A ‘No’ Vote A Child Can Understand !

April 26, 2012

IMF on Senior Bank Bonds and Restructuring provides a good counterpoint to what we are being asked to sign up for in the coming ‘Compact Referendum’. The document is here: IMF on Senior Bank Bonds and Restructuring

In the looming breakup of the euro, it may be inevitable that bank restructuring along the lines of the above doc will have to be carried out. A return to sterling or PuntNua in a scenario of default and negotiation on the basis of what we can pay back, rather than what we must pay back, is worth serious consideration.

In relation to the above, asking the question why we should vote no in the coming referendum with reasons that even a child could understand, I scribbled out the partial first draft below. I’d like to hear any further points in favour of a no for a ticket on the ESM zombie/ghost train.

I’m sure a similar exercise for the ‘yes’ vote has already been carried out.

1. If you don’t understand it, don’t sign it.

2. It will lead to political and social instability.

3. ESM is an edict that cannot be challenged in court.

4. We can be taken to court or other sanctions taken against us if we do not follow its binding rules.

5. The Board administering ESM cannot be taken to court and is not bound by any FOI (Freedom of Information) rules.

6. The decisions of the ESM may be unduly influenced by Bundestag or other foreign governments.

7. It will subjugate our constitution to the rules of decision makers guided by policies not of our own making.

8. It will prevent us from backing out of the euro in the future by contractually binding/obliging us to pay back debt even though this debt may not be payable eg odious ¢47 bn repayable under ELA by way of the Promissory Note system.

9. The special circumstances of Ireland have been ignored in our bailout. We’ve had to pay penal interest rates of 5.8% on our bailout. Signing the ‘Compact’ would copper fasten those penal terms.

10. It would remove any negotiating position/strength as regards the negotiation of further bailouts.

11. It would involve us signing up to austerity for the short/medium/longterm with any growth benefits redirected to pay odious debt, in terms reminiscent of The Treaty of versailles the treaty imposed on Germany by the Allied powers in 1920 after the end of World War I which demanded exorbitant reparations from the Germans

12. The ‘guarantee’ for Ireland was deemed to be a failure; the ESM is a eurowide ‘guarantee’ of the banks that will damage Europe because it is a bailout of the banks and financial sector at the expense of the
taxpayers of Europe.

13. Those in favour of the Guarantee do not fully understand it.

14. The ‘Compact’ does not guarantee a further bailout for Ireland.

15. It separates out influence of the peripheral countries on decision making by the core countries.

16. It contains no protocols or guarantees that Ireland’s Corporation Tax or other taxation measures will not be redesigned to suit the needs of our lenders rather than the needs of Irish taxpayers.

17. It is in breach of the guarantees and rights of the Irish Constitution, in particular, 40-44, Fundamental Rights

Personal Rights
The Family
Private Property

18. It implicitly enshrines a policy of support for the financial sector for SIFI ( Sytemically Important Financial Institutions ) through the ESM firewall that will be paid for by european taxpayers through austerity and erosion of their public services.



One Response to “A ‘No’ Vote A Child Can Understand !”

  1. […] last blog with arguments against Compact that even a child can understand, here we move on to more adult […]

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