A Citizens Bank or Vassal State?
December 27, 2010
There is the general belief that the bailout was a failure from a negotiation point of view. Bailout for us is like more alcohol for an alcoholic is a failure. There is the view that the bailout is merely a bailout of bondholders. Combine the two together with bailout paying interest to bondholders and being spent on the doomed NAMA project, Croke Park Agreement and we’re sunk.
But if renegotiation of the bailout is the message to go out, what is the message and can renegotiation succeed? Both LP and FG seem to signal they will renegotiate. If they do, it must include the burning of Anglo senior bondholders. It must include a reduction in the interest rate from 5.8% by at least 3%.
Realistically, I agree with FF, there can be no bailout renegotiation especially on new terms above. Trichet’s main concern is that his bondholders get their money back, rather than Irish citizens.
This means we have to bite the bullet and leave the euro to ‘PuntNua’.
So perhaps our message can be as simple as, we need to burn senior bondholders, return to PuntNua and a floating exchange rate.
But, I believe a majority want to go further than that, principally because of our ‘insider knowledge’ of how global debt backed finance works and the amount of havoc this is causing particularly to Ireland.
There is opportunity to send out a further message, that is, that we use the banking collapse here to install a new and safer banking model, that is, one not built on debt, more loans, more borrowing, more bond debt issuing.
Let’s take the power away from the ‘Seanie’ and ‘Fingers’ model of casino gambling with our money supply and return the money supply to those who earn the money, the citizens.
Lets install a safe banking system at the cutting edge of banking based on the model of the Bank of North Dakota:
http://www.stateline.org/live/details/story?contentId=476951 :
For more on how a banking ‘greenback’ non debt financed banking system in favour of the people can operate,see video links below, or read
Ellen Brown, J.D.,’Web of Debt’
http://webofdebt.wordpress.com/
NBNBNB monetary proposal here ideally suited to cleaning up Ireland’s broken banking system because of many similarities we have to the economy of North Dakota
http://webofdebt.wordpress.com/monetary-proposal/
The Wizard of Oz khttp://www.youtube.com/watch?v=U71-KsDArFM
Bank of North Dakota also supported by Michael Moore
http://www.youtube.com/watch?v=KX8pcADnsEs
Bill Anger moratorium on debt
http://www.youtube.com/watch?v=r0rJWnRFUJA
Ellen Hodgson Brown Web of Debt
http://www.youtube.com/watch?v=2qxa8RnTueg
We’ve got choice:
Failed banking system threatens to reduce us to third world, banana republic status that puts democracy in Ireland is at risk. We can follow Lenny on his decentralisation path to ECB/IMF default, a vassal state debt procurement agency, Debt Agency for Irish Lending (DAIL)? Or we can institute a safe banking model such as the greenback banking system of North Dakota.
The choice is ours.
McUseless!
December 24, 2010
The IMF/ECB bailout was nothing but a bailout for the banks. NAMA ia a bailout for the banks, but has clearly failed, -> the IMF/ECB signal above.
The whole episode is an episode in moral turpitude.
Tricky Trichet’s umbrage at Lenny’s collaborator act of financial fascism according himself dictator status in dealing with the banks clearly shows ‘Tricky’s only concern for Ireland is that Ireland has money to pay back German/French bondholders. He’s worried bondholders won’t get first bite of the Pension Reserve and NTMA remains, that Lenny might burn him!
McUseless in a revealing act of moral turpitude has been corrupted into the circle of moral debasement. She has disenfranchised the courts of its democratic role in protecting citizens. What way did the voting go at that meeting of the Council of State?
The arrival of the IMF/ECB into our affairs has brought about our titanic demise. This was our €85 bn gash below the waterline. The only question is, when will we default?
Moral turpitude = €85bn = the bankers, developers, political and professional class have had their feeding bowls topped up, but they’ll soon slurp their way through that and be back foraging for more!
Could we have a full statement from McUseless on her reasons for her support of Credit Institutions (Stabilisation) Bill?
“The War You Don’t See” by John Pilger I managed to catch on TV recently, UTV, Dec 21, is a documentary you must see, watch out for reshowings or catch extracts on youtube or here:
http://pkpolitics.com/2010/12/21/the-war-you-dont-see-on-free-media/
Here you see the power of propaganda, manipulation of the media, which define the terms ‘nobody’ and ‘everybody’. So, ‘everybody’ gets blasted with propaganda, every effort is made to ensure ‘nobody’ gets the truth.
