Thursday, December 31, 2009

Lounge Shirts Brand Worn By Sheen

On the way to the command economy


An infamous review of the Federal Administrative Court 60th Anniversary of the Basic Law:

on 18/06/2009, the Federal Administrative Court, an unfortunately not very helpful contribution to the problem of the theory of so-called public goods delivered and placed both his disdain for the pursuit of freedom and the protection of property expressed.

went to the substance, it comes to the question of whether private companies under so-called commercial collections according to § 13 paragraph 3, sentence 1 number 3 of the Recycling and Waste Management Act (KrW-/AbfG) may be allowed, private households, which - mind you free - disposal of waste paper to offer. Many know these last few years, common result of higher paper prices Practice of private collectors, private households to put on prior request a "blue bin", and the resulting paper in this way, a coveted commodity, to recycling.

How often during business initiatives or opportunities in the competition was actually the much-vaunted "win-win situation: consumers could dispose of their waste paper for free. Because of the drop free pick any incentives for environmentally harmful waste to zero. The private collector is funded to cover costs through the profitable resale of recovered paper, which now serves about 90% as a feedstock for the production of virgin paper. If

two agree to mutual advantage, but is annoyed by a third party. In this case, the public waste management companies in the municipalities. This prompted the government waste management authorities, commercial collection for allegedly "overriding public interest" to prohibit. What had happened? The public waste management, utility companies and public utility companies, such as public utilities, had discovered the lucrative business with the paper for themselves, and used proceeds from the sale of waste paper to cross-subsidize loss-making public enterprises throughout. Of course, the local service was not free, as in the private sector. Added is that in many counties and municipalities to the emergence of private, waste paper could be presented only in the central collection points or recorded only sporadically in bundles collections. Most waste paper ended up unused in the normal household waste. was for fear of revenue losses in many cities and counties, but ultimately, prohibited the commercial collection of waste paper. Because of these regulatory prohibitions began several administrative courts in Germany.

While the Supreme Administrative Courts in several states, most recently in Bavaria in 2008 confirmed the freedom of occupation of Altstoffgewerbes, the Federal Administrative Court took place contrary to all law-systematic historical and legal concerns, a radical U-turn. After the now "paper" case genanten decision of the Federal Administrative Court from 18.06.2009 would the term 'commercial collection within the meaning of § 13 para 3 sentence 1 No. 3 KrW-/AbfG allegedly exclude activities related to the manner of a waste authorities of the the contractual ties between the collecting companies and private households are settled in permanent structures. But that's not enough: to the private waste industry right to permanently deprive the floor, expanded the Federal Administrative Court and the possibility of the ban on commercial collections through the assertion of "overriding public Interests "unmanageable from, for avoiding the private waste disposal in the future a formal contract and is suitable only ownerless become waste in households, is interpreted as meaning that" collected waste outside of permanent structures ", ie not everywhere and not permanent business are. So that the "predictability" for the public waste management authorities should no longer exist. Given the unpredictability of these collections stood thus "overriding public interests" opposed.

is an important constitutional principle in addition to the proportionality principle not in doubt for freedom? Finally, among my old newspaper or cardboard only my old me. And as long as I do not waste paper in the front yard burning or polluting throw away, I can do it and leave with what I wanted, so one would think at least. The Federal Administrative Court accepted this point but not even before a balance between public provision requirements for waste and the fundamental right to property, nor between the predictability of the public waste authorities and the professional freedom of the private paper industry, which pays at least substantial taxes and provides for tens of thousands of jobs .

"Fundamental Rights on the siding," subtitled today Kleine-Cosack the Bar Journal January 2010, but without mentioning a word that decision, instead of restricting asylum law is criticized, but which is actually not a fundamental right, but an act of mercy as the essentially related pardon. Fundamental rights can not but be only interesting when it comes to criminal or foreign, but must be understood as a more comprehensive defense rights, especially in government intervention in the free economic life, including and especially in freedom of contract.

The Federal Administrative Court would have probably held against it and to the important national objective of Environmental reference: ". We were the first to have declared that freedom of the individual, the more limited needs, the more complicated the civilization is" How plausible this quote from 18.06.2009 and the decision may be, but it arises a totalitarian vision. The quote comes from the fact of Benito Mussolini, 1929.

will probably tell you now that a prohibition to collect waste paper is not the end of the world, and certainly not the end of democracy and freedom. Karl Popper, a famous philosopher and Nobel Prize winner saw this in terms of "Resist the beginnings" cope differently: "I would add that any have kind of economic intervention, the tendency is to increase the power of the state .... If we give the state by the interventionist planning additional violence, it can easily happen that we lose our freedom "

Sunday, November 22, 2009

Will Mucus Dissolve During Cough

Our future after the financial crisis

Introduction. What issues we face today?

What next with our economy? How safe are our savings? How stable is our currency and our banking system?

Why has none of the so-called "mainstream Ökomomen," the pundits say the representatives of today's prevailing economic school (macroeconomics, Neoclassic) can predict this crisis?

first have the Austrian school

The only the current world economic crisis predicted, were the economists of the so-called Austrian School of economics, which in 1928 the collapse of the stock exchanges on "Black Friday" in October 1929 and the bursting of the U.S. housing bubble in 2007 have predicted as a prelude to the stock market crash of 2008 as only one. Much like today was the real cause of the global economic crisis from 1929, the inflationary monetary policies of the U.S. central bank increased the money supply between July 1922 and July 1929 by a total of 61.8%, resulting in a boom in the capital goods industry was triggered by soaring stock prices. Technically, the price drops on "Black Friday" was triggered by panic selling of many private investors due to a new financial product, that is debt-financed private equity purchases. When the "Fed" interest rates increased and the loans could not be served, had the investors sell their shares at any price, creating a chain reaction was created.

Back to the Austrian school. Who or what is the Austrian school of economics?

Let me put this in a few words to go beyond the scope of this event is not:

Perhaps we should first of the now conventional wisdom in economics called to show the differences:

The so-called macro-economics tries to aggregate, so theoretical entities such as national income, consumption, savings, investments, etc., to explain macroeconomic relationships in models. In uncritical use of these units, which are only abstract art greats, but it can be a significant reality of loss and the loss of the ability of the economy to provide useful services practice. I say that human action - and nothing else is economy - can not be explained in fixed formulas or computational statistics. The real understanding of economic processes can take place only from the analysis of action of individuals, as the micro economy, especially the Austrian school has been doing for a long time. The most important representatives of the Austrian School are:

Carl Menger (1840 - 1921)
Eugen von Böhm-Bawerk (1851 - 1914)
Friedrich von Wieser (1851 - 1926)
Ludwig von Mises (1881 - 1973) Friedrich August von
Hayek (1898 - 1992)
Fritz Machlup (1902 - 1983)
Hans F. Sennholz (1922 - 2007)
Murray N. Rothbard (1926 - 1995)
Israel M. Kirzner (b. 1930)
George Reisman (b. 1935)
Pascal Salin (b. 1939) Hans-Hermann Hoppe
(b. 1949) Jesús Huerta de Soto
(b. 1956)
Guido Hülsmann (b. 1966)

Ludwig von Mises is certainly the most famous and most important representative of the Austrian school, some say, the greatest economist ever.

Mises was born in 1881 in Vienna and was a student of Prof. Eugen von Böhm-Bawerk, Austrian Finance Minister at that time.

His works, as has been his early thesis: "Theory of Money and resources" of 1912 are milestones in the national economy. In his early work provides von Mises is the first time determines a real analysis of the phenomenon of money as commodity money, the demand (ie value) by its (yesterday) purchasing power.

Von Mises said in his book "The social economy" in 1922 the collapse of real existing socialism (then Soviet-style only) operating systems.

founded in 1927 by Mises, the Austrian economic research institute, together with his student, Friedrich August von Hayek, who receives the 1974 Nobel Prize in Economics.

The Great Depression of 1929 was von Mises therefore predict so well because he was the only realistic theory of the artificial inflation caused by Business cycles had developed, which explains the current crisis precisely. I come back later and I will quote from a lecture by Professor von Mises, because his comments very clear and understandable for everyone.

In his main work: "The political economy" (1940) (extended English version: Human Action (1949)) developed deductively from Mises economics. So he headed from knowledge of the case based on general laws. Von Mises major economic problems encountered by purely theoretical (not empirical) analysis. This micro-economic theory approach (also methodological individualism) throughout his Work. Mises calls this praxeology or theory of human action.

The Austrian school relies on statistical surveys, but not so in a logical, as it were mathematical conclusions. Logic stings so observing what is known also to many a-priori principles from mathematics:

. "The shortest distance between two points on a plane is a straight line"

The examples of the Austrian school recognized by the rebuttable not economic laws are as follows:

It can only be part of the loaned or invested, which corresponds to the same proportion of previously angespartem capital.

production must precede consumption. = What is now being consumed, it can not be consumed again in the future ("You can not have a cake and eat it").

fixing prices below the market clearing price lead to lasting shortages.

Without private ownership of productive resources, there can be no factor prices, and without factor prices is a cost accounting impossible.

taxes are a burden on producers and reduce production below the level reached otherwise.


Why do I mention today the findings of the Austrian School. The answer is: Who

the right recipes for overcoming wants to know the crisis that has to deal first with the real causes of the crisis:

present Unfortunately almost all of the electronic media commentators and politicians of all parties incorrect explanations, partly out of ignorance, some calculating. It is spoken by a collective greed insatiable speculator or the manager and made the allegedly evil responsible capitalism. The Chancellor, for example, speaks of the need for a new "market failure" with the new internationally accepted regulations to prevent. He who believes in "market failure" as the cause of economic crisis would, strictly speaking also of the "failure of gravity" speak in a plane crash and no longer by pilot error or equipment failure.

true that is, the assumption that if all the ups and downs are inevitable? Even on this issue provides Ludwig von Mises, the economically correct explanation:

"The repeated occurrence of boom periods with subsequent periods of depression is the inevitable result of the constantly repeated attempts to lower the market interest rate through credit expansion. There is a way to prevent the final context of a boom that has been generated by credit expansion. The only alternative is: either the crisis created by the voluntary early termination of credit expansion - or it occurs later as a final and total catastrophe of the currency in question system "

The international financial crisis is a problem for the market economy but not a problem of market economy.

another way, the boom was the problem, the recession is the solution .

