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Posts tagged ‘Republic of Ireland’

Debt deal is jiggery pokery dressed up as a game changer

By David Mc Williams

The news that the State has secured a deal to push out Ireland’s debt repayments represents a victory for the Government’s – or more accurately the EU’s – giant “delay and pray” strategy. The deal would see the repayment of a significant chunk of the €40bn troika loan pushed out for another 15 years. What we have executed is in effect a “gentleman’s default”. We won’t pay what we said we’d pay and the creditors won’t get what they expected to get and we’ll see how we are all fixed after a dozen or so years. Let’s look at the details to see what this means.

It appears that €10.5bn of EFSF/EFSM debts, which were due to be repaid in 2016, will now be kicked out to some future date. This will ease repayments. There was going to be a dramatic spike in the amount of money due in the next few years. With the economy fragile at best, there was no guarantee that the Irish State would manage to squeeze more cash out of us. From the EU’s perspective, a fresh Irish bond crisis must be avoided at all costs. Yet a bond crisis may have been the most sensible outcome. Debts that can’t be paid won’t be paid……

full article at source: http://www.davidmcwilliams.ie/2013/03/07/debt-deal-is-jiggery-pokery-dressed-up-as-a-game-changer?utm_source=Website+Subscribers&utm_campaign=41ac1cc0e8-22112012&utm_medium=email

We must not pay the Anglo Irish Bonds!

By Thomás O Cléirigh

2nd week in Lubeck 2013 009

This Zombie house( Anglo Irish Bank)  should have been burned down 5 years ago! The people of Ireland have been rightly screwed and the top directors are still living a lifestyle very few people in Ireland can now have .The Gangsters who brought our country to its knees and have effectively made financial slaves out of the rest of us have long gotten, their ill gotten gains safely away and the puppets in Lenster house are quietly supporting the other gangsters from the other corrupt banks. An Ex Attorney general was amongst them. The financial landscape in Ireland is littered with X politicians who are supposedly looking after the” public interests” on the various bank boards.(If you believe in the tooth fairy that is) These traitors, in the current government are no better that the Fianna Fail gangsters who sold us out to the hidden moneymen and now we are subject to this Muppet  Anglo Bond show. Kenny and Noonan will go down in Irish History as nothing more than an Irish version of the collaborating Vichy Government in France in the last war!

Our country is been stripped of its entire means to deliver a proper health service to its people and our people are been forced to pay new penal poll taxes to pay interests on debts that are private debts from privately owned Banks.

We are not libel for these debts and our politicians are themselves mouthpieces for our new masters who have emerged from the shadows of corruption! They have abandoned our people to these faceless slave traders and as long as they receive their annual 30 pieces of silver they will continue to deliver us up to these financial slave traders .We must rid ourselves of this” Odious Debt “and the puppets that call themselves our government. The republic of Ireland in no more and the self-serving leaches that dance around Lenster House are nothing more than puppets and enforcers of the dictates coming from our unelected masters in Europe!

The ever increasing tax load on the shoulders of ordinary people of Ireland is only paying the interest of the private debts of fraudulent Bankers and their pals the incompetent politicians who continue to force our people to bail their gangster buddies out.

We the people of Ireland must now refuse to pay another cent to these champions and cheer leaders of the financial slavery they have imposed on all of us! We must now refuse to lie down and comply .Debt is a excellent form of control and the fear of not being able to pay your bills is now a dally cause of great concern to every household in the country .People are been forced to comply with the dictates of the faceless unelected autocrats in Europe. We must rid ourselves of these leaches that are sucking our country dry.We must not pay the Anglo Irish Bonds!

Stand up and take back our country from the gangsters in Lenster house and their banker buddies.

Roll on the 2nd Irish republic!

These figures are not telling the real story!

Central Bank figures published today show 55,763 home loans, or 7.2 per cent of all mortgages, were in arrears for more than 90 days at the end of June.

Central Bank figures published today show 55,763 home loans, or 7.2 per cent of all mortgages, were in arrears for more than 90 days at the end of June.

