Kenny’s Empty !

October 21, 2012

Pat Rabbit is on on News At One to defend the government, put the genie back in the bottle on its empty-handed return from negotiations on resolving Ireland’s banking debt. Having swallowed the collective FG/LB “We are not Spain” pill, used to painting back as white, he can’t absorb the simple ‘black is black’ position of Angela Merkel, the Finnish, Danish and German finance ministers, that legacy debt will not form the basis of future bailouts through the European Stability Mechanism.

Sure they will work closely with Ireland to extract as much repayment of legacy bailouts that can be extracted. Sure they tell Irish leprechaun’s in search of a pot of gold, that the matter is complicated.

It’s rather more polite not to be as blunt as Merkel, especially in dealings with europes EU commission, Kafka’s Castle in the form of bureaucrats used to well paid negotiating jobs that depend on lengthy, evasions that come down to everyone’s wish to answer everything with a polite, ‘Yes, but..’ to vacillate, fudge and make half promises too vague to be true. But all should understand the position at european level is to separate out legacy debt from the future of the eurozone. The only thing that matters is making sure to avoid what has happened, ever happening again and crucially, making sure inner core countries dont have to pay for Ireland’s debt woes! How difficult is this to see?

Well, if you are blind to begin with, it may be difficult as shown by Kenny, Gilmore, Rabbite, Noonan, Creighton who vie with each other to become Ireland’s version of Don Quixote, to tilt at windmills.

We are told Kenny never even made contact with the German, Finnish and Danish finance ministers to get clarification of their remarks stating Irish legacy debt would not be retrospectively funded by ESM. Clearly if you live in a bubble of self delusion, you don’t want it popped!

The simple reality of the euro currency experiment not grasped by Irish leprechaun’s, unskilled, untrained and enthralled and mesmerised by such negotiations, is that Europe is a large credit union. It is as a credit union to a bank, it doesn’t possess an ECB with the powers of the FED.

It doesn’t have the powers of the FED to go into a bankrupt Central bank region of the USA and give orders to that regions central bank to stop operations and follow orders, redirect and pipe credit into that region from other prosperous regions in the USA, shut down banks, keep state salaries funded from the FED credit window.

The euro is a currency union that works like a credit union. To date the only seismic shift in its policy in dealing with Ireland’s legacy debt and the debt of other indebted nations in Europe such as Spain, is to reassure the world, Germany, Finland, Holland and the inner core of the euro, are NOT going to fund legacy debt.

The inner core is not going to make the same mistake as the Irish schmucks and guarantee Irish legacy debt. This weekend Irish politicians reminiscent of Chamberlain’s return from notorious Munich conference of 1938 are feeding the Irish public with similar propaganda, self-induced blindness, myopia and incompetence:

Remember,

http://www.britannia.com/history/docs/peacetime.html

“We are resolved that the method of consultation shall be the method adopted to deal with any other questions that may concern our two countries, and we are determined to continue our efforts to remove possible sources of difference, and thus to contribute to assure the peace of Europe”.

We have no Churchill, no Olafur Grimsson, but the good thing is that the mask of pretense that allowed such incompetence and failure to flourish in Ireland, that allowed it to denigrate common sense and attack its critics, is beginning to unravel. The Kenny of Time Magazine has no clothes on and unmasked is the illusory, puppet politician the Irish public were fooled into voting, a  game changer who is the opposite.

Why is it, when it’s so clear to the likes of any sensible person, that to date efforts towards a banking union and other methods to restore confidence in the euro are clearly targeting the future, to ensure that what has happened to countries such as Ireland, cannot be allowed to happen again.

Clearly countries such as Ireland, their economic engines shut down, who are dragging down the euro project are they are towed along by the fleet of inner core euro members, are having their ropes cut.

This comes as a shock to the government jet set wined and dined by the negotiating halls of Europe, compliant to their European masters, out to impress with abject compliance, hopeful their masters will respond to their stooges like Chamberlain.

Readers familiar with this blog will also be familiar with the black/white propaganda denigrating views expressed here as irresponsible and illusory in their critique of the Irish position on renegotiating debt. This week the views of this blogger expressed unwavering and unflagging and solid since  beginning this blog concerned at propaganda, falsehood, media manipulation, distortion and twisting of the truth regarding Ireland’s debt woes, instead of being found wanting are now proven to be true.

This week the mask of incompetence, delusion, and falsehood has slipped. The three stooges, Kenny, Honahan and Gilmore with acolytes such as Noonan and Creighton (you can mix and match those players at various points in the role of the three stooges), returned home, as predicted, empty-handed. Embarrassingly, Noonan is touting the commitment to work towards the setting up of a European banking union as a commitment to deal with Ireland’s debt woes. Lucinda Creighton has offered us the lollipop that Ireland is not Spain. Lollipop ladies will not solve Ireland’s debt woes.

As a long time subscriber to Time Magazine I really have to take issue
with the October 15 ‘The Irish Answer’ article panegyric of Enda Kenny
by Catherine Mayer. This will make me reconsider my subscription.

Kenny is no Ólafur Ragnar Grímsson  of Iceland nor do I believe your
columnist Catherine Mayer has any great grasp of economics and the
dynamics of debt that have befallen Ireland.

