August 1, 2011

As the Irish Titanic drifts remorselessly towards default, perhaps its time to ponder on a way out of our mess, one that isn’t doomed to defeat, one that isn’t so much in the interest of stakeholders, whether they be the bondholders of our banks, the supplier of liquidity to our banks, the ECB, or those responsible for scuttling the Irish economic ship, who seem to benefit from unending support, at the expense of taxpayers.

NAMA, the worlds larges property company, continues to bleed the economy, €11 ml consultancy fees paid out last year, estate agents, solicitors, auctioneers all benefit from the NAMA .

Recall the famous mortgages popular in the eighties and pushed with heavy advertising ‘pig in a poke’ whereby you invested in an insurance scheme that paid off a lump sum from which the principal would be paid off along with a tidy profit.

People across Ireland and UK because of the poor performance of their investments fell short and found themselves burned, the UK government had to dig out many victims of the scam. NAMA was seen as a device to save the Irish economy from the true effects of its property bubble. Last year its losses were of the order of €1 bn calculated at 2009 valuations, but must be close to double that loss calculated at 2010 valuations.

NAMA is meant to make a profit in the long term, 10 – 20yrs. Meanwhile the only people making a profit are developers on sweet deals, consultants and NAMA personnel on a wasted cost and drain to the Irish taxpayer.

How to deal with the end of a property bubble:

Lesson One:

1. Follow the example of Sweden’s Bo Lundgren and get rid of the potentially catastrophic toxic property portfolio ASAP.

2. To verify 1 checkout NAMA’s books in 2018 and see the catastrophic makings of the biggest property mess the world has seen!

Meanwhile government steels itself for another € 4 bn austerity cuts in the autumn. Emigration will help the coming budget! Ironically, Government budgets in the short term will benefit by being relieved of the burden of welfare payments for single people or entire families who emigrate.

In the medium to long term, the loss to the country through emigration is also a severe economic loss.

It’s often the brightest and most resourceful and best who leave.

They will not be contributing to the local economy by purchasing goods and services throughout their lives through themselves or their children.

Their creativity and talent, the investment in their education by the state, their potential future contribution, become a loss to community denying opportunity and enterprise going forward.

On the Titanic, among the list of variables effecting the eventual tragic loss of 1500 + lives:  there was the officer, who was replaced and who left the ship with the keys to the locker, the locker held the binoculars – the lookouts in the crows nest needed binoculars to see  growlers through the darkness, on a calm moonless night, with no waves washing against the icebergs deadly side, growlers were difficult to make out.  There  were the rivets that unzipped and popped their heads opening the steel plates along the ballast tanks because of the inferior grade 111 iron chosen as material. There was the lowering of the bulkheads to accommodate grandiose interior staircases at expense of safety;  the wireless operator concerned more at personal gain sending private messages, rather than the urgent concentration on ignoring crucial weather reports.

On the other hand, those emigrating will save themselves from our impending Titanic disaster.

There is much to be learned and enjoyed and gained by leaving to find a better livelihood and lifestyle elsewhere.

Meanwhile, at home the older population cohort have already spent their money in raising their families. They save and save terrified with everyday news of new charges/taxes for everything.

There are no jobs for the young, no jobs in the professions. Educated or uneducated, the young join in a growing tide of emigration taking with them the lifeblood of the country’s future.

Captain Smith, Enda the Titanic, gazes ahead with gimlet eyes riveting the growing darkness:)

If you are in the crow’s nest, please put on binoculars!

Those responsible for the mess find greater concealment in austerity.

Here’s how that works:

The trick is to distract away from such matters by surrounding them with a chinese walls eg NAMA with instruments such as ‘commercial sensitivity’. Or, a favorite, bury probes in long drawn out investigations that constantly get delayed eg the extra 6 months given into the Garda investigation into Anglo.

Favorite of all is the 3rd class passenger device. All departments use this. Basically this method is to direct the public’s attention to some useless bit of chicanery eg the threat of a hospital closure somewhere, or fueling debate on those ripping off the social welfare system.