This compares to an arrears level of 6.3 per cent three months ago, and 5.7 per cent at the end of last year.

At the end of June there were 777,321 private residential mortgage accounts held in the Republic of Ireland to a value of €115 billion.

According to the Central Bank, 69,837 residential mortgages were categorised as restructured at the end of June. This compares with 62,936 restructured accounts at the end of March. Of this total 39,395 are not in arrears.

Between April and June mortgage lenders applied to commence proceedings to enforce the debt/security on a mortgage in 209 cases comprising arrears totalling €7.2 million built up on loans equating to €60.2 million.

Chief executive of the Irish Brokers Association Ciaran Phelan said banks are starting to understand that restructuring was the “only real solution”.

“According to these numbers, over 4,000 mortgages in arrears were restructured during the quarter; this number needs to rise significantly if we’re to slow the growing level of arrears – there were 6,000 new households in arrears in the quarter,” he said.

The Government is considering establishing a new agency with legal powers to enforce debt restructuring agreements between banks and struggling home owners. The Cabinet is awaiting a report from an expert group due by the end of next month.

One measure now under consideration is converting the Money Advice and Budgeting Service (Mabs) into a personal debt management agency, which would be given “quasi-judicial status” to enable it to “support families who make an honest effort to deal with their debts, including non-mortgage debt”.

These new legal powers would enable such an agency to require banks to achieve a resolution in these cases. Mabs spokesman Michael Culloty said today that about half of its clients came seeking mortgage advice.

Mr Culloty said that distressed mortgages remained a “growing problem”.

 

Source:http://www.irishtimes.com/newspaper/breaking/2011/0829/breaking3.html

Comment:

Mortgage arrears will remain a problem and I expect it to be endemic by the end of the first quarter of next year. With Christmas out of the way and new debts added to the old ones, I believe people will have had enough! While our gutless politicians tinker around with the very real problems of homeowners debts it will be impossible to sell the concept that citizens must continue to bail out developers in NAMA and continue to pay them 200,000 Euros ,while at the same the ordinary Joe have to endure a lifetime of debt .The Banks were just as much responsible for pumping up prices of shoeboxes  and they must have known that the chickenswould come home to roust some time !

The Financial regulator abandoned his Responsibility to regulate the financial industry allowing them to become gambling hubs, accountability was nonexistent and political interference in the property market allowed and felicitated the exploitation of gullible citizens .The printed press heavyweights  all enjoyed hefty profits advertising these overpriced future slums to the masses. Now they are supporting the gutless politicians in keeping the masses in financial slavery.

People of Ireland stand up and cast off this yoke from around our collative neck!

State will not longer tolerate ‘delinquency and arrogance’ of church, says Kenny

                         

State will not longer tolerate ‘delinquency and arrogance’ of church, says  Kenny

Wednesday, July 20, 2011 – 07:13 PM

Taoiseach Enda Kenny today launched an unprecedented attack on the Vatican,  accusing Catholic hierarchy of putting the preservation of the church’s  reputation ahead of child rape victims.

In a damning assessment of Rome’s  attitude to paedophile priests, Mr Kenny claimed the latest inquiry into  clerical abuse cover-ups has exposed a dysfunctional, elite hierarchy determined  to frustrate investigations.

The Holy See was also warned that religion  does not rule Ireland.

“For the first time in Ireland, a report into  child sexual abuse exposes an attempt by the Holy See to frustrate an inquiry in  a sovereign, democratic republic as little as three years ago, not three decades  ago,” he said.

“And in doing so, the Cloyne report excavates the  dysfunction, disconnection, elitism, the narcissism that dominate the culture of  the Vatican to this day.

“The rape and torture of children were  downplayed or ‘managed’ to uphold instead, the primacy of the institution, its  power, standing and ‘reputation’.”

The Taoiseach’s attack, which opened a  special Dáil debate, followed the publication last week of the fourth major  report in six years into the Church’s cover-ups of clerical abuse.

