His Majesty Albert II, King of the Belgians, is calling for a more ethical economy in his annual National Day speech. (1)

Yes, the unexamined life is not worth living, said Socrates.

The present crisis is due to irredeemable, at least unbacked, paper money and fractional-reserve banking. (2)

These questions are in urgent need of examination.

As His Majesty said, especially in the (unofficial, I think) German translation, ethics is failing.

The present system is fraudulent
and “fraus omnia corrumpit” (fraud negates everything).
If even lawyers accept this principle, ethics must also accept it.

Of course, there are no more standards defining what is money,
nor standards saying how much money central and not-central banks can criminally create out of thin air.

The unexamined life is not worth living.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Belgian King Albert calls for more ethical economy
Associated Press
2009-07-20 10:09 PM    
http://www.etaiwannews.com/etn/news_content.php?id=1008605&lang=eng_news
King Albert II is calling for an end to greedy speculation and a return to family values in his annual National Day speech.
Albert wants lessons to be learned from the economic crisis. He called on his government and other international organizations to reform controls on financial markets and bolster education and training to create more jobs.
The king suggested citizens should “raise questions over the increasing materialism” in society. He called on Belgians to “put more importance on family values, solidarity and respect for others.”
The monarch addressed the country in his traditional eve of National Day celebrations Monday. A military parade, concerts and fireworks are planned Tuesday to mark Belgium’s independence from the Netherlands in 1830.

(2)
irredeemable digital liquidity & fractional-reserve banking are fraudulent – Let the system collapse now!
http://bphouse.com/honest_money/worthless-digital-liquidity-and-fractional-reserve-banking-are-fraudulent-%e2%80%93-let-the-system-collapse-now/

TEXT OF THE ADDRESS

GERMAN
http://brf.be/nachrichten/top/koenig-albert-plaediert-fuer-ethik-im-finanzsektor
SNIP
Das erste Gebiet, auf dem wir reagieren müssen, ist die Ethik. Die Krise ist größtenteils der fehlenden Ethik zuzuschreiben.

FRENCH
http://www.lalibre.be/actu/belgique/article/517512/discours-de-sa-majeste-le-roi-a-l-occasion-de-la-fete-nationale.html
SNIP
Il me semble qu’un premier domaine où nous devons réagir est celui de l’éthique. La crise a été en bonne partie causée par l’absence d’éthique.

DUTCH
http://www.standaard.be/Artikel/Detail.aspx?artikelId=DMF20090720_016
SNIP
Het komt me voor dat de ethiek een eerste gebied is waar we actie moeten voeren. De crisis is grotendeels toe te schrijven aan het gebrek aan ethiek.

If as a Bahraini company you file a lawsuit in London against a Saudi company, should you not demand payment in pound sterling?

Is the dollar legal tender in Bahrain?

How long will this joke continue?

ABC files $30m suit against Saad unit
Manama: 1 hour and 45 minutes ago    
http://www.tradearabia.com/news/newsdetails.asp?Sn=BANK&artid=164590     
SNIP
Bahrain-based banking giant Arab Banking Corporation (ABC) is taking a unit of the Saad Group to court in the UK, claiming millions of dollars.
It is seeking almost $30 million (BD11.34 million) in the lawsuit filed against the Saad Trading and Contracting Company at the High Court in London, according to the UK’s Financial Times.
That is a subsidiary of the Saad Group, whose chairman and chief executive officer Maan Al Sanea owns the Bahrain-based Awal Bank.
UNSNIP

Quousque tandem abutere patientia nostra? (Cicero against Catilina – How long will you continue to abuse our patience?)

As I asked earlier today:
How could the British judges possibly have jurisdiction? How could the British taxpayer be forced to pay for the resolution of this dispute between two Gulf companies? (1)

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTE

(1)
mutatis mutandis
FT and Reuters break new ground in conflict of laws
Posted by Ivo Cerckel on July 20th, 2009
http://bphouse.com/honest_money/2009/07/20/ft-new-ground/
[If the link does not work try to copy it and to paste it in your browser]

Former British prime minister, Tony Blair, seems to be sure to get the yet-to-be-created post of president of the European union.