In a local parallel to Pilger’s examples of truth manipulation, Lenny Wrong on radio during the week stated how his government had unequivocal international support for its response to the banking promise.
S&P, Fitches, Moody’s the international rating agencies who’ve downgraded Ireland along with international commentators such as Prof Joe Stiglitz, Krugman, Max Keiser and many, many others e.g the governments of Sweden, Finland and Iceland who’ve followed more successful paths in the recent past, do not count.
There is an Irish Gombeen government propaganda machine in full swing to make sure you do not have the truth. Propaganda will ensure that elements of the media e.g Pravda RTE will not challenge on any falsehood that threatens the status quo; a minimum of dissent allowed of course.
So simple questions, what is the evidence for WMD’s; where is the evidence the €85 bn will save this economy; can we afford this €85 bn loan at 5.8%? Will it save this economy from destruction? These questions go unasked and unanswered.
Instead, the latest recruit to the propaganda machine, who is McUseless, will pollyanna like attempt to lull the population into a form of stoic indifference.
Sure the economy will sometimes be good and sometimes be bad…sure life is more than economics…all this while the taxpayers purse is being stolen to pay for the fraudulent lending of private banks and the insider cabal who borrowed all and blew it all….
McUseless has neither the moral depth nor informed point of view able to explain or defend her actions to us in supporting The Credit Institutions (Stabilisation) Bill, 2010 giving draconian powers to Lenny Wrong.
John Pilger forensically asks simple questions of leading players in the propaganda machine that supported the War in Iraq, many of whom express how they were manipulated and used to disseminate falsehood. It’s a must see journey for anyone interested in how media manipulate truth.
When do we get to see it on RTE?
OT, ‘Taking Sides’,shown on BBC1, Dec 21 set in Germany in 1946, catch a repeat of this, if you can: ‘Istvan Szabo’s film probes the soul of a conductor Wilhelm Furtwangler, who was feted by the third reich’ On one level the film was rather dead, on another the interrogation of Wilhelm after the war on the question of his collaboration with the third reich, as an examination of how insiders benefit from all the trimmings of public patronage, is fascinating to watch.
Isn’t it fascinating how in Ireland, in spite of huge opposition from other parties, in spite of huge opposition from the public, government have been able to run rings around the opposition and the media and enforce a banking policy abhorrent to the majority of people in Ireland. This is being done with the same lies and deceit as the WMDs of Iraq.
Our financial war was fought in favour of the banks by Lenny Wrong & Co, both he and Biffo The Clown got it wrong, over and over and over again. They’ve succeeded in bringing us to financial Armageddon, the future of Irish taxpayers under grave risk. The countdown to default has begun.
As I finish this little piece, its Christmas Eve and there’s a one hour documentary on Pravda RTE on the history of ‘The Toy Show’. Welcome to Ireland’s newly incarnated IMF banana republic of Gombeenism that can fry your brain. Have a Great Christmas and remember every cloud has a silver lining!
Additional content added 28/12/2010 :
Apparently concern is growing http://www.independent.ie/opinion/letters/why-was-mcaleese-silent-in-hour-of-need-2475698.html
End.
Making The Mess Bigger!
December 17, 2010
http://www2.lse.ac.uk/fmg/documents/events/conferences/2009/regulatoryResponse/1161_Nieto.pdf
1.
Consider a junction with loads of car accidents and casualties. Consider then a hospital with an A&E unit.
The report there is a bit like improving the A&E while doing nothing about the junction!
No new rules for investment products. No new rules for investment banking, derivatives and other paper.
Brooksley Borne on Derivative Trading http://bit.ly/cOwXz6
Plus no determination on the moral hazard aspect of a crazy guarantee exposing taxpayers to unregulated lending practices of cross border bondholder banks. See ’some classes of creditors’ qualifier below.
What about all banks contributing to a regulatory structure and supervisory regime and insurance scheme that would also make it illegal for governments to tap taxpayers for bailouts!
The cost of the insurance scheme would soon see regulatory practices improve.
As an interim measure there could be opt in and opt out with those opting into such a scheme getting AAA rated accordingly…
Anyways that doc goes no way to address the real problems in the banking system!
