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Posts tagged ‘Central Bank and Financial Services Authority of Ireland’

ECB refuses to hand over November 2010 threat letter sent to Brian Lenihan

By Namawinelake

The story of Ireland’s bailout in November 2010 has been partly told in dribs and drabs. Governor of the Central Bank of Ireland, Patrick Honohan said that the Minister for Finance in November 2010, the late Brian Lenihan was “crestfallen” when he learned from the ECB that Ireland couldn’t default even on the unguaranteed debts of the banks. The Governor went on to say that Minister Lenihan was “offered no room” for negotiation on the matter. And in April 2011, Dan O’Brien in a BBC Radio 4 programme referred to a letter sent by the former ECB president, Jean-Claude Trichet on Friday 19th November to Minister Lenihan which set out the ECB position

full article at source:  http://namawinelake.wordpress.com/2012/01/09/ecb-refuses-to-hand-over-november-2010-threat-letter-sent-to-brian-lenihan/

Central Bank not printing punts, just euro

The Central Bank of Ireland has said it is not printing Irish punts and is only printing euro at the moment.

The bank said it would not comment on what it called “speculation” in today’s Wall Street Journal that it is evaluating whether or not it needs to secure additional access to printing presses in case it has to print new bank notes to support a “reborn” currency.

The US newspaper quotes “people familiar with the matter” and says other central banks have started to weigh contingency plans to prepare for the possibility that countries leave the eurozone or the eurozone breaks up entirely.

On RTÉ’s Morning Ireland, Seven Investment Management analyst Justin Urquhart Stewart said talk of Ireland printing punts was coming from a number of sources.

He said because the banking crisis in Ireland had already been managed, Ireland could be better off and more cost effective outside the euro.

Comment:

I don’t know about you but I do not believe a single word that this corrupt state body says!

They have shown that they can’t even do simple addition and I am sure they are lying now. With the immanent collapse of the euro you can be sure there boys are printing as fast as they can!

Paddy Honohan, the Irish Central Bank and Justice for the Irish People

                                                                           By

Christopher M. Quigley B.Sc., M.M.II., M.A.

Paddy Honohan, Governor of the Irish Central Bank, shamed himself when he
gave testimony to the Oireachtas Finance committee today.
When asked about debt forgiveness for struggling Irish citizens he retorted that it was the job of the Irish
banks to get back as much capital as possible and not “grant any gifts”. How dare he say such a thing.This is the very same person who had no problem with the following:

35 Billion in capital being GIFTED to NAMA developers on the 3rd of August 2011.30 Billion being GIFTED to Anglo Irish Bondholders through a 10 year promissory note.

17 Billion being GIFTED to the Irish Banking fraternity  to create a so called “core pillar banking system”.

All the above GIFTS are being bankrolled on the good faith and credit of the hapless Irish citizens.Irish consumers were motivated over ten years to enter into a lending boom overseen by an incompetent regulatory framework  under the command of the very self same Irish Central Bank which Paddy Honohan proudly and arrogantly currently presides over.When will the Irish people get JUSTICE from this heartless self serving mandarin?Paddy Honohan destroyed the negotiating position of Brian Lenihan and the Irish State with his mis-timed statements during the course of IMF/EU bailout crisis. For this he should have been made resign. Now he is exercising the same kind of treason on the average Irish debt consumer. Under his watch he wants blood extracted from Irish homes instead of compassion being granted.The Irish people deserve better, they need a break. They need fairness. What is good for the developer goose is good for the hard working gander.Irish citizen’s taxes will be used to bail out the banking mess for decades to come. Many of these citizens are in financial hell. Under the leadership of Enda Kenny and Eamon Gilmore the very least the new Irish government should do is to stand down this Central Banking Governor and insist that debt leniency be granted to families struggling to maintain homes and hearths. Justice and fairness are not a GIFT they are a right.

 

 

Ireland Should Consider Joining the Sterling Area or the Dollar.

By Christopher M. Quigley B.Sc., M.M.I.I., M.A.

 “On Thursday 18th
November 2010 The IMF arrived in the Emerald Isle. What a sad sad
day that was  for the proud people of Ireland. Following 300 years of armed struggle.

the then resident Fianna Fail government replaced English masters with the Continental variety. However the method of usurpation this time was not guns and bullets and starvation but economic and financial prowess. To the victor will go the spoils.”

 The above was written at the end of 2010. It is now nearly 5 months on  and the crisis which brought the IMF to Ireland shows no signs of abating. As we speak the full
extent of the problem has not been fully comprehended.  As mentioned previously there are now in effect 7 levels to Ireland’s financial fiasco: insolvent property development lending; unsustainable annual government deficits; sovereign debt credit rating collapse;
insolvent consumer debt lending; insolvent mortgage debt lending; “off balance sheet: mark to market” derivative debt; 140 billion short-term ECB/ Irish Central Bank lending
facility to national banks which cannot be secured long term.