What are the causes but the boom and ultimately led to the crisis?

Consider first the current banking system and in particular the role of government central banks.

second The system of fractional reserve (fractional reserve banking)

Our current banking system can be characterized as a system of fractional reserve and the term "bank and central bank technology with minimum reserve requirements known.

This world-dominant system is indeed celebrated as a cyclical engine and an indispensable guarantee for investment, in fact with the fractional reserve banking system but to a dangerous inflation of the economy, so the money supply expanding at:

The still-international in similar form existing world monetary system known, created in 1944 at the conference at Bretton Woods and the introduction of the International Monetary Fund (IWS) and the World Bank institutionalized with the dollar as global reserve currency. At the international Credit and currency markets may participate only nations that meet the criteria of the World Bank. The IWS system and the banking laws of the affected countries (eg the so-called Basel II agreement) stipulate that the lending banks have to make very little reserve capacity, so that will be held for the issued credit volume less than 10% of equity must . Until the abolition of the gold backing in 1913 in the U.S. and at the outbreak of World War II in all European states, a capital charge was part of a legal requirement from 50 to 100%.

How inflation can arise under this system shows a simple example: A cash amount

in the amount of 10,000.00 €, which is deposited with the bank, may, after this system for about 90% continue to be so awarded in the amount of € 9000.00 to the borrower X. This uses the borrower X loan of € 9000.00 to settle an account of the artisan Y, which pays the money at Raiffeisen Bank. At Raiffeisen Bank therefore a cash arises from € 9000.00, which is treated as the initial cash balance in the savings bank in the amount of 10,000.00 €. The Raiffeisen Bank to about 90% of the 9000.00-€ amount loaned out, so that shows how the reserve system to an uncontrolled inflationary, so money supply increase out without the funds generated by real assets, or adequate security would be covered. The collapse of this system is especially inevitable when the so-called cash storm comes, so to recover the very large number of savers in their savings accounts to pay. All government-enforced protection mechanisms such as deposit insurance fund flutter, state guarantees and obligations of mutual support banks unfortunately have a false sense of security before too. But goes even a single major bank bankrupt, it can all other banks carried away, as in a chain reaction. Lehman Brothers provided the proof.

political sorcerer's apprentices at work:

The biggest problem of the fractional reserve system, however, is that the state permission to give loans that do not have adequate capital cover face - and securing funds coupled with government guarantees to frivolous actions and to enter into incalculable risks (including moral hazard shown = irresponsible audacity) tempt. Finally, no one is personally liable and end jumps in the state.

This also fits in the last and second last term of the Finance Ministers Steinbrück and acorn put through innovations in the German financial market policy. In January 2006, this Peer Steinbrück in one of the public barely noticed article in the journal for the entire credit system under the heading entitled to expect what the German banking industry by the new federal government? "Now it turns out that the subject of new groundbreaking future projects that would push the government to just those transactions are in accordance with today's statement by the same politicians financial crisis have triggered ". to benefit capital reductions," the banks are offered the prospect of eliminating trade Further fiscal barriers to true sale securitisations is announced. Steinbrueck was also announced at that time, the limits on the acquisition of asset backed securities ", which is later than so-called junk bonds proved "in the investment provisions of insurance companies, pension funds and mutual funds check." If these goals have been fully implemented, millions of Germans had even lost their private pensions. Back in 2003, appointed Hans Eichel at the Boston Consulting Group, Frankfurt a report with the theme: "Optimal state conditions of a credit risk market / securitization market for credit exposures and risks in Germany." This report was in the time of the grand coalition basis of the will of the federal government to actively promote transactions and securities that triggered the crisis technically (keyword: Subprime crisis, see below).

third The central banking system with

addition to the fractional reserve banking and the non-market, but artificially fixed interest rate on central bank to increase money supply. If the central bank interest rate below the actual market rate, it has an excess supply of credit to the episode, which inevitably lead to finance risky and ultimately unprofitable investments. The loans can not be repaid and, ultimately, lead to the collapse of the banks and companies. The central bank controls the rate of the respective banks for the volume of credit available and therefore contributes to the inflationary of the economies.

4th Keywords Inflation: The paper money system

arises Moreover, as inflation and what is inflation?

this again Ludwig von Mises:

out "An increase in the money supply to ensure that the purchasing power of money falls and prices rise. That is inflation. "

As mentioned earlier, were later than the beginning of the First World War, the monetary regime of gold covered almost abolished worldwide. The enormous burdens of war would not otherwise have been financed. Prior to the abolition of the gold currencies until then outstanding paper money is only a substitute for commodity money in the form of Gold or silver. A bill was then the meaning of a deposit slip. For example, the German Reichsbank until 1914 was always obliged to pay out to the bearer of a note from the corresponding value in paper gold. This system led to a strong price stability, because money (= gold) was not in endless supply. The revenue from gold and silver mines could not be easily increased.

What happened to the gold standard?

1971 abolished the United States, the last link to gold from the dollar. President Nixon lifted the Einlösegarantie of the dollar against gold to foreign central banks. Then the U.S. dollar lost within 30 years about 80% of its Purchasing power.

Ludwig von Mises:

"Under the current technical conditions, nothing is easier to manufacture than paper notes, to which certain amounts of money are printed. In the U.S., where all bills are equal, it costs the government the same amount, whether they are printed a thousand-dollar bill or a Eindollarschein. "

Why are not gold-backed paper currencies for the respective governments so attractive?

They enable a massive increase in government spending without making unpopular tax increases must be.

correction will argue that it nevertheless independent central banks as monetary authorities' There. Central banks are, however, no monetary authority, but institutions that accept the reality with the elimination of loan interest rate is not a market price, but central planning. The amount of that rate in the past was always too low, that inflation was always the result. Even the stability-oriented former German Bundesbank had to bow to the actual pressure of politics and governments of other industrialized nations and could not prevent the German mark was 50 years after its introduction, only 5% in purchasing power.

The Evil is the inflation of the unfair and unequal distribution. This re-Ludwig von Mises:

"If the government instead of tax money used newly printed money for their spending needs, this means that some people have more money now, while everyone else still have the same amount of money as before. ... There are no more goods than before, but more money. And since it now are people who can now buy more than yesterday, will create additional demand for certain goods, thereby increasing the prices. This tendency to inflation - and that is the most important - is developing step by step. There is no such thing as a general, similar upward movement of the so-called price level.
... If the government causes inflation, because it contains a War or war material must therefore buy, then the arms factories and the workers of these industries are the first to receive the extra money. These people are now in a very convenient location. They have higher profits and higher wages. Your business is good. Why? They were the first to receive the extra money. And since they now have more money at their disposal, they buy more. And while they buy from other people, namely those that produce the goods for sale, they want. These people form a second group ... The owner, for example, has its plant in the vicinity of a weapons factory, says: It is really wonderful. The defense workers have more money .... The situation is thus as follows: Those who received the first of the new money have a higher income and therefore can buy many goods and services even to the old, lower prices, which were on the eve of inflation. ... But there are other population groups to which this extra money come until much later. These people are in an awkward position ... The biggest disadvantages of inflation were the pastors and teachers "So today the pensioners, civil servants etc.

inflation is a monetary phenomenon that is (money creation), while deflation. (Keyword: credit crunch) a structural phenomenon that is why deflation (or, more generally: economic crises) can not be addressed in monetary terms. That is, deflation is the cleanup of previous monetary sins - and the means of deflation for the purpose of cleanup are decreasing prices.

Let us consider the error in detail, which led to the emergence of the crisis. As already mentioned, it is generally speaking to inflation and inflation phenomena:

5th The U.S. housing bubble (subprime crisis)

was founded in 1938 by President Roosevelt, the Federal National Mortgage Association (Fannie Mae). The purpose of this state Bank, which could be comparable with the German Kreditanstalt für Wiederaufbau, it was awarded a state-run and low-interest mortgage loans based Institute for vulnerable groups of people with virtually no credit check in order to encourage the private real estate acquisition. The scope of Fannie Mae in 1974 (abbreviated Federal Home Loan Mortgage Corporation, Freddie Mac) through the establishment of a second National Bank with the same responsibilities added (market value a year ago, in the rest: - 5.6 billion U.S. dollars). 1995, the U.S. Congress adopts the so-called Community Reinvestment Act (CRA). This law and the private commercial banks prior to relax the credit criteria for lending to a "socially weak" highly selected group of people to facilitate the purchase of real estate for these people. There is talk of actually very risky loans to so-called NINJA customers ("No Income No Asset No Jobs"). Therefore, the market for mortgage loans as subprime market, so as second class (suboptimal) refers. These sub-prime mortgage loans were to do it all, even as securitized securities on the global financial markets.

order after the collapse of the so-called new economy, triggered by the so-called dot-com bubble (Internet boom in the late nineties) to prevent a recession began, the U.S. Federal Reserve after 11 September 2001 with a series of 13 massive interest rate cuts and increased in this way, the credit volume and thus inflation, because the same was also favored by the national debt.

The measures described above led initially to a dramatic increase in lending to weak private cash investors who purchased in part, without any equity share in increasingly real estate, which real estate prices allowed to rise rapidly in the United States. To keep credit market share, eventually expanded the private commercial banks in their lending.

The German Industrial Bank AG (IKB) is founded in 2002, the special purpose vehicle "Rhineland Funding Capital Corporation to enter out of their budgets in the U.S. mortgage market may be, the promises seem ever-rising house prices.

