blessing in disguise’: their long-standing lack of economical and political attractivity, inflicted by the short­comings of communism and its totalitarian ruthlessness. Which we can study in Chechnya, boostered by events like the Dubrovka theatre siege 2002 (at least 170 deaths and 700 injured) and the Beslan school massacre 2004 (at least 385 deaths and 783 injured).

In Dutch Utrecht, lately, the prevalence of immigrants was around 30 %, of children in school around 50 % and of newborn 70 %, which is among the highest in Western Europe. You need not study mathematics or statistics to conclude that this some day in the near future will be the proportion of adults in Utrecht. Their newborn rate will then exceed 90 %. (That was – exactly! – the fate of the Egyptian Copts and of many other religious min­orities throughout the Middle East and many other Islamic realms.) For the liberal modern countries in Europe with open arms for the sufferings, the conflicts, and the misery of the developing World, time is of the issue. Indeed, it’s already running out. The laws of nature work merciless.

One option is surely disastrous: If we will remain passive and allow the problem to culminate as it has done in some 30 countries around the world, today torn by civil wars and terror, we will never be able to find a good ex­cuse. Those who cause, permit or – even worse – facilitate this crucial demographic and even social, cultural, political and developmental shift, shoulder a tremendous responsibility. Especially, because by doing so they ignore their own highly concerned peoples’ explicit will. This is shown by poll after poll all over the Western world. Therefore the people self will not be asked any longer and to respect their opinion will be denounced as ‘populism’ (a remarkable critic, as ‘populus’ in Latin means the same as ‘demos’ in Greek.).

I suppose there is no other way for the concerned European countries, threatened by the loss of their sovereignty and their freedom, to stop this detrimental process than speak out their will louder and louder and be free, resp­onsible and courageous citizens, impossible to overrun by their own governments, blinded by goodwill, seduced by illusions, corrupted by their own ruthless optimism and suffocated by their ill-considered, unlimited and self-sacrificing social pathos.

Sonia

My comments:

1) According to EUROSTAT the total fertility in the 15 EU old countries and in all the 25 EU countries was respectively 1,46 and 1,49 i 2004. This implies that the etnic European fertilities range from 1,0 to 1,1. This implicates further that the development runs about 40-50% quicker than described in this article. 

The last question is certainly the most alarming concerning the quantative persepctive that nobody has dealt with outside Denmark. Unfortunately I cannot get closer to the source. I can say that the substance of this article matches almost precisely with the results in readings concerning Denmark and Sweden on http://Danmark.Wordpress.com .This could indicate that the mathematics behind the calculations leading to the results might be ok.

WHO KNOWS THE AUTHOR AND WHO WILL FIND THE SOURCE?

 

Complement on fertility in Danish: http://danmark.wordpress.com/2007/02/05/antal-boern-og-fremmedandel-der-lyves-groft-herom/

Complements on fertility in English:

www.lilliput-information.com/ferteu.html

2. lilliput-information, knowledge of and solutions to problems within the subjects…
Assume for a moment that the increase in fertility from 1.14 to … immigrant-group and continue the fertility-pattern of this group for … 1.14 is the fertility among the ethnic Danes
http://www.lilliput-information.com/engeuarb.html

3. lilliput-information, Information of Denmark, immigrants in Denmark,fag
Provisional comments to newest investigation of fertility among immigrants in … demografic parameter of fertilityamong foreign women immigrated to Denmark. Fertility is the average
http://www.lilliput-information.com/engfer.html

4. lilliput-information, knowledge of and solutions to problems within the subjects…
English comments to the investigation of fertility among immigrants in … demografic parameter of fertility among foreign women immigrated to Denmark. Fertility is the average
http://www.lilliput-information.com/stati/hyp.html

5. information of Denmark, engsamm.html
The fertility is the number of children … that lead to the small fertility-number 1.2-1.4 … of foreigners, and later on the fertility has most likely fallen further. International
http://www.lilliput-information.com/engsamm.html

6. lilliput-information, Information om Danmark, fremmede i Danmark, fertt.html
com/italy/life_and_customs/persistent_drop_in_ fertility_res.htm : “. In no … 1.67 if the fertility of women born abroad … in order of Total Fertility Rate (children): Rank Country
http://www.lilliput-information.com/fertt.html

7. lilliput-information, knowledge of and solutions to problems within the subjects…
estimating the demografic parameter of fertility among foreign women … calculated by U.N. Fertility is the average number … assume the idea that fertility among the foreigners adjust
http://www.lilliput-information.com/fert.html

