What is truth?

Posts tagged ‘Brian Lenihan’

The Budget 2011

 

The Budget 2011

On the7th of December we will see how far our democracy has been eroded when a corrupt government with the help of the so called opposition will enforce a budget on the Irish People that is largely dictated by the very bondholders that we the taxpayers are bailing out .The biggest lie the Fianna Fail party is spreading is that this bailout is for Ireland. It is most definitely not: It is a bailout for the elite and their masters the foreign bondholders. We the Irish people are been saddled with private debts and we must resist this unconstitutional move by the totally discredited government who have long lost their mandate  Brian Lenihan has been named the worst finance minister in Europe in an annual ranking by a leading financial newspaper. The Financial Times said Mr. Lenihan was overcome by the scale of Ireland’s crisis and failed to rescue the banks despite the massive taxpayer bailout.”Some countries’ problems simply proved too great to handle,” said the newspaper. “Brian Lenihan was overwhelmed by the crisis in Ireland’s banking system and the implosion of the country’s economic growth.” Well we don’t need foreign newspapers to tell us this we the oppressed taxpayers of Ireland know this and the question really is why have the powers that be allowed him to continue in that job? It probably has something to do with the Fianna Fail leadership.Dammaged Goods and all that stuff!

EU-IMF puts us on a tight leash

THE DOCUMENTS issued in the Dáil yesterday by Minister for Finance Brian Lenihan illustrate starkly the extent to which this State has been forced to transfer control over economic and political management to the EU and the IMF in exchange for a loan package. This State, it is now clear, will have to make weekly reports on our cash and loans situation and monthly reports on costs and debt levels. Every three months, our lenders will carry out a detailed review of progress before more funds can be drawn down. It is a humiliating juncture which is without precedent.

Mr Lenihan said in the Dáil that Ireland is entering the external assistance programme “not as a delinquent State that has lost fiscal control”. The Government is still in denial. It is precisely because of the calamitous state of our public finances that we have entered the agreement and we are now unequivocally handing fiscal control outside the State. And it must be remembered that, even if we did not have a banking crisis, we would still have an enormous government deficit brought about by incompetent economic management.

Mr Lenihan also adds that the State “is in the happy position” of being able to raid the pension reserve of €17.5 billion to put towards the rescue. If the Minister is “happy” about taking funds out of the reserve and putting them where, prudentially, they should never be put, he is in an odd political place.

Anybody who had hoped that the senior bondholders might pay a price for their reckless lending would seem to have been deluding themselves. The documents make it quite clear that, while the subordinated bondholders may suffer losses, the Government cannot walk away from guarantees given on the senior bonds. It might (arguably) be in Ireland’s interest to do so but the consequences it could have for the euro zone and European banks convinced the EU-IMF to rule it out.

In fairness, default, while it has its attractions, comes with huge risk, especially to a State heavily dependent on overseas investment. Argentina defaulted on its debts and was consequently bestowed with a pariah status which greatly delayed its recovery.

The documents, however, do make it clear that the Croke Park agreement will have to deliver real savings soon. The action plans put forward by the various departments are vague. The trade unions harp on about time off to cash non-existent pay cheques. The Memorandum of Understanding says the Government within nine months “will consider an appropriate adjustment, including in the overall public service wage bill, to compensate for potential shortfalls in projected savings arising from administrative efficiencies and public service number reductions”. This should not come as a surprise. The conditions given to the Greek government included reform of the public sector. It is clear from recent events that simply culling the numbers in the public sector might put services at risk.

The price of the bailout from the EU-IMF is gradually becoming clear. But the political and economic jigsaw will not be completed until we see next week’s Budget.

source http://www.irishtimes.com/newspaper/opinion/2010/1202/1224284569740.html

 

Comment :

“The documents make it quite clear that, while the subordinated bondholders may suffer losses, the Government cannot walk away from guarantees given on the senior bonds. It might (arguably) be in Ireland’s interest to do so but the consequences it could have for the euro zone and European banks convinced the EU-IMF to rule it out”.