In 2004, Blair opposed the candidacy of (now former) Belgian prime minister Guy Verhofstadt as president of the commission of the European union.

Former Portuguese prime minister José Manuel Durão Barroso is assuming the post since 23 November 2004.

Barroso now has to be re-elected or not.

Last June, Verhofstadt was elected as member of the parliament of the European union.

A Blair & Barroso team heading the European union would be hell for that union, says Wolfgang Münchau this morning in the Financial Times. (1)

Verhofstadt is still available …

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTE

(1)
Blair and Barroso: Europe’s team from hell
By Wolfgang Münchau
Published: July 19 2009 19:29 | Last updated: July 19 2009 19:29
http://www.ft.com/cms/s/0/638214c6-748b-11de-8ad5-00144feabdc0.html

Saad vs Algosaibi in New York – No way

requirements of US justice demand dollar be not reduced to its intrinsic value and SAMA continues pegging riyal to dollar

The Financial Times reported last week that Saudi conglomerate Algosaibi had filed a lawsuit in New York against the chief executive of the Saad Group conglomerate. (1)

Reuters says that Saudi firms sometimes file lawsuits abroad because there is no consistent application of law, and verdicts in its domestic courts vary widely. The courts are based on an austere interpretation of Islam and overseen by clerics. (2)

Does Reuters think the American judges are that stupid?

How could the American judges possibly have jurisdiction? How could the American taxpayer be forced to pay for the resolution of this dispute between two Saudi conglomerates?

And if that question be answered, what system of law should the American judges apply?

US law?

No,
the rules of conflict of laws are that part of the private law of a country which deals with cases having a foreign element. (3)

The fact that the law of an enemy country is being applied in time of war demonstrates that these rules do not result from the comity between nations but from the requirements of justice. (4)

Or is it because Saad Group’s debts to Algosaibi are denominated in Saudi riyal
and that the riyal is pegged to the US dollar,
that the US courts have jurisdiction?

Banks used to have the right to issue receipts for the gold they held in reserve in warehouse.
This right was taken away from them by the institution of central banks. (5)

The next step is now to grant the US jurisdiction in Algosaibi vs Saad Group 
because the Saudi Arabian Monetary Authority (SAMA), the central bank of the Kingdom of Saudi Arabia, is pegging the Saudi riyal to the US dollar.

Of course, Saad Group is still denying that the lawsuit has been filed (in New York and/or London). (6)

But the US requirements of justice or the requirements of US justice demand that the US dollar be not reduced to its intrinsic value and that the SAMA continues pegging its riyal to the US dollar.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
dollar-regime thievery in New York court
Posted by Ivo Cerckel on July 17th, 2009
http://bphouse.com/honest_money/2009/07/17/dollar-regime-thievery-in-new-york-court/
[If the link does not work try to copy it and to paste it in your browser]

(2)
RPT-Saad debt tussle, family row sour investors
LONDON, Reuters, Fri Jul 17, 2009 1:17pm EDT
By Douwe Miedema
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLH28528420090717
SNIP
Saudi firms sometimes file lawsuits abroad because there is no consistent application of law, and verdicts in its domestic courts vary widely. The courts are based on an austere interpretation of Islam and overseen by clerics.
“Rulings between courts often differ sometimes to the point that it embarrasses the government which wants to overhaul the legislation,” said a western diplomat in Riyadh. King Abdullah has tried to reform the legal system as part of plans to open up the country for investment. He removed two hardline clerics in a cabinet reshuffle in February, among them the president of the supreme court.

(3)
JHC Morris, “The Conflict of Laws”, London, Stevens & Son, 1984, 3rd ed., p. 3

(4)
JHC Morris, op. cit., p. 6

(5)
Roland Leuschel and Claus Vogt, “Das Greenspan Dossier, Wie die US-Notenbank das Weltwährungssystem gefährdet. Oder: Inflation um jeden Preis”, www.finanzbuchverlag.de, 2006, 3rd ed., p. 299