All the above “problems” need a solution but instead of a comprehensive resolution being implemented each element is being “handled” in a shoddy, short-term manner. Accordingly, not surprisingly, the Euro continues to lurch towards implosion and we are still only half way through recognising the totality of the crisis, never mind solving it. As more and more countries become affected the options open to the mandarins at the ECB/IMF are fewer and fewer. Eventually it must be recognised that the only way to
resolutely end the banking crisis is for each country to find a way to restore
growth. When the implications of the austerity cul-de-sac is fully understood
it will finally be accepted that the only real option left will be currency
devaluation. This measure would save the tourist industries in Spain, Greece
and Portugal and return competitiveness to Irish manufacturing, tourism and
agriculture.

Thus Ireland needs to take action similar to that taken by Argentina in 2002. In that year the former South America tiger faithfully managed to “humble” American banks and dollar bondholders. She de-coupled her currency from a disastrous one-to-one parity with the Dollar and so saved her economy and the social contract with her citizens. In addition she
forced American mortgage holders to accept “pari-pasu” payment in the new
devalued currency rather than in old dollars. Thus Argentinean homeowners did
not suffer the fate currently being experienced by Latvians and Lithuanians
where hard Euro mortgages must be repaid in sinking national currencies.

Ireland needs to get support from her Euro zone partners which will enable her to significantly cut her debt exposure to private bank bondholders. If this action is not allowed Ireland should let it be known that she will consider joining the Sterling Area or possibly merging with the Dollar. This course of action may seem extreme but the simple fact is that the economic picture is so grave that it is only through such decisive and
courageous measures that the disintegrating Irish financial structure can be
salvaged. (It should be remembered that when Eamon de Valera, the former Irish
Prime Minister, was consolidating the finances of the fledgling Irish nation
one of the options explored by the think tank he set up was for Ireland to use
the American Dollar rather than the British Pound). The Irish have nothing left
to lose.  Ireland will not be able to negotiate with strength if she does not have options on the table.

Threatening to leave the Euro, or even the Euro zone completely, is a very strong
bargaining chip. But the threat will have to be credible to be of benefit. If it is not backed up with planning, organisation, critical review and cost-benefit analysis it will have no leveraging value. In other words the Irish government will have to mean it. Thus forthwith the new coalition executive, under Prime Minister Enda Kenny, should set up a task force to explore all aspects of the respective Sterling and Dollar strategies. Ireland
is in a difficult place and it is time for creative thinking. The European
association has all but destroyed Ireland. The Irish nation must realise that
we now owe Brussels nothing for it failed to regulate the availability of
European Central Bank credit as was mandated under the Maastricht treaty. The
ECB and the European Commission have thus proved themselves to be
strategically, administratively and politically incompetent.

Why is it important that Ireland explore these devaluation options? Well the main reason is that through simple devaluation we can restore competitiveness to our economy without applying crippling ECB/IMF deflationary “austerity measures.” Of course to prevent inflation and its concomitant problems undermining future growth of the nation, real enterprise with real wealth benefits must be promoted. The civil service mentality of pay without production must be finally put to rest. Economic survival demands it. The joust
with European socialism must cease forthwith as it has brought us to the brink
of national collapse.

Without strong renegotiation of our way of doing business with the Europeans Ireland will be left saddled with a debt burden that is utterly unsustainable. Without meaningful national initiative the country will be left by the European elite to slowly but surely rot in economic and social stagnation, living on hopes and prayers and dreams and sound-bites
emanating from a media structure bought and sold for by bond technocrats in
Paris, Frankfurt and Strasbourg.

How much additional state funding will Anglo need?

By Namawinelake

Alan Dukes, the chairman of Anglo Irish Bank (“Anglo”) has gone very quiet of late. It seems only yesterday that the former finance minister and former leader of the Fine Gael party couldn’t contain himself with proclaiming his projections of Irish banks generally needing an additional €50bn of capital to cover losses and to provide a normalised banking service; this at a time when governor of the Central Bank of Ireland (CBI), Patrick Honohan was claiming €10bn was the more likely sum. That was only back in February of this year, so we shouldn’t have forgotten it all just yet. Back in February, Alan’s estimate was that Anglo should be okay with the €29-34bn estimated in late 2010 which was a relief because only a few months earlier there had been talk of losses of nearly €40bn. And subsequently the claim from Anglo’s CEO, Mike Aynsley in April 2011 was that the zombie Anglo wouldn’t need more than the €29.3bn already provided. But is that still the case?

full article at source here: http://namawinelake.wordpress.com/2011/07/19/how-much-additional-state-funding-will-anglo-need/

WHY ISN’T THIS GUY the TAOISEACH of IRELAND?

From Irish Central comes this column from Christopher M. Quigley, who calls himself a Dublin-based financial expert and writer.  He calls for Ireland to drop the euro and adopt either the dollar or the British Pound Sterling:

“On Thursday 18th  November 2010 The IMF arrived in the Emerald Isle. What a sad sad day that was  for the proud people of Ireland. Following 300 years of armed struggle the then resident Fianna Fail government replaced English masters with the Continental variety. However the method of usurpation this time was not guns and bullets and starvation but economic and financial prowess. To the victor will go the spoils.”

The above was written at the end of 2010. It is now nearly five months on and the crisis which brought the IMF to Ireland shows no signs of abating. As we speak the full extent of the problem has not been fully comprehended.