This is exactly why we must default with this plan we are only kinking the can down the road only eventually having to pick it up again .we should default with our pension reserves in tact by playing hard ball with Europe now and not going in on bended knees and begging to bailout the German and British Banks .In six months time we will be worse off only by then we will be a basket case exposed to the dictates of Europe and with a total loss of our sovereignty.

Make no mistake the figures do not add up and the markets are shouting out to the rest of the world Ireland will Default.

With this Plan we are been sold off piece by piece !

  

What Brian Lenihan and Cowen doesn’t want you to know?

Cropped picture of Vincent Browne from Flickr

Image via Wikipedia

Anybody who didn’t see tonight with Vincent Browne should take the time and look at the show now

Want to know how much? Want to know the real figure? Want to know what Brian Lenihan doesn’t want you to Know?

Anybody who didn’t see tonight with Vincent Browne should take the time and look at the show now

link http://www.tv3.ie/shows.php?request=tonightwithvincentbrowne&tv3_preview=&video=29656

Lenihan still not facing reality !

Lenihan will still not acknowledge that he had to call in the IMF and of course he is still blaming everybody else around the world  but notice how he does not want us to forget how loyal the Greens were and how they couldn’t have achieved all the did without their help

Hmmm I don’t think Gormely will thank him for that reminder we the public will not forget how they abandoned their all of their principals in favour of the merks and perks

Greens Never again and it doesn’t matter what shade of green they call themselves I say!

Brian Cowen and Brian Lenihan’s history of Lies

Talking points in time

Quotes.

Brian Lenihan; 19 Sept 2008. Six One News. ‘Ireland not at risk of fallout from fiscal crisis, says Lenihan’

“Our financial sector is sound and we are determined to ensure that continues”

Brian Lenihan; 30 Sept 2008. Morning Ireland.

“Does this mean the Irish government is exposed? No that’s not correct, of course every Irish bank has to write up their assets and liabilities in balance. The banks would be insolvent otherwise”

Brian Cowen; 30 Sept 2008. Six One News.

We have a banking system which has over the past number of years had good profits, in a healthy state, well capitalisted, well-secured loans. The first people to hurt if anything happens in the bank are the shareholders

Brian Lenihan; 10 Oct 2008. Irish Times.

“the cheapest bailout in the world so far”

Brian Lenihan; 19  Nov 2008. Six One News.

“We’re not rushing into the banks like some governments in other countries without knowing exaclty what the situation is in those banks…”

Brian Lenihan; 14 Dec 2008. Six One News.

“There will be no exposure to the taxpayer on this [€10bn support fund for banks]…”

Brian Lenihan; 16  Jan 2009. Morning Ireland.

Interviewer: Is it possible that you could in a few weeks time that you could move to nationalise AIB and Bank of Ireland as well? “No it’s not… there are no difficulties in these banks, there is no problem”

Brian Lenihan; 8 Feb 2009. The Week in Politics.

“We are now going to commit an investment for a definite return to the taxpayer. This is not bailing out the banks. This is a commercial investment for the state…”

Brian Lenihan; 18 Feb 2009. Dail Eireann.

This decisive step [to nationalise Anglo] was taken to safeguard the interest of the depositors of Anglo Irish Bank and the stability of the economy. I want to assure the House that this decisive step was taken to ensure the new nationalised bank will collect all debts due from persons who owe moneys to the institution.

Brian Lenihan; 8 April 2009. Six One News.

“This is not a bailout… this is about ensuring businesses which cannot access credit, do access credit”

Brian Lenihan; May 18 2009. Irish Times. When challenged as to why he was not nationalising banks (at this time the State had already nationalised Anglo Irish Bank and taken a 25 per cent stake in Bank of Ireland and AIB)…

I do really want to scotch the idea that there are huge risks to the taxpayer in the valuation process because we are not nationalising these institutions.

Brian Lenihan; 10 Sept 2009. Six One News.

[NAMA] will get credit flowing.

Brian Lenihan; 16 Sept 2009. Nama Bill, Dáil.

NAMA will ensure that credit flows again to viable businesses and households by cleansing the balance sheets of Irish banks. This is essential for economic recovery and the generation of employment. It will ensure that we avoid the Japanese outcome of zombie banks that are just ticking over and not making a vibrant contribution to economic growth.