Here’s ‘major reform’ proposed
“This seemingly lack of consistency in the approaches of prudential supervision and reorganization and resolution of cross border banks raises the question of whether a common decision-making structure to deal with cross-border banks and, more in general, financial conglomerates in crisis is needed (see Mayes, Nieto and Wall, 2008 for a proposal of a collegial approach to bank resolution).
The creation of a bridge banking group would be roughly equivalent to a government recapitalization of the bank, except that the shareholders in the failed group would permanently lose their claim on the group and losses may be imposed on some classes of creditors. 57 Someone will have to have managerial authority over the bank and in almost all cases the home country supervisor will be the logical party to appoint the new management. The bank’s management should be overseen by a board with representatives from all of the affected countries. In these authors´ views, this function can be performed by the resolution college.
“and Winding-Up Directive (2001/24/EC) and it explores areas of coordination with other EU directives that also deal with relevant aspects in the bank financial crisis management. Our main recommendations focus on the following aspects:
• In the absence of a centralized prudential supervision for cross-border institutions, policy makers should give priority to ensuring the convergence of supervisory powers and disciplinary actions for the reform of the EU safety net and the revision of the reorganization and winding up Directive are to be effective. Moreover, such convergence should ideally encompass a framework for early intervention by colleges of supervisors based on common triggers that include also market indicators while acknowledging that this approach has limitations in the case of systemic crisis.
• Greater harmonization of depositor protection schemes is also warranted and, among other aspects, in relation of their role as resolution agencies. Consideration should be given to establishsing not only minimum level of deposit insurance coverage, but also to cap deposit guarantees and ensure adequacy of funding.”
Finally, in parallel with the developments on the potential centralization of supervision in the EU, consideration should be made to create an EU wide deposit guarantee fund with capabilities to reorganize and resolve cross-border banks licensed in the EU.”
2.
Meanwhile there has been some cheer leading in Ireland over an improvement in our growth rate that marginally put us barely on the plus side from a negative http://www.tradingeconomics.com/Economics/GDP-Growth.aspx?Symbol=IEP
The Sovereign Debt Problem – Speech by George Soros
October 05, 2010
World Leaders Forum at Columbia University
“”There are a number of variables involved. To start with, the debt burden is not an absolute amount but a ratio between the debt and the GDP. The higher the GDP the smaller the burden represented by a given amount of debt. The other important variable is the interest rate: the higher the interest rate the heavier the debt burden. In this context the risk premium attached to the interest rate is particularly important: once it starts rising, the prevailing rate of deficit financing becomes unsustainable and needs to be reigned in. Exactly where the tipping point is located remains uncertain because it is dependent on prevailing attitudes.”
“There is a real danger that the premature pursuit of fiscal rectitude may wreck the recovery.”
While Japan seems off the chart when it comes to GDP related to its debt burden, but it has access to home grown low interest rate bonds, so its debt burden is manageable.
Ours is not, because at 5.8% our ‘growth’, approaching minus as it will shortly, when inflation(again this is a minus) is added to offset the 5.8%, the figure comes up way short of any sustainable repayment.
So, correct me if I’m wrong, but according to Soros, we would be caught in the grip of a twin vice:
1. Debt burden surge to 100% in 2013, as a consequence of ratio of debt to GDP, see below…
2. The high risk premium interest rate of 5.8% increasing the debt burden above.
Not sure how up-to-date this is with our ‘bailout’, but its recent:
“Devine said it seems clear that promissory notes should form part of the deficit and debt. As such, the debt to GDP ratio will reach 87% by the end of 2010 before peaking at just over 100% in 2013, assuming the Government sees through in full the outlined fiscal consolidation (Chart 19, Appendix 1 above).
The decline in the nominal value of the economy will make it more difficult for the Government to reach its target of reducing the deficit to GDP ratio to below 3% before 2014 without additional measures being implemented.”
The additional debt burden imposed by the banks, the IMF/ECB bailout, the contraction of the economy due to €6 bn budgetary cutbacks, on an economy verging on zero to minus growth, will inevitably send the economy into further decline that will make default inevitable.
Why We Must Leave The Euro!
