Trillions to save the Euro? World currencies, a house of cards!

The Euro, the common European currency, was bound to fail. One can not bind together nations with totally different economic system, with totally different citizen’s attitudes into one Union. While Germany kept fiscal discipline (well, relatively), German Unions and German workers kept moderation, while other countries took advantage of cheap credit and stable currency and incurred huge debts and huge salary increases like there is no tomorrow. The salaries in the crisis countries are much higher than, for example, in Germany. So underpaid German workers now will bail out the highly paid Greek workers, that have more vacation and retire earlier?

The bail out favors banks, who earn high risk premiums on interest, while the government assumes risk and buys bad credit. All this in violation of the EU no bailout clause. And giving financial incentive for risky behavior by banks.

Greece should have been allowed to go bankrupt. That is market economy. Let someone else buy the failed banks and continue running them. Let the bank managers be arrested for doing unsound business. The bank must not loan money that can not be repaid.

  • Additionally, every nation in the world, including Germany and the USA, have too high a debt.
  • And that a system based on compounded interest can not work in the long run ( 1 cent with 4% interest yield in 2000 years  $0.01 * 1.04^2000=  1.16594643150219980412675240849 e+32=  $ 1165946431502199804126752408490
One should start asking questions why countries can not be run without resorting to debt.

Human-Stupidity is just giving food for thoughts. We are just pointing to the stupidity that might ruin entire populations.

World currencies, country finances, world economy is seriously stupid, based on stupid belief, based on greed of banks, politicians, and yes, the normal citizen who wants his benefits now, on loaned money.

Countries should repay loaned money in times of strong economy. Not increase loans more and more. That is Keynesian economics.

Spiegel Online International: Top Economist on the Euro Crisis; ‘
The German Government Will Pay Up’, June 27, 2011

In a SPIEGEL interview, leading German economist Stefan Homburg argues that euro-zone members should not bail out Greece, discusses who is making a profit from the crisis and explains why he himself is buying Greek bonds. "I believe in the boundless stupidity of the German government," he says.

More related articles

All quotes from :
Spiegel Online International: Top Economist on the Euro Crisis; ‘The German Government Will Pay Up’, June 27, 2011

In a market economy, even in the case of a plumber whose customers don’t pay their bills, it’s never a question of getting creditors "involved" (in helping to deal with a bankruptcy). Instead, when push comes to shove, it is creditors, and creditors alone, who have to write off their loans. Only then do they have an incentive to carefully choose who they lend money to. A market economy with no personal liability cannot function. The government bailout initiatives create misdirected incentives that continuously exacerbate the problems on the financial markets.

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Perjuring Goldman Sachs executives: Wrong religious morality endangers your savings, countries’ currencies and finances

Why Isn’t Wall Street in Jail? |Rolling Stone

Financial crooks brought down the world’s economy — but the feds are doing more to protect them than to prosecute them […]

Goldman Sachs New World HeadquartersThe rest of them, all of them, got off. Not a single executive who ran the companies that cooked up and cashed in on the phony financial boom — an industrywide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities — has ever been convicted.

The immorality of Wall Street

Human-Stupidity was wondering long ago why Rating institutes’ AAA ratings for junk (causal for world economic collapse) went unpunished. Not only is the financial sector one big behemoth that profits from unproductive gambling in financial markets, The financial sector fraudulently rigs the game, gains immorally high commissions and ruins the world economy, banks, and entire countries like Ireland and Iceland.

When caught red handed, executives at Goldman Sachs, unaware that their own memos and emails had leaked, blatantly denied their wrong-doings under oath. What are the conclusions?

We need true morality in big world-moving issues.

  1. We need morality in economy and business. Maybe a Western Confucianism.
  2. Profit should come from production, not from financial gambling and fraud
  3. Big fraudsters need to face punishment.
  4. Or maybe the lesson is: Destroy your tracks. Don’t send and keep incriminating emails. When planning to con your own customers, don’t discuss it in writing

Our moral philosophers, religions, churches fail, philosophizing about silly issues like:
birth control, the beginning & end of life, sex & possession of child porn

Our churches, moral apostles and philosophers fail miserably. Entire countries get plundered, the world economy gets shattered, currencies are a house of cards waiting to collapse under collective debt. Banks make immoral profits from the world’s miseries. Our moral guides and philosophers are caught up in silly issues like

Our religions and moralists are just as useless and damaging as banks.

The People vs. Goldman Sachs

A Senate committee has laid out the evidence. Now the Justice Department should bring criminal charges

They weren’t murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye. But then they went one step further. They came to Washington, took an oath before Congress, and lied about it.

A legal system that allows the financial sector to make huge gains while producing nothing, or worse, destroying the productive economy.

Total dishonesty. Outright fraud. Impunity. Rating institutes that give AAA rating to junk and don’t get punished. Governments that bail out banks instead of letting them pay for their mistakes.

Government and nations borrowing like there is no tomorrow

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Milton Friedman – Why Drugs Should Be Legalized

Famous Nobel Prize winning economist Milton Friedman makes a point against criminalization of drugs in this video interview

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Richard Lynn: The Global Bell Curve. GDP (national wealth) related to skin color, intelligence of Nations

Richer Nations have higher intelligence, colder winters & lighter skin color.

GDP (income) of Nations correlates with National IQ

GDP (national wealth) correlates strongly with Intelligence of a nation. GDP also correlates negatively with average high winter temperature & skin color.