Cloyne  Diocese in Co Cork is the latest part of the Church to be exposed with former  bishop John Magee – a Vatican aide to three Popes – singled out for misleading  investigators and “dangerous” failures on child protection. His resignation was  accepted by Pope Benedict last year.

On one occasion he was found to have  written two different reports on an abuse allegation – one for Rome and one for  diocesan records.

The Taoiseach went on to describe the Vatican of having  a “calculated withering position” on clerical abuse, which he said was “the  polar opposite of the radicalism, the humility and the compassion upon which the  Roman Church was founded”.

Mr Kenny said the Vatican’s reaction to  evidence from victims of abuse was to have it parsed and analysed by a canon  lawyer.

“This is not Rome,” he said. “Nor is it industrial school or  Magdalene Ireland, where the swish of a soutane-smothered conscience and  humanity and the swing of a thurible ruled the Irish Catholic  world.

“This is the Republic of Ireland 2011.

“A republic of laws,  of rights and responsibilities, of proper civic order, where the delinquency and  arrogance of a particular version of a particular kind of morality will no  longer be tolerated or ignored.”

The Taoiseach’s condemnation came on the  back of the first official comment from a Holy See spokesman to the Cloyne  report.

On Vatican radio, Fr Federico Lombardi dismissed criticism and  denied that Irish bishops were encouraged or advised to cover up clerical abuse  or evade laws designed to protect children.

Fr Lombardi said he was not  speaking on behalf of Pope Benedict and claimed the severity of criticisms  against the Holy See was curious.

The Cloyne scandal goes as high as the  Vatican after the inquiry criticised a 1997 letter from the Papal Nuncio, Rome’s  ambassador to Ireland, to Irish bishops.

The Cloyne report described the  response to the clerics’ plans to improve child protection policy as “entirely  unhelpful”.

“There is no reason to interpret that letter as being  intended to cover up cases of abuse,” Fr Lombardi said.

“Moreover, there  is absolutely nothing in the letter that is an invitation to disregard the laws  of the country.”

The Government is awaiting an official response to the  Cloyne scandal from the current Papal Nuncio, Archbishop Giuseppe  Leanza.

The Catholic Church has been left reeling from four reports into  clerical child abuse in the last six years – the Dublin Archdiocese and the Ryan  inquiry into industrial schools and homes in 2009, the Ferns Diocese in 2005 and  just last week, Cloyne, which relates to abuse complaints and investigations as  recent as 2008.

Archbishop of Dublin Diarmuid Martin has called for  internal reports on all Irish dioceses by the Church’s own watchdog, the  National Board for the Safeguarding of Children in the Catholic Church, to be  published as soon as possible. Mr Kenny backed his call.

Mr Kenny said  clericalism had rendered some of Ireland’s brightest and most privileged and  powerful men either unwilling or unable to address the horrors in the Ryan and  Murphy reports. He said this Roman clericalism must be devastating for “good  priests”.

The Government has committed to tough new child protection in  the wake of Cloyne, including making it an offence to withhold information about  crimes against children and introduce new vetting to allow “soft information”  transfers.

Mr Kenny said: “As the Holy See prepares its considered  response to the Cloyne report, as Taoiseach I am making it absolutely clear that  when it comes to the protection of the children of this state, the standards of  conduct which the church deems appropriate to itself cannot and will not be  applied to the workings of democracy and civil society in this republic.”

Read more: http://www.irishexaminer.com/breakingnews/ireland/state-will-not-longer-tolerate-delinquency-and-arrogance-of-church-says-kenny-513526.html#ixzz1SgG0lBw5

Comment:

If you believe even one word you are saying MR. Kenny then
instruct the Gardaí to arrest these same clergy starting with Cardinal Sean
Brady and Bishop John Magee

There is enough evidence in the report to send a good many people
to jail. Now is the time to bring in new laws that completely detaches the
catholic religion

from the State .The State should now go after the funds and property

of the roman church sell it off and distribute the proceeds to all victims of

the church still living in Ireland.

Michael Noonan Spin and more spin !