These debates all help to distract from white collar crime or the true causes of why we are where we are.

On the titanic third class passengers were locked below and had to fend for themselves as the boat sank. Most all places in the lifeboats went to 1st class passengers.

Next budget will lock all our third class passengers below deck. Already interest rates, mortgages, utility bills and charges, cost for food, transport all rise above the ankles while wages fall…

Our first class passengers on our Titanic are doing quite well at the moment, so divide and conquer by leading a FG/ILP Charge of the Light Brigade of well-to-do chancers and hypocrites against the neer-do-well, is game on at the moment:)

The plan won’t work!

Cicero 45BC

“But I must explain to you how all this mistaken idea of denouncing pleasure and praising pain was born and I will give you a complete account of the system, and expound the actual teachings of the great explorer of the truth, the master-builder of human happiness. No one rejects, dislikes, or avoids pleasure itself, because it is pleasure, but because those who do not know how to pursue pleasure rationally encounter consequences that are extremely painful. Nor again is there anyone who loves or pursues or desires to obtain pain of itself, because it is pain, but because occasionally circumstances occur in which toil and pain can procure him some great pleasure. To take a trivial example, which of us ever undertakes laborious physical exercise, except to obtain some advantage from it? But who has any right to find fault with a man who chooses to enjoy a pleasure that has no annoying consequences, or one who avoids a pain that produces no resultant pleasure?”

So, the Central Bank, NTMA, the TRoika wish us to endure austerity/pain in order to achieve the pleasure of righting the economy and returning us to growth.

In fairness, we should do this if this path achieves the goal of righting the economy and returning us to growth. But we shouldn’t do this if this goal in fact achieves the opposite.

So, in a democracy how should this conundrum be resolved? The answer is by REFERENDUM.

If there is a sufficient body of evidence and belief in a society to question whether we should pursue a policy imposed on us from without, without our consent, the people should be given their say.

It is the duty of government and the presidency to protect the rights of the people and prevent them being usurped from without.

The Referendum:

1. Do you agree to the Irish taxpayer funding the debts incurred by Irish banking debt?

2. Would you choose to leave the EMU rather than pay back the private debts of Irish banks?

3. Are you satisfied with the way the Irish government has negotiated the ‘bailout’ with the EMU?

There’s a few q’s should be put to the Irish voter. If they are not put to the Irish people, forget all this transparency from the troika, the Irish government, its only a thinly disguised big stick wielded by the European Socialist Republic, more Stalin than Abe Lincoln.

It’ll pop our rivets.

Latest from Bill Still who supports an end to the problems of fiat money, or a return to a fairer system controlled by central banks owned by taxpayers, rather than private fiefdoms.

Interesting Ellen Browne supporter of Bank of North Dakota quoted as well.

If you have a slow connection, download the free iLivid download manager

and download the video to the desktop.

If you have the free VLC player it will play automatically:)

Just as it was on The Titanic, on Ireland Inc many still believe our default can be avoided, help will come soon.

The false message is being put out that austerity will work, our friends will come to our rescue,  and we will not be led to Davy Jones’ locker.

The irony is, it is our leaders, our Troika of EU, ECB and IMF who are to the forefront in leading us to Davy Jones’ locker!

Its time to distinguish between Irish sovereign debt and odious bank debt that has scuttled the Irish economy, it was  allowed to do so by political incompetence, corrupt involvement with developers, bankers, and Department of Finance mandarins, all  ineptly charmed by grevious personal and European ambition.

We should say no to such confidence tricksters and be aware NAMA along with political incompetence, corrupt involvement with developers, bankers, and Department of Finance mandarins, all  ineptly charmed by grevious personal and European ambition continue to pop the rivets out of the Irish economy.

Think of the above next time you hear ‘confidence’ and ‘growth’ mooted by confidence tricksters fronting banking special interest groups at the IFSC regarding the state of the Irish economy.



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