What is truth?

Archive for January, 2012

Winter comes to Lubeck

The weather has changed and we are now feeling the bitter cold here in Lubeck across in the Stat Park I see the lakes are frozen over and the temperature gauge says its  -7 outside. I am wondering if I have ante freeze in the car I sure hope so! Still its business as usual in Lubeck the busses run on time and I haven’t heard of any major disruptions .Everybody has to be law have winter tires on their cars and if you do not and if you are involved in any accident you get the blame.Here are a few photos from around my area  enjoy!

Punk Economics: Lesson 1 (David Mc Williams)

The European Commission, in its Support for the ECB, has broken the “Social Contract” and therefore has lost the moral right to rule.

The European Commission, in its Support for the ECB, has broken the  

Social Contract” and therefore has lost the moral right to rule.



Jean-Jacques Rousseau

“The Social Contract”


“My purpose is to consider if, in political society, there can be any legitimate and sure principle of government, taking men as they were and laws as they might be. In this inquiry I shall try always to bring together what right permits with what interest prescribes so that justice and utility are in no way divided.


I start without seeking to prove the importance of my subject. I may ask whether I am a prince or a legislator that I should be writing about politics. I answer no: and indeed that that is my reason for doing so. If I were a prince or a legislator I should not waste my time saying what ought to be done; I should do it or keep silent.


Born as I was the citizen of a free state and a member of its sovereign body, the very right to vote imposes on me the duty to instruct myself in public affairs, however little influence my voice may have in them. And whenever I reflect upon governments, I am happy to find that my studies always give me fresh reasons for admiring that of my country……


Man was born free, and is everywhere in chains. Those who think themselves the masters of others are indeed greater slaves than they think. How did this transformation come about? I do not know. How can it be made Legitimate? That question I believe I can answer.


If I were to consider only force and the effects of force, I should say: “So long as a people is constrained to obey, and obeys, it does well; but as soon as it can shake off the yoke, and shakes it off, it does better; for since it regains its freedom by the same right as that which removed it, a people is either justified in taking back its freedom, or there is no justifying those who took it away.” But the social order is a sacred right which serves as a basis for all other rights. And it is not a natural right, it must be found on covenants.”


“The Social Contract” quoted above was written in 1762. It is probably one of the most important books ever written. The precepts contained therein completely altered the mind of humanity and out of its pages was born the concept of social democracy which led to the French Revolution (1789-1799) and inspired a group of American settlers to conceive a document called the Declaration of Independence (1776).

The essence of the social contract is MORAL social order. Thus when a government can no longer hold such order it loses its right to govern.

This situation has been reached today in Europe (December 2011). Why is this so? Basically, as shown with Greece, the European Commission is quite content to see a society crumble in order to save prime banking elites represented by the ECB. The failure to regulate these elites was a failure of European government, not the Greek people. Yet the lives of these nationals are being destroyed by unelected banking boards in the name of “economic orthodoxy”.

The chaos in Greece will spread to Ireland, Portugal, Spain and Italy as “austerity measures” dictated by the ECB, take hold. Let us be under no illusion the ECB knows exactly what it is doing. The European Commission knows exactly what the ECB is doing. Yet the members of both of these institutions are content to stand by and see societies crumble as long as their own privileges and those of their backers remain intact.

The council of Ministers should immediately form a legal commission to investigate the corruption and incompetence of this very same ECB. Questions need to be answered:

1.         Why did the ECB allow national central banks in Ireland, Portugal, Greece, Spain and                                   Italy grant such large levels of credit for property development yet it did not allow such                                practice in Germany and France?

2.         Why is the European Stability Mechanism an independent special purpose vehicle?

3.         Why has the ECB been allowed grow it liabilities to 3.5 trillion Euro with a capital base                                of 5.7 billion Euro, a lending ratio of 614 to 1.

4.         Who agreed the policy whereby the ECB supports bondholders to the detriment of                            European citizens?

History will show that the ECB is directly to blame for the credit crisis in the “PIIGS” yet its modus operandi has not been altered one iota since 2007 even though its incompetence is obvious to all who take the time to observe, analyse and reflect.