(6)
Saad Group ‘making progress’ with debt restructuring   
(AP) By Vicky Kapur  on Sunday, July 19, 2009
http://www.business24-7.ae/Articles/2009/7/Pages/18072009/07192009_f0eae5c1f2354e2e994344e1889242ec.aspx
SNIP
Saudi Arabia’s troubled Saad Group is making headway in restructuring its debt portfolio and is in talks with affected parties, Emirates Business has learnt.
“Saad is making progress with its restructuring programme and will make further announcements on this as appropriate,” a London-based spokesperson of the group told this newspaper in an e-mailed statement.
The spokesperson also denied knowledge of the recent reports in media that its owner, Maan Al Sanea, has been sued by the other troubled Saudi conglomerate, the Algosaibi group through the Ahmed Hamad Algosaibi and Brothers Company (Ahab).
“We [have] not seen or been served with this claim, although it appears from reports to be a repetition of claims previously presented extensively to the press and elsewhere and which are baseless,” said the statement.
“If we are served with such a claim, we will respond to it vigorously through specialist counsel, confident in both the true facts and the judicial process,” the group said.

Update 1 adds Murray N. Rothbard’s definition of interest rates

Bring back usury law to control interest rates, campaign urges
Nick Mathiason
The Observer, Sunday 19 July 2009
http://www.guardian.co.uk/business/2009/jul/19/banking-royal-bank-scotlandgroup
SNIP
Wall Street and City of London bank chiefs will be targeted this week at the launch of a new transatlantic campaign to reinstate historic usury laws restricting the interest rates charged by loan sharks and credit card companies. UNSNIP

The Holy Koran says in Verse 161 of Surah An Nisaa’:
That they took usury, though they were forbidden; and that they devoured men’s substance wrongfully;- we have prepared for those among them who reject faith a grievous punishment.

Ivo asks:
When one party gives something of value
and the other party pays him with something,
in this case paper, of no value,
and when one party’s wealth is created out of thin air,
while the other party has to slave and earn to pay off the ill-gotten credit or loan,
is this not devouring of other people’s wealth?

This means that money must have intrinsic value.
If not, the buyer is devouring the seller’s wealth.

There is moreover a Hadith of Prophet Muhammed in the Sahih Muslim which teaches:
“Abu Said Al Khudri reported Allah’s messenger as saying:
“gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt. (When a transaction is) like for like, payment being made on the spot, then, if anyone gives more or asks more, he has dealt in riba, the receiver and the giver being equally guilty.”

This Hadith of Prophet Muhammed establishes two things:

ONE ‘money’ in Islam is either precious metals such as gold and silver, or commodities such as wheat, barley, dates and salt.

TWO when gold, silver, wheat, barley, dates and salt were used as money, their value was ‘inside’ and not outside’ the money. Hence, it is established that ‘money’ in Islam must possess intrinsic value.  (1)

Under the Shariah, no precious metal is borrowed, loaned out and nor does it earn any income. (2)

Now if the Shariah prohibits precious metal to be borrowed or loaned out
then
if that something of value which is money in Islam is a precious metal,
that money, precious metal, can not be borrowed or loaned out. 

If money can no longer be borrowed or loaned out,
then there are no more interest rates
and interest rates do thus not have to be controlled.

Interest rates are however not the price of money. 
Interest rates are the price spreads between the stages of production, says Dr Murray N. Rothbard. (4)

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Imran N. Hosein, “Explaining the Disappearance of Money with Intrinsic Value”, paper delivered at the International Conference on the Gold Dinar Economy, held in Kuala Lumpur on 24 and 25 July 2007, p. 1

(2)
Investors look for safe asset classes
Mushtak Parker | Arab News
Monday 13 July 2009 (20 Rajab 1430)
http://www.arabnews.com/?page=6§ion=0&article=124504&d=13&m=7&y=2009
SNIP
LONDON: In the aftermath of the global credit crunch and financial crisis, investors have been increasingly on the lookout for value-added and safe asset classes. In the emerging asset classes of exchange traded funds (ETFs) and commodities (ETCs), for instance, investors have tended to favor physically-backed precious metals especially gold, whose price has been appreciating over the last few months. Indeed, commodities in general including oil, gas, coal agricultural products and of course precious metals have been outperforming traditional asset classes such as real estate and equities.
+
According to Tim Harvey [head of EMEA sales at ETF Securities Ltd.], ETF securities physically backed precious metal exchange traded commodities are Shariah-compliant.
+
Consistent with allocated gold, no precious metal is borrowed, loaned out and nor does it earn any income.

