What is truth?

Posts tagged ‘Mr. Paddy Honohan’

The Firing of the New Central Bank Governor

The Firing of the New Central Bank Governor

The calling by the new central bank governor Mr. Paddy Honohan for a “nine eleven type commission investigation into the banking crisis” is totally unforgiveable and accordingly he should immediately stand down. His position is supposed to be politically neutral. This act by the governor is a sign as to how desperate the Central Bank’s position has become. As everyone knows the best form of defence is attack. If his ploy does not work he is finished.

Every astute financier knows that the responsibility for the disaster lies squarely in the court of the Central Bank. Their man ran the Financial Services Regulatory Authority. They allowed the Irish banks use the “originate to distribute” mortgage model (see article below: Note 1). They allowed Irish financial institutions to operate with no regard to realistic underlying property valuations. They allowed intra-banking loans, sometimes in the billions, to shift between golden directors without disclosure. This same “regulator” fines and closes down poor struggling insurance brokers, mortgage brokers and financial advisors for minor regulatory oversights. Mr. Honohan, a World Bank and Trinity College insider knows this and is thus no stranger to cynical hypocrisy.

However, not everybody knows that the Irish Central Bank, now part of the European Central Bank, is a privately owned franchise. The appointment of the Governor is “independent” of our Parliament. The process seems democratic but this PR stunt is a ruse. The Central Bank is beyond our National control under the present arrangement. This state of affairs should not be allowed continue. The World banking franchise, of which Ireland is a small branch, is also privately owned and is based in Switzerland. The Global brand of this private corporation is called the Bank for International Settlements (BIS). It was to BIS that Alan Greenspan was flying when the Twin Towers were hit on 11th. September 2001. Is this why, ironically, Honohan is calling for a 911 type enquiry?

A sovereign people have the natural right to issue sovereign currency and sovereign, interest free, credit. Argentina solved its “debt crisis” by walking away from its dollar debt obligations to Uncle Sam’s banks. This action destroyed private dollar institutional assets but saved a Nation and a people from ruin. It took great courage. Is it time the Irish government realised such courage and understood their true power options?

Paddy Honohan and his gang should be shown the door for a start. Control of the Central Bank and its regulatory responsibilities should be made sovereign again as it was in 1922 under the new Irish Republic. The people who caused the disaster cannot be trusted to steer the Nation towards a fair and equitable resolution. All should be changed, changed utterly.

Note 1.     (Published Article from the Internet, May 2009).

The “Sub-Prime” Crisis Understood:

The “Originate to Distribute” Basle

Banking Model Created the Banking Crisis


In an attempt to comprehend the current “credit crisis” I decided to try to investigate its underlying causes. To my dismay I discovered that the situation did not come about by accident but was actually conceived and planned by the International Banking Fraternity in Basel, Switzerland, in 1998.

The tsunami of credit that burst onto the scene after this “Basle Accord” helped save America from a 2001 recession, enabled it to fund a war, sleep walked Europeans, politically, into the Euro Zone and attempted to copper fasten the artificial state called the European Union. This crisis is no accident it was premeditated and internationally agreed.

If you don’t believe the pre-meditation involved please read the quote below from the Wall Street Journal, Nov. 27th. 2007:

“In 1998 the Basle Accord created the opportunity for regulatory arbitrage whereby banks could shift loans off their balance sheets. A new capital discipline that was designed to “improve” risk management led to a PARALLEL BANKING SYSTEM whose lack of transparency explains how the market started to seize up.

The “originate-to-distribute” model REDUCED THE INCENTIVE for banks to monitor the CREDIT QUALITY of the loans they pumped into collateralized-

loan-obligations and other structured vehicles, the rules failed to highlight contingent
credit risk……With Basle II, the question is just how the markets will evolve over the next 20 years…. as the new accord will require banks to hold LESS CAPITAL”.

American history has shown that many of its great leaders saw the danger in granting banking institutions too much power over the destiny of a nation. The Basle I Accord and now Basle II indicate just how fundamentally the International Banking Groups have lost their moral compass and altered old standard banking rules. Through sleight of hand i.e. “off balance sheet accounting” they allowed the financial structure of the world to become totally unstable and risk prone. If one was cynical one would actually come to believe that in 1998 future failure was built into the matrix; failure which only the strongest and the most astute could survive.

The end result will be systematic institutional deflation on a worldwide basis. Even though cash is being pumped into the major institutions the multiples of “off balance sheet” credit are now historic, thus the corporate inflation has already occurred. What we will now experience going forward is dept collapse and with it falling mortgage issuance and restrictive commercial funding. Here in Ireland business activity has almost come to a standstill and everybody is holding their breath wondering what the next crisis will be. The only saving grace is that things are not much better in Italy, Germany, France or Spain and is actually much worse in Scotland, (where the bank of Scotland failed) England and Greece. This crisis is truly global.

As institutional deflation (due to collapsing systematic credit) and social inflation (due to the panic demand and circulation of currency) spreads around the globe those who are left holding excess negotiable resources will be in a very powerful position to soak up value assets for pennies on the dollar. Regular folk will not be able to participate in this bonanza because for them the banking credit system will be closed with nothing to offer but foreclosure and frustration. The majority will in a defensive survival mode while the privileged few will be in full scale acquisitive attack. Such was the case in the last depression. How history is repeating itself. Those who instigated the “off balance sheet” travesty knew exactly what they were doing. My advice is if you cannot beat them join them. Friends go to cash and the physical money metals as soon as you can. Contract your business and life-style expenses. Network and co-operate within a real community for the exchange of goods and services that sustain authentic life. Communities should learn how to issue local based, bearer-negotiable, split-barter, exchangeinstruments of agreed value; otherwise known as money. (Most people do not fully understand that money, in essence, is a social contract based on human trust and mutual benefit). Educate yourself regarding Social Credit. This “crisis event” is going to get much worse before it gets better folks. There will be short periods of reprieve but the reality of the problem is so serious and fundamental that it will take years, maybe decades (as in Japan), to work through, even with a R.T.C. (B) type solution. But perhaps it is true that “every cloud has a silver lining” and that “every problem bears within it the seeds of a greater opportunity”. Maybe finally after ninety five years the good people of the United States will awake from their media induced trance and realise that too much power was usurped by an elite on the 22nd. December 1913 when the privately owner Federal Reserve Bank was illegally formed.

Peaceful, proactive and constructive community must reassert its primacy over immoral, selfish and destructive institutionalism.

I will end with a quote which I think is most relevant:

“Now I come to my last statement. I regret ending on what is, I suppose, such a pessimistic note– I’m not personally pessimistic. The final result will be that the American people will ultimately prefer communities. They will cop out or opt out of the system. Today everything is a bureaucratic structure, and brainwashed people who are not personalities are trained to fit into this bureaucratic structure and say it is a great life–although I would assume that many on their death beds must feel otherwise. The process of coping out will take a long time, but notice: we are already coping out of military service on a wholesale basis; we are already copping out of voting on a large scale basis. I heard an estimate tonight that the President will probably be chosen by forty percent of the people eligible to vote for the forth time in sixteen years. People are also copping out by refusing to pay any attention to newspapers or to what’s going on in the world, and by increasing emphasis on the growth of localism, what is happening in their own neighbourhoods.

Now I want to say good night. Do not be pessimistic. Life goes on; life is fun. And if a civilization crashes, it deserves to. When Rome fell, the Christian answer was, “Create our own communities.”

Prof Carroll Quigley

Third Oscar Iden Lecture

Georgetown University 1978

Tag Cloud