In Ireland this same morally and financially bankrupt ECB, who gave 40 billion Euro to unsecured property developers, is insisting that the Irish government bail out these bondholders. This action at the ECB is negating all the austerity sacrifices being made by Irish citizens as we speak. Thus cutbacks affecting disadvantaged school children, mentally handicapped teenagers, nurses, civil servants, firemen, teachers, social workers, college under-graduates all will be for nought because for ten years all Irish  austerity savings will go to privileged bonder holders favoured by the ECB board. If this is the situation in Greece, what is the truth in Portugal, Greece and Spain?

For acting in collusion with this monetary tyranny the European Commission is in effect guilty of treason and should be stood down. Accordingly, European citizens, moving forward, must retake their sovereignty and re-invent the European ideal for the sake of their families, their community and Western posterity.

The one institution capable of protecting European rights is the council of ministers, This is the only  moral Pan-European institution remaining simply because it has retained openness and transparency. This is  due to the fact that a prime minister is directly elected by a nation answerable to an active national parliament and is thus subject to very direct checks and balances. For this reason the future of Europe should reside in a community of States not a comitern of Federal country councils.  Lame national councils, lacking any real sovereignty, is all our national parliaments will become if the new economic “stability” treaty comes into effect. This development will be axiomatic given that treaty passage will leave every parliament with no autonomous power to pass budgets and independently allocate resources.

The vision of the European Union was originally built on the concepts of human rights and fairness arising out of the ashes of German military aggression. Europeans must wake up from their slumber, realise that this vision has been corrupted, and rebuild a new political structure based on justice and dignity not German financial aggression.

This process should commence with Greece, Portugal, Ireland, Spain and Italy seceding from the Euro and using their regained sovereign power to radically alter the manner in which the European Commission does business. These countries should form an integrated network of independent National Commercial Banks under a new exchange rate mechanism and allow the ECB to go the way of the former Argentinean central bank; its nearest historical rival The ECB with its balance sheet of 3.5 Trillion Euro has no real capital base other than the taxable hard labour of the hapless European farmer, merchant and factory operative.  David Cameron, by using Britain’s veto two weeks ago, showed the way. Aware politicians should now keep this momentum moving in the direction towards a workable resolution. The ECB must be told their game is up.

If the crisis is not solved by moral political leadership a solution will be applied through people power, one way or another. History has shown that when such show of force becomes necessary the march of destiny is with the people, though it may take far longer than originally anticipated.  But when the “penny drops” that the ECB is utterly to blame in its corruption and incompetence the social mood will have its epiphany and change will occur spontaneously. This is the social compact (or Zeitgeist to use Hegel’s terminology) being made manifest. Woe betide the politician who does not understand this truth. The tipping point is being reached and if The ECB does not change its manner of operation and rediscover its Christian heritage and social vision this institution must be reduced to the historical garbage can where it belongs.

If the Council of Ministers does not have the courage to usurp the ECB the social order will adopt their prerogatives and bring justice to bear. This is the true nature of democracy. It will take some time but the outcome will be inevitable. This is the lesson which Jean-Jacques Rousseau sought to teach the common man in 1752. The Sun King of France did not listen at the time. Hopefully the Council of Ministers and European National Parliaments will listen before it is too late.

Place de la Concorde anyone?

The Keiser report 242

The Next U.S. Housing Market Bailout

By: Mike_Whitney

Why are housing prices falling when the number of houses on the market continues to decline? Usually, when supply shrinks, then prices rise, right? So, why isn’t that happening now?

The reason is that housing market never completely cleared, which is to say that the Fed’s interventions and the manipulation of inventory by the banks prevented the market from finding a bottom. So, now– a full 6 years after the peak in home sales in 2006–the real estate depression continues while prices drift lower still. And–here’s the bad part–no one knows how much farther prices will drop, because the existing inventory of homes on the market (according to the Wall Street Journal) is presently 1.89 million while the shadow inventory (according to CoreLogic)… is “1.6 million units” which represents another 5 months supply, “the same level as reported in July 2011.”

Here’s more from Corelogic:

“Currently, the flow of new seriously delinquent loans into the shadow inventory has been offset by the roughly equal flow of distressed (short and real estate owned) sales.