8. lilliput-information, knowledge of and solutions to problems within the subjects…
pageid=1089,47613132&_dad=portal&_schema=PORTAL&mo=containsall&ms=fertility&saa=&p_action=SUBMIT &l=dk&co=equal&ci=,&po=equalπ=,) , estimeret til 1,28 hos CIA for 2005 (http://
http://www.lilliput-information.com/euarb.html

9. lilliput-information, Information om Danmark, fremmede i Danmark, forch.html
Total fertility in Denmark (a very small country of 5,447,084 inhabitants all in all) is officially reported to be 1.75 child per women. When the most foreign immigrants give
http://www.lilliput-information.com/forch.html

10. lilliput-information, knowledge of and solutions to problems within the subjects…
international competition, the low western fertility, therefore the ageing of the populations, the weight of the welfare system compared with GNP, and the still increasing state-
http://www.lilliput-information.com/engvelg.html

January 12, 2009

We may experience a change – perhaps better times after all

 

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We may experience a change – perhaps better times after all

A war of terror is perhaps too difficult to bring to an end without too many limitations and lost of citizens rights.

Right now the sheep are being separated from the goats. The split of Jew haters and Jews supporters may be the first step. When it has been going on for some time the violence will increase. The split we experience will of necessity naturally spread to the whole of Europe.

This must lead to split of EU on the real or the concrete level, no longer on an ideologic phrases and general camp following including new-Mercantilism and Eurabia.

Ideology gathers, but reality spread.

Earlier we actually have heard tiny peeps about an Europe with much less USA-involvement or without speculators’ involvement from the unknowing-parrots who have not understood that especially such a system has basicly been made by themselves.

They and their predecessors have even done the same time after time, but most of them are historyless and just blinded by their own power positions or ideologic dreams about an abstract future, yes, then they don’t expect the big pendulum of history that always returns, because it is the same people, the same human characters that  make the mess every time. In addition they even have abolished the human characters via Etic Order, and created a new man to consolidate their power or secure themselves.

Ideology, Etics and Politics had to be melted together, two generations at the summit claimed, because they got their will by using their brains without wisdom.

Perhaps it shall give the necessary result that will show itselves if it does: war of terror and treachery may perhaps be turned to a frontier war, where the enemies know each other and respectively their real alliances.

This war can then be won.

J. E. Vig, Denmark

September 18, 2008

The Collapse is Coming

 The Collapse is Coming

It happens almost just once in a lifetime, so the possibilities to experience are few. It will be even worse this time. The collapse is caused fundamentally by the human characteristics, when the morales and ethics disappear from the top to bottom.

 

Professor L. v. Birck wrote 1922:

 “We live in a world, where the ‘machine of state’ that really should lean us selves against, is weakened in its foundation. It is hated by the rich an just tolerated by the poor. In Germany and Austria the holders of the economic power of society the organized capital that is considered to destroy the parliamentarian so-called democracy and the state influenced by the people to take the power itself. In United States is the conflict between the political and the economic postponed for the time being, as the political power by the latest presidential election has fallen in to the hand of an oligarchy (a rule of the few). Everywhere you find the sign of the powerless stat, and the possibility to establish the power outside the state and without oligarchy seems far away for the moment.” (quotation from ‘Denmark and World Crisis’)

 

Professor L. V. Birck also wrote a lifetime ago:

“The middle classes was short-sighted, it would not save the system they were place in themselves and get rid of all these amounts of paper that threatened the economic system that support the middle classes.

 

Does history repeat in some version when you are not allowd to learn from it?

The same happening today in much wilder speed

 

How inflation and speculation become possible, and how they are accelerated:

The private limited company was not really widespread until the 1800s. Also the bank houses of the Absolute Monarchy (which ruled in most states) were businesses owned by one man or by partners. The private limited companies are introduced en mass in the 1800s. Thereby you have to distinguish between physical and juridical persons, and at the same time distinguish between the responsibility of a physical person and a juridical subject. It was not my task to analyze the laws of private limited companies in different countries, but to show how the clear advantages of the private limited company turn to disaster for the society under the industrialism and the so-called democracies from the mid 1800s. All laws concerning the private limited company in the different countries are partly different, but a lot of the substance, of the rights and the responsibilities are rather common. Definitely common to such a degree that a rough outline will be described here:

 

The theory or principles of the private limited company: 