Finance Minster, Michael Noonan before he got into
government said that the bail bailout was a bad deal for Ireland.”It’s been
priced too high”. The money that was been borrowed was been borrowed at 2.8%
and we’re paying 5.8%.

“3% of an add-on handling charge is extravagant and the
previous government should not have agreed to those conditions”. Mr Noonan they and you should not have
agreed to this obvious rip-off of the Irish taxpayers .The fact remains that
these debts are private debts that the private banks operating in this state
are fully responsible for these debts, you and the previous government did not
have the right to foist this odious debt on to the shoulders of the people of
Ireland .It is not a case of the interest is too high or the conditions are too
harsh it is simply a case of fraud.

Mr. Noonan and his band of overpaid political leaches are no
better that the international bondholders he seem to be bending over backwards
to reimburse by stealing the resources of our country. Plunging the nation into
a state of permanent financial slavery of its citizens is not going to help
anybody except his pals in Europe .Burden sharing with the unguaranteed senior
bondholders is just a side show and a blatant attempt by Mr. Noonan to position
himself and his government into a better light in view that his policy seems to
be “sit and watch” and let Europe make all the decisions he and the government
will then implement on their behalf.

The answer is simple the bondholders have given all this
money to the banks and they are now the legal owners of these banks, so these
banks should be handed over to the bondholders (All of them)

A debt for equity swap .they lent to the banks on the
strength of the banks collateral ,there was no guarantee given to these
bondholders that the Irish state would back up these loans in case of a bank
default .

The people of Ireland have been rightly screwed and they seemed
to be content with this situation if the latest polls are to be believed. It is
a s if the media are oblivious to the scale of fraud that is been perpetrated on
the Irish nation because every time a politician comes on to our TV screens
they do not get grilled on the real issues, there is no serious grilling of
these masters of spin about previous promises to the nation. The media and their
pampered talentless overpaid personalities are part of the status quo .

“QUEEN BARRED”

A pub owner in Dublin was ordered to remove a 40-foot banner barring the Queen from his premises during her State visit to the Republic of Ireland.

John Stokes said he reluctantly agreed to take down the controversial sign after a senior Garda threatened to object to his application for six late licenses at Dublin District Court. The Judge is reported to have said “I’ve no doubt there will be a planning issue with a sign that size.”

Well now Mr. Judge what about the Union bosses in liberty hall they have a banner six floors high

   and they are not the only ones I saw two other large banners in the City center today.

 .Is it a case if I don’t like the person or message I make them take the banner down??

“The Greens:They are a disgrace and no loss to the Irish Nation”(New Comment)

New comment on your post “The Greens:They are a disgrace and no loss to the Irish Nation”
Author : Diarmaid O Seigefriede (IP: 92.251.255.13 , 92.251.255.13.threembb.ie)