Brian Lenihan; 9 Dec 2009. Six One News

“The worst is over, we’ve turned a corner”

Brian Lenihan; 4 April 2010. On the residential property market. Irish Independent.

“One of the good things about the steep discount, averaging 47 per cent, is that the residential property market will now be stabilised at a realistic level. You can now buy in confidence that the price is realistic.”

Brian Lenihan; News At One. 13 April 2010. Speaking about ERSI report…

“It means that we are stabilising as an economy and it also means we are turning the corner, and there will be increased numbers of jobs created,” he said. “At least we’re on an upward trajectory”

Brian Lenihan; Breakfast with Newstalk. 26 April 2010.

BL: No, no, listen, listen. This not good for the country and it’s inaccurate. If next year we’re obliged to include the €8bn, the €8bn will not actually be borrowed next year the device of the promissory note means we borrow…

Ivan Yates: No, I know the promissory note is over ten years. You’re missing the point…

BL: No you’re missing the point! This is an accounting device! This is not real borrowing! What the markets look at is real borrowing. Not accountancy devices…

Brian Lenihan; Breakfast with Newstalk. 26 April 2010.

Now that I’m the shareholder in Irish Nationwide I will clearly ensure that whatever money is owed by Mr Fingleton is paid by Mr Fingleton.

Brian Lenihan; Irish Times. ““Ireland not at risk of fallout from fiscal crisis, says Lenihan”. 6 May 2010.The risk of contagion in my view does not extend to Ireland. Over the last 18 months we have taken many of the measures that the Greeks are only beginning to take. I don’t see Ireland as being at great risk.”

A proposed €110 billion aid package for debt-stricken Greece has failed to soothe concerns that the fiscal problems saddling it, and perceived weaker euro-zone nations, will hurt the banking system and worldwide economic growth. “One of the reasons markets are critical of countries other than Greece is because some . . . don’t just have public debt problems, they also have structural problems with their economies,” Mr Lenihan said. “We’re not a country that has the severe structural problems that some of the other Mediterranean countries have shown and the markets have tended to differentiate Ireland out from these countries.”

Brian Cowen; 14 May 2010. Irish Times.

“We have learned hard lessons and have taken difficult decisions. Our economy is now emerging from recession and Ireland is strongly fighting back.”

Brian Lenihan; 7 July 2010. Irish Times.

“It is important to bear in mind that these projections are for a plan over 10 years; the figures are likely to change over time.

“But the Government has made clear that should Nama eventually make a loss, the Government will recover this through a surcharge on the banks.”

Mr Lenihan said the bottom line was that Nama would never cost the taxpayer anything and might even make a profit of €3.9 billion.

Brian Cowen; 7 July 2010. Irish Times.

Speaking in the Dáil this afternoon, Taoiseach Brian Cowen said [Nama] would make a profit “somewhere in the order of €1 billion”.

Brian Lenihan; 14 Sept 2010. Dail Eireann.

Certainly if given the chance I will have this problem sorted out, and this Government will have this problem sorted out a lot earlier than 10 years.

Brian Lenihan; 24 Sept 2010. Irish Times.

In recent weeks the extra yield investors demand to hold Irish bonds over German bunds has surged to record highs due to investor concern about the State’s ability to manage the cost of its bank bailout and reduce the budget deficit.

Mr Lenihan said he was undeterred by the data and that the underlying trends indicated a remarkable turnaround for the economy.

“Tax revenues are stabilising, public expenditures are under control and our budget deficit will shrink next year,” he said. “The recovery is still at a tentative stage and is likely to be uneven.”

Goldman Sachs; 24 Sept 2010. Irish Times.

One bright spot for the Government today came from a research note by Goldman Sachs Group which said Ireland was “very unlikely” to experience a financial crisis as severe as the one that forced Greece to seek an international bailout earlier this year.

“A repeat of the Greek debt turmoil in Ireland is very unlikely,” Michael Vaknin, a senior fixed-income strategist at Goldman in London, said.

“With Irish spreads already at all-time highs, we would argue that refinancing risks in the Irish debt market is aggressively priced-in already.”

Brian Lenihan; 30 Sept 2010. Newstalk.