December 6, 2010
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The Debt-Deflation Theory of Great Depressions By Irving Fisher
http://fraser.stlouisfed.org/docs/meltzer/fisdeb33.pdf
In spite of his most unfortunate dalliance with eugenics, Irving Fisher, one of the most outstanding economists produced by the US, in the 1930’s, produced startling insights we can apply in understanding Ireland’s great depression of today, 2010.
In a great depression, Fisher wrote:
“The big bad actors are over-indebtedness and deflation following soon:
Then we may deduce the following chain of consequences in nine links:
(1) Debt liquidation leads to distress selling
(2) Contraction of deposit currency, as bank loans are paid off, and to a slowing down in velocity of circulation, precipitated by distress selling. This contraction of deposits and of their velocity, precipitated by distress selling, causes
(3) A fall in the level of prices, in other words, a swelling of the dollar. Assuming, as above stated,that this fall in prices is not interfered with by relation or otherwise, there must be
(4) A still greater fall in the net worth of business, prciptiating bankruptcies and
(5) A like fall in profits, which in a “capitalistic”, that is, a private- profit society, leads the concerns which are running at a loss to make
(6) A reduction in output, in trade and in employment of labor. These losses, bankruptcies, and unemployment, lead to
(7) Pessimism and loss of confidence, which in turn lead to
(8) Hoarding and slowing down still more of the velocity of circulation.
The above changes cause
(9) Complicated disturbances in the rate of interest, in particular, a fall in the nominal, or money, rates and a rise in the real, or commodity, rates of interest.
Evidently debt and deflation go far toward explaining a great mass of phenomena in a very simple logical way.
(30) Likewise, when a deflation occurs from other than debt causes and without any great volume of debt, the resulting evils are much less. It is the combination of both-the debt disease coming first, then precipitating the dollar disease-which works the greatest havoc.
(32) deflation caused by the debt reacts on the debt. Each dollar of debt unpaid becomes a bigger dollar, and if the over-indebtedness with which we started was great enough, the liquidation of debts cannot keep up with the fall in prices which it causes. In that case, the liquidation defeats itself. While it diminishes the number of dollars owed, it may not do so as fast as it increases the value of each dollar owed. Then, the very effort of individuals to lessen their burden of debts increases it, becuase of the mass effect of the stampede to liquidate in swelling each dollar owed. Then we have the great paradox which, I submit, is the chief secret of most, if not all, great depressions: The more the debtors pay, the more they owe.
The more the economic boat tips, the more it tends to tip. Itis not tending to right itself, but is capsizing,
(37)…Ultimately, of course, but only after universal bankruptcy, the indebtedness must cease to grow greater and begin to grow less. Then comes recovery and a tendency for a new boom-depression sequence….
I would like to draw your attention to the following prescient words written in 2008 by Hermann Kelly 06.07.2008 by Hermann Kelly
http://www.wiseupjournal.com/?p=395
“Sweden signed up to the euro with the Maastricht Treaty in 1993 but still hasn’t introduced it. It hasn’t been penalised.
And what could the rest of the EU do anyway if we quit the euro – invade Ireland? Withdrawal from the euro would entail preparation and a time of transition to make contractual changes. It is difficult but possible. […] but it would not mean EU grants would stop or the common market would be shut to Irish goods. There has been a lot of talk, post-Lisbon referendum, about a two tier-EU. But there is already a multi-tier EU as it is. Some countries in the EU are not in the euro; some members are not in the Schengen area, which allows for free international movement without passports. I would be very happy to be on tier two – but with lower interest rates and an economy that actually works.
Put simply, euro interest rates have damaged our competitiveness at a time of growing global competition. If we introduce our own currency, we can devalue our currency to make our exports attractive again.
If we gradually move out of the euro, we also bypass the eurozone’s Growth and Stability Pact, meaning the Government will no longer be restrained by unnecessarily tight limits on borrowing.
Huge powers were forfeited the day we signed up for the euro, a decision exerted not by economic logic but by political pressure. The czars of European integration saw the euro as a stepping stone to political union.
It is now time for Ireland to reweigh the costs and benefits of the euro. Yes, it is handy when traveling and increases price transparency. However, it has many more downsides.”
