Another Sell Out of Ireland !

November 2, 2012

End of October has come and passed without Kenny and Gilmore’s much flagged promise of a banking deal to solve Irish debt problems.

250 business closures a week and the media never follows the story. Ministers on the other hand race to compete for each little bit of news on a new startup with a few employees promised. Large scale emigration as a story is ignored and buried in  CSO figures and rarely given a human face. Frequent announcements of  large-scale promised redundancies are given token coverage. Thousands of employees of Eircom, ESB, public services, freeze bans on recruitment, on salary increases represent an undercurrent in Irish economic life that is hidden away. Branch closures of banks in country areas and closures of Garda stations and bans on recruitment virtually ignored.

Next budget will mean another massive adjustment of €3.5 bn taken from the economy bleeding an already wounded economy with more austerity to further damage our ridiculous debt profile of 120% debt to GDP that’s climbing fast. Yet Kenny/Gilmore et al can only offer a disastrous trail of failure to secure a reduction, a write-down of our debt. Each summit meeting with Irish debt on the agenda reaches a positive nothing that is painted in glowing terms as a triumphant success in black is white land.

The Labour party is now party to the parsimonious scrooging and dismantling of the public service under the false flag of making it more efficient. Unjust attacks are indiscriminately carried out on the weaker sections of society. Prejudiced and biased cutbacks in salaries and allowances are unjustly carried out against new members of the educational profession while the salaries of the higher paid are protected to pay them off and buy their continuing support.

Think of a new way to destroy the Irish educational system, introduce corruption, lower standards, a la carte education based on what you can afford to pay, jettison state examinations, the Irish Junior Certificate, allow parents to put unfair pressure on teachers on behalf of their offspring failing in class on their own merit and place responsibility for this on the teacher?

You got it, save the state money in holding these examinations and pretend its the modernisation of the curriculum rather than the dumbing down of the educational system.

Think of a school system with pressure on each school to hand out A’s to every Tom, Dick and Mary to compete with the systematic handout of A’s  being handed out for less across the road?

Welcome to the Labour and Fine Gael Irish private educational system masquerading as innovative and creative upgrading and modernisation of Irish education.

The slashing of jobs in the public service is masked as modernisation and efficiency exercises. Ireland has turned into nothing more than a sordid exercise in Bain economics protecting the rich at the expense of the poor. Next budget adjustment of €3.5 bn on an already disastrously flagging and impaired economy will be the coup de grace.

Do you at least know what caused Ireland’s economic collapse?….As yet we have no banking inquiry to reveal to us the exact process of lending practices at IBRC and at those banks that imitated its practice . Forensic examination of the top ten loans dispersed by IBRC with the web of attenuating planning permissions, developers, loan advisors, bonus culture, ‘fail safe’ oversight methods, political, legal involvement would show a wealth of detail revealing the cause of our economic collapse.

Will Ireland have to pay the piper?…Angela Merkel has insultingly told Kenny Ireland is a special case and has refused to go further to commit to a bailout for Ireland instead batting out claims for bailout to 2014 when matters following a fiscal union may be different. She will not pay up before then, nor support a payout; instead, she is hiding behind the coat tails of other EU Finance ministers who would be required to pay up for our woes as well.

Would someone tell Kenny/Gilmore et al to stop negotiating with the troika. don’t Kenny/Gilmore get the message? How often do they have to be fobbed off? Finance Ministers of Germany, Netherlands, Finland have told the Irish negotiators there will be no ESM debt deal for Ireland, that will be retro fitted for Ireland from the ESM. The  ESM will be a buffer against future bank collapse and will not be used to pour money into legacy debt.

Irish negotiators have this blockage and believe they are somehow special and that there will be a positive deal for Ireland. Feeding into this delusion Angela Merkel is able to feed off this weakness and exploit it to her own advantage. So, she tells Enda Kenny, Ireland is a special case and smothers him with smiles Kenny is eager to consume.

It would appear Angela is growing a bit weary of Kenny. This week she has clearly told Kenny that he must negotiate with the EU Finance ministers if he wants a deal on Irish debt. You see Angela doesn’t want to pay up for Ireland’s debt. The EU is a credit union. Each country is largely responsible for its own management of its fiscal sovereignty and responsibility for how it manages its finances. EU, when one of its satellite states reaches the state of bankruptcy Ireland has reached, is not structured to be able to reach out with largess with the finances of other member states and take from Germany, Netherlands, Finland what is theirs and pour it into the black hole created by Ireland.