The Finance Minister has described today as ‘rock bottom day’ as far as the banks are concerned.

Brian Lenihan says the announcement today on the final Anglo Irish bill is an ‘urgent and immediate priority to reinforce international market confidence in our ability and commitment to restore our banking system to health’

Brian Lenihan; 10 Oct 2010. Irish Times. ‘State becomes majority shareholder in AIB’

Minister for Finance Brian Lenihan said the State would have to invest in the bank, and that “progressive” changes would be made at management and board level in AIB. “It will, I believe, result in a substantial gain to the taxpayer over time as the bank is restored to its proper position,” he said.

Brian Lenihan; 4 Oct 2010. Irish Times.

… the figures showed the exchequer deficit for the first nine months of the year stood at €13.4 billion, compared to a deficit of €20.1 billion, recorded at the end of September last year.

Minister for Finance Brian Lenihan said this evening the figures showed the public finances were “stabilising” due to decisions taken by the Government.

Brian Lenihan; 11 Oct 2010. Irish Times.

Minister for Finance Brian Lenihan said today he is “absolutely” sure the country will not need to seek a bailout from the IMF and European Union.

In an interview recorded for Bloomberg Television, Mr Lenihan said Ireland “was not in a balance of payments deficit position” but admitted the country did have “real fiscal and banking problems to address”.

“We had a big contraction last year. We contracted by 10 per cent in GNP terms in one year. We got it back to zero again this year. That’s quite a turnaround,” he said.

Mr Lenihan claimed Ireland was emerging from deficit on the back of stronger exports and stressed the country is fully funded through to the middle of 2011.

Patrick Honohan; 13 Oct 2010. Irish Times.

Prof Honohan said dealing with senior bondholders was “complicated” because under Irish law they “stand equally with depositors”.

He also said things went “in a bad direction” for Ireland, and “we’re now turning this around and coming out of it”.

Brian Cowen; 16 Nov 2010. Irish Times.

Speaking in the Dáil, Mr Cowen reiterated that Ireland had made no application for external support and said there had been some “ill-informed and inaccurate” speculation about the Government seeking a bailout in recent days.

Brian Cowen; 17 Nov 2010. Irish Times.

Taoiseach Brian Cowen insisted “there has been no dictation from anybody. What we’re involved in here is working with colleagues in respect of currency problems and euro issue problems that are affecting Ireland, they’re affecting other countries. They’re particularly affecting Ireland at the moment.”

He stressed that “there has been no question, as has been stated all over the weekend, of a negotiation for a bailout”.

Brian Cowen; 19 Nov 2010. Irish Times.

Taoiseach Brian Cowen denied that the rescue plan would lead to a loss of Irish sovereignty. He also dismissed suggestions of failure. “I don’t believe there’s any reason for Irish people to be ashamed and humiliated,” he said.

source http://thestory.ie/2010/11/22/talking-points-in-time/comment-page-1/#comment-34687

Comment

My thanks to Thestory.ie for this collection

These are only some of the bare faced lies we have had from Brian Cowen and Brian Lenihan

The shocking realization for the Irish People is how perfectly naturally these two career politicians seem to do this. We have been humiliated by the incompetence of these two politicians .Not one word is now believable from these two disgraced servants of the people .They are in my mind the embodiment of total corruption ,total lack of accountability ,champions of state terrorism and the worst examples of cronyism. They will go down in Irish History, hated as Cromwell’s equal

They have destroyed in a few years what countless generations of Irish men and woman fought and died for to establish an Independent Irish republic .As of yesterday was are no longer a proud independent people. We are handing out the begging bowel to the English and are once again put back into a place my generation knew so well, the poor house of Europe.

