Let’s Leave eUrO!

April 28, 2013

European Union

European Union (Photo credit: Wikipedia)

As clouds gather in Ireland and unions get ready for strike action rejecting government policy and the salary cuts and service cutbacks implicit in the troika inspired Croke Park 11 deal, it’s time to reject the government and troika led austerity and leave the euro.

With the demise of Labour and Fine Gael and Ireland’s short memory of the disastrous policies of the previous FF government, there is not much to choose from by an electorate growing in ennui, disillusionment and passive indifference that may shortly turn to more serious rebellion if austerity continues to make matters worse instead of better.

Next election hopefully will see a mass rejection/ejection of main parties with outmoded and  anti democratic policies that are pro bondholders, pro banking, set against shared write-down of  odious debt put upon shoulders of those not responsible for government incurred debt. This is the result of calamitous and disastrous leadership by failed negotiators in government parties.

There will be plenty of opportunity for a massive show by independents to build a new political foundation for true democracy in Ireland. Whether this opportunity will be availed of is anyone’s guess.

Clearly democracy has failed in Ireland. Lack of democracy within political parties themselves has led to a small cabal in each party dictating policy on economics, on negotiation of  banking debt with the majority kept outside the loop. Rising to the fore of this plutocratic cabal is Taoiseach Enda Kenny evermore by the day fitting into the shoes of petty dictatorship with workers under threat.

As clouds gather inside the bunker things get more absurd by the day. The extremely sensitive and delicate matter of abortion legislation is being mishandled.

http://www.independent.ie/irish-news/abortion-bill-abusive-and-idiotic-says-leading-psychiatrist-29212569.html

“The proposal to assess suicidal pregnant woman by six consultants has been deemed “abusive” and “idiotic” by one of the country’s leading perinatal psychiatrists.

A team of 6 psychiatrists perhaps 3 each on consecutive days in a formula reminiscent of the inquisition will adjudicate on the right of a vulnerable and deeply stressed woman to terminate her child under threat of suicide.

This is not the only idiotic, abusive and absurd policy being enacted in Ireland.

Cutbacks in education, health, R&D are slowly tearing this country apart.

The bailouts from the troika have proven to be secret devices to extract tribute from Ireland for German banks as part of our contribution to Germany’s growing surplus at our expense.

Joining the euro has proven to be a massive mistake costing this country it’s prosperity and democracy and has been a device to exploit the poor by the rich both in Europe and Ireland out to protect their interests at any cost.

It’s time to Leave eUrO! The previous FF government built its failed policies on fueling  property speculation and this led to disaster. The current government at a time of crisis when good leadership is required has squandered every opportunity to get a good deal for Ireland.

Fine Gael/Labour policy of compliance and appeasement of banking and political influence in Europe has sold out democracy in Ireland protecting the rich at expense of the poor. Further penury at the expense of the appeasement/compliance is being led by an increasingly dictatorial government in Ireland ignoring public opinion in pursuit of idiotic policies furthering the pain inflicted on Ireland.

The absurdity of SIPs turning householders into serfs with a life of penury that sees at its end their house sold to pay remaining debt of the banks, is unacceptable. The level of household debt is unsustainable in Ireland. Private debt levels in Ireland combined with increasing open and hidden taxes including property taxes is like a toxic and deadly invisible gas killing the Irish economy.

Its clear the Europe Ireland joined is no longer the Europe Ireland aspired to. Credit union Europe is a Europe spawning petty  Kenny dictatorships with the sole aim of replacing elected politicians with unelected banking officials pulling their strings.

Support for leaving the euro is growing (see previous post):

http://www.forbes.com/sites/timworstall/2013/04/13/of-course-portugal-should-default-and-leave-the-euro/

There are at least 800 occasions where default has happened over the previous centuries. Without debt write-off/write-down Ireland’s economy will be destroyed and its debt will not be repaid. A large part of our exports go to the UK and not to Europe. Our MNC’s export worldwide and the majority are here not just because of EMU footprint. Our agricultural sector exports worldwide.

Tim Worstall writing in Forbes:

“It would be theoretically possible to renegotiate the borrowings, as was the case in Greece. But the problem will be the same as what happened in Greece. Too much of the debt is “official” debt now. Owed to various arms of the EU (the EFSF, ECB and the like). And they simply will not take haircuts on their loans: they have decided that they should be treated as the IMF is, as invulnerable creditors. So much so that if all of the privately held (a very small amount) were haircut 100% this still would not solve Portugal’s problems.

The solution would therefore have to include those creditors taking a loss. And the only way I can see that being possible is for Portugal to adopt the new escudo and redenominate the debts into that new currency. Allow the fall in the value of the new escudo to be that de facto haircut on such creditors.

The only problem with this solution is political. Economically it is both possible and, in my opinion at least, desirable. The political problem is that large parts of the European political classes have huge investments in this concept of “Europe”. This ever closer union of which the euro itself is a large symbol. It is this cross that the Portuguese people are being nailed to, as with William Jennings Bryan’s complaints about the cross of gold. It is a political problem, not an economic one.

I should perhaps note that I live in rural Portugal. I’m doing fine of course, my income is from outside the country. But I look around at what’s happening in the small market town and I cannot see that the pain and grief is worth bearing in the name of “European unity”. You might take this to be a trivial example: but when the local supermarket is only half stocked as compared to two years ago you really do know that there’s an awful lot of economic pain going on around you.

Time to accept that the experiment didn’t work and to abandon it. Default is necessary, leaving the euro is a darn good idea and if that causes problems for the European Union, well, so be it.”

Last blog mentioned “Mario Soares, who steered the country to democracy after the Salazar dictatorship, said all political forces should unite to “bring down the government” and repudiate the austerity policies of the EU-IMF Troika. “Portugal will never be able to pay its debts, however much it impoverishes itself. If you can’t pay, the only solution is not to pay. When Argentina was in crisis it didn’t pay. Did anything happen? No,nothing happened”

There is growing dissent in Portugal and growing support for leaving the eUrO.

Ireland needs to grow support for a similar movement to leave the eUrO if not to free the current generation from the shackles of the eUrO, then future generations of Irish people. I don’t have to travel to the future to see the support for this from those who suffer the extended maturity dates of Irish debt and need to cripple their finances on those maturity dates when they do arise.

The question is, is Ireland mature enough to make the decision to leave eUrO ? It would appear with the growing absurdity of politics in Ireland, right now, it’s not. It only takes a phone call from a central banker like Tim Geithner to Eamon Gilmore, Michael Noonan, Enda Kenny, to secure their agreement to whatever the trolls of the financial sector decide can be extracted from Ireland.

End

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