Its worthwhile to compare Sweden and Finland’s response to its Boom and Bust Cycle in the early 1990’s to our current situation and crisis:
http://ec.europa.eu/economy_finance/publications/publication13551_en.pdf
“…The defence of the pegged exchange rate was initially strong and stubborn. The broadpolitical consensus of defending the peg was a reaction to the devaluation policies of the1970s and 1980s. The goal of the hard currency policy was to avoid a new devaluation cycle with high inflation rates. Eventually, both countries had to give in and let their currencies float. The recovery was then driven by falling interest rates and a strong rise in exports due to the depreciation caused by the floating. Unemployment remained high for many years after the crisis.”
We have left ourselves in the hands of the IMF/ECB to sort our difficult problems. Their solution is a failed solution that will lead to our inevitable default and the breakup of the euro.
Rather than spend our current resources in the penal extraction of further deflationary pain due to insurmountable debt, it surely must be a better option to organise a structured withdrawal from the EMU. Our exports will benefit and floating our new Punt will avoid a more painful extraction down the line.
Its far better to suffer a cold, than get potentially fatal pneumonia!
End
Financial Fascism and Ireland!
December 4, 2010
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Best Hitler video on the Irish bust
‘then we’ll own their sorry souls..’
Followed by a close second:
‘Lenihan Dempsey Gormley and Aherne stay here…’
Brian Cowen Downfall
Derivatives and Silver, Ireland
Perhaps the Debt Agency for Irish Lending could break tomorrow for a few minutes to watch the now gone viral:
They could then reconvene to allow Lenny and Cowen to do an address the nation type broadcast, a Hammer Production, something along the lines of:
Enough diversion, firstly, a word on the Greens exit from Government:
Here’ gormless leading us all down the yellow brick road to NAMA and the banking financial disaster that has led to the IMF
http://www.youtube.com/watch?v=C2bOe1GXvDU
Here he is last October like a Hare Krishna disciple of the government looking for consensus
from us all!
John Gormley Pied Piper of Hamlin pleads for asylum after leading the Greens out of government to save his political skin:
David McCullagh, RTÉ’s political correspondent, dismissed it as a much-needed laugh for the country, full speech appears on Greens website.
What a feckin whiner! Lol, baba lost his FF bottle!
I think its best to look at what has happened and what is happening from the point of view of FF financial fascism.
Laugh away at the following, but there is a darker side to all of this:
http://www.youtube.com/watch?v=h6Pg9u-88N0
The darker side comes from the fact that a financial coup d’etat has taken place.
Citizens are no longer in control. Checkout posts here on the sad role of the President http://bit.ly/ijIpEN in relation to guarding the rights of citizens re involvement of IMF.
What does it mean to say the state has been overrun by financial fascists and their FF glove puppets.
Reading posts on http://www.irisheconomy.ie and http://www.davidmcwilliams.ie is like observing democracy in a car crash. The rights of citizens are being slowly eroded and democracy is melting away before your eyes.
This must have been similar to the experiences described in ‘The Pianist’ where those in the Warsaw ghetto experienced the tentacles of the SS slowly tightening as hope waned.
http://www.youtube.com/watch?v=T3-Kt4OyDaI
We are well along that trajectory.
Lenny stood up in the Dail the other day and said the ’straight jacket’ (bailout)was not subject to international law.
See thread on DmcW earlier article couple of weeks back, Pouring More Money Into Banks Is theft, http://bit.ly/fEJTOM
“Article 29.5.2 provides that:
“The State shall not be bound by any international agreement involving a charge upon public funds unless the terms of the agreement shall have been approved by Dáil Éireann”.
clearly ‘international agreement involving a charge upon public funds ‘ does not exclude non contractual binding agreements as link suggests.
Is Eurogroup aid given on an EU constitutional basis that supercedes our own constitution? Our Supreme Court should adjudicate on it. We havn’t even been given the legal memoranda upon which the agreement is based. Edicts such as these are more native to dictatorships, banana republics or Cold War states in the previous USSR.
Its hard to know where to start on the information clampdown but why can’t I see the legal documents or even the breakdown of the interest rates on the dreadnought ‘bailout’ nuke of the Irish economy, or be told the positions taken by the negotiating team with a log of discussions; or indeed even the individual interests rates levied against parties to the ‘bailout’ agreement that translate to a mean average of 5.8% on the €67.5bn levied against Irish citizens.