A juridical subject with its characteristics and rights. The private limited company gets a private life that has to be protected. Here the deciding is its position as owner of a business, its protection, and its free access to profit. The company owns some real goods, factories, land and products. The share holders are directly related to those goods, because they look upon themselves as members of a co-operative society, and because the business of the company was not bigger or more distant than they were able to keep the information up to date. The stocks and shares and share certificates were pieces of evidence for a certain share of the real goods of which revenue and profit were made. The participants of the circle of share-holders share interest of certain common aims. That is the reason why they join their efforts, and because each of the share-holder is not economic strong enough. They appoint some  participants – the biggest share-holders – to form a board of directors that appoints a director/a president, sometimes among the members of board of directors. In this way the board becomes some kind of a deputy for the shareholders; the board has some duties to the shareholders. It is not without some functions, but its whole existence is caused by the private company. The shareholders are in a way a kind of managers who are acting via delegation, but they feel and certainly have a responsibility, even outside economics.

 

The interest of the shareholders are certainly not profit due to appreciation, and he even feels some kind of moral responsibility that his goods must work in a honest pro-duction, not even the profit of the year is of his primery interest. The share-holders’ relation to the company are lasting, they do not sell the shares, the price of the share is just of interest in connection with inheritance or if misfortunes forces him to sell, and share is often solid fixed for life. The legislation concerning the private limited company was introduced several decades after the private limited company had become wide-spread, and describes the private limited company just as I did here. The task for the legislation then is to regulate the relations between the share-holders, to protect the minority and secure that the capital of share-holders is present considering the credi- tors. Gradually a breach of confidence from the board of directors from the management appears, and legislation then set up some common rules on documents of general meeting, on the authority of the company, and on some duties of the board, often expressed very vague.  

 The reality of the private limited company:

Reality does not correspond to this idyll. Life has denied the thought that the private limited companies are just another kind of tradesmen. It has become a social organi-zation, created for the advancement of some productive tasks. It is like a municipality, it has a long duration, longer than the life of an individual, independent of the share-holders, the board of directors, the management, the labour. It is an expression of a wanted co-operation. It is something in itself, and it gets itself means, management and labour. The most obvious differences between the municipality and the private limited company is the way the organization is managed, its protected acces to profit, and in the advantages of whom it is working. The tasks are often different, but they don’t have to be. The company is not working primary to satisfy neither the shareholders’ need of profit nor the need of the board of directors to get higher salaries.

A company does not have a private life or soul, nobody that can go to prison and no reputation that can be sullied. In principle it is irresponsible and amoral, because it is just an idea when all is said and done. The tangible is its capital – that is limited and divided – but have to be present.

The share-holder has stopped being a manager, the intense connection between him and the company and his pointing out of his friends and good connections to the board of director has come to and end. He gives nothing to the company but the amount of capital represented by the share. Often he has not bought the share by subscription but from another share-holder. He has been reduced to be a lender, he is almost on the same footing as the owner of a bond.

 

This is underlined by the divided shares in different categories, preference-shares with cumulative interest, and ordinary shares with varying interest, and we have the share-bond, and the preference-bond which is a transition to bonds. We also have the deferred sharethat does not yield profit from the moment it is issued. Some improvements have to take place, for example in the organization of sales or in the degree of monopol before profit is received. In 1926 France and Belgium consolidated the loose debt in form of state-bonds that supplemented the fixed interest with a share in the profit from state-railroads and state-monopolies. The company’s capital originated from loans, and in this way the primary difference between the share and bond disappeared.

The share is a borrow evidence with a varying interest and second-rate security and second-rate legal position, while the bond has a fixed interest or yield, but first-rate security and first-class legal position. Often the bond-capital represent the real values. The preference-shares often represent the most likely profit-possibility and the ordinary share the hopes. By this the share has stopped being a real evidence of some shares in certain real goods. It has become a letter of right to varying profit, which value has to be dependent of the amount of profit, its duration and security compared with the general rate of interest. In this way the varying price of the share is getting the primary interest, and speculations in the changing price is becoming the deciding foundation for the owner.

And remember that the right to vote at the general meeting has also been split-up following the splitting-up of the capital. The share has then been detached from its basic, the real goods of fortune that produces and at the same time (but in reality pretty independent of this) also yields profit. It dismantles further, and the “hot air-process” follows.

You will understand that the share-holder to a high degree has been separated from the business, from where he gets his profit. The example from the French railroads was just an illustration. There are numerous ways.

The worst happens when the public creates private limited companies or join those, and steal the majority with new-printed notes. Notice, some convincing justifications have always been carefully chosen in advance.