It would appear Kafka’s  Castle represented by the EU commission is also willing to exploit and support Kenny/Gilmore weakness for grandiose self-delusion based on falsely perceived seismic shifts where no movement has occurred other than a miasma of propaganda turning black into white.

For Kenny to succeed on the diplomatic front they have to persuade EU Finance ministers that Ireland must be given a debt write-down. But a long queue is growing from Greece to Portugal, Spain, Cyprus growing longer and longer with other countries more economically and politically astute who want to take from the rich inner core and distribute to the outer core to pay debt.

The uneven distortions and failings inherent in the euro project have come home to roost. Germany has lent money out to the periphery to purchase its goods and Germany has profited from this. Now Germany has lent out money to help pay for the debts of peripheral members who have squandered financial help and Germany is profiting from the interest surpluses it gains on this lending. Germany would rather that a banking supervisor not gain access to the accounts of its banks to reveal such sordid news of transactions that are in its favour.

The only party pooper in this state of affairs is that the periphery is in a state of such decline that even with fiscal support, bailouts, it will not be able to sustain this fiscal ecosystem. Collapse is imminent for countries with unsustainable debt/GDP ratios even with bailouts. Lessons from previous currency default situations eg USSR rouble, Argentina, Sweden is that recovery is only possible if accompanied by debt write down. Increasing taxation, more debt and further austerity only make matters worse.

The Titanic may sit happily in the water for a few hours, but it will sink. Pretence that Ireland has turned the corner and the confidence trickery of the present coalition government in Ireland, will be shown for the false pretence it is.

According to

“Tánaiste Eamon Gilmore has said he is very confident of securing a “timely” deal on Ireland’s bank debt with European partners, allowing Ireland to exit its EU-ECB-IMF programme next year as planned.”

Meanwhile, “Mr Norbert Barthle, CDU head of the Bundestag budgetary affair committee, reiterated that any future ESM assistance for Irish bank debt would come with a full-blown programme.”

It seems Kenny and Gilmore never fail at getting things wrong. The truth is there is no deal for Ireland on the cards. If there is in spite of difficulties over fiscal sovereignty, the intention of powers by eg the Bundestag to manage its own fiscal affairs, that some form of fiscal union moves forward to a banking union with banking supervision, the ESM will underpin that future union.

Today 29/10/2012, the German Finance minister, Mr Schauble, visiting Ireland to prepare for Ireland’s presidency of the Presidency of the Council of the European Union “Ireland will hold the presidency for the first trio of 2013-2014 (1 January 2013 – 30 June 2013)” again has poured cold water on any looming deal on Ireland’s bank debt contingent on future deals on agreement on a  Europe wide bank supervisor.

The creation of a banking union agreeable to member states will face  huge resistance from member states on the agreed detail of such a formula for supervision of the euro wide banking sector. Already there has been major disagreement between France and Germany with resistance from Germany on any perceived loss of sovereignty from its banking sector.

Its clear Schauble was here to issue the edict to Kenny and Gilmore to toe the line and continue pay up of Ireland’s odious debt in particular the promissory note shambles negotiated to pay off Anglo’s odious debt.

Clearly Ireland is being sucked marrow from the bone by the troika and Ireland’s bondholders all of whom if not already in receipt of their fully paid up loans courtesy of Ireland’s taxpayers under the boot of failed political leaders, expect to be paid in full.

It’s as if the chimerical mists of the European Union have been cleared away, to reveal the real ‘ European Union ‘ as not so much a Union fraudulently pretending to be so, but a German Bundestag led annexation of Europe having failed in WWII succeeding now under the accountant’s pen of debt laden Europe of 2012, to impose its will on a growing subservient outer core under the economic jackboot of austerity.

With a puppet like stooge government in Ireland compliant to its will, Germany can rest easy; romantics among us may also wonder with Yeats’ September 13:

“Was it for this the wild geese spread
The grey wing upon every tide;
For this that all that blood was shed,
For this Edward Fitzgerald died,
And Robert Emmet and Wolfe Tone,
All that delirium of the brave?
Romantic Ireland’s dead and gone,
It’s with O’Leary in the grave.”

Clearly Germany is not willing to play the Pied Piper of Hamlin and lead Ireland out of its extravagant status as the world’s largest debtor nation, a post modernist mess.



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