(3)
Shariah prohibition of borrowing precious metal as money
Posted by Ivo Cerckel on July 13th, 2009
http://bphouse.com/honest_money/2009/07/13/shariah-borrowing-precious-metal/
[If the link does not work try to copy it and to paste it in your browser]

(4)
Murray N. Rothbard, “Man, Economy, and State – A Treatise on Economics”, Auburn, Alabama: Ludwig von Mises Institute 2001, (originally published 1962), p. 691

The dollar regime has two pillars or legs:
one in Washington (and/or New York),
the other in London.

The Arab conglomerates of Algosaibi and Saad group are now attacking the dollar regime in both of these pillars. (1)

If, as the Financial Times said,
it is only in rare cases that Arabs make their disputes public (2),
why should they bring their disputes to both pillars of the dollar regime?

Something does not square.

It is impossible to be and not to be at the same time and in the same respect, said Aristotle in his “Metaphysics”.

This is known as the Principle of Non-Contradiction.

Contrary to what many authors ague, this is a law of thought and not a law of reality.
Reality is not submitted to the Principle. Only thought is submitted to the Principle. (3)

And the conclusion of this blogger’s thought  is … developing …

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Banks’ lawsuits aimed at Saudi debtors
By Michael Peel in London and Andrew England in Abu Dhabi
Published: July 18 2009 03:00 | Last updated: July 18 2009 03:00
http://www.ft.com/cms/s/0/7d94c4e8-7333-11de-ad98-00144feabdc0.html
SNIP
At least four banks have launched lawsuits to recover debts allegedly owed to them by two warring prominent Saudi Arabian companies hit by financial problems, in a move that has shocked investors in the oil-rich Gulf.
Three claims have been filed at the High Court in LONDON since last month against businesses from the Saad and Algosaibi conglomerates, suggesting some financial institutions are taking matters into their own hands even as the Saudi companies grapple to restructure their large debts.
News of the cases, which comes after the emergence of a US lawsuit brought by the Algosaibi group over an alleged “massive fraud” of up to $10bn by Maan Al Sanea, Saad’s billionaire owner, is likely to add to concerns about international and regional bank exposure to Gulf companies.

(2)
Algosaibi sues Saad Group owner in rare public dispute for Gulf
By Andrew England in Abu Dhabi
Published: July 17 2009 03:00 | Last updated: July 17 2009 03:00
http://www.ft.com/cms/s/0/3ea18ede-726a-11de-ba94-00144feabdc0.html

(3)
Fernand Van Steenberghen, (F-X De Guibert, éd.), “Philosophie fondamentale”, Longueuil, Québec, Editions du Préambule, 1989, p. 296 note
Contrairement à ce qu’affirment beaucoup d’auteurs, ces principes [principle of non-contradiction, law of identity and law of excluded middle] sont des lois logiques ou des lois de pensée comme telle ET NON des lois de l’ordre réel.

“It is in the economic interest of the world that we sustain that basic anchor of the system. We will be always committed to a strong dollar,” secretary of the US of A treasury Timothy F. Geithner said last week in the Gulf. (1)

Yes, Mr Geithner, that’s the point.

The question is however, what is the value of that anchor.

The answer is zero.

The dollar has no value whatsoever.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTE

(1)
Geithner talks reassure funds on US assets 
By Nadim Kawach  on Saturday, July 18, 2009
http://www.business24-7.ae/Articles/2009/7/Pages/17072009/07182009_69f7c46f9c8940b99dc8a07f2164eeff.aspx

I was born in February 1962.