Anyway the holder of the ordinary shares will have difficulties to judge anything, and as a difference of a few percents in the company can lead to a doubling of the profit for the ordinary share-holder or totally disappear, and as the board of directors and the management know the total profit long before the share-holders, the last mentioned has actually been separated from the company.

But when the company – inspired by all the new capital as we shall explain below – that has to make an effort to yield interest, to make things effective (or monopolize) make business-fusions vertically and horizontally, then the trust (and the public control or lack of the same) has been really introduced to control what will happens then? Now the share-holder is just a lender, whos position is unbelievable weak.

The share has now character of the paper of gambling. The share-holder cannot monitor the distant company that really produces: “I, who own a share in a London finance-company that owns shares in South American diamond-trusts that owns shares in individual mines” has no means to know anything of the production and prospects. I have to buy after haven listen to rumours, and I sell I panic. I have no human interest together with real producing units in the company. Everything is unknown. You listen in City that they expect a certain profit next year, I have no interest in honest work anymore. The share has become a lottery ticket.

But the share is not even owned by somebody. Through margin-payments you can “own” a share by paying one tenth of the price, perhaps less. The stockbroker or lombarding bank is in reality the owner. What is turned over is just the one tenth I paid. In this way the interest in the business is reduced further and my interest in the price of the share overwhelming strong. The trade-off between the interest, price-differences and the lending interest rate in the bank is what concerns me now.

The share-holder has stopped being a share-holder in the original sense. He has nothing to do in production. The non-speculating holder of share certificates, who owns and has paid his share entirely and has the share for years, has gone.

If you look at the administration of the company, you find share-holders at the general meeting who are entirely unprepared, and know nothing. The accounts are at best opaque, and often uncorrect. The share-holders are simpletons as lambs and are under normal conditions forced to be meek as such, because they know that critics of the management of company are going to press the price on their own shares. The share-holders therefore are incompetent to give their votes with any sound reason. But most of the votes given at the general meeting are not those of the non-speculators. The shares have been used to borrow money, and the right to vote has been transferred to the bank, or a group of finances by means borrowed in a bank which take possession of the majority of shares by the famous ten percent payment, or the board of directors take the power by buying the majority of shares in the days before the general meeting. The board of directors whos interests are not those of the company, and its actions are dictated by objectives that do not concern the running of the company and a reasonable management. The management is not a crowd of non-speculating representatives of shareholders. It has been elected by a group of power that certainly do not own the capital, but it has been able to pay just the tiny bit of the price of shares in majority. Often the financing bank – that has financed the majority – points out the management of company. Often the capital is simply owned by savers in the financing bank, without they know it and can have their legal right. The group of finances is certainly not the old type of share-holders and does certainly not represent those. They are professionals with means not owned by themselves, they act as irrelevant self-licenced masters of industry and are possessors of the community’s capital. The management that is not dependent of the board of directors leads to the fact that the management cannot act in the interests of the company in the long run. It has taken what the bank or financing group wanted, and seldom it is in the interest of the company.

Source: http://www.lilliput-information.com/gol2/gol2.html

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

History: http://www.lilliput-information.com/truth/app3.html

Might it be prevented better in the future after the war: http://www.lilliput-information.com/intmo.html

 

J. E. Vig

 

April 29, 2008

The longer they stay, the bigger the number the more crimes they commit

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The longer they stay, the bigger the number, and the more crimes they commit

Danish version

“Every fifth male descendant of immigrants got at least one sentence in 2005. It’s more than twice as many than among Danish people in the same ages…”  
[…]
 
“22 p.c. – more than every fifth – of male descendants of ages 20-29 years old was convicted for one or more crimes in 2005. The corresponding number for etnic Danes in the same ages was less than the half, 9.8, while 12.5 p.c. of the young immigrants were convicted…”
Today reality is precisely as we have described it to become twenty years ago, and latest a few years ago: The longer they stay here, the worse they become, the average number of births a women rises, they speak our language even more imperfect, and they are more unemployed and more active concerning crimes in second and third generation compared with their parents. We have at least six good reason for counting the immigrants correctly and place the responsibility right: 

Six good reasons: http://www.lilliput-information.com/six.html

If it continues apparently without any sense of reality and rational reasoning for more than 1-2 years more, and it is not then turned upside down to repatriation Europe’s way into Dark Ages has definitively been chosen by roadmap-marionets who in reality rule this country and Europe.       
 