The actual financial crisis begins in the summer of 2007. In August 2007, breaking with Deutsche Industrie Bank AG (IKB), the first (state) German bank, with an annual loss of about € 700 million. The Saxon state bank must, because of similar massive losses of its special purpose vehicle in the U.S. mortgage market are forcing sold to LBBW. In October 2007, reports the American Citigroup write-downs of 55 billion U.S. dollars. In January 2008, WestLB announced an annual loss amounting to 1 billion EUR. In March 2008, reports the Bayerische Landesbank losses of up to EUR 3.8 billion on failed speculation in the U.S. housing market. IKB is finally sold in August 2008, the American investment bank Lone Star. The total loss to the taxpayers at this time is estimated at about 10 billion EUR.

The culmination of the banking crisis is reached in September 2008 with the collapse of Lehman Brothers in New York. A worldwide slump in stock prices is the result.

Consider the U.S. housing bubble once more precisely: It was just not a market failure, which led to the crisis but the mechanisms underlying the natural market bubble fed by inflation: the U.S. policy had always meant only as good: cheap state loans should also help poorer classes for home purchase. This policy of rampant credit expansion led to an artificially-fed demand for U.S. real estate without real capital formation had taken place. Property prices in the U.S. seemed to rise just yet. The bubble had to burst

when the Federal Reserve's inflation diagnosed with a more restrictive monetary policy, interest rate hikes so opposed. Actually, we would have all still to price records in the summer 2008 recall (gas, petrol and general commodity price explosions). Even then, we wanted to persuade certain politicians, evil and sinister speculators Group cartels would screw the price spiral for the exploitation of the masses to be gaining momentum. Price increases, however, were exclusively the result of the above-described increase money supply (inflation). The currencies had depreciated by massive purchasing power losses.

not the consumption and raw material prices rose, but dollar and euro lost their purchasing power. In this period of high prices invested unsuspecting German state banks such as BayernLB, WestLB, LBBW and IKB blithely German taxpayers' money on the U.S. housing market. This market went through which started in 2006 rate hikes by the Federal Reserve ultimately collapse because the price increases triggered by the mortgage loans led to the bankruptcy of the first loan borrowers. Like a snowball was a chain reaction: Low-income home buyers could no longer use interest and principal. The house was foreclosed. The many non-performing mortgage loans fell but now the value of pledged as collateral, but with a "bubble prices" rated, homes. The banks had to correct the loan value and thus fell into bankruptcy soon. The financial crisis was there. The market was no longer with cheap credit, inflation, bubbles and political programs To fool everyone but threw very rudely and quickly back to earth.

6th What to do?

Let us remember the main point is that the recession is not the problem, but the boom!

In the real world (market economy) make the interest thereon, that the timing of production and consumer aspirations match. The "natural rate" (Eugen von Böhm-Bawerk) expresses a match of resource allocation in the various stages of production on the one hand and the desired consumption patterns over time from the other. The interest is the expression of different time preference. Decreases the rate of time preference, would profit from the savings. The trend is away from consumption and towards longer-term action. Increases the rate of time preference (impatience), this is equivalent to increasing consumption. The interest rate is thus determined by supply and demand of the saved capital. Insufficient liquidity (credit crunch), there may be impossible in a free economy.

control Currently we heading for a new crash. The crisis was not overcome, but with new liquidity created from nothing (circulation loans since lending rates by central banks tend to zero) were created. The release of a new collapse can all actually unprofitable, so subsidized industries, such in the field of renewable energies in the range of CO2 pollution control certificates trading experience (literally a trade with hot air) or in U.S. government bonds. The value of the U.S. dollar declined since January 2001 in exchange for gold by 73%: At that time, an ounce of gold cost about 270 U.S. dollars, now well over 1000.00 U.S. dollars. The most likely is a significant dollar depreciation, so that the United States with their current record debts (state: about 15 trillion U.S. dollars: 9.1 trillion U.S. dollars, private households) debt.

to a currency reform in the U.S., a rate increase and a reduction of liquidity that is no way around.

But Europe has a even more serious crisis contrary: In just nine years has doubled the money supply in Europe, 2000, it amounted to about 4.9 trillion € € room, end of 2009 for € 9.7 trillion. We also need both in Europe (particularly affected Germany and France) observed in Japan as well as the continuation of the phenomenon of stagflation (high unemployment with high inflation and low growth).

The most important to overcome the crisis and to eliminate unnatural economic cycles is the stabilization of currencies and the reduction of debt in the government. Long term, the access of States to abolish the central banks and currencies stable fixed Bonds to the gold standard or other real values are restored.

Henry Hazlitt, longtime companion Ludwig von Mises said in his book "Economics in One Lesson": "The art of doing business is not only direct but also the long-term impact of each measure to see, it is also to the to consider consequences of any action not just one, but for all groups. "

, logically, would be long-term orientation and measures to be applied uniformly for all, instead of scrapping and recovery plans, only certain industries prefer. Debt reduction, reduction in government spending, Removal of subsidies and reduction of total government spending and tax cuts are a step in the right direction: The government needs to do much the same thing, they can have something

conclusion.

Dr. Thomas Jahn, November 2009.

Literature:

- Ludwig von Mises: Theory of money and fiduciary media, Vienna 1912
- Ludwig von Mises: the social economy. Analyses of socialism, Jena 1922
- Ludwig von Mises: the bureaucracy (Bureaucracy), New Haven, 1944 (available online at: http://docs.mises.de/Mises/Mises_Buerokratie.pdf)
- Ludwig von Mises: Human Action, Treaties on Economics, Chicago
1966 - Ludwig Erhard, Prosperity for all, first edition 1957, new edition Dusseldorf 2000
- Ludwig von Mises: "The Value of the better ideas - six lectures on economics and politics", Munich 2008 (new edition of the German first edition of 1983)
- Friedrich August von Hayek: The Road to servitude, new edition
Munich 2003 - Friedrich August von Hayek: The pretense of knowledge, Tübingen 1996th
- Franz Josef Strauss: Bids of freedom, Munich 1980
- Roland Baader: money, gold and God player, 2 Edition, 2005 Gräfelfing
- Guido Hülsmann: The Ethics of Money Production, Leipzig 2007
- Michael von Prollius: The perversion of the market economy, Munich 2009.
Author's note: This session (held on 18.11.2009) provides for time reasons and for reasons of better understanding complex, some simplifications of the otherwise very economic, especially monetary phenomena.

Monday, November 16, 2009

Tractor Birthday Cakes

Encyclopedia of object points - today: K as consumption, the dance around the golden calf

keeps hearing the claim that the economic crisis that so many companies preparing sales difficulties for their products would have to be the state and citizens allegedly "anti-cyclical" behavior and spend more, consume, therefore, to support the demand. These politicians just about any means is justified: The instrumentation ranges from the reduction in interest rates to zero to establish credit to make it as cheap as possible, on the introduction of minimum wages, and higher child benefits, not to forget the unfortunate economic stimulus package II Unfortunately, nothing is more durable than that only at first glance plausible consumption myth, which proves to be but in fact, on closer inspection as a dangerous delusion: could would

apply if the view, and a recovery of consumption (by the unions also often called revival of "domestic demand") result in an economic upturn, we need all this richer, as we consume as much as possible, so spend our money, instead of saving. As always with economic myths, many of which go back to John Maynard Keynes, who was refuted in his own lifetime frightening clearly lacks a comprehensive consideration of all impacts associated with an increase in expenditure of public and private households. Henry Hazlitt, the 1993 deceased business journalist and long time companion Ludwig von Mises said, in his book "Economics in One Lesson" in the context of a typical error that lies in the consequences of a measure not only one but for all groups, So to consider the entire economy.

State, based more deficit spending the demand on tax increases, it's all about a redistribution of capital. said As Ludwig Erhard: ". Any additional expenditure of the state is based on a waiver of its citizens" The resources that are consumed by private households or companies, savings or investments would be passed on to the state, which then provides for a redistribution, usually of the supposedly rich to the poor and supposedly from the childless to the children's rich. Ludwig Erhard described this policy as "truly grotesque condition that we pay all the taxes first and then all the queue, and finally by the state (...) our own funds recover." In fact, this shows Policy was unilateral effects: it leads in the taxable income recipients, businesses or property owners to reduce the profits or assets and in this way minimizes the dedication. Additional jobs are not created, instead, are holdings abandoned or relocated abroad. While the losses are large for the taxpayers, is the gain in the "recipient" per capita is extremely low and there is barely acknowledged or compensated for by job losses. In the end, loses the entire economy, but the worst are just the "most vulnerable" affected. Here, the "redistribution losses" are misallocation and abuse offenses that any state intervention policy is inherent not even considered. The myth turns out to be so stimulating as a sleight of hand, with which something is conjured from the left into the right pocket.

How does the state the money for additional spending for consumption recovery, unless he wants to raise taxes? The methodology has been refined in the meantime. It is printed in the meantime not just more paper money. Governments create money at a stroke, for example by increasing the loan amount. Nothing else happens when central banks cut interest rates below the actual market rate or government spending, for example, economic measures Revival of construction financed through new borrowing. If the money supply is increased, whether by book or real money supply, reduces the purchasing power is automatically a unit of money, so prices rise. The Evil of the inflation-based "economic recovery" is the fact that the new money is not distributed evenly, but first in the state-preferred industries, such as the construction industry flows. When the cash flows also arrive elsewhere it is usually too late, because the prices have already increased considerably.

True values were also obtained by this consumption increase is not naturally created. Real capital formation is only by consumer spending, thus saving possible, which also leads to a decline in natural market rate and to facilitate credit-financed investment, because lending rates fall due to the saving. Likewise, the unemployment that emerged in the crisis by increasing corporate defaults, can be overcome only through education of new, real capital stocks. A decline in consumption would be indispensable to worry about real conditions for a recovery after the crisis. A balance would be set back by itself: the unused money would be saved, thus allowing a natural way to lower the lending rates to facilitate investment. Instead, it is long term but to stagflation, because the monetary expansion is the view of the Keynesian macroeconomists also allow for wage increases, but can simultaneously increase the sales prices of the companies to turn enable a profitable rehabilitation of the unemployed can. The unions can not outwit, but demand in addition to "normal" wage increases, of course, a regular post adjustment with one. The result of this policy is stagflation, ie high unemployment coupled with high inflation, a phenomenon which we could see disastrous, particularly in Germany and France, two countries with very powerful unions, the last 30 years. A truly anti-social policies with disastrous consequences, especially for the poorer sections of society.