Comment:
If you dont know the nuts and bolts you dont get it
The Greens might have been in the distant past a grass root enviormental movement. The Communists changed from red to green to use enviormental movements as a method of controling peoples.
Enter Gormless and his type sponsored by Rockerfellers and Rothchild Banks to hijack Green movements make communt governments in the  EU and spin the lies about CO2 from the club of Romes decision to find a type of pollution, that can be hijacked to control sociecty and unltimatly make all the EU a communist run empire.
Naturally Gormless doesnt care he is a puppet to his masters in the Tri lateral globalists  who we  filmed in Ireland at the Tri Lateral meeting in Four season Hotel  Ballsbridge Dublin . They were there engineering the take down of Eire and all Europe
Gormless is a traitor to the nation along with FF Mehall Martin . The then minister for forgien affairs and the then Atorney general    Paul Gallagher (Barcellona Bilderberg attendee )aided and abieted the escape from legal justice from a european  war crimes arrest warrant for the Henry Kissinger who was in Ireland on that occasion may 8th 2010( Film evidence at youtube/user/dcbourbonireland)
If you think FG blue shirts are any better forget it they are just as bad puppets and got the head globalist of the European Tri lateral Peter Sutherland and linked to globalist Bildergberg movement into high positions in Ireland which launched him into the EU empire
The real power structure in Ireland for many year up to now is the Head of state the Toichioch gets his instructions from the Governer general  who the Bilderbergs have chosen well in advance  .The Atorney general gets his instructions from the Bilderberg annual meeting and ensure the Irish state does thier bidding .
Everything we see on RTE and similar main stream mussled media is a dog and pony show to confuse us.
The Rockerfeller and Rothchild families decide in advance what laws we Irish  will have and ensure the loop holes are there for them to drive the Globalist agenda and thier communist bus projects through. Ask yoself why they can never get the child protection laws done correctly .Its manditory in the Globalists religion that they can have sex with young children and have legal  loop holes there to protect them if they ever get caught
So now do we get a new puppet Kenny who will take his instructions from the communist hijacked Labour party position wearing pinky camoflage and they ensured they now got e the Atorney General position  who up to now has always been   the true head of the Irish state( Ireland Inc.) .
If she goes to Bilderberg meeting in Switerland  29th june 2012 this year you will know the globalists and communists have taken more control for Ireland
Ask yourself why does Labour NEEEED the Irish  constitution changed . Is the present Irish constitution  blocking thier communist agenda to break up the Irish family unit so that all children will go into government dorm at birth and parent will rarely see them  ???  All the more access for the Globalist peodofiles to gain accesss to even more young unprotected children
WATCH EVERTHING THE PRESENT AND PAST ATORNEY GENERAL’S  DO THAT IS THE REAL POWER IN IRELAND
The rest like Gormelss and kenny are muppets

Diarmaid O Seigefriede

The Greens:They are a disgrace and no loss to the Irish Nation

Former minister for the environment John Gormley is to step down as Green Party leader.

Mr Gormley, who lost his Dáil seat in the general election, told party members in an email that he would not be seeking re-election.

In an email to party members, Mr Gormley described the party’s performance in the election, which saw it lose all six of its Dail seats, as a “temporary demise”.

The party will hold a meeting of its national executive council at the end of this month, before its annual general meeting in May. It is hoping to initiate a strategy for the next local elections in three years’ time.

Under party rules, a leadership contest must be held within six months of an election.

Mr Gormley won a ballot of members to become leader in July 2007, taking over from Trevor Sargent, who resigned when the party entered coalition with Fianna Fáil.

Senator Dan Boyle, party chairman, would not be drawn today on whether he would contest the leadership. But he was confident the party could rebuild. “It’s not a unique experience,” he said. “The German Greens, the Belgian Greens and the Czech Greens have all had similar experiences. It’s something of a rite of passage almost for the Green Party in terms of their first experience of parliament, their first experience of government.”

Senator Niall Ó Brolcháin said Mr Gormley had been considering his future since the election and felt it was time to go. “The election performances of the party haven’t been exactly very positive, the local election and the recent national election,” he said. “He had decided himself that it is time for him to go. I think there will be a lot of respect for that decision. Obviously there was a bit of a punishing time in Government.”

Comment:

These gangsters should be in Jail

They have destroyed the green party and have shown themselves to be just as corrupt and attracted to power and perks .Goemely is sitting pretty with his big pension and why wouldn’t he now set off into the sunset while the rest of the country sinks under a mountain of debt that he helped to shove on to the shoulders of the taxpayers of this country

I say good riddance to the lot of them .they should not be allowed to benefit from the nations misfortune they helped bring about !