For example, the IMF have said their contribution was at a little over 3.2%, does that mean the EFSF levied aan interest rate of 7% plus?
We get lies and secrets, the world of unaccountable financial fascism.
NAMA is like a fortress of secret coverups protected by undemocratic fascist legislation with unaccountable powers vested in Lenihan.
Simply put, there appear to be two realities emerging in the world, particularly evident in Ireland because of recent events.
There is the visible world of ‘free government, legal profession, media, the instruments of state’.
Then there is the invisible world of financialization hidden behind the visible world, not subject to its laws, to democracy, to commercial law or state law.
It wields enormous powers and its tentacles are now suffocating the very foundation of democracy in Ireland. It is above the law.
The bankers and their glove puppets in FF have taken over this country. ‘European partners’ -> read our new police from the IMF/EFSF. The Dail is now nothing more than a Debt Agency for Irish Lending.
Perhaps any new incoming administration might look at our constitution and legislation to prevent any future gang borrowing trillions without the consent of citizens and their children, those who will have to pay it back!
First we create the banking crisis, then we exponentially increase its severity with the most worthless solution humanity has yet devised to solve the problems it presents to us!
Default is inevitable at this point, as a consequence of the most expensive bailout of banks in the history of the world!
End
Financial Armageddon or Reform?
December 1, 2010
Consider this:
Corporation Tax and Jurisdictional arbitrage
“German banks set up subsidiaries in Ireland. These subsidiaries were often registered as completely Irish companies. Back in Germany the German regulator (BaFin) had strict and enforced rules. Very good rules for the most part. Far, far better than Britain or Ireland. But these good rules, properly enforced meant German banks could not do many of the most lucrative and in hind sight reckless kinds of deals.
So the German banks would do the figures and work it all out in Frankfurt, then send a banker over to Ireland, get them to sit at ‘their’ desk in Ireland, in the Irish bank, and do the deal there. The legal registration of the deal and the ‘oversight’ were all Irish. This is known in the financial world as jurisdictional arbitrage. You and I would call it cheating if we were feeling charitable and lying if we weren’t.
The Banker flies back to Germany, where the German bank hasn’t done any deal, and therefore has done nothing wrong. The deal was properly overseen and approved by the appropriate Irish financial authorities and the profits would be banked at a very happy Irish bank. If any management of the ‘deal’ was required an Irish company would be hired, there are many, and an Irish manager often living not far from Cork, would ‘manage’ the money in and out. I have spoken to such people. Usually I can hear the sweat coming off them as they ask how I got their number and where did I get my information. To which I would reply that the Internet is a very large place and never, never forgets.”
So we have IFSC doing almost €2 trillion in business with loose regulation such as the above mostly around CDO derivative trading and it would appear loose Bermuda style regulation. The CDO/CDS trading that brought the Landesbanks under the microscope vis a vis Hypo transaction losses see link above.
Was it not therefore less than unusual to see the troika of Clown, Suds of Giant Squid and Bruton head of the IFSC suddenly appear all over the media
telling us every penny had to be repaid to Anglo senior bondholders (to protect the CDS exposure of GS and the whole of the IFSC) plus to ensure the scams around Corporation Tax eg Double Irish CT scam similar to ‘jurisdictional arbitrage’ scam above.
Perhaps Primetime would like to take a look at IFSC and activities such as the above. They might be encouraged to do so in the wake of future shortfalls from the state in funding because of our ‘rescue’ torpedo aimed at the Irish economy from IMF/EFSF.
Time we began to defend the real citizens of Ireland in the financial war being waged against us
“ACA Financial Guaranty sold protection totaling US$69 billion while having capital resources of around US$425 million. When ACA was downgraded below “A” credit rating, it was required to post collateral of around US$ 1.7 billion. ACA was unable to meet this requirement. The banks have agreed to a “forbearance agreement” whereby the buyer of protection waived the right to collateral temporarily. ACA subsequently has been downgraded to “CCC” reducing the value of the CDS contract and the protection offered. The problems at ACA are not unique.”
Not unique, eg GS controversy regarding CDS exposure to AIG http://bit.ly/14nhdv
Of the €34 bn taxpayers are liable for because of Anglo, how much of that was hedged against CDS loan guarantees that should have protected the Irish taxpayer?