The dangers of thalidomide were known since at least 1st May 1960. (1)

The World Health Organisation only recommended banning thalidomide in 1961. (2)

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

(1)
Chronik des Conterganfalls
Tragödie – Katastrophe – Skandal?
http://www.wdr.de/themen/gesundheit/pharmazie/contergan/chronik.jhtml?rubrikenstyle=contergan
SNIP
30. April/1. Mai 1960:
Auf einem Neurologen-Kongress in Düsseldorf berichtet der Neurologe Ralf Voss über die Nervenschädigungen, die seinen
Beobachtungen zufolge durch Thalidomid verursacht werden. Die Forschungsabteilung von Grünenthal versucht daraufhin, die Nervenschädigungen an Ratten zu reproduzieren – ohne Erfolg. Grünenthal-Forschungsleiter Mückter schließt daraus, dass es sich um besondere Situationen handelt, für die Contergan nur selten als Ursache infrage kommt.

(2)
Brazil ordered to compensate thalidomide victims
SAO PAULO (AFP)  Fri Jul 17, 12:03 PM
http://ca.news.yahoo.com/s/afp/090717/health/health_brazil_justice_1
SNIP
The World Health Organization recommended banning thalidomide in 1961

Dit softenonmonsterje wenst schadevergoeding voor softenon.

Geen onderhoudsuitkering.

Maar ja, de overheid haalt al haar inkomsten uit belastingen
en het onderscheid tussen belastingen en diefstal is dat
de dief periodisch terugkomt
noch beweert in het algemeen belang te stelen.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

Contergan: Grünenthal zahlt 50 Millionen Euro in Contergan-Stiftung ein
• 16 Juli, 2009
http://www.die-newsblogger.de/contergan-grunenthal-zahlt-50-millionen-euro-in-contergan-stiftung-ein-719268
UITREKSEL
Ungefähr 50 Jahre nach dem schrecklichen Contergan-Skandal hat das zuständige Pharmaunternehmen Grünenthal weitere 50 Millionen Euro in die entsprechende Stiftung für die Opfer des Medikaments überwiesen. Die Contergan-Stiftung verfüge damit in Zukunft über ein Kapital von mehr als 100 Millionen Euro, mit dem in den nächsten 25 Jahren Sonderzahlungen von pro Jahr bis zu 3.500 Euro an die betroffenen Menschen gezahlt werden sollen, teilte das zuständige Unternehmen am gestrigen Mittwoch in der Stadt Aachen mit. Contergan: Grünenthal zahlt 50 Millionen Euro in Contergan-Stiftung ein

Transparency can only be discussed behind closed behind closed doors, US of A secretary of the treasury, Timothy F. Geithner, said on Thursday. (1)

On Tuesday at the Jeddah Chamber of Commerce, Geithner was praising the ambition of the Kingdom of Saudi Arabia to break free from the dollar peg in order to solve the huge bad debt problem at the Saudi business groups Saad and Algosaibi.  (2)

Algosaibi now accuses Mr Maan Al-Sanea, Saad Group owner, in a New York court of having misappropriated approximately USD 10bn as a result of his frauds. (3) (4)

Al Sanea obtained loans using falsified documents and diverted worthless green paper, aka US dollar, received to own use.

Algosaibi accuses the dollar regime in New York of using falsified documents and perpetrating concealment, looting and thievery through the US dollar.

Developing …  [big smile]

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Geithner: oil price transparency behind closed doors
Posted by Ivo Cerckel on July 17th, 2009
http://bphouse.com/honest_money/2009/07/17/geithner-oil-price-transparency-behind-closed-doors/
[If the link does not work, try to copy it and paste in your browser]

(2)
Geithner: Save Saad & Algosaibi by breaking free from dollar peg
Posted by Ivo Cerckel on July 15th, 2009
http://bphouse.com/honest_money/2009/07/15/geithner-save-saad-algosaibi-from-dollar-peg/
[If the link does not work, try to copy it and paste in your browser]

(3)
Algosaibi sues Saad Group owner
By Andrew England in Abu Dhabi
Published: July 16 2009 23:31 | Last updated: July 16 2009 23:31
http://www.ft.com/cms/s/34fb0b92-7235-11de-ba94-00144feabdc0,s01=1.html

(4)
Saudi legal saga moves up to a new level
By Andrew England in Abu Dhabi
Published: July 16 2009 23:31 | Last updated: July 16 2009 23:31
http://www.ft.com/cms/s/0/0a5fe304-7239-11de-ba94-00144feabdc0.html