Complement: The Problem with Islam in Europe: 


 

 Danish women should especially think carefully

Danske kvinder skal tænke sig allermest om:


muslimrape.gif

 
 

 

 Sonia

April 27, 2008

Europe On Its Way To Dark Ages

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Europe shall be darkened –

the political leaders have sold their souls to the oil producing Arabic countries

(new updated version from the original of 5. Mars 2006)

Europe and Islam now and in the future according to numbers

Norway has made its official population forecast 2006 – still without any most needed correction. There is no correction in Sweden and Germany either. The be able to quantified the problem is the basic for any debate. So we hear about numbers that are declining all the time – but it’s a lie. In Denmark you read in Jyllands-Posten 9. August 2005 that the number of foreign citizens begun substantially to decrease from second quarter 2005. All in all we ended up with an official fall in the number of foreign citizens even though the rise of number in a politically incorrect analysis was (numerically) more than three times larger. When you look at the number of foreign citizens in the official accounts, the number of naturalized has been subtracted year after year. So if the number of naturalized exceeds the number of immigrants in a given year, it looks as if the number of foreign citizens has declined and the influx has turn to outflow. This phenomenon has been continuing for years. In Denmark we made a correction and got a politically incorrect but more accurate account.

Perhaps the simple truth after all is too complicated for reporters:

“The camouflage from the number of naturalizations by law just exceeded the number of new immigrants”

The demographic development In Norway : http://www.honestthinking.org/no/pub/HT.2005.05.15.OJA.Bakgrunnsinformasjon_for_artikkel_om_SSB.html (in Norwegian)

The future population of Norway :
http://www.aftenposten.no/meninger/kronikker/article1209423.ece
http://www.meforum.org/article/337 (in Norwegian)

Sweden has Islamic majority about 2050: Report on researcher Jan Lindh’s results: http://danmark.wordpress.com/2006/06/20/svensk-forskerne-svenskerne-i-mindretal/ (in Danish)

A crescent over Europe?
http://www.afa.org/magazine/July2005/0705europe.asp

On the German blog Politically Incorrect run by Stefan Herre we read this entry on the theme: “The Number of Muslims in Germany” with an answer from the Mideast expert and economist Hans-Peter Raddatz: http://www.pi-news.org/2007/10/stefan-herre-about-the-islamization-of-germany/

Europe and Islam: Crescent Waxing, Cultures Clashing: http://www.twq.com/04summer/docs/04summer_savage.pdf

Islam in France: The French Way of Life Is in Danger :
http://www.meforum.org/article/337
From Holland we get positive comments on : http://ayaanhirsiali.web-log.nl/ayaanhirsiali/2008/02/newspapers-repu.html and http://nekklachten.web-log.nl (in Dutch, German or English)

Denmark got the possibility to correct the false numbers of immigrants and their descendants:

In 2006 the number of naturalizations by law for 26 year divided on former citizenship suddenly was published by Danmark’s Statistics.

That lead to correction that shows the official number of most foreign immigrants had to risen by 106 p.c. to reach a politically incorrect but more accurate number.

http://www.lilliput-information.com/uscan.html (English version) and

http://www.lilliput-information.com/eumork.html (older Danish version)

A beginning critical activity seems to take place in Norway I have to say. Norway and Holland are respectively about 10 years behind and 15-20 years ahead of the wrong immigration-development in Denmark. I.e. we will see a majority of Muslims here about 2035-2040, in Norway in about 2050, but in Holland (with a corrected number of about foreigner-percentage in 25-28) they will get the Islamic majority in 2025-2030. There has definitely been a war long before this happens, perhaps a war that will prevent the development to escalate further towards a multietnic chaos, who knows? The war is being orchestrated from Bosnia and Morocco and from within the EU-countries. You don’t believe? See the video: http://www.sky.com/skynews/video/videoplayer/0,,91134-bosnia_p3705,00.html

All European governments continue steadily and calm with the great extention/expansion of a European co-operation to the west and to the south and with promising final inclosure into the Lisbon-Treaty (a camouflaged European constitution), where they perhaps should re-arrange the trade and contacts instead taught by the latest experiences. This co-operation is about “exchange of workforce, education and culture (and immigration)” and surely on money from EU paid to the development-restricted areas in 10 countries south of the Mediterranean. Most likely we should expect our governments to do nothing to prevent or delay of anything in the connection. In addition the Euro is being held floating by Arabic Oil and self-strengthened continuous interest-rate rises caused by the Euro-construction itself. Any kind of support from our busy leaders most likely have to be regarded as non-existing, seen from this point. The Arabic oil countries unfortunately have them very much in their pocket so to say, so much that they will do nothing at best to open up their antiquated systems of education and of the general business-structures under the accelerating international competition. In addition Euro is floating in oil as a payment from the other side with immigrants in return from Middle East and Africa. For details and background:

http://www.lilliput-information.com/curint.htm

http://danmark.wordpress.com/2007/11/20/dollar-is-definitely-not-quite-passe-english-version/