Tuesday, October 27, 2009

Orange Country Male Brazilian Wax

announcements, intentions, workshops


government without energy and courage

Edmund Stoiber had about five years ago Merkel and Westerwelle once described as "ordinary seaman" that Schroeder and Fischer could not hold a candle. One is reminded of this saying, if you read the 128-page draft of the new coalition agreement: Almost everything goes on as before, not only to preserve all the old members of the Union Cabinet. What happened to the full-bodied FDP promise in the financial and economic policy? The only tax cut that immediately, the was, is an increase in child allowance. Where the FDP's demand for the output reduction has remained, for example, by abolishing the Agency for work? Where are the concrete objectives of the Union in the grand coalition with the SPD could not enforce supposedly? Also in the inheritance tax almost everything remains the same. Regionalization should be considered only. As with the previous government is the magic word "bureaucracy". This is the "Regulatory" be strengthened to prevent the already previously the 2000 new laws were enacted in the last term, either, nor was able to capture the costs of bureaucracy. Not only Announcements and wage statements of intent, but also countless commissions are to be used for all the really important military issues of health, tax and fiscal policy under the motto: ". If you no longer has further set up a working group" For the rest of the coalition agreement is apparently no targets for the overwhelming political left to offer. Therefore no clear-cutting of social track. Not only expensive in the past, purchased primarily with new debt, useless social "benefit" will be abolished. Not only the linguistic style of the draft contract reveals a red-green handwriting without Nahles, Trittin and Volker Beck had been sitting at the table. Quote from the draft: "We will implement the decision of the German Bundestag in 2000 and as collective compensation for homosexual victims of National Socialism a Magnus Hirschfeld Foundation building. It is to counteract through interdisciplinary research and education discrimination against homosexual men and women. "Why does a supposedly conservative government, the decision of a parliament with a left-wing, red-green majority in the year 2000? Even the supposedly successful Islamic Conference should be continued, and indeed all the wonderful projects and achievements of previous administrations. Another proof that it is ultimately no matter what Party is chosen: "Raider is now called Twix, changes else is nothing"


Wednesday, September 16, 2009

Make Diaper Baby Carriage

"We look forward to receiving your application" - An open letter on school fruit and executive pay


Dear German media publicity,

when last Sunday Mrs Merkel and Mr Steinmeier met for the TV debate, were apparently not only two candidates agree: Manager salaries will in future further limited, and minimum wages to be strengthened. Also, all the journalists present, observers or other press later commentators did not come up with the idea of "why" to ask "What residual areas of private life in Germany to the political access at all actually still remain deprived? "or," Where should the state must intervene anywhere yet? "

If parties like the SPD, the Left Party, the Greens and the CDU, the income of some people in Germany low as unjust and others unfairly too high consider why you should be confined to State Maximum and minimum wage regulations? Think of other, much worse injustices against:

The famous rich uncle from America gives you just like a million and all her neighbors, friends and relatives get nothing. Would it not make sense, in addition to the gift tax to enact a law the voluntary donations precludes them from a practical consideration is addictive and, moreover, a height limitation on a function to the existing assets and income of the recipient imports?

Or take the unfair lottery or other state-authorized gambling, is it not unfair that your neighbor who had never played lottery, has cracked with a minimum bet of 5 € to the millions jackpot and you have won nothing again, although you play lottery system for years and have used four-digit sums for it? Here again, a law remedy. Perhaps it would be the lottery a little boring But make it really would not be necessary and fair that everyone will use again gets back, he bet?

course there are many other "anti-social" lucky: take people who come as children of MPs, officials, lobbyists and senior union officials on the world. These kids need to make a little worries about their future: their parents have good income, private health insurance and pension guarantees.

Granted, these examples seem a bit exaggerated, but they show the better the absurdity of the policy again and again and again sparked intervention are spirals. The risk this development is that the vicious circle turns more and more:

Do you know for example the German School Fruit law? Think of a carnival joke? Far from it: on 08.09.2009, the Conciliation Committee had the laws passed by the parliament to introduce a 'School Fruit Scheme "approved. The Federal Council will decide on 18/09/2009 again. The law is set by an appropriate EU program funds at the rate of 20.0 million euros available to the students at German schools provide free fresh fruit. The older ones among you will on this subject perhaps to the school meals in the war and immediate postwar period in the bombed Germany recall or later in the GDR. If we approach again this time? Were it not for the parents or older students themselves to ensure a healthy diet? And what happens to the graduates? Consequently, one would probably continue every resident in Germany are a personal nutrition consultant. Or banning the free sale of food and the state takes on the best three times a day the People's Power, as the military.

populist interventions attract more and more government intervention and lead to intervention by spirals at the end of a totalitarian state is. It is a sure-effect: More and more state support, be it ever so well meant, can the initiative of people paralyzed. This creates new public areas of activity, etc., etc.

Let us finally come back again to Mr Ackermann, who earned at least 2007 was 13.2 and in 2008 was 1.4 million euros: What common sense tells you if envious of politics and media such income described as unfair:

Apply Just at Deutsche Bank as CEO! You afraid? Discover the laws of economics, for example, the subjective theory of value: Any person determines the salaries of corporate CEOs and everyone in the free Business people working? There are, of course we, the consumers and no one else. If you want to reduce the income of Mr. Ackerman, you simply cancel your account at Deutsche Bank. If you have not the boss of Daimler-Benz, you can buy a Mercedes, and if you want to eat healthy, you just do not go to McDonalds. For in a free country no one is forced to learn a specific occupation or to buy certain products. Explain the time Mrs. Merkel and Mr. Steinmeier.

Monday, August 31, 2009

Merilyn Sakova Machine

The secretive scandals: Ulla Schmidt and comrades: Their march through the institutions.


Are the German leading media biased or superficial and it is up to the little dedicated work of civil Opposition, that of all the improper use of official weighing or flight readiness against Minister Ulla Schmidt has been argued, but no one speaks of the past, the Minister, political backgrounds and beliefs.

Because in the seventies, fought the current health minister, nor as radical Maoistin against the free democratic order and its current party, the SPD. One can hardly speak of probably a careless youth sin if you look at the web Ulla Schmidt moved closer look. It acted since the mid-seventies by the late 20s, early 30s in top management functions and as a cadre of extremely regarded as radical and violent Maoist party, the "Communist League of West Germany (KBW). The program of the Communist Federal West Germany, "it said in 1975 on page 16:" As long as the bourgeoisie has armed formations to the defense of capitalist property, the proletariat's political power will have to fight with arms. "

The KBW was probably the most successful of the from the so-called '68-sectarian movement emerged "K-groups" and was run as a strictly Maoist cadre organization. Members were forced to take at least 10% of their gross revenue to the KBW. On the Party members were to exert a strong pressure, which shrank also from psychological terror and demanded not to members of mandatory contributions. Thus, the KBW disposal in addition to a series full-time officers and a well-developed technical infrastructure, such as a fleet, one for its time very modern content management system, its own party building in several major cities, its own printing, book sales and their own publishers. Ideologically, the KBW saw his role models in mass murderers like Mao Tse Tung died in 1976 or Pol Pot in Cambodia and openly sympathized with the local stone age communist terrorist regimes, including the in Albania. In December 1978, a KBW delegation traveled led by Joschka Schmierer at the invitation of the Khmer Rouge in the country had in the murder by the Khmer Rouge under their leader Pol Pot just two to three million "class enemies", one of unfassbarsten crime in history 20th Century.

The Butcher of Africa was considered a famous Ugandan dictator Idi Amin the KBW as a progressive leader. At the same time, other terrorist organizations such as the ANC in South Africa and the regime of dictator Robert Mugabe in Zimbabwe have been supported.

At the top of the 11-member Central Committee (CC) of the KBW was modeled after a Leninist Central Committee secretary. This feature was filled with a certain Joscha Schmierer, who is also editor of the central organ of the party, the Communist People's Daily "was and spread the abstruse doctrines of socialism, communism, violence and class struggle, until he joined in 1983, the Greens and his march through the institutions successfully could conclude with a leading position as head of policy planning at the Foreign Office, responsible for fundamental issues of European politics 1999th The rejection of the Soviet Union as too lenient and inconsistent, and the attention to Maoist Cultural Revolution, the Terror 1966-1976 millions of lives in China called, was an important part of the philosophy of KBW.

candidate in 1976, the Health Minister Ulla Schmidt later in 2nd place in North Rhine-Westphalia state list of KBW and as a direct candidate in the city of Aachen. Next to her later managed several KBW Enjoyed the entry into the Bundestag, but at other left parties: for example, Ursula Lötzer for the LEFT and Winfried Nachtwei and Krista Sager for the Greens. Schmidt's opponent in 1976 was a certain way, Dieter Schinzel of the SPD. He later became a political mentor of be successful as a direct candidate Aachen SPD in the Bundestag elected politician.

reminded of their time at KBW, Ms. Schmidt is no longer so much. In an interview with the magazine Cicero in April 2006, she speaks only of "changing times", will not comment on details of their activities at that time though. For example, to not question why she wanted to complete their second exam, teachers give no explanation in 1976 for loyalty to the constitution and is therefore initially not accepted as a primary school teacher in state schools. In the "Communist People's Daily" on 15 July 1976 then it is celebrated as a heroine because she had refused in an open letter to the governor, an oath to the Constitution.