They are a disgrace and no loss to the Irish Nation

New comment to your your post “The Greens:They are a disgrace and no loss to the Irish Nation”
Author : Diarmaid O Seigefriede E-mail : dsugdub@yahoo.com

Comment:
If you dont know the nuts and bolts you dont get it
The Greens might have been in the distant past a grass root enviormental movement. The Communists changed from red to green to use enviormental movements as a method of controling peoples.
Enter Gormless and his type sponsored by Rockerfellers and Rothchild Banks to hijack Green movements make communt governments in the  EU and spin the lies about CO2 from the club of Romes decision to find a type of pollution, that can be hijacked to control sociecty and unltimatly make all the EU a communist run empire.
Naturally Gormless doesnt care he is a puppet to his masters in the Tri lateral globalists  who we  filmed in Ireland at the Tri Lateral meeting in Four season Hotel  Ballsbridge Dublin . They were there engineering the take down of Eire and all Europe
Gormless is a traitor to the nation along with FF Mehall Martin . The then minister for forgien affairs and the then Atorney general    Paul Gallagher (Barcellona Bilderberg attendee )aided and abieted the escape from legal justice from a european  war crimes arrest warrant for the Henry Kissinger who was in Ireland on that occasion may 8th 2010( Film evidence at youtube/user/dcbourbonireland)
If you think FG blue shirts are any better forget it they are just as bad puppets and got the head globalist of the European Tri lateral Peter Sutherland and linked to globalist Bildergberg movement into high positions in Ireland which launched him into the EU empire
The real power structure in Ireland for many year up to now is the Head of state the Toichioch gets his instructions from the Governer general  who the Bilderbergs have chosen well in advance  .The Atorney general gets his instructions from the Bilderberg annual meeting and ensure the Irish state does thier bidding .
Everything we see on RTE and similar main stream mussled media is a dog and pony show to confuse us.
 The Rockerfeller and Rothchild families decide in advance what laws we Irish  will have and ensure the loop holes are there for them to drive the Globalist agenda and thier communist bus projects through. Ask yoself why they can never get the child protection laws done correctly .Its manditory in the Globalists religion that they can have sex with young children and have legal  loop holes there to protect them if they ever get caught
So now do we get a new puppet Kenny who will take his instructions from the communist hijacked Labour party position wearing pinky camoflage and they ensured they now got e the Atorney General position  who up to now has always been   the true head of the Irish state( Ireland Inc.) .
If she goes to Bilderberg meeting in Switerland  29th june 2012 this year you will know the globalists and communists have taken more control for Ireland
Ask yourself why does Labour NEEEED the Irish  constitution changed . Is the present Irish constitution  blocking thier communist agenda to break up the Irish family unit so that all children will go into government dorm at birth and parent will rarely see them  ???  All the more access for the Globalist peodofiles to gain accesss to even more young unprotected children
WATCH EVERTHING THE PRESENT AND PAST ATORNEY GENERAL’S  DO THAT IS THE REAL POWER IN IRELAND
The rest like Gormelss and kenny are muppets

Diarmaid O Seigefriede

“We should take heed, because we are next.”

Friday  February 18 2011

source:

 David McWilliams

No wonder the Greeks are upset. Yesterday, the IMF and the EU were busy trying to limit the damage following their mission to Greece. One auditor, also the EC representative, Servaas Deroose, encouraged the Greeks to “sell beaches” to pay back the IMF/EU loan.

We should take heed, because we are next.

What would you be prepared to sell to pay back the IMF/EU deal, which is designed to bail out bank gamblers who punted on Anglo? The Aran Islands? Dogs Bay or maybe a big slice of Achill? The Rock of Cashel — that’d make a few quid.

Mr Deroose has revealed something about the thinking behind the IMF/EU loan and the sequence of events in Greece and Ireland as the EU Commission sees it. Bad enough to have a citizen of the most fiscally incontinent country in Europe — Belgium — lecture us on government excess, worse to have him indicate that the fire sale of state assets is the endgame.

So let’s get things straight: the Irish citizen is being asked to take on the debts of the European banks and pay for this by selling our assets for half nothing to the same banks so that we can bail them out. We take on debts without a discount and sell assets without a premium. At the moment these loans that we are being asked to pay are trading at a deep, deep discount because the “assets” they were supposed to back have collapsed in value. Yet we are being asked to pay for these loans at par.

At the same time, our crucial and profitable state utilities — like the ESB — will be sold at a discount because the buyers will know that the sellers are screwed.

