The end of the #Dutch (Double) #Debt (Dutch) King

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Guest post from my best friend @ATTechFX #Dutch have #issues just like we f'ing do!
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16 Jan 2011

The end of the Dutch (Double) Debt (Dutch) King

It has been a long time ago I wrote something about the economy. Not that my view has changed a bit but it's hard to fight the ridicules money printing by the central banks creating debts beyond unbelievable levels. It is all about the masses. Most of the people don't even know what is going on and how these central banks and other financial institutions manipulate the markets just for the sake to keep their bonuses and play god until they will be replaced by the next generation of bastards.

Manipulation and deceive are presented as tax cuts and pretend the retirement funds are OK because of an artificial manipulated stock market and new book keeping rules. All that toxic bank stuff is still there but placed in another box out of sight for the normal public.

These tax cuts are wiped out by rising prices due to the invisible inflation of food prices and tax increases on other levels by the local governments. All together this will have a huge impact on purchasing power of the Dutch people and is expected to decline with 3%-6%.

Another huge risk for the Dutch is that they have enjoyed a refund on interest rates by the government on mortgages of about 30% since world war II. This is now going to end over a time frame of 2-4 years but already has his impact on purchasing power apart from the decline mentioned before. For me it will be a simple. When costs on mortgages rise with 30% the prices of houses will decline with 30%. About 50% of the people who have a mortgage only pay interest and no repayments take place you can imagine what will happen in the near future. During the increase of housing prices people have spend this money on bigger cars, holidays and other stuff or in short they started living like kings on debt. This will hit them in the face soon when they discover that their mortgage debt has doubled and the value of their home has gone down by 30% from the top.

Just a little math to understand above: First mortgage 100.000 euro for the house and second mortgage another 100.000 euro for holidays, cars and so on. That makes 200.000 euro all together. When taking 30% of from those 200.000 euro the value of the house will be 140.000 euro. With a decline of purchasing power this will probably be even more.

And this all thanks to Banks who totally screwed the economy and could only survive because governments obligated the tax payer to cough up the money for their ponzi scheme. The difference between Maddof and Governments/Banks is that Maddoff doesn't make the law.

It is a big laugh when you read that people can't pay for food prices anymore worldwide and at the same time there was an article that said Banks making record profits. (read: no payback to the taxpayer but bigger bonuses)

This Ponzi Scheme will continue as long as the public refuses to hear or see the truth or until the whole thing blows up in your face.

Have fun and explain to your children how you made their future impossible.