After working in the Woolworth department store in Aachen, accusing the state school board finally a job as a special education teacher in Stolberg, in the district Aachen. In her interview with the magazine Cicero Schmidt is outraged by the accusation that it had urged the children in her class at that time to donate money for weapons for the uprising in Zimbabwe. "You wrote me, I would have supported murderous regimes" Instead, have your students do after reading a book on children in Zimbabwe donate money, so Schmidt's present one. All she says. It tells nothing about that KBW youth groups entire camp camps under the slogan "guns for the youth in Zimbabwe - proletarian revolution and armed Uprising in Germany organized. Not the fact that their own party newspaper, the story was himself brought the ball rolling and the fundraiser in the school under the title "guns for the youth of Zimbabwe reported that a" U. Schmidt collect in her class had 30 marks.

Nevertheless, Schmidt rehabilitated as a teacher and marched as many of their former comrades successfully through the institutions. In the federal election campaign in 1983 discovered the above mentioned SPD deputy Schinzel their "political talent" so that it occurs in the same year in the SPD and the federal mandate wins in 1990.

1985 caused the KBW formally to after he had placed his assets in a club that should support the Greens. The (originally purchased for about DM 3 million) of its Frankfurt headquarters building could profitably be sold for about DM 30 million to Commerzbank. Many former members, such as Joscha or Ralf Schmierer Fücks and Willfried Maier (Senator of the Greens in Hamburg) later found their political home with the Greens, like their former anarchist comrades Joschka Fischer and Daniel Cohn-Bendit. Others returned to civilian life and work made in spite of their radical leftist past, in industry and business associations remarkable careers. Striking KBW many activists were working as doctors, teachers, lawyers and professors. Even two Protestant pastor, Pastor Groth Edda from Hamburg-Bramfeld and Pastor Eckard Gallmeyer from Quickborn / Ellerau were found in the KBW series. Other prominent members of the KBW and its subsidiary organizations were Reinhard Bütikofer, National Chairman of Alliance 90/The Greens (formerly Communist University Group / KHG and KBW Heidelberg), Ralf Fuecks, President of the Heinrich Boell Foundation, former green environmental Senator in Bremen (KHG Heidelberg and later Bremen), Hans-Jörg Hager, Chairman of the Board of Schenker AG, Germany (formerly the Central Committee of the KBW 1976-1978 and executive editor of the Communist People's Daily "), Eberhard Kempf, defense lawyers (" Company in support of the people's struggles, 1995-1977 defenders of the accused in demonstration processes, then Frankfurt KBW office), Winfried Kretschmann, leader of the Greens in state parliament of Baden-Württemberg, Hermann Cohen, - 2003 Green Vice President of the Bremen citizenship (as a teacher "victims" of the radicals decree) or Horst Loechel, professor at the Banking Academy eV / Frankfurt School of Finance & Management. As Ulla Schmidt is

first time in 2001 appointed to the cabinet Schröder, hit them there not only to Joschka Fischer, but also to Jürgen Trittin, a former member of another communist splinter group called KB-Nord. Many doctors, Ulla Schmidt "health reforms" affected were, was the latest appointed Schmidt for the second time as health minister, convinced that she wants to change with "textbook-like accuracy" of the German health care in a dirigiste bureaucracy of communist character. And in 2006, summed up the magazine versicherungstip : "The then-term commitment, the current cover-up and a health reform proposal, has the character of expropriation, are clear signs that Communist ideas at Ulla Schmidt took the time."



Thursday, August 20, 2009

How To Calibrate A Tractor

from charismatics and coalition options


Thank despite protestations: The impressive 2009 campaign either by content or by interesting candidates. Where hitherto remained as important issues, such as the horrendous national debt, inflation, bankruptcy of the welfare state, or the imminent end of the national law, by the EU Treaty of Lisbon?

survey low in spite of media helps protect

Concerned about the bad poll numbers of the SPD off is now RTL and the magazine Der Spiegel, to help with a sold as "live" Town Hall "production SPD candidate, Steinmeier on the jumps. The success remains to be seen as the popularity of "Frank-Walter who?" is still well behind the second placed candidate for chancellor, Horst Schlämmer Gaudi, a cult figure Hape Kerkeling.

The Jamaican version

existence of political campaigns today only of show and fuss? No, because there are still various electoral programs, although it appears that the parties have written off eagerly from one another: the EU wants to limit global warming to 2 degrees, winning 30% of electricity from renewable energy sources and enter not into nuclear power, which obviously a black-green alliance is to be prepared, if necessary, extended FDP was a component, because this program with "free beer adjusted for all "(= liberal minimum), destruction of families by the priority of state education and gay adoptions, the green model.

"People's Republic of Germany"?

between the election platforms of the SPD and the Left (formerly: SED) are already only marginal differences Lafontaine's minimum wage to be 8 €. Müntefering SPD, just 50 cents less. If the former FAZ editor Hugo Mueller-Vogg keep his oppressive realist writer of a red-red-green takeover so right after all? The survey is still positive values of the Chancellor, however, seem to speak. Personal approval ratings are not always benefit of each party, as well as crowd favorite shows to Guttenberg.

comes to the Chancellor about it!

is too great for the disappointment of many ordinary voters Union of Merkel's government time even though you have to Guttenberg to the desire of voters just to clear profile and strong convictions. In the end, but it will arrive on the Chancellor. Bill Clinton won in 1992 with the right theme: "It's the economy, stupid" may lose the Union 2009 (again) because of the wrong candidate: "It's the chairwoman, stupid!"

Saturday, August 1, 2009

Mh-23 Quick Charger Red Light

Encyclopedia of object points - today: G as profit

In the by the last few years trade unions, left parties and the media always polemical campaign against the voluntary, democratic cooperation of the people (usually referred to as a market economy or capitalism as a pejorative), became, unfortunately, the denigration of corporate profits is becoming increasingly important. Most is now spoken by excessive return expectations, profit maximization or the lack of culture of shareholder value. In fact, the profit but the most important characteristic of the operating account, because it seeks to demonstrate, has correctly whether and to what extent the business of production factors and its products, the actual demand served or produced by the market.

After the collapse of real existing Socialism in Eastern and Central Europe is already about 20 years back, it seems that the massive problems of non-owner-managed and non-profit making, not profitable "socially owned" companies today to be forgotten. Are different today, especially at the local level increasingly vocal demands, companies should be nationalized or continue to operate through the public sector do not explain. Apparently not privately owned companies have greater financial flexibility and could offer their customers and employees more because they have to bring to the shareholders to profit.

Requiring the contractor, to give up profits, the recommendation is similar to a captain, his ship was to stand without a compass and maps in the lake. These and similar views also ignore the real, social, that is of general interest related tasks of company. Real corporate activity is to decide to use scarce resources in a certain way, so as to produce a particular product.

are now unfortunately "Manager" incorrectly as the epitome of the entrepreneur. Managers are but mere employees in management positions. It is the entrepreneurs, so the owners, who have the risk of loss and bankruptcy. Only the

hopefully adjusting the gain shows Entrepreneur if he has scarce resources (production factors) are used correctly. The success of the entrepreneur ultimately decide to consumers, give to understand with their equivalent in money value the business estimate for the value they actually hold the product. The higher the income, the greater was the service of the entrepreneur to his fellow man, to the consumers.

If not set a profit, but only losses, this is the signal to the contractor that he has made mistakes. He has produced such products, which no one takes on its market (eg refrigerators at the North Pole or not government-subsidized solar panels in rainy Germany). In the worst case, these errors lead to corporate bankruptcies, but as the winner also an important function. An economic system in which one fears bankruptcies and spares no expense to prevent it offers no fertile ground for entrepreneurs and consumers, but also endangers the long-term optimal supply of goods. Also, the bankruptcy is an important indicator of the economy. Disable this lesson, as in the former Soviet bloc produced where hundreds of thousands of unprofitable state enterprises to unrealistic prices actually unsaleable products, errors can not be fixed so that scarce economic resources, ie capital and labor are wasted.

The function of the entrepreneur, for profit, is to anticipate what people might need it tomorrow and make provisions that are available on time. Should be dropped from the profitability, companies can make no more right decisions. They come from as the ship without a compass on the right track so that the national economy more than offset capital built up. Such a society living in this country as identifiable only by the substance.

Thursday, July 30, 2009

Klucz Seryjny Do Mount & Blade 1,011

Encyclopedia of object points - present: C as "crowding out" phenomenon:

The "crowding out" effect, or crowding, is an economic phenomena and describes the impact of state Interventions or activities on private investment and generally to people's behavior. The Reichstag deputy Eugen Richter described this effect in the 19th Century very clearly with the example of the introduction of compulsory health insurance system by Bismarck 1883:

"There are in fact the health insurance laws suitable to suppress the development of registered assistance funds. In fact, from 1891 to 1895, the registered assistance funds decreased from 1891 to 1388, the national legal assistance funds from 450 to 263rd The number of members is on the inscribed relief funds of 838 481 to 671 668 and in the national financial assistance funds of 138 883 decreased to 60 543. The free assistance funds but are based solely on the contributions of workers, they are in a position to grant the workers several particular advantages. They may in particular allow a body independent of the individual local organizing the workers to remain with the move to another job within the same fund. "

The introduction of health insurance in Germany ousted ie a functioning system of private provision and private insurance . Eugen Richter described as applicable, government intervention, therefore, never lead to an improvement, but always in a deterioration the situation of those whose lot in accordance with the full-bodied announcements of politicians should be really improved. Thus lead tenant protection laws, implying direct or indirect rent limits to artificial shortage of rental properties, reinforcing the problem of housing shortages, because the economic law of nature lead to fixing prices below the market clearing price to a permanent shortage, as well as the gravity of anyone suspended can be.
can be precise to observe two effects: the State or a similar compulsory collective tasks that were previously done to families or single individuals themselves Commits have stunted their own initiative. Why should save people or children, if there is a government pension guarantee? Why should we pay attention to his health, if the state promises a seemingly free medical care? Therefore, the social pension scheme leads to the aging of the population, the state of emergency and nursing care to the statutory unemployment insurance to unemployment. While this effect could best be described as a paradox of well-intentioned welfare state, the second phenomenon is a kind of boomerang effect: State-beneficiary groups to which special state protection laws are dedicated to learn this truth in a strong economic deprivation: workers special rights which the law can be given to increase the production costs in certain sectors of the measure of marginal costs beyond productivity. Annual leave, maternity protection, anti-discrimination and social rights are based economic claim against the owners. Permanent employees will be "false self" and temporary workers, younger women by men and people generally replaced by machines. Because for all public benefits, legal rights and guarantees must ultimately pay the company. If taxes and wage costs rise, such that the marginal costs are exceeded, remains only the task or operation of the bankruptcy. That is we have lost in Germany in recent decades, millions of jobs and thousands of enterprises not a mysterious, supposedly inevitable "structural change" due. It is simply the claim by government allocation constantly rising costs have meant that only survived the most productive, most competitive German companies. The losers of this failed policy, as always, the poorest and most vulnerable in our society, as all the jobs for so-called "low skills" might be lost forever.