CoreLogic estimates the current stock of properties in the shadow inventory, also known as pending supply, by calculating the number of distressed properties not currently listed on multiple listing services (MLSs) that are seriously delinquent (90 days or more), in foreclosure and real estate owned (REO) by lenders.” (Calculated Risk)

So, there’s a mountain of backlog to work-off before the market touches bottom and prices stabilize. But even that doesn’t accurately describe the troubles facing the market. The biggest obstacle to any real recovery is the millions of distressed homes that are set to come onto the market in the next few years. Those numbers will swell by many orders of magnitude when the banks and the 50 Attornies General agree to a settlement on the Robosigning fiasco some time in early 2012. When an agreement is finally reached, a flood of foreclosures will pour onto the market pushing down prices, wiping out precious homeowner equity, further eroding bank balance sheets, and forcing more underwater mortgage holders to “walk away”. Here’s how CNBC’s Diane Olick sums it up:

full article at source: http://www.marketoracle.co.uk/Article32842.html


Here in Ireland things are no better in our small economy The government have a better hand on the news flow and in fact control the entire housing market with their NAMA agency .They also manage the property prices with their payment to private property owners rental supplements for people depending on private landlords to supply housing to social welfare recipients. These rental supplements are quite generous and I am surprised that they haven’t started to cut this obvious expense to the countries taxpayers. But then again quite a lot of the TD,s are in fact landlords and would not be so quick in voting in any cuts in this direction .Never the less cuts will be coming soon and when they do this will only have a downward pressure on property prices. Rents are far too high all over the country and hard pressed tenants are subsidizing wealthy private landlords .If you are thinking of buying I would hold off this is not the time to be buying we have a long way to go before we see a bottom in Irish property prices !

Taoiseach dismisses concerns of Limerick consultant

By Mike Dwane

TO suggest the welfare of Limerick mothers and babies was being sacrificed in order to pay off German banks was “outrageous”, Taoiseach Enda Kenny has told the Dail in response to criticisms this week by consultant obstetrician Dr Gerry Burke.

Deputy Willie O’Dea had asked the Taoiseach for a response to Dr Burke’s concerns over an “exodus” of midwives from the Mid-Western Regional Maternity Hospital.

Up to 20 are expected to go next month under a retirement scheme that sees public servants get pensions based on their pre-cut salaries. Combined with those who have already left the Ennis Road hospital, this would leave the Maternity more than 20 per cent short of its complement of midwives and no contingency plan had been presented by Government or the HSE to date, Dr Burke said.

full article at source:



This gutless politician has handed over Irish taxpayer’s money to the very gangsters who are slowly stripping this country of its very life blood. Why are we the people allowing these gutless politicians who are the mouthpieces of our modern-day absent landlords to strip us naked ? It’s time to get up of our collective backsides  and take matters into our own hands and show that we the people are not going to continue to pay gangsters and gamblers for their enormous losses forever! This government is a total disaster and is a god sent for the bondholders who have lost on their bets but this gutless bunch are still paying them all their losses. Kenny and his bunch are responsible for the continuing financial disaster that is now visiting every family in the country.

Leo Varadkar’s Bomb!

Trends In The News: At First They Ignore You, (12 January) 2012 Gerald Celente

How to Work Out of the Long and Painful Debt Deleveraging Process

By John_Mauldin

This week we look at a report called “Working Out of Debt,” about   debt and deleveraging, from the McKinsey Global Institute. This is a   well-done summary of their longer paper, which has been updated, called   “Debt and deleveraging: Uneven progress on the path to growth.” I   discussed the original paper both in my regular letter and in Endgame.   It is one of the best, most definitive pieces on the topic I have read.   For those trying to understand how the deleveraging process will affect   their particular world, I think it is a must-read. I have been spending   more and more time thinking about the whole process of deleveraging,   and am coming to think deleveraging is the critical and   fundamental factor shaping the economic environment and impacting every   decision countries and businesses are faced with. This paper was done by   Karen Croxson, Susan Lund, and Charles Roxburgh; and they are to be   especially commended for their insight and work.

full article at source:http://www.marketoracle.co.uk/Article32776.html

Here is a thought!

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