Ireland fell foul of the bank guarantee following economic meltdown in
2008 and subsequently. This led to bail out €67 billion provided the
troika, EU Commission, IMF, ECB which has proven disastrous for our
economy. Subsequent revelations fueled by the disastrous losses of €31
at one bank Anglo-Irish now subject to legal probes on many fronts
have shown the unwise foolhardiness of the regime’s  belief the Irish
taxpayer’s losses would be a tiny percentage of the Irish taxpayers
current liability, which has seen the Irish debt to GDP levels grow to
unsustainable 120%.

Twin pillars of Irish economic destruction NAMA (Not mentioned in
Mayer article) and Irish debt levels are the lynchpin on which to
measure Kenny performance in government. Contrary to the misleading
attribution of the fall in interest rates on Irish 9 year bonds
attributed to Kenny by Mayer, such falls are the crumbs from the table
of embarrassment that other countries such as Greece, Spain and
Portugal negotiated that had somehow to be retro fitted to Ireland.

Ireland is unable to return to the markets and cannot do so in any
meaningful way under current debt levels. Austerity often disguised as
the exercise of modernising greater efficiency in the public sector is
statistically showing a growing deterioration in Irish debt levels
making our situation worse.

Mayer points out the 14.8% unemployment figures that continue to grow
but fails to statistically note the 40% + unemployment rates in young
age groups. Kenny has benefited from the safety valve of mass
emigration among the young and the highly trained and highly skilled
Ireland’s largest loss that continues to grow.

In Europe Kenny has a signature failure in renegotiating Irish debt
including the odious debt of Anglo above currently being bled annually
from Ireland through the ‘Promissory Note’ device of the ECB. Ireland
in grandiose fashion under Kenny has determined to pay back all senior
and junior bondholders though the state has only borrowed money to do
so leaving us with the ironic twist of a bailout from the troika that
sees money go through Ireland’s revolving door back to ECB banks in
Germany and France.

Kenny already has many Ceaucescu follies, he has failed to deal with
the mortgage crisis among the young with 1:12 mortgages in arrears or
default; he has failed to carry out a forensic examination of the
banking collapse, we simply do not know the process by which billions
unchecked were handed out to favoured developers.

A glove puppet of the ECB he has thrown himself at their mercy, but
has failed to gain the attention of leaders in Europe eg Finnish,
Dutch, German Finance ministers who’ve recently spoken out their
opposition to the European Stability Mechanism being used to deal with
Irish ‘legacy’ debt. Kenny has allowed himself to be captured and
beguiled by endless negotiations at EU level on our debt ignoring the
lack of power in the ECB made up of credit union countries wielding
power eg Germany whose Bundestag is dead set against Germany picking up
the tab for outer core members of the EU.

Like a European version of The Sheriff of Nottingham Kenny this
December is set to further deteriorate the Irish economy with a
draconian budget sure to generate social chaos, further austerity,
further cuts in expenditure on education, health and capital
expenditure with the bill for Irish banking collapse passed by him to
the people. No doubt the world’s elite including its propaganda
machine in the media will praise Kenny’s exercise in Bain economics as
Ireland is stripped bare of its youth and social services. For them
Ireland and Kenny is a poster boy.

As neither Kenny nor Time in this matter can see the wood for the
trees, I’m reconsidering my subscription to Time magazine.

Let me lend my voice to that of Colm McCarthy in todays Sunday Independent, p22, who calls for “Government should long since have initiated legal action at the European Court against the ECB’s towards Ireland in the summer and autumn of 2010, which exceeded its statutory powers”. McCarthy is referring to the way ECB forced Ireland into mendacious and odious bailout terms forbidding it to burn bondholders. Photo in same article of Greek Prime Minister Antonis Samaras of Greece who contributed to write-off of €100bn of Greek Debt.

Rajoy of Spain has had success in negotiating amelioration of Spanish terms with the notable success of LTRO http://ftalphaville.ft.com/2012/04/16/961231/bringing-the-debt-home-italian-and-spanish-banks-edition/ hiding Spanish debt in its banks and preventing Spain from slipping into the trap sprung for Ireland as it was forced into bailout by the troika.

So what?

1. Refuse to pay the promissory note, €3.1 bn next March.

2. Prepare to leave the euro on payback of what can be paid back only.

3. Raise Corporation tax.

4. Close the IFSC loopholes that Biden and Obama and Larry Summers intend to target for closure anyway.

5. Rejoin sterling and work to greater integrate NI in a new commonwealth of Ireland, England, Scotland and Wales.

6. In absence of 5, goto Punt.

Cherypicking nonsense from Europe by compliant glove puppet politicians who’ve no grasp of economics, friendlies of the bankers, developers and DOF messers who created the mess, as proven this weekend, are not the one’s to get us out of the mess.

I was right, wasn’t I. Duhhhhhhhhhh, Ireland is not Spain, make you weep thinking about it. This evening the taoiseach we are told through a joint communique with Angela Merkel, ” they reaffirm the commitment to examine…with the view to improving the sustainability…Ireland is a special case…”

Nothing changes, blah, blah, show me the money, lol !

Yeah Ireland is a special case, the most heavily indebted country in the world ! I thought this was obvious from the start, way back in 2008-10.

End.

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