How To Make Razor Dune Buggy Go Faster

New Series: Encyclopedia of the object points - now: M, like minimum wage

How could it happen that is now offered the most absurd claims a benevolent public forum in the media, academia and politics, if only the magic word is heard socially? Opinions that are as absurd as the claim that the sun would turn around the earth or two and two is five. These absurdities include the debate over the so-called minimum wage.

had actually saints like Thomas Aquinas and the scholastic philosophers such as already recognized in the latest Middle Ages, that there is a fair wage is not, either because the wages always rises to the purely subjective eye of the recipient of a service. The wage is therefore exactly as high as to pay a public or a large number of consumers for a product or service is ready. Is it unfair that footballers, Show-offs or Formula 1 drivers as much and earn as little postman?
The question has already been completely wrong, for they are the consumers themselves who decide who deserves as much, even if they complain about allegedly unfair wages at the same time. So if you want to do something for mail delivery must be prepared instead of a few cents to pay 20 or 50 € per letter. These are orders of magnitude as the average ticket prices for football players, or show stars admire Formula 1 drivers to. And who wants to hurt last big earners should simply not buy fan merchandise, tickets or more records.
The only work which can never be, arbitrary price-fixing by the state or other coercive cartels: Was it fair that a bus driver in the former Soviet Union or East Germany as much deserved as a doctor or a teacher? Could it be that it was the reason that so many performers of East Germany came under mortal danger the back?
Who wants to ever presume to decide about which pay for Millions of people is fair? Does Mr. Gysi, Mr. Lafontaine, Mr. Steinmeier and Mr. Sommer may be the performance of each minimum wage in order to decide the right pay? And what is the correct wage level: 7.50, 8.00 or 10.00 €?
It would be desirable if all people in Germany as providers and consumers voluntarily and democratically themselves could decide on the amount of each payment. Why call for politicians and trade unions minimum wage? It is very simple: Should make politicians, officials and other ideologues of the free decision of the public, if it is about their own pay, they would experience pain that consumers attach to political "benefits" not very high. Maybe one or the other for pocket money as a shock to be invited to the party or birthday party hired as Black Peter.
know as opposed to the absurd slogans of some professional demagogues, people instinctively that there is an inevitable economic law of nature, which always lead to high wages to unemployment and low wages are to labor shortages. Only crazy dictatorships was believed to be able to implement these laws of nature. Interestingly, in Germany in 1934 with the law to order the national working a minimum wage introduced (see: http://iufberlin.wordpress.com/2008/08/22/unliebsame-vordenker/ ). As this and the subsequent experiment in the eastern part of Germany have ended, should hopefully be announced.

Wednesday, July 15, 2009

Clear Mucus Before Periods

What does Horst Seehofer of Ludwig Erhard?

presented yesterday Prime Minister Horst Seehofer, the final report of an expert commission future social market economy : added " The work of the Commission showed that the social market economy are not in the context of the global financial and economic crisis reinvented must, however, specifically reserved for the future Challenges should be developed. "Efficient markets would function according to Seehofer only on a strong foundation of values. It stated in the course of globalization, deregulation allegedly broken out race to be stopped.

It is unfortunate that neither Mr Seehofer nor its "expert commission" with the true contents of the conceived by Wilhelm Röpke, Walter Eucken, Friedrich August von Hayek and others, and of Ludwig Erhard and Alfred Müller-Armack largely unrealized broad social market economy have explained. Otherwise they would have realized that the outbreak of the current financial crisis is not due to the low regulation the financial markets, but on the irresponsible debt, spending and monetary policy of the G-8 countries, due above all the United States, is that an incorrect interest rate cut policy of the U.S. Federal Reserve and the ECB created a liquidity bubble that just had to burst at the moment when market participants caused by bad investments, such as the completely over-valued real estate assets identified and especially when interest rates increased again and the unrealistic basis of some financing was placed by open. The market itself is not the cause of a stock market crash. He can not cheat rather durable, but brings all the parties involved in the short or long on the bottom of the facts (see also: Time for Freedom: "On the true causes of the financial crisis," from 26.06.2009)

The idea of the social market economy is on the theories of the so-called "Ordo-liberalism" back which has in turn taken currents of the "Freiburg School of Economics" and the "Austrian school of economics". The most important representatives in the first half of the last century include Walter Eucken, Franz Böhm and in particular Hans Grossmann Doerth and the Berlin Wilhelm Röpke and Alexander Rüstow. An important Also contributed to the "Austrian" economist and Nobel laureate Friedrich August von Hayek. Hayek is a student of Ludwig von Mises, the most important representative of the Austrian School. Basis of the Ordo-liberalism is an economic system characterized by the protection of competition and individual freedom of citizens.

Ludwig Erhard applied the findings of the Ordo-liberalism, the term of the social market economy, in practice, even justified but no private school science. Among the hundreds of writings and documents in the archives of the Ludwig-Erhard-Stiftung is therefore no single textbook of social market economy. Therefore, could the be the concept of social market economy in the past decades of abuse or often filled with false content. The social market economy was often mistaken the meaning of a combination of private and governmental redistribution or excessive regulation, as is apparently also misunderstands Mr. Seehofer. The social market economy is the exact opposite of today by the politicians of the grand coalition desired "dual system" of a little free market combined with massive government activities: the word "social" for the term "social market economy" used Erhard never a limiting adjective, but to characterize a free market economy, their performance and their social results:

" This is the social meaning of market economy is that every economic success, where does he always that any benefit from the rationalization, every improvement in the performance of the best interests of all the people available is made and is a better satisfaction of consumption. "
(Ludwig Erhard, in:" Prosperity for All ", Munich 1957, new edition 1997, page 169)

" And no less clearly shown us is that prevailing economic tensions and social emergencies in particular still there, where too much state of the free creative Initiative of the people creates bonds and can reach about the effect of economic activity not to optimum effectiveness. "
(Ludwig Erhard: The economic system of free people, Frankfurter Allgemeine Zeitung, 6.1.1957, in: Karl Hohmann, Ludwig Erhard: Thoughts from five decades, speeches and writings, Munich 1988, page 510)

" Often there even the completely erroneous idea before, that free competition to a repression of social movements, or at least lead to economic disruption, as it is convinced that all liberal and socially-oriented professionals was just the suppression of freedom of movement yet; disturb the equilibrium of the economy and they became embroiled in increasingly desperate looser crises. If the state keeps watch over the future that does not prevent social privileges or artificial monopolies the natural balance of economic forces, but that the interplay of supply and demand is room, then the market will regulate the use of all economic forces in an optimum manner and hence those misdirection correct. "
(Ludwig Erhard, in" German economic policy. The way of the social market economy ", Munich 1962, p. 20 f.)

" Everyone is his own fortune. There is individual freedom, and this the more, the less the state presumes to spoon-feed the individual citizen or even set themselves up to his patron to do. Those that pay benefit 'the people must always expensive, because no state to give its citizens more, than he has previously taken them - and still less of the cost is inevitably more and more an end in itself degenerating social bureaucracy. Nothing is so antisocial, as a rule, than the so-called 'welfare state', which can decrease the human responsibility limp and individual performance. "
(Ludwig Erhard," On the standard of living ", Washington Post, 08/15/1958)

Erhard merit lies mainly in the fact exceeded the limits of economic theories and opened next to the translation into practical policy, new perspectives for the social functioning of a society to have. According to Erhard, the main focus of the economic policy had to be on the many facilities that are injurious to morality or to ruin and evade the freedom soil:

on the welfare state, the anonymous, the moral obligation between people and thus relativized and weakens ;
to parties and associations, the crowd in the place of private morality, and thus nullify it and
speaks to the materialistic attitude, the moral doubts Hohn and are the only money and goods as a measure of value.

If Horst Seehofer, the idea of Ludwig Erhard's social market economy will be understood correctly, he also discusses the basics of the Ordo-liberalism and focus mainly by Ludwig Erhard highly esteemed Austrian school of economics:

" For if ever a theory the signs of the time knew how to correctly interpret their findings and gave a modern economic and social policy, new impulses, then there were the thoughts of men who are today regarded as neo-or moderately liberal. You have given the economic policy more and more socio-political trends and the isolation of a mechanistic-computingful Thought solved, they have the economists taught to think in functions and made it clear that the economic life did not understand the people and peoples in isolation from her other realms and therefore not be isolated may be ordered. "
(Ludwig Erhard Karl Hohmann (Editor). Ludwig Erhard - Thoughts from five decades of speeches and writings, Munich 1988, page 696)

So who demonized neoliberalism must logically also reject Ludwig Erhard and the real social market economy . With the just-rendered quote, Ludwig Erhard contests keynsianistische trends in economics and against today prevailing theory of the so-called macro-economy. Macroeconomics tries with aggregates such as national income, consumption, saving, explain, investment etc. macroeconomic relationships in models. In uncritical use of these units, which are only abstract art greats, but it can be a significant reality of loss and the loss of the ability of the economy to provide useful services practice. Therefore, the bulk of international economists, the current financial crisis can not predict, because the real understanding of economic processes can take place only to be interpreted from the actions of individuals, as the micro-economics, especially the Austrian school has been doing for a long time. The economists of the Austrian school, have predicted as the only back in 1928 the collapse of the stock exchanges on "Black Friday" 1929 (namely von Mises and Hayek) and the bursting of the U.S. housing bubble in 2007 accurately.

