By Michael Hennigan
Enda Kenny, taoiseach, made a broadcast to the nation last night to mark the official end of the international bailout and he deserves some credit for meeting the financial terms of the bailout and winning concessions from Europe on debt. However, the crisis
provided the best opportunity for radical change since the late 1950s and now
the time has passed. The Economist in a blog post titled ‘Dead Cat Bounce‘ says that meeting the bailout terms “has done little to solve Ireland’s underlying ailment: the fact that domestic activity – – roughly equivalent to GNP – – only accounts for 80% of GDP. As the multinational firms that account for most of the rest contribute little towards
government revenue due to Ireland’s super-low tax rates, Ireland’s debt burden
will only become more sustainable when domestic firms start booming.”
full article at source: http://www.finfacts.ie/irishfinancenews/article_1026992.shtml
By Thomás Aengus O Cléirigh
Kenny and his co collaborators in the Twiddle dumb and twiddle dumber political system are effectively announcing that its back to Business as Usual for the 350 insider family’s or so elite that are running this BA-NAMA Republic .They lied to us and broke all their promises and anyone dumb enough to believe that Happy days are on the way with 65,000 citizens leaving every year is just a joke, the lower classes, the vulnerable and the old who cannot defend themselves. Our country is divided and these crooks are still parting at our expense, sucking our country dry on behalf of the big multi corporations ,who pay a pittance in tax so the PAYE taxpayers will continue to carry the burden of bailing out gangsters, crooked politicians and toxic banks! We need a drastic change that includes the abolition of the current dictatorship of the 2.5 political party systems that ensures no change in politics no matter what combination of political party wins at the so called polls! Putting the likes of this puppet in charge of our lives along with Noonan, Gilmore, and M. Martin is just plain stupid!
Allowing the current totally corrupt system to continue is just putting off the day of reckoning /revolution. We cannot allow this system where these self-centred, sell-outs controlling every aspect of our lives for 5 years after each and every election! No I want to be able to kick these crooks out of office via referendum (Direct democracy) a month after any election or any time within the 5year period, if they prove to be liars, con artists, on the make or downright puppets in the pay of foreign governments, and or proven to have deceived the people (Broken promises) No real modern democracy needs career politicians! We are a small country and we should be able to govern ourselves like the Swedes or the Swiss.
Have a great day!
By Finfacts Team
The Central Bank said today that its expects weak growth this year with a
continuation of the gradual recovery in the overall level of economic activity,
though at a slightly slower pace than previously expected
In its Q4 2013 bulletin [pdf],
the Bank says its latest forecasts for GDP (gross domestic product) growth for
2013 and 2014 are marginally lower than those published in the last bulletin.
GDP growth of 0.5% is now projected for this year, with growth of 2.0% forecast
for 2014, representing a downward revision of 0.2 and 0.1%, respectively, to the
previous forecasts for 2013 and 2014. The forecast for GNP (gross national
product), mainly excluding the profits of the multinational sectors has also
been revised down in a similar fashion and is now projected to grow by 0.1% this
year, and by 1.2% next year.
full article at source: http://www.finfacts.ie/irishfinancenews/article_1026631.shtml
By David Mc Williams
The other week, when in Henley in England, I spoke to an English couple from Exeter who had recently visited Dublin. They loved the city but said that they didn’t do any shopping because the place was far too expensive. They couldn’t understand how a country suffering from 14% unemployment and emigration, while the domestic economy was on its knees could have such expensive retail prices.
They put it down to the Euro and they were mostly right. If we had a currency commensurate with our weakened economy, that currency would have weakened dramatically from 2008-2013 to reflect the collapse in the domestic economy. This devaluation would have helped Ireland to become more competitive again quickly. Wages and prices would have fallen dramatically making Ireland a fantastic place to invest. But that didn’t happen.
The English tourists had a good time, but didn’t spend what they had intended to because the country is too expensive largely as a result of trading in a currency, which is far stronger than the weak Irish economy can sustain.
If the tourists had been Japanese and found Ireland expensive that wouldn’t be too bad, but they were English and the English are our biggest source of tourism. This is why the exchange rate with Britain matters hugely.
full article at source:http://www.davidmcwilliams.ie/2013/08/12/sitting-on-our-hands-or-facing-facts
By TANA FRENCH
Friso Gentsch/dpa, via Corbis
DUBLIN — FOR the past month, Ireland has been outraged by tapes of Anglo Irish Bank officials, back in 2008, discussing lying to the government about how big a loan they needed, and how they knew there was no chance that the loan would ever be repaid. That loan was the first domino in a sequence that ended with the whole Irish economy flat on its face.