If not, why is Seanie not before the courts for financial mismanagement if not downright fraud. Are there any off the balance sheet Anglo loan losses we have not been told about?
‘None so blind as those who don’t want to see’
We hear from Ajai Schopra and Honahan they are continuing to go through the Anglo loan book, but don’t expect to find any financial black holes. If so, why hasn’t a full account disclosure been given by Anglo on its CDS transactions?
If Anglo had CDS insurance, why hasn’t it been triggered?
Probably because it took out no such guarantees to protect its own loan book, instead betting in the market selling CDS to cover speculative gamble dealings of its own.
We need full disclosure.
Failed Rescue Bailout
Meanwhile a failed and hopeless ‘Rescue’ has done a deal with a political cronies of FF behind the backs of citizens.
Before Ajai Schopra and crew came, some said this would be great, IMF would sort the place, sort out outrageous high salaries draining the public expense, introduce a fairer system of taxation.
Some went as far as to believe they would insist on a reduction of td’s and other political and social improvements.
They left only after extracting support from their incompetent political stooges, with the message, we don’t care what shit you do, once you meet the quarterly repayment schedule for the IMF Sheriff of Nottingham Mr Scrooge….
They’ve made the mess a whole lot bigger!
We can never hope to pay back all the money. Secondly, our banks are on life support from Europe with low interest rates that we cannot do without. Thirdly, with the bailout money comes a democratic deficit that takes away any autonomy we might have to build us into an escape ship.
http://www.marketoracle.co.uk/Article24659.html
“Due to the opposition, the Irish government has decided not to have general elections before the budget is passed. The budget includes an increase of the sales tax from 21 percent to 23 percent. Effectively, the Irish population is forced to assume the debts of banks and then pay them back over the years. No democratic vote on the bailout is allowed because the Irish would most certainly vote it down.
…When Germany or Brussels tells Spain, Greece, or Ireland to reduce their deficits, the result for people living in these countries may be a reduced size of the government in the short run. But such centralization of power in the EU will likely prove to be disastrous for liberty in the long run. The European interventionists now claim that because there is one central bank we need one economic policy.
Once fiscal policies are harmonized, there will be a tendency toward an increase of power in Brussels and then toward an increase of tax rates throughout the eurozone.
The euro might be saved, but at the cost of building a strong, central European state, as national policymaking is transferred to Brussels in exchange for bailouts. The turmoil produced by the euro will then have served as an instrument for the development of a centralized state in Europe.”
We are already a vassal satellite state similar to similar USSR states back in the Cold War.
What we will be like in 5 years with this erosion of democracy?
Like an alcoholic that has run out of money, Ireland’s IMF/ECB/EFSF €85 bn rescue package has promised further lending to a country hooked on uncontrolled binge lending. In return our democratic sovereignty has been bartered away.
‘Sovereign’ and ‘democracy’ shouldn’t take second place and we shouldn’t keel over and let THEM go!
Unquestioning obedience to banks and unregulated, lawless financial institutions such as Anglo must end.
The banking model the economy follows is ‘Rigged Market Capitalism’, not ‘Free Enterprise Capitalism’.
How do we get out from under the yoke of banks, especially investment banks, who’ve been infected by the RMC model?
We have global accumulations of unregulated debt based on toxic piles of derivatives and cdo’s and currency manipulation to the point the world’s economic model is driven into a state of instability and virtual imminent collapse.
Alongside that, we have Seanie Euro(Anglo?) bondholders lending to the developers, Portugal, Ireland, Greece, Spain who’ve all gone and poured it down the shore building ghost estates like Ashfield Lawns across Europe that now lie empty but still need to be paid for.
On top of that, we have the abysmal failure to address the above problems as in our ‘rescue’ or ‘penal incarceration’ however way you like to put it.
The question is now, is testTube Ireland telling Europe how it will implode just as our economy has done?
We need an economic model and reforms we can trust in.
We need a way to deal with the global debt crisis that threatens to destroy democracy and make us all debt slave minions of G Sucks & Co
You need to lend your support to the following:
Educate others on the content of the above. It defines the terms of the financial war that needs to be waged against derivatives.
Enjoy reading and educate yourself on the terminology of the financial war that is being waged:
Asset Backed Securities
OTC Derivatives
CDOs, CDS, and SIVS
Credit Default Swaps
These are some of the explicit terms of a fight back that could if not victory bring financial Armegeddon to the US and the rest of the world.