It is also wrong if Seehofer and others now want to construct a contradiction between the market and morality, rather than deal with the real causes that scare today companies, banks and consumers the wrong incentives for misconduct: welfare states, their huge spending programs not with tax increases, but for decades only by currency inflation cope with all concerned citizens to convince short-term profit maximization and for investment speculation, to compensate for the otherwise inevitable inflation losses. Stable currencies without permanent loss of purchasing power would remove any future speculative bubbles, however the base.

Not the market, but politicians, government bureaucracies and central banks would need so urgently the values that they so much against the company and claim our citizens. The market does not need monitoring or restrictive morality, but rather as a moral guarantor of human behavior, as argued by Friedrich August von Hayek: "The fact that the market economy moral principles has and can only work with what I have described earlier the morale of the property, of honesty and contract compliance, which they (the people) not aware of. But until about 100 years ago it was just a common tradition that no one has doubted. "

values arise not in a vacuum, but under free market participants, for their economic success including one's own honesty and reliability to ensure compliance with contracts, in so-called" secondary virtues "as timely and complete deliveries and made mutually complimentary manners depend. Who would a restaurant visit a second time, hurl abuse at him in the head waiter and then served an inedible meal? And what restaurant would eventually hold on the market that will proceed with his guests?

Dr. Thomas Jahn, July 2009

Wednesday, July 8, 2009

Coach Leatherware Purses M3u-729

Thou shalt not steal! You shall not covet your neighbor belongings!

Yesterday, the Pope called for a rethinking of economic policy. A good reason to deal with the current misunderstandings and deliberate misrepresentations clean up:

The Catholic Church is not on the side of the anti-capitalists, socialists, interventionists and statists, but sanctifies private property, even if it is misused or abused. Pope Pius XI confirmed this with reference to the encyclical Rerum Novarum in Quadragesimo Anno, (§ 47). This unshakable conviction is a manifestation of the essential Christian ethics from God's image and uniqueness of each person. For this personality of the people, of course, the human existence is at all times, namely in the past, present and future. The ownership of each person manifests itself here in the past, so in the performance of his life. Two, the ten commandments deal with the sanctity of private property, namely, the seventh and the ninth commandment.

The Catholic social teaching, in response to the industrialization 19th Century is not a guide to action for expropriations, government intervention and planning, on the contrary

, Pope Leo XIII in the decisive for the Catholic social teachings encyclical Rerum Novarum, (§ 12): "In all the experiments, aufzuhelfen the lower classes, that is as principle to hold that private property is to leave untouched. "

In the 20th Century, Pope John XXIII, "that private property ... protect the human right to liberty and are thus making an essential contribution to building the right social order needs."

most clearly, however, Pope John Paul II occurs in the encyclical Centesimus Annus, (§ 42) for the free market economy: "A society in which private property is inviolable, we can call a fully free society and its economic aspect, free market or free market economy are cited. If such an economy is perfected by Christian charity, it promotes truly economic and social progress. "

with a rethink of economic policy for the real Catholic doctrine, therefore, the rejection constant, manipulative intervention in the meant by private property and freedom of contract marked economic activity . Christianity condemns currency manipulation and inflation. This view goes back to the St. Thomas Aquinas and the Scholastics of the late Middle Ages, such as Bishop Nicholas of Oresme back to the former, even primitive currency manipulation of the princes (secret deterioration of the coin quality) as the outflow of the Antichrist with the consequences of an unpredictable general moral decay . saw

Not the infantile superstition of the alleged collective greed of the Manager, companies, investors or speculators is therefore triggered by economic crises, but bloated state budgets, heavily indebted countries, their debts only by means of inflation, with the interest rate manipulation by central banks and tax increases, finance so at the expense of private property of its citizens.

The true Catholic doctrine has always rejected, therefore, from political abuse of power, even if he was coming dressed in the garb of the redistributive welfare state. Pope John Paul II said in Centesimus Annus, (§ 48) unequivocally: "The welfare state, which engages directly and the company denied their responsibility triggers the loss of human energy and the swelling from the state apparatus, the more of bureaucratic logic of an effort to be controlled to serve the beneficiaries, hand in hand an enormous increase in expenditure. As it seems, knows the person who actually need more and is able to meet the upcoming needs better, and her closest neighbor to those in need. It must be added that often require a certain kind of needs not simply material response, but that it is important to hear the deeper human need. "

Dr. Thomas Jahn, July 2009

Monday, June 29, 2009

Gabriella Hall Hardcore

government program of the Union in times of crisis

The draft budget provides for the grand coalition to 2013, a net deficit of 310 billion €. An incredible number, given a comparison: The income of the Free State of Bavaria for the full year amounted to 34.6 billion euros in 2005 only. The plan had the federal government announced a balanced budget by 2010 and ordered us in this promise the highest tax burden of the entire German history, especially with the added value of 01.01.2007 made tax increase. Back in 2005 the "real" tax rate was taking into account all direct and indirect taxes, employer contributions and compulsory social security contributions for an unmarried skilled workers with a gross monthly income of 3,100 € for about 65% (!!). All real, caused by the state charges have actually exceeded significantly for average earners, the 50% limit.

If the CDU and FDP today However, talk of tax cuts and from ARD / ZDF SPD and the Greens to SED / PDS ranting all about you sometimes want to cry: How much money should the ordinary average income, the workers, employed and self-employed are actually taken off yet? Is not it enough that most of us are working for more than half of the year for the state, its redistributive bureaucracy and other money transfer receiver?

tax cuts are not a question of budget, but a question of ethics and morality. Those who argue for the modern form of serfdom, a la Müntefering ("deliver all the money in the state, because who knows better how wise investing is "), should not be surprised if, in the 2009 European elections in Germany for the first time in the postwar period more workers voted for the FDP as the SPD. The people in Germany, despite the attempt of the media duration influence a fine sense of who really The current crisis is responsible: It is a state religious policy that creates with their unspeakable expenditure programs are new fields and their power base expands continuously: Subsidies for all kinds of constituencies, from the shipyards to the German tobacco farmer nurseries, educational, social. and family programs, their successes, no one knows. Useless stimulus packages, scrapping and infinite Expenditures for climate change delusion. The Union demands in their election platform is now the "Education Republic of Germany", so even more money for the ineffectiveness of public education as it rages, for example in the state of Berlin, where will be raffled off in 2010 a third of secondary school places. Here one can only quote Nobel laureate Milton Friedman. "The problem is not that we spend too little on education, but that we get so little for our money,"

But nevertheless, were in the relevant talk programs already heavily the Advertising drums for allegedly inevitable tax increases hit. Two useful aid in the Union, as prime minister However, soon anyway, no one should take seriously, you had to Oettinger and Bohemian also been found. Only the idea of unnecessary subsidies, spending programs and the largest budget item "Social" to reduce long term expenses, including the Civil Service was, of course, no one. The correct knowledge Ludwig Erhard, each issue of the state that is based in reality on a waiver of the citizen seems to be in the Union today, unfortunately, largely unknown.

highlight the tax cut plans of the Union, therefore, a kind of "ethical minimum". The total volume of only 15 billion euros appears without this really small: Without funding reserved If the tax rate in two steps from 14 to fall to 12 percent, the income limit for the maximum tax rate will initially increase from the current 52 552 to 55,000 later, to 60,000 €. In addition, the Union wishes to correct the collective history to the so-called "cold progression" from developing. "Cold Progression" is a clear indication that the tax rates never the real inflation adjusted and the cold of the state through expropriation money supply increase and the resulting loss of purchasing power has a double evil. The top tax rate charged today almost every well-trained German specialists, whose qualifications, such as tool makers or ENC technician is asked, among other reasons, because the euro since its introduction in 1999, now lost about half its purchasing power.


Friday, June 26, 2009

Difference Between Ingrown Hair Genital Warts

about the true causes of the financial crisis

Since then interfere with economic variables such as our church day moving Protestant theologian, actor, or the inevitable "time-Talker" by Gregor Gysi to Ulrich Wickert in the discussion on the financial crisis, we know at last the true causes of the whole debacle : It was the insatiable greed of the Manager, the Finanzspekulantentum international capitalism and the evil that has once again the "market failure" to be demonstrated.

You have to be neither academic nor financial expert, to begin to suffer under this annoying Dauergeschwafel kindergarten level seriously. Of course everyone knows honest and hard working German taxpayer (as increasingly rare minority) that neither of thousands of managers and bankers have conspired to international financial crisis, still exists that such a thing as "market failure". Or are we talking recently in plane crashes and not from material or pilot error, but by the failure of the gravity?

course there are reasons for believing the state politicians and the media just now sing the praises of the evil capitalism, how far-sighted contemporaries such as the philosopher Peter Sloterdijk have the historian Thomas Hoof detected. Thomas Hoof just the situation in the magazine recently analyzed SECESSION very apt. He writes: "What now, shall be presented shortly before the showdown, by the actors of the play, saving the financial markets', still follows the knitting pattern of a classic rogue comedy and also has its entertainment value: As is the biggest bankrupt (the debt repayment incompetent states) with a noble letters of support for the gesture also completely bankrupt banks and distributed from this means he will just borrow from these banks. The sums coming here for language-rich home number in areas where until recently only the astronomers were. In the monetary alchemist have appeared alongside the famous and most took place innovative 'transmutations: From gold was paper money, paper money Paper money, a nigromantischen trick later, foam money and miraculously increased to derivatives and those derivatives. The roles in the crook comedy - with the state as a perfect Santander Saviour, the banks as a repentant sinner, the market as sprung beast - which is quite a brazen Camouflage: For it was the states that brought in companionship with the financial industry this snow ball rolling , the apparent masses of money washed clean and made unfit for circulation. And watches the brutal market (other than Rating agencies, WPGesellschaften and whole companies of national and international regulatory authorities) late indeed, but incorruptible and meticulously (and against all odds) of his office, makes his acid tests to the values and wiped the foam money from the books - and break down the process of who the . Staatskumpan not save "

The Austrian journalist Andreas Tögel looks behind the scenes:" The 'greed theory', like virtually everything that comes along with the mainstream opinion, pure nonsense. Or rather you than, Hold-the-thief-tactics' sense. The squatting in state offices and central banks fathers of the disaster (impact check with Mises's business cycle theory - keyword monetary and credit expansion), every community interest in the creation of the myth of demonic, capitalism '. Before we may preserve the omniscient and omnipotent nomenklatura "

It is instructive to venture outside the box to disable the media duration brainwashing and even seriously involved with the policy mistakes that the since now almost 100 years occurrence artificial business cycles have passed through continuous inflation. Four very solid reasons for the current severe economic crisis of the postwar period can be demonstrated beyond doubt:

first The system of fractional reserve (fractional reserve banking)

Our current banking system can be characterized as a system of fractional reserve and is also known under the term "Banking and Technology with Central Bank reserve requirements.