This is what is going on. An organised heist, which will play out in front of our eyes and reward the very investment banks that blew their own and their clients’ money on the promises of David Drumm and the like. Meanwhile, our politicians argue over the rate of interest, begging for crumbs when they should be fighting for us.

Someone has to stop this because the words of the EU Commission in Greece are directed at us too.

Is there anything we can do?

Yes there is. Whatever you might think of some senior European politicians, they are democrats. They are bonded together by the vision of Jean Monet and Schuman — the founders of the EU. Central to this vision was the notion of forgiveness. When I studied at the College of Europe in Bruges, this message was articulated again and again. Europe was a family of nations and once you were in the family, the family treated you as an equal and no matter what your previous behaviour, there was always a chance of redemption.

This allowed Germany to recover after the War and it is the same attitude which is allowing Serbia, a country which orchestrated genocide in Bosnia less than two decades ago, to seek EU membership.

In short, there are many more democrats in European politics than there are central bankers.

There are many more elected politicians with a broad European view informed by history than there are unelected central bankers with a narrow monetary view.

We need to bring this battle to generous European politicians and wrestle the details out of the mean fingers of bureaucrats and central bankers who were never elected and have no mandate.

But how?

You put it to the people. The new government should put to a referendum the question of making any further payments from the citizens to the bank creditors. This would give the new government a clear democratic mandate with which to negotiate. There is no democrat in Europe who would oppose the will of the people and it would get straight to the point where the political economy bulldozes the financial economy. It would also give the Government huge authority on the biggest issue facing us all.

But can it be done?

Yes, article 27 of the Constitution governs the circumstances where a decision which is of “such national importance that the will of the people thereon ought to be ascertained”. Article 27 has never been used for this purpose but there is provision in the Constitution for a referendum on something which is simply so important that the people should be able to vote on it.

So it can be done, but is it now too late?

No, it is not too late for two reasons. The first is that if we do not stop paying out money to the bondholders, we will default on everything — sovereign debt and all — eventually. This would be a disaster for every Irish person. The second reason is that the situation is getting worse.

Behind our back, the Irish banks keep issuing government- backed paper in our name and this is happening on a daily basis, welding us ever tighter to the delinquent banks. This has to stop.

Since the last week of January, Irish banks have issued €18.35bn worth of government guaranteed debt. So the reliance of Irish banks on government guaranteed debt has risen from €16billion in mid-January to about €34billion today.

This debt is being issued to allow the banks to either (a) unwind their positions with the Irish Central Bank‘s Emergency Liquidity Assistance (basically the printing of money by the CBI) or (b) boost their funding position ahead of the bank stress test that is currently being carried out by the Central Bank.

Of course, all of this bank stress-testing is missing the point. The stress test that is now needed is a stress test on the State. Instead of believing the politicians that the State will be able to pay €100bn to the banks and everything will be fine, we should test the numbers and see if that is actually possible.

But, of course, that test will not be carried out. Because a stress test of the Irish State would show the one thing that no politician is willing to admit — that the State is currently insolvent, and the Government guaranteeing another €18billion of debt only serves to make that problem worse.

One way to put a stop to this madness is by holding a referendum. If ever there was an issue of such national significance, this is it. The time for a popular plebiscite has come.

http://www.davidmcwilliams.ie

– David McWilliams

Irish Independent

Comment:

I wholeheartedly agree with this assessment and reaffirm to the people of Wicklow, that I am standing in this election on the basis that the current so called bailout is nothing more than a bailout for reckless lending of German and British banks to equally reckless Irish banks like Anglo Irish Bank The Irish people should not be libel for the gambling debts of these financial institutions. I believe the outgoing Government are guilty of dereliction of their Duty and it is an affront to the Irish people that these same incompetent people should walk away now with lottery pensions.

The Political parties that now hope to gain power are all proposing to continue with this madness and it is now up to the independents to force the new government to see sense. But this will only happen if voters vote enough independents into the Dail in the first place.

I can look myself in the eye and say I did my bit can you ?

Can economy function with shut banks?

