Ireland’s Frankenstein Recovery

September 28, 2014

Professor Honahan needs to be questioned closely as to his role in negotiations with the troika in relation to Ireland’s bailout. According to Brendan Keenan writing in Sun Independent, p4, “He says government reluctance to apply for a programme explains his dramatic interview on RTE’s Morning Ireland on November 18, 2012, saying Ireland would go into a bailout, but he did not realise other cabinet ministers had not been kept informed of what was happening”.poodle

Apparently, he also did not realise it was not his decision to make, but Brian Lenihan’s, who was Minister for Finance at the time, his decision to make and announce.

Prof Honahan should also be questioned on the draconian and odious terms of this bailout and his failure to force the ECB to share responsibility including shared cost of bailout that instead was shouldered unilaterally by Irish taxpayers.

Was it a concern that Brian Lenihan may have awoken from compliant obedience to consider actually burning bondholders instead of Irish taxpayers?

Marion Finucane in an excellent interview on her Saturday Show spoke with Olli Rehn former European Commissioner putting it to him that pressure was put on Ireland not to burn bondholders when it was discovered bondholders were from German and French banks.

Meanwhile the ECB has refused to publish a letter sent by Trichet to Lenihan during the same period November 2010. Olli Rehn will seriously consider any request to appear before a forthcoming banking inquiry into Ireland’s financial collapse and subsequent bailout.

Subsequent fallout cost of Ireland’s bailout is being felt today in such after shocks as the further financialisation of the Irish economy with Ireland becoming an economic Frankenstein.

The property sector in a mess and international vulture funds have descended on Ireland’s rich pickings purchasing everything NAMA and the banks have to offer.

On the crest of a wave where the US programme of Quantitative Easing has pumped a tsunami of trillions  into the banks and the financial sector  that has failed to be lent into the real economy, hedge funds inflated by the hot air of fiat money printing ballooning their assets, are pumping this hot air into Ireland’s financial and property sector.

Demand in the Irish property sector is fuelled by rich cash buyers able to invest in the property market. Native first time buyers cannot afford the prices being asked.

Pricing is also being fuelled by shortages with banks refusing to lend into Ireland’s construction sector. Many of Ireland’s former developers are under water with bad loans still around their necks.

A property sector that is