It’s not the bankers’ actions that have outraged people — pretty much everyone had a fair idea that this was what had gone down. It’s the overpowering sense of amorality revealed on the recordings, which were released by the Irish Independent newspaper. The bankers have a great laugh about the situation. It genuinely never seems to mean anything to them that the taxpayer is going to be forced to pay their bills, to the tune of tens of billions. More than that: it never seems to occur to them that their actions might harm people.
I write psychological crime, so I spend a fair amount of time thinking about morality and amorality and what underlies them. And it seems to me that this amorality could be a symptom of something deeper: a total disconnect between action and consequence.
Ireland’s population is just over half that of New York City’s. Our ruling class — including many of the politicians, bankers and property developers who wrecked the economy — is a tiny community, interwoven by friendship, marriages, education, sports and financial transactions to a degree that would be unimaginable in a bigger country. That interweaving has created a safety net that won’t let any of the ruling elite fall. If you’re a banker and your golf buddy’s kid wants to be a banker, then it doesn’t matter if the kid is an idiot, or if he kills cats for kicks: you’ll take him on, and you’ll keep him on…….
full article at source: http://www.nytimes.com/2013/07/28/opinion/sunday/the-psychology-of-an-irish-meltdown.html?smid=tw-share&_r=2&
By David Mc Williams
Our economy is going backwards. Latest figures from the CSO reveal that the economy has shrunk since last summer.
We are now contracting at a pace last seen in 2009, when the wheels really began to come off. The Irish economy has contracted now for three quarters in a row.
Throughout recent recorded history, recessions last on average ten months. This recession is completely different, both in terms of its scope and its depth. We are seeing a massive double-dip recession led by a depressed local economy, which is compounded by the delayed effects of austerity in Europe.
Domestic consumption is cratering. According to the figures, in January to March of this year, consumption fell by 3 per cent. This is the largest fall in the whole recession – even including 2009 and 2010. Investment, too, is down 7 per cent and even exports, usually the bright point on the Irish economic landscape, were down 3 per cent in the first few months of the year:
full article at source: http://www.davidmcwilliams.ie/2013/07/01/caught-in-a-capital-trap
Ireland may not win football’s European Championship but when it comes to banking debt we are Barcelona, Bayern Munich and Manchester United all rolled into one with Real Madrid for a bench. Germany may have run Ireland close in the nominal amount of banking debt but when it comes to a proportion of GDP, it is just pennies behind their sofa. For Ireland, it’s the entire house.
Here’s another little stat to chew on. The European banking crisis is just that – a European crisis. But as we know, this has not been addressed at European level. Rather, the cost has been delegated to individual countries regardless of their size or ability to pay. For instance:
- Ireland makes up 0.9 percent of the EU population
- The Irish economy makes up 1.2 percent of EU GDP
Ok, we’re small. So how much of the entire European banking debt have we paid?
- The Irish people have paid 42 percent of the total cost of the European banking crisis
By David Mc Williams
Last week provided a very interesting picture about what is actually happening, not just to the Irish economy, but to the broader European economy, and how the various policy responses over the past few years are affecting us all. The picture is not a particularly pretty one because it shows that money is available to big, government-backed companies and enterprises, but not to small, job-creating entities.
The upshot of this Great Recession will be the hollowing-out of the productive marrow of the economy while, at the same time, large, lugubrious entities will probably survive because they have access to precious credit.
The story of Ireland is the tale of two sectors. If you are big and have a stream of income – like a big power company with regular payments which can be used as collateral for a new loan, or a bank with paying customers, or even a state with taxpayers – you will get cash.
If you are small with a good business model but facing stiff competition and precious few assets to mortgage, you can forget about it.
So the good news is that there is plenty of money around; the bad news is it is going to the wrong people – or, at least, not going to the right people.
full article at source:http://www.davidmcwilliams.ie/2012/11/26/welcome-to-two-tier-ireland?utm_source=Website+Subscribers&utm_campaign=dee3768e42-22112012&utm_medium=email