4/02/2011:

 by Dr. Constantin Gurdgiev

Last night on Vincent Browne‘s programme, Prof. Antoin Murphy (TCD) – an excellent scholar of economic history – stated that absent the Government Guarantee of 2008 and/or in the case of a ‘default’ by Ireland on its debts, the banking system will collapse precipitating the ‘ATMs with no cash’ crisis.

According to Prof. Murphy – such an outcome would be more disastrous than loading up some €185bn worth of banks debts onto ECB and our own CBofI and pushing Irish taxpayers into even more debt to the tune of ca €100bn.

I do not wish to engage (for the lack of time and space now) in the arguments as to which outcome (debt death spiral or cashless ATMs) is the worse one. Nor do I wish to argue here (for the very same reasons) as to whether a ‘default’ (I prefer – restructuring) of our banks debts will trigger a crisis leading to the total shut down of the banking system in the country.

But let me provide you with the following summary of the economist’s opinion on the matter of an economy’s viability in the case of a systemic banking crisis with no cash circulating via the banking system (a hat tip to B. Lucey):

Quote (original source here):

“Since banks create money under fractional-reserve banking, we would expect the closure of banks severely to disrupt the functioning of an economy. The Irish experience in 1970 an interesting counterexample. In that year, a major strike closed all Irish banks for a period of six and a half months. All the indications from the start, moreover, were that this would be a long closure. As a consequence of the strike, the public lost direct access to about 85 percent of the money supply (M2). Irish currency still circulated, of course, British currency was also freely accepted in Ireland, and some North American and merchant (commercial) banks provided banking facilities. Increases in Irish and British currency and in deposits in these banks, however, accounted for less than 10 percent of M2.

Somewhat remarkably, checks on the closed banks continued to be the main medium of exchange during the dispute. Despite the increased risk of default, individuals continued to be willing to accept personal and other checks. [The author] summarizes the situation as follows: “a highly personalized credit system without any definite time horizon for the eventual clearance of debits and credits substituted for the existing institutionalized banking system.”

According to [the author], it was the small size of the Irish economy (the population of Ireland was about 3 million at that time) and the high degree of personal contact that allowed the system to function. Stores and pubs took over some of the functions of the banking system. “It appears that the managers of these retail outlets and public houses had a high degree of information about their customers—one does not after all serve drink to someone for years without discovering something of his liquid resources. This information enabled them to provide commodities and currency for their customers against undated trade credit. Public houses and shops emerged as a substitute banking system.”

Presumably as a result of this spontaneous alternative banking system, economic activity in Ireland was not substantially affected by the banking strike. Detrended retail sales did not differ much on a month-by-month basis from average levels in the absence of banking disputes, and a central bank survey concluded that the Irish economy continued to grow over the period (although the growth rate fell).”

The paper referred to in the above citation is: A. Murphy, “Money in an Economy without Banks: The Case of Ireland,” The Manchester School (March 1978): 41–50.

Once again, let me repeat, I do not believe that such a cashless economy is a good idea, nor do I believe that the banks debt restructuring will lead to a significant disruption in supply of cash or access to deposits, especially if such restructuring is pre-planned, with liquidity buffers set in place by the CBofI. But I find it interesting that a superb economic history researcher – Prof Murphy – would argue the inevitability of something happening today which did not happen in the less financially and economically advanced 1970.

Yes, the conditions have changed – we are less personal of a society today than back in the 1970s. But we also have much stronger presence in the country of other banks and we have access to the global markets (currently shut by the insolvent banking system). We also have, presumably, our European partners, who can help, and most importantly – for now – significant funding buffer in the form of NPRF. The CBofI has printed enough cash already to cover a large share of our deposits (except it chose to dump this cash into the banks balance sheets instead). In fact, between CBofI cash printing for the banks and NPRF and pre-borrowed money, Irish state has potential access to more cash than the 80% deposits base for deposits at a risk of flight (those with demand withdrawal terms of <3mo and overnight).

Virtually none of these were there in 1970… and still, the economy did not collapse after losing some 85% of cash from circulation!

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