As mentioned previously there are now in effect seven levels to Ireland’s financial fiasco: insolvent property development lending; unsustainable annual government deficits; sovereign debt credit rating collapse; insolvent consumer debt lending; insolvent mortgage debt lending; “off balance sheet: mark to market” derivative debt; 140 billion short-term ECB/ Irish Central Bank lending facility to national banks which cannot be secured long term.

All the above “problems” need a solution but instead of a comprehensive resolution being implemented each element is being “handled” in a shoddy, short-term manner.

Accordingly, not surprisingly, the Euro continues to lurch towards implosion and we are still only half way through recognising the totality of the crisis, never mind solving it.

As more and more countries become affected the options open to the mandarins at the ECB/IMF are fewer and fewer. Eventually it must be recognised that the only way to resolutely end the banking crisis is for each country to find a way to restore growth.

When the implications of the austerity cul-de-sac is fully understood it will finally be accepted that the only real option left will be currency devaluation. This measure would save the tourist industries in Spain, Greece and Portugal and return competitiveness to Irish manufacturing, tourism and agriculture.

Thus Ireland needs to take action similar to that taken by Argentina in 2002. In that year the former South America tiger faithfully managed to “humble” American banks and dollar bondholders.

She de-coupled her currency from a disastrous one-to-one parity with the Dollar and so saved her economy and the social contract with her citizens.

In addition she forced American mortgage holders to accept “pari-pasu” payment in the new devalued currency rather than in old dollars. Thus Argentinean homeowners did not suffer the fate currently being experienced by Latvians and Lithuanians where hard Euro mortgages must be repaid in sinking national currencies.

Ireland needs to get support from her Euro zone partners which will enable her to significantly cut her debt exposure to private bank bondholders. If this action is not allowed Ireland should let it be known that she will consider joining the Sterling Area or possibly merging with the dollar

(It should be remembered that when Eamon de Valera, the former Irish Prime Minister, was consolidating the finances of the fledgling Irish nation one of the options explored by the think tank he set up was for Ireland to use the American Dollar rather than the British Pound).

The actor who played Snape in the various Harry Potter movies is the same one who played de Valera in the movie Michael CollinsAlan Rickman was deliciously evil in both roles!  Former Irish PM de Valera is not my hero; Collins was the man who brought political freedom to Ireland but at a terrible price – terror in Irish politics.

But I digress – Quigley makes these bold suggestions:

Thus forthwith the new coalition executive, under Prime Minister Enda Kenny, should set up a task force to explore all aspects of the respective Sterling and Dollar strategies. Ireland is in a difficult place and it is time for creative thinking. The European association has all but destroyed Ireland.  *  *  *  Of course to prevent inflation and its concomitant problems undermining future growth of the nation, real enterprise with real wealth benefits must be promoted. The civil service mentality of pay without production must be finally put to rest. Economic survival demands it. The joust with European socialism must cease forthwith as it has brought us to the brink of national collapse.

Quigley sounds like a cross between Gov. Walker and Nigel Farage!  He needs to consider forming a new political movement in Ireland:  Ireland for the Irish.  His nation calls on him in its time of need.  He could be a Michael Collins for today – except it can be completely peaceful and democratic!  It can be done peacefully.  Form that new political movement.  (Another digression:  Ireland is special to me:  One of my earliest ancestors I can document [great, great grandfather] was Dr. Joel Lycurgus Flanagan.  He or some ancestor of his came from the Emerald Isle is search of a better life.)

Source:

http://www.varight.com/news/why-isnt-this-guy-the-taoiseach-of-ireland/

and By

CHRISTOPHER M. QUIGLEY

“Houston (EU) We have a problem”

I see in the Irish Times today that the Central Bank‘s level of emergency liquidity provided to Irish banks last month, was €53.7 billion While the bank does not disclose the exact figure for the amount of emergency liquidity it provides, the vast bulk of the category of “other assets” refers to emergency liquidity funds. While at the same time the ECB is still supporting the Irish banks to the tune of €102.3 billion. So If the EU is slowly withdrawing its support for Irish banks and the Irish Central Banks is taking up the slack I have a question (1) Where did the Irish central bank get this €53.7 billion from? Have they discovered a hidden vault full of Euros somewhere in the Central bank vaults or are they printing this money. If they are doing so, it must be with the approval of the EU. With the national debt now standing at € 101,441,549,888 billion and we are expecting to have a budget defecate at the end of the year of 20,000,000,000 on top of that ,let’s just do a top up here €53.7 +€102.3 +€ 101.4 +€ 20.00 = €277,400,000,000:Billion Now let’s say that the banks will not need any more money and NAMA is not going to lose its shirt and we will somehow balance the budget next year (somehow through divine intervention) at the current market interest rates of 5.6% ,the interest alone will cost us 15,534,000,000,Billion a year. Now with an income of 35,000,000,000 billion in total revenues I would say “Houston we have a problem”! The current government are just not facing up to reality. Our current government expenditure is running at 54,000,000,000 and after paying the interest on existing loans we will have a budget defecate of approximately 38.5 billion. Now how is that not going to end up with us having to default???

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