Correlation between IQ (Intelligence) and GDP of a nation
In a reanalysis of the Lynn and Vanhanen’s […] IQ explaining approximately 70% of the variation in GDP.[20] Dickerson concludes that as a rough approximation “an increase of 10 points in mean IQ results in a doubling of the per capita GDP.”
iq-gdp-correlation2 Source:  Wikpiedia:IQ_and_the_Wealth_of_Nations
Barber (2005) found that national IQ was associated with rates of secondary education enrollment, illiteracy, and agricultural employment. The effect on illiteracy and agricultural employment remained with national wealth, infant mortality, and geographic continent controlled.

Both Lynn and Rushton have suggested that high IQ is associated with colder climates. To test this hypothesis, Templer and Arikawa (2006) compare the national IQ data from Lynn and Vanhanen with data sets that describe national average skin color and average winter and summer temperatures. They find that the strongest correlations to national IQ were −0.92 for skin color and −0.76 for average high winter temperature. They interpret this finding as strong support for IQ-climate association. Other studies using different data sets find no correlation
Source:   Wikpiedia:IQ_and_the_Wealth_of_Nations

Race and Intelligence research by Richard Lynn shows a vast support for theses similar to Rushton’s, that led to my writing this prior blog article Race differences in intelligence: how research changed my mind to overcome the “all races are equal” dogma. and other blog articles in the category racial-differences-intelligence.  Richard Lynn extends conclusions from the individual sphere to National Wealth.

Human Stupidity Analysis

Lynn might not be the last word or the total truth. His ideas are extremely important and very relevant.  But his research is so extremely politically incorrect, that others don’t dare to follow his line, to really analyze his research, to prove or disprove it.  The race and intelligence relation is  clearly established but is taboo.

Discussion about racial discrimination and quotas would be very different if racial differences were taken into consideration. Richard Lynn correlating the fate of entire nations and continents to IQ, that is even more astounding.

In US, average IQ for African Americans (85), Hispanic (89), White (103), East Asian (106), and Jewish Americans (113).

As the title implies, Richard Lynn’s new book builds on Herrnstein and Murray’s (1994) The Bell Curve. The theme of the book is an examination of whether the same type of racial hierarchy in IQ and socio-economic status that Herrnstein and Murray documented in the US is present in other parts of the world. Herrnstein and Murray found that the average IQ for African Americans (85) is lower than for Hispanic (89), White (103), East Asian (106), and Jewish Americans (113). Lynn shows in detail that similar racial IQ/socio-economic hierarchies are present within Africa, Australia, Brazil, Britain, Canada, the Caribbean, Latin America, the Netherlands, and New Zealand.

Throughout the world, Europeans and East Asians (Chinese, Japanese and Koreans) average the highest IQs and socio-economic positions, while the lowest averages are found among the Aborigines in Australia and in Africans and their descendants. Intermediate positions are occupied by the Amerindians, the South Asians from the Indian subcontinent, the Maori in New Zealand, and the mixed race peoples in South Africa, Latin America, and the Caribbean. The same pattern is found on multifarious social and life history indicators such as educational levels, earnings, health, accidents, crime, marriage, fertility, and mortality.

Book review by J.P.Rushton:   Personality and Individual Differences    45 (2008) 113-114

The Global Bell Curve: Race, IQ, and Inequality Worldwide by Richard Lynn $49.95 1593680309

Intelligence as one factor in accounting for disparities between rich and poor countries

IQ and the Wealth of Nations by Richard Lynn $102.95 027597510X


“Lynn and Vanhanen have made a major contribution to highlighting the importance of intellegence as one factor in accounting for disparities between rich and poor countries.”–Development Policy Review

“Lynn and Vanhanen have launched a powerful challenge to economic historians and development economists …”–Heredity
“[A] brilliant integration of economics and psychology that illuminates the nexus between mental ability on the one hand, and national wealth, industrial productivity, and well being, on the other. This is a book that social scientists, policy experts, and global investment analysts cannot afford to ignore….Richard Lynn and Tatu Vanhanen’s thesis is stunningly engineered to allow for no error of inference and no possible outcome than the correct one, strangely overlooked until now…IQ and the Wealth of Nations does for the study of human diversity and achievement among nations what The Bell Curve did for IQ and achievement in the USA.”–J. Phillippe Rushton Fellow, John Simon Guggenheim Foundation Professor of Psychology, University of Western Ontario

Product Description

Lynn and Vanhanen argue that a significant part of the gap between rich and poor countries is due to differences in national intelligence (national IQs). Based on an extensive survey of national IQ tests, the results of their study challenge the previous theories of economic development and provide a new basis to evaluate the prospects of economic development throughout the world. Source: IQ and the Wealth of Nations by Richard Lynn $102.95 027597510X

Race differences in IQ

Most of my work has been on intelligence. My major discoveries are that the Oriental peoples of East Asia have higher average intelligence by about 5 IQs points than Europeans and peoples of European origin in the United States and elsewhere; and that men have a higher average IQ than women by about 5 IQs points. I first published the high IQ of the Oriental peoples in 1977 in a paper on the intelligence of the Japanese. In subsequent years the high Oriental IQ has been confirmed in numerous studies of Oriental peoples in Hong Kong, Taiwan, South Korea, China, Singapore and the United States.  Richard Lynn, Professor Emeritus, University of Ulster

Free download of Richard Lynn’s Articles

For instant gratification get some articles via free download:

PFS 2010 – Richard Lynn, On Human Diversity: The Global Bell Curve. Updates and Critical Replies from Sean Gabb on Vimeo.

PFS 2010 – Hans-Hermann Hoppe, Richard Spencer, Marco Bassani, Paul Gottfried, Richard Lynn, Discussion, Q & A from Sean Gabb on Vimeo.

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