Taking A back Seat !

January 24, 2013

The living is easy and there is food for everyone, plenty of junkets, visits to the Great Halls of Europe,vast pensions, unaccountability, depersonalisation, ‘we’re all in this systemic mess together’ a vast homologous bureaucracy replicating the overpaid patronage society back home where power is routinely invested in incompetence and who you know takes precedence over what you know.


On 10 December 2012, Pat Rabbitte, Minister for Communications:

“He told RTÉ’s The Week in Politics that the Government can not pay this “IOU” entered into by the last Government after the collapse of Anglo Irish Bank.

He said the European Central Bank was a difficult institution to “bring around” to stamping the deal Ireland needs on the promissory note.

But Minister Rabbitte said he believes it will happen before the payment is due next March.

Minister Rabbitte said: “But I believe before the note falls due for payment in March that we will get a deal.”

Mr Rabbitte was then asked if there was no deal would that then mean Ireland would require a second bailout.

“Personally I don’t think it is as stark as that because we didn’t pay the promissory note this year and as far as I am concerned we are not going to pay it next year. It’s as simple as that.”

Elsewhere, Communications Minister Pat Rabbitte has insisted that the cuts to the respite care grant announced in the Budget will not be reversed.”

Now its reported Pat Rabbitte is ‘taken aback’ at David Cameron’s proposal to hold an in/out referendum on membership of the EU and has added his voice to the chorus of political hostility raised in Europe at Cameron’s bold move:


Firstly, a correction above. Pat Rabbitte for whom economics would be an alien science at the best of times shows evidence of his deep lack of knowledge in this area above. He is incorrect, we did pay the PN(prom note) last year. But in order to disguise the fact and hide the payment from the Govt’s balance sheet and to fool Pat Rabbitte into making erroneous statements as in above, it was paid through a circuitous route involving raiding the coffers of NAMA and via BOI in a bond Irish taxpayers are payee to! Perhaps the same device will be used to pay this years unconscionable PN.

The truth is David Cameron has figured out that the Big Farmer(ECB)with its tradition of  leaving out the food for European governments of the calibre of Kenny/Cowen and Pat Rabbitte, having fattened them up with developer loans, croneyism, misadventure of ligature Promissory notes of self destruction, has merely fattened them upto catch them in ECB snares.

While the likes of Rabbitte believe the future of Europe to be a Valhalla Nirvana building prosperity for Ireland, Cameron sees the destruction being wrought on Europe by austerity, over centralisation, diminution of the sovereign powers of national governments, less democracy, more oversight, more bureaucracy, more unaccountability.

Critics of Cameron level against him the charge of dangerous isolationism. Yet it is the parliament of Europe that is becoming more dangerously isolationist and detached from the people it should represent. More and more power is being clawed into the center of Europe on foot of withdrawal of the right of veto, a committee driven ECB whose central alignments are becoming increasingly politicised towards an inner core led by Germany of Angela Merkel and Wolfgang Schauble of the Christian Democratic Union (CDU), currently serving as the Federal Minister of Finance.

Pat Rabbitte like the British electorate for whom a referendum in/out is now promised should be taken aback at the lack of a deal for Ireland on the PN’s; he should be taken aback at the enforcement of terms of a bailout favouring the full repayment without write-down of all loans from European banks; he should be taken aback at the growing divide in Europe between rich and poor countries, rich and poor balance of payment deficits distorted by unconscionable debt repayments.

But NO, Pat Rabbitte is blinded by black/white propaganda that hides the fact the euro does not belong to the future of Europe. The euro currency is dragging Europe back to a German led hegemony:


Hegemony (UK /hɨˈɡɛməni/US /ˈhɛɨmni/US /hɨˈɛməni/Greek: ἡγεμονία hēgemonía, “leadership”, “rule”) is an indirect form of government of imperial dominance in which the hegemon (leader state) rules geopolitically subordinate states by the implied means of power, the threat of force, rather than by direct military force.”

The future of European currency union as in the European Monetary Union is on a direct collision course with European democracy and threatens to return Europe into a financial equivalent of WWII, where euros have replaced bullets.

Lets not be fooled by the Big Farmer in ‘Watership Down’ by Richard Adams. The Big Farmer has now metamorphosed into none other than Angela Merkel aided by her Finance Minister Wolfgang Schauble.

But we are beyond the point where getting fat and rich is contiguous with the future of Europe; the euro currency Titanic is threading lots of water.

It may sit on apparently benign waters ignored by rescuers such as China but it is slowly hemorrhaging and its effecting the brains of Europe as it threatens the future of all including the future of Germany.

Behind the scenes it would appear Germany herself is hedging her bets on the future of the euro, it has just signaled its intent with immediate effect to repatriate half of its gold reserves by the year 2020.


Coupled with its resistance to debt write down and its temporary solutions to the debt crises of Greece, Ireland, Portugal, Spain now beginning to affect the inner core of France and Italy, Germany with its legacy of exposure to the meltdown of 2008 and ongoing currency crisis, lack of progress on efforts to curb deregulated derivative based markets, is hedging its bets.


“On 15 August 1971, the United States unilaterally terminated convertibility of the US$ to gold. This brought the Bretton Woods system to an end and saw the dollar become fiat currency.[1] This action, referred to as the Nixon shock, created the situation in which the United States dollar became a reserve currency used by many states. At the same time, many fixed currencies (such as GBP, for example), also became free-floating.”

The abuse of the deregulated fiat currency system based on the dollar since 1971, the deregulation of fiat currency markets based on derivatives, the overweening avalanche of debt pileup to unmanageable levels, must be giving Germany pause for thought.

Current financial conditions of uncertainty were previous to Bretton Woods in 1944. Uncertainty prevails today.

Cameron knows when a ship is going down.

We should be preparing for the same eventuality in Ireland, but we are victims of inept and disastrous decision-making that gave us meltdown of our banks, the Promissory notes and a current political leadership based on the begging bowl and a master slave relationship with Europe.

Cameron deserves an A.



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