But there is some good news yes in spite of all this betrayal, we have in Ireland today the best ever educated generation our Nation has ever had and it is to this generation I look to for out nations future .This is the generation that will lead this country back from the devastation we are now in .this generation will rout out the corruption and cronyism that infests the Dail .We will emerge from this and I believe we will emerge stronger .Just look at Germany they were beaten into the ground and they are now the envy of all the other nations in Europe. We have the people and we have the brains and we have the determination for the past 12 years we have had a glimpse of what we the Irish can achieve .We must now take back our country from unscrupulous career politicians that have commandeered the political process in this country for their own self interest and that of their cronies and families .This is an opportunity for us to make real changes to our political system that will bring more transparency and true Direct democracy .Without a major reorganization of the political system and constitution we will only fall back into the hold we are now in .Ireland has a bright future and she needs to cherish all of her children equally ,not just the chosen few

Machholz    

One way of looking at the problem

The Irish are a nation of gamblers. The country may be struggling with the burden of a huge government deficit, soaring borrowing costs and a deeply damaged banking system, but it would be dangerous to bet against Dublin winning its high-stakes game of poker with the European Union over a possible bailout.

Ireland’s aim is to secure a deal on the most favorable terms, including, crucially, the retention of its ultralow corporate-tax rate, a potent symbol of economic sovereignty that the minority Fianna Fail government is determined to protect at all costs ahead of next year’s likely elections.

Dublin still has the strongest hand. The first thing in its favor is that no one can force it to accept a bailout; Ireland has to ask the European Union for help. And given that the Irish government is fully funded until the middle of next year, it can in theory drag this situation out for months. If it did that, of course, contagion would likely spread quickly across the euro zone, as Tuesday’s stock and bond selloffs showed, threatening the survival of the common currency. In that sense, Ireland is armed with a nuclear weapon.

In contrast, the EU is armed only with bows and arrows. There is very little it can do to force Dublin to seek an early bailout. The one pressure point is Ireland’s banks, now able to survive only thanks to European Central Bank funding. But so long as the banks are still able to post eligible collateral, the ECB has little option but to continue accepting it, even though its lending to Ireland now totals €130 billion, equivalent to 80% of Irish GDP, much of it in the form of Irish domestic mortgage-backed securities specifically created to meet the criteria for the ECB’s lending facilities. If the ECB were to impose an arbitrary limit on Irish borrowing, it could spark panic across the euro zone.

This game is due to be played out over the rest of this week, with European Union and International Monetary Fund officials descending on Dublin to thrash out a deal. Ireland has signaled it is willing to consider a deal to recapitalize its banks, allowing them to borrow again in private markets.

That suits the Irish because it enables them to claim the government itself remains solvent and so shouldn’t be subject to any external fiscal oversight that might put its tax arrangements at risk. Legally and practically, this argument is nonsense, because any bailout needs to be channeled via the government, giving the lenders the right to impose any conditions they wish.

That may point to an extended standoff between Ireland and the rest of the EU. If so, this crisis simply would be following the path of every other period of stress over the past three years in Europe and elsewhere. But eventually, the market will succeed in pressuring policy makers into the response it is seeking.

In this case, the market wants Germany and the other leading European economies to agree a quick deal to assist Ireland and, if necessary, Portugal, and it wants reassurance of what will happen to the bonds of bailed-out countries after 2013. In this scenario, Ireland can afford simply to stand firm and wait for Germany inevitably to fold.

Write to Simon Nixon at simon.nixon@wsj.com

Comment:

Simon, one way of looking at the problem!

Bailout / Loan on the way from the European Union

Irish central bank Governor Patrick Honohan said he expects the country to ask for a bailout from the European Union and the International Monetary Fund worth “tens of billions” of euros to rescue its battered banks.

Ireland will probably pay an interest rate close to 5 percent, he said in an interview with Irish state broadcaster RTE today. A final decision hasn’t been reached, he said. A 5 percent rate would be similar to that offered to Greece when it requested a bailout in April.

“It is my expectation that will happen, absolutely,” said Honohan, who was speaking from Frankfurt, where he is attending a regular European Central Bank Governing Council meeting. “It will be a large loan because the purpose of the amount to be advanced, or to be made available, is to show Ireland has sufficient firepower to deal with any concerns of the market. We’re talking about a substantial loan.”

EU, IMF and ECB officials fly into Dublin today to study the books of the country’s lenders as European policy makers put pressure on Ireland to accept a bailout to prevent contagion spreading through the euro area. Honohan is the first Irish official to say publicly that the country will need aid. Finance Minister Brian Lenihan said after a meeting of euro-region finance ministers on Nov. 16 that aid was “not inevitable.”