This world-dominant system is indeed celebrated as a cyclical engine and an indispensable guarantee for investment, in fact with the fractional reserve banking system but to a dangerous inflationary, so monetary expansion of the economies:

The still-international in similar form existing world monetary system has been known created in 1944 at the conference at Bretton Woods and institutionalized through the introduction of the International Monetary Fund (IWS) and the World Bank. At the international credit and currency markets may participate only nations that meet the criteria of the World Bank. Unlike in the 19th Century (eg by Peel's Act of 1844 in the UK) approved the IWS and the banking laws of the States concerned (including all the major economies), that the credit be awarded banks need to make very little reserve capacity, so that the output volume of credit less than 10% are held in own funds. Until the abolition of the gold backing in 1913 in the U.S. and at the outbreak of World War II in all European States, was a capital adequacy of some cases by almost 100% required by law. A simple example illustrates

today's situation:

A cash sum of € 10,000.00, which is deposited with the Bank A may, in this system for about 90%, that is in the amount of € 9,000.00 to the X be given more borrowers. This uses the borrower X loan of € 9,000.00 to settle an account of the artisan Y, which pays the money in the bank B. When Bank B thus creating a cash of € 9,000.00, which is treated as the cash balance in the originating bank A in the amount of € 10,000.00. The Bank B can again about 90% of the 9000.00-€ amount loaned out, so that shows how the reserve system to an uncontrolled inflationary, so money would not increase out that the resulting amounts of money through real values or adequate security cover. The collapse of this system is especially inevitable when the so-called cash storm comes, the savers require very large number of their savings to pay. All government-enforced protection mechanisms such as deposit insurance fund flutter, state guarantees and obligations of mutual support banks unfortunately have a false sense of security before too. But goes even a single major bank bankrupt tears all other banks, such as in a chain reaction with it. Lehman Brothers provided the proof.

The biggest problem of the fractional reserve system, however, is that the license for money-lending - loans that face do not have enough equity coverage - and persuade (also known as moral hazard) insurance fund coupled with government guarantees to frivolous actions and to enter into incalculable risks. Finally, no one is personally liable and end jumps in the state.


second The central banking system with

addition to the fractional reserve banking and the non-market, but artificially fixed interest rate for central bank money supply increase at. If the central bank interest rate below the actual market rate, it has an excess supply of credit to the episode, which inevitably lead to finance risky and ultimately unprofitable investments. The loans can not be repaid and, ultimately, lead to the collapse of the banks and companies. The central bank controls the rate of the respective banks for the volume of credit available and therefore contributes to the inflation of the economy.


third The paper money system

As mentioned earlier, were later than the beginning of the First World War the gold currency systems covered virtually abolished worldwide. The enormous burdens of war would not otherwise have been financed. Prior to the abolition of the gold currencies until then outstanding paper money is only a substitute for commodity money in the form of gold or silver. A bill was then the meaning of a deposit slip. For example, the German Reichsbank until 1914 was always obliged to pay out to the bearer of a note from the corresponding value in paper gold. This system led to a strong price stability, so that especially in the early industrialized countries like the UK or the U.S., prices for consumer goods in a period of more than 100 years remained almost constant and even amount of goods through propagation, through more efficient production methods and the expansion of international trade easily discounted.

The solution from the gold standard took place in stages. In the U.S. you had in 1913 released from the "depository receipt" system. In 1933, the U.S. also said the private gold ownership illegal, it had to be delivered over a number of ornaments out private gold reserves to the U.S. central bank. Thereafter, by President Roosevelt and the Einlösegarantie lifted the dollar bills for gold. 1971 President Nixon abolished from the Einlösegarantie of the dollar against gold to foreign central banks. Then lost in U.S. dollars within 30 years about 80% of its purchasing power.

The current paper currencies are defined in economics as a regular legal tender. But this is the economic origin of money does not do justice. Money is in fact defined as commodity money, ie to a generally accepted, highly valued medium of exchange. Money is particularly characterized by its stable value, durability and scarcity. Economically, therefore, can only precious metals like gold and silver meet the true function of money.


4th The U.S. housing bubble

In 1938, President Roosevelt established the Federal National Mortgage Association (Fannie Mae) was established. The purpose of this state-owned bank which could be comparable with the German Kreditanstalt für Wiederaufbau, it was awarded a state-run and low-interest mortgage loans based Institute for vulnerable groups of people with virtually no credit check in order to encourage the private real estate acquisition. The scope of Fannie Mae in 1974 (abbreviated Federal Home Loan Mortgage Corporation, Freddie Mac) through the establishment of a second National Bank with the same task pane added. 1995, the U.S. Congress adopts the so-called Community Reinvestment Act (CRA). This law also stipulates the private commercial banks, the credit criteria for lending to a "socially weak" selected group of people to loosen hard to facilitate the purchase of real estate for these people. After 11 September 2001 finally begins a series of 13 massive interest rate cuts by the U.S. Federal Reserve.

The measures described above led initially to a dramatic increase in lending to weak private cash investors who purchased in part, without any equity share in increasingly real estate, which real estate prices allowed to rise rapidly in the United States. To keep credit market shares, including large private commercial banks and the lending from.

The German Industrial Bank AG (IKB) is founded in 2002, the special purpose vehicle "Rhineland Funding Capital Corporation to enter out of their budgets in the U.S. mortgage market may be, the promises seem ever-rising house prices.

The actual financial crisis begins in the summer of 2007. In August 2007, breaking with Deutsche Industrie Bank AG (IKB), the first (state) German bank, with an annual loss of about € 700 million. The Saxon state bank must, because of similar massive losses of its special purpose vehicle in the U.S. mortgage market are forcing sold to LBBW. In October 2007, reports the American Citigroup Depreciation of EUR 55 billion U.S. dollars. In January 2008, WestLB announced an annual loss amounting to 1 billion EUR. In March 2008, reports the Bayerische Landesbank losses of up to EUR 3.8 billion on failed speculation in the U.S. housing market. IKB is finally sold in August 2008, the American investment bank Lone Star. The total loss to the taxpayers at this time is estimated at about 10 billion EUR.

The culmination of the banking crisis is reached in September 2008 with the collapse of Lehman Brothers in New York. A worldwide slump in stock prices is the result.

Consider again the U.S. housing bubble more precisely: It just was not a market failure that led to the crisis but adjusted the natural market mechanisms fed by inflation bubble: The U.S. policy it had, like always meant only good: cheap state loans should also help poorer classes for home purchase. This policy of rampant credit expansion led to an artificially-fed demand for U.S. real estate without real capital formation had taken place. The rise in house prices was seemingly no end. The bubble had to burst

when the Federal Reserve's inflation diagnosed with a more restrictive monetary policy, interest rate hikes so opposed. Actually has to be we still all remember the price records in summer 2008 (gas, petrol and general commodity price explosions). Even then, we wanted to persuade incompetent or populist politicians, evil and sinister speculators Group cartels would screw the price spiral for the exploitation of the masses to be gaining momentum. Price increases, however, were exclusively the result of the above-described increase money supply (inflation). The currencies had depreciated by massive purchasing power losses. Not the consumption and raw material prices rose, but dollar and euro lost their purchasing power. In this period of high prices invested unsuspecting German state banks such as BayernLB, WestLB, LBBW and IKB blithely German taxpayers' money on the U.S. housing market. This market had begun in 2005 by the rate hikes by the Federal Reserve ultimately collapse because the price increases triggered by the mortgage loans led to the bankruptcy of the first loan borrowers. Like a snowball was a chain reaction: Low-income home buyers could no longer use interest and principal. The house was foreclosed. The many non-performing mortgage loans fell but now the value of securities pledged as collateral, but with bubble prices, evaluated homes. The banks had to correct the loan value and thus fell into bankruptcy soon. The financial crisis was there. The market was no longer with cheap credit, inflation, bubbles deceive and political programs, but threw all the parties very roughly and quickly to the earth.

this literature some tips guaranteed not to talk-show level:

Ludwig von Mises: Theory of money and fiduciary media, Vienna 1912

Ludwig von Mises: the social economy. Analyses of socialism, Jena 1922
Ludwig von Mises: Basic Problems of Economics, Jena 1933

Ludwig von Mises: Bureaucracy, New Haven, 1944 (available online at: http://docs.mises.de/Mises/Mises_Buerokratie. pdf
Ludwig von Mises: Human Action, Treaties on Economics, Chicago 1966
Friedrich August von Hayek: The Road to Serfdom, reprinted Munich, 2003
Friedrich August von Hayek: The pretense of knowledge, Tübingen 1996th
Franz Josef Strauss: Bids of freedom, Munich 1980
Hans-Werner Sinn: Is Germany still be saved, Munich 2003
Gabor Steingart: Germany, the descent of a superstar, Munich 2004
Roland Baader: money, gold and God players, 2 . Edition, 2005 Gräfelfing

Dr. Thomas Jahn