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Archive for the ‘The European Central Bank’ Category

Unemployment and a corrupt politicial system

“Fairness for the small self-employed employers”

All of our problems stem from the same point!
Unemployment ,and the continuing loss of jobs are the government’s biggest failure.
It is well-known that over 80% of the jobs still available come from small business.
These small business are overwhelmed with red tape, taxes, and idiotic restrictions .
The government have done nothing to aid this small business to survive this rescission because none of them know anything about small businesses. The bank bailouts  have soaked up all of the funds the government might otherwise had to support these real supporters of the economy
Instead of helping the current government have done exactly the opposite by raising new stealth taxes and charges at the expense of the small business in favour  of the multi nationals (ESB Charges) (VAT hikes)
In fact not only are they not helping they are actively hurting small businesses with their bank bailout policies by robbing the life blood of credit to these small business .

Every Euro you take from a small business in taxes is a Euro that can’t be paid out in wages.
Instead of kneeling down before the multi nationals get you finger out and stop strangling the guy that gets up every morning and helps other citizens to hold down a job that in turn
Helps him to consume the products of other small business and safeguards local jobs
There will be no support in the property sector if ordinary citizens don’t have confidence in the wider economy or in the people who are supposed to be running the economy and as of now ordinary citizens have lost all confidence in the government’s ability to run the economy .

More worrying the constant televising by the established opposition political parties
About their plans to divide up the various ministries when they get into Government buildings is nothing short of sheer arrogance on their part .

We the citizens do not want business as usual with the existing musical chairs political system
The opposition have not displayed any of the characteristics needed for a radical approach to reversing the disastrous situation the economy is now in, nor have they displayed any real opposition to the governments handling of the crises.
Why?
Because they are themselves career politicians feeding from the same corrupt self-preservation system that they have grown up with all their political lives. Their political parties stamp out every last drop of independent thinking  these TD,s have.

They become addicted to the dictates of the leadership and their sole purpose in life from then on  is to become the leader of the party and so become the leader of their own administration. Citizens problems are soon forgotten and in time their own self-indulgence of their own importance becomes overwhelming .

They are totally reliant on the same civil servants that the current government is reliant on
The same people who will be advising the next batch of public servants whose loyalty is to the current corrupt system .

Remember they are not all fired when a new government is elected into office they stay put !

so they need to be constantly retrained and up skilled to meet the need of a modern economy

We need to get new people into the Dail with a mandate to totally revamp the system by giving back to the citizens the right to fire any servants of the people anytime and not have to wait for 5 years

Under such a system Ivor Callely would be gone a long time ago and without a pension and a lot of his fellow leaches would have joined him
Please support change (promise yourself that) by not voting for any of the current TD, s in the Dail otherwise we only end up with the same incompetence that has destroyed our country
We must break the mould that is sucking us dry

How Gangsters are Saving the Eurozone

How Gangsters are Saving the Eurozone
By: Pravda

Stephen Fidler writes:

Gangsters, drug dealers and criminals engaged in money laundering appear to be helping to shore up the financial stability of the eurozone. That is thanks to the demand, European officials said, for high-denomination banknotes, mainly from 200 euros and 500 euros. The European Central Bank issues these bills for a large profit which is welcome at a time when their response to the financial crisis has cast doubt on their financial strength.
The high value notes are “the euro is becoming increasingly the favorite currency in the black economy and to all those who value the anonymity of their transactions and financial investments,” wrote Willem Buiter, chief economist at Citigroup (Citigroup on the list of USA tax havens) in a recent report. The business of issuing euro banknotes, produced at a cost close to zero, is “extremely profitable” for the ECB, Buiter wrote. (And the U.S. has given billions?)
When euro banknotes and coins were brought into circulation in January 2002, the value of the existing 500 euro was 30,800 million euros, according to the ECB.
Today, there are approximately 285,000 million euro banknotes in circulation, yielding an annual growth rate of 32%. By value, 35% of euro banknotes in circulation are the largest denomination, the 500 euro note that few people get to see.
In 1998, Gary Gensler, then a member of the U.S. Treasury showed public concern about the competition to the $100 bill, the highest value in U.S. banknotes, posed by the largest euro and its possible use by criminals. He noted that $1 million in $100 bills weighs 22 pounds, in hypothetical $500 bills, would weigh just 4.4 pounds. (I do not see the problem to print 1,000 tickets, or $ 10,000)
Police have found large euro notes in cereal boxes, wheels and hidden compartments in trucks, said Soren Pedersen, a spokesman for Europol, the European police agency based in The Hague. “It goes without saying that this money is often linked to the illegal drug trade, which explains the similarity of the methods of concealment that are used.”
An ECB spokesman declined to comment on who uses the euro notes.
The ECB and the governments that belong to it are the beneficiaries of the demand for large bills.
The profit a central bank obtains from issuing currency – as well as other privileges of a central bank, such as asking for free or low cost deposits from banks – is known as seigniorage. It normally accumulates in the national treasures after the central banks account for their own costs
Proceeds from the ECB seigniorage emission are becoming increasingly important this year.
The ECB has included in its balance sheet hundreds of billions of euros of unknown quality in response to the global financial crisis.
It holds more than 600,000 billion in collateral for banks to whom it made loans, and over 400,000 billion in securities it holds directly, including government bonds.
In general, the ECB’s balance sheet has grown to nearly 2 trillion euros (million million). It has a capital base of 78,000 billion euros. That is a leverage which makes it look like a “hedge fund on steroids,” said Buiter. It wouldn’t need to lose much with these assets to wipe out its thin cushion of capital.
That’s where seigniorage comes in. Then it becomes important with the benefits obtained from the issuance of currency.
In recent years, the profits of its issuance of new paper currency was 50,000 billion euros. In 2008, the year of the crisis of Lehman Brothers, it was 80,000 billion euros.
Even with conservative assumptions about future growth of currency in circulation – of, say, 4% per annum, which is in line with the ECB’s target inflation rate of 2% plus economic growth rate – Buiter estimates future seigniorage profits for the central bank will be between 2 trillion euros and 6.9 trillion euros.
Thanks to seigniorage, he says, the ECB is “super solvent.” (Just like the Fed, except that this is more supersolvent it is the queen and the U.S. currency can be indebted to the galaxy (in dollars) and issue bills of millions of dollars and pay their bills in a couple of minutes).
An ECB spokesman said that there are no plans to withdraw the higher value notes, national equivalents of which were used in six member states before the launch of the euro. They will be retained when issuing a new series in the coming years.
Replacing them with lower denomination notes would increase production costs and processing, he says.

Comment

No real news here this is well known throughout the financial industry just like the “Rumours” about Anglo Irish Bank and its connections with questionable entities involved in similar activities in this state,
Like I said “Rumours”
where there is money there is crime not too far away and not where you would expect it to be either !

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