 

To get out of this dilemma is more than difficult:

A series of interest-rate increases simply presses the rate of exchange further up in a Europe with close to zero real growth, and it worsen the conditions further, precise as we described it just before the first referendum on Euro in Denmark. Now they have not even prevented to make inflation again (in Denmark, 13.4 p.c. the latest year) in order just to use this as a false argument for a second referendum on Euro about 2009-2010, when it has went wrong. The interest-rate increases slows down the activity even more on Mainland, and even though the politically incorrect unemployment in reality is close to 20 p.c. of the those who could go to work. The natural rules of capital formation seems to have been forgotten in an indebted Europe. European population and European workforce: http://www.lilliput-information.com/engeufolk.html and http://www.lilliput-information.com/engeuarb.html

Here you could have imagined perhaps a re-arrangement of the trade with most terror-fixated areas of the world assumed that we got our energy-trade directed into safety. Europe could replace the deliveries we get from countries that are expected more and more to use a terroristic policy of trade against the West in the nearest future. In reality Denmark has been self-sufficient with energy resources for the last 20 years. The other alternative was chosen by the leaders: They sold Europe to the men of the hour.

That is the background and the reason why we have to collect and possibly create power of resistance right now. If we don’t succeed the European peoples will not get the needed support in upcoming fight and war that surely will come as sure as the Amen in church. And this war is coming much sooner than the majority expect. Without civil resistance we have lost beforehand. It is 2 minutes to twelve.

If your heart is filled use your brain
Joern E. Vig, M. Sc. (Economics), Denmark

http://www.lilliput-information.com

http://lilliput-information.blogspot.com

http://Danmark.Wordpress.com

December 26, 2007

Unethical US Job Numbers?

Filed under: Economics, Economics Statistics, perspectives, Research, unemployment — jensn @ 6:40 pm

Excerpt from • Unethical US Job Numbers?

http://enlightenedeconomics.wordpress.com/2007/12/06/%e2%80%a2-unethical-us-job-numbers/

“The business world waits with trepidation, the first Friday of each month, the release of the US unemployment/employment numbers. Stock, bond, currency and commodity markets often swing wildly with their release. The media focus on the numbers presented, and discuss their relevance to economic activity. But where is the analysis, the critique, of how these numbers are generated — or of their actual reliability? 

Do all economists really believe that the US government’s unemployment data (and other statistics too) are beyond reproach? Are the big banks’ economists too afraid to dig into the numbers for fear of offending or confusing employers and clients? Where is the role of honesty, of ethical responsibility, to the publics these institutions serve? 

Fortunately, discussion concerning the ethics and reliability of economic statistics does occasionally appear. 

For instance, last year Philipp Bagus asserted in an article, The Problem of Accuracy of Economic Data, August 17, 2006, (http://www.mises.org/story/2280)

“[That] we … face the question of why the problem of accuracy of economic data is rarely mentioned or passed over in silence in economics, while in the physical sciences this problem is widely acknowledged.” Further, “In contrast to physics, there is still no estimate of statistical error within economics. The various sources of error that come into play in the social sciences suggest that the error in economic observations is substantial… Economic statistics cannot be accepted at face value.” 

In my research on US unemployment data, I have discovered some disquieting information. First of all, they concern the elimination of ‘discouraged workers,’ who used to be in the figures.

Discouraged workers are those who have been looking for employment for more than a year and have given-up looking for a job. They used to be included in the main unemployment numbers, but are now, conveniently left out! John Williams, statistician and economist, believes that when ‘discouraged’ workers and other ‘distorting factors’ are accounted for, then the true unemployment rate, measured in much the same way as it had been historically, would be closer to 12%! (See Welling@Weedon, February 21, 2006, Shadowing Reality interview with John Williams). At the time of Mr. Williams citing this, the US February 2006 unemployment rate was 4.7%, which is the same as for November 2007…” Try this too: http://www.shadowstats.com/

 

I just remind that the described problems are most worse in Denmark. A least US has the simultaneously publication of the deciding input and output figures of the labor market every month. 

Jens

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