‘Take the Money’

Irish Energy Minister Eamon Ryan said today that Honohan had “put it well” and that he had “no problem” accepting aid on the right terms if it was needed. RTE said an announcement on aid could be made in two weeks, without citing anyone.

“There is no point in being in denial anymore,” said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. “We need to take the money and get on with it.”

Irish bonds rose after the remarks, pushing the yield on the country’s 10-year debt down 10 basis points to 8.22 percent as of 9:43 a.m. in Dublin. The premium investors charge to hold the bonds rather than benchmark German bunds narrowed to 537 basis points from 554 basis points yesterday. The so-called yield spread reached a record 652 basis points on Nov. 11.

“The purpose of this whole exercise is to provide reassurance to international markets, to our partners in Europe, that the policy stance that the government is adopting is designed, and will be effective in, getting us back on a stable debt trajectory,” Honohan said. “They will also want to provide assurance” that the banks have “adequate capital resources.”

‘Spilling Over’

EU Economic and Monetary Affairs Commissioner Olli Rehn told reporters on Nov. 16 that Ireland’s banking woes are “spilling over to the sovereign.” Euro-region finance ministers said in a statement the same day that they will take “determined and coordinated action to safeguard the financial stability of the euro area, if needed.”

“The question is the size of the program,” said Juergen Michels, chief euro-region economist at Citigroup Inc. in London, who estimates any loan would have to be about 90 billion euros to 100 billion euros. “Even with a package, it won’t solve the problem in the longer run. Markets could well start to focus on Portugal or Spain.”

Honohan said it’s “true that the banks need additional confidence” even after the government pumped billions of euros into lenders including Allied Irish Banks Plc and Anglo Irish Bank Corp. “Our efforts, the huge sums put in by the government to support the banks, have not generated sufficient confidence yet” among investors,” he said.

ECB President Jean-Claude Trichet may make his first public comments on a potential Irish bailout when he speaks on a panel at 2:30 p.m. in Frankfurt today. Trichet is disappointed that Ireland didn’t apply immediately for aid two days ago, the Irish Times said today, citing an EU diplomat.

To contact the reporters on this story: Dara Doyle in Dublin at ddoyle1@bloomberg.net; Simone Meier in Zurich at smeier@bloomberg.net

To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net

Comment:

Listen to these two Radio  Interviews

It’s Ironic that the one of the growth industries in the gambling industry as we see from Paddy Powers announcement of its expansion and announcement of 500 jobs over the next 3 years

We are in a bailout situation and no amount of window dressing is going to change that. These two idiots at the head of the Irish Government (Lenihan and Cowen) and the various twits that have been rolled out to front the denials and spin have as usual done a terrible job! These incompetent baboons have sold out our independence and are now spinning semantics that changes none of the facts.

According to the Chairman of the Central Bank Patrick Honohan we are going to need tens of Billions of extra cash to shore up the Banks and this alone is an astonishing statement barely 6 months after the EU stress Tests that stated the Banks were sound and had ample cash reserves that met the stress tests rigorous requirements. But “with mature recollection” Allied Irish Bank was also supposed to be sound and It had to be Nationalized a few weeks ago.

The Bottom line here is all of the politicians are engaged in a game and the game is like musical chairs they get paid to play the game and it doesn’t matter really who wins because if they participate long enough in the game they all get to have a seat and as long as they are as individuals in the game the rewards are enormous and after they get tired they pass their place on to their offspring to continue the family job playing this senseless game that only enriches only the players and their lackeys and cronies

We the onlookers (Citizens) get to pay through the nose for the privilege of watching these leaches suck us dry.

Nobody can tell me that the opposition are going to root out the gangsters that have brought us to this disaster; none of the opposition is calling for the arrest of the criminals that are refusing to cooperate with the Garda investigation on Anglo Irish Bank. The Board members of the Banks are broadly still in place and there is no attempt to remove them ,Brian Cowen and the rest of his cabinet are guilty of Treason and they will no doubt be kicked out sometime but not without getting their golden pension pot and perks for the rest of their lives None of the opposition are declaring that this will not be allowed to happen they are too busy juggling over what chair they themselves are going to take when they take over the running of the country . 

Tag Cloud