I’m not alarmist in acknowledging this, witness our growing mess and the growing mess for the euro and the specific signs from Ireland and its failed rescue that the euro may indeed be about to blow.
“Credit default swaps represent bets on whether a given asset or company will go bankrupt or not. As such, they can be used as insurance against such an eventuality, or else they can be used to make money on the insolvency. CDS are therefore a form of insurance, but they are issued by counterparties who have not registered as insurance companies and who have not met the legal and capital requirements which are necessary to function as an insurance company. It ought therefore to be clear that CDS have been totally illegal all along, and have flourished only because of an outrageous failure by state insurance regulators to enforce applicable laws against the privileged class of financiers.”
“….All Derivatives Illegal under the New Deal, 1936-1982
All kinds of derivatives, be they exchange traded or over-the-counter, were strictly banned and outlawed in the United States between 1936 and 1982 thanks to a wise measure enacted under the New Deal of President Franklin D. Roosevelt. In the wake of several attempts by predatory and sociopathic speculators to manipulate the prices of wheat and corn during the First Great Depression, the Commodities Exchange Act of 1936 outlawed the selling of options on agricultural products. This law had the effect of blocking most derivative speculation, until the counterattack of free-market fanatics gathered steam under the presidency of Ronald Reagan, an ideological zealot of the Austrian and Chicago schools. The very existence of derivatives today and their resulting ability to bring on a new world depression are thus directly attributable to the reckless and irresponsible dismantling of the New Deal regulatory regime. It should be added that derivatives were also banned in many states as a result of laws prohibiting gambling or forbidding bucket shops, which were betting parlors in which side bets could be placed on stock market fluctuations.
If Obama wants to pretend to have something in common with Franklin D. Roosevelt, he ought to be proposing measures to ban at least the most poisonous types of derivatives, and to discourage the others. Notice that he does nothing of the kind. Obama’s Cooper Union speech of April 22, 2010 approvingly cites Warren Buffett’s remark that derivatives represent financial weapons of mass destruction. But Obama then says that derivatives nevertheless have an important and legitimate role to play. So which is it? Some years back, French President Jacques Chirac rightly referred to derivatives as “financial AIDS.” What useful purpose can these toxic instruments possibly serve?
Again: in his 1936 re-election speech in Madison Square Garden in New York City, Franklin D. Roosevelt famously noted that the forces of organized money hated him, and that he welcomed their hatred. Obama, in sharp contrast, called on the Wall Street predators to join him in his efforts, compounding this with the monstrous thesis that Wall Street and Main Street are in the same boat. Nothing could be farther from the truth. The recent Goldman Sachs scandal has underlined once again that the Wall Street investment houses serve no useful social purpose whatsoever. They exist solely for the purpose of pursuing speculative profits through a process of looting and pillaging the rest of the economy. The Wall Street zombie banks are monopolizing US credit, while Main Street goes broke.”
……..”Outlaw Credit Default Swaps
Beyond this, we must urgently address the catastrophic effects and obvious illegality of credit default swaps. More than a year ago, Senator Warner of Virginia asked Fed boss Bernanke about the advisability of creating a “bright line prohibition” against these CDS. Remember that CDS are already illegal, because they always involve an investor masquerading as an insurance company without having fulfilled the legal and capital requirements that would be demanded from a real insurance company. Credit default swaps have cost the US taxpayer almost $200 billion in the case of AIG alone, because of the bankruptcy of the AIG London-based hedge fund which had issued more than $3 trillion of derivatives – a total greater than the gross domestic product of France.
Credit default swaps are also a clear and present danger today, since they are the principal tool being used by wolf packs of banks and hedge funds against Greece and other nations, accelerating the arrival of the dreaded second wave of the world economic depression. Unless credit default swaps are banned now, they will be increasingly used for speculative attacks against the bonded debt of American states like California, New York, Illinois, and all the others. Before long, credit default swaps will be used by international speculators to attack the value and integrity of United States Treasury securities, threatening our country with the calamity of national bankruptcy. If the United States fails to shut down credit default swaps with timely legislation now, credit default swaps will be used to help destroy the United States and human civilization in general.”
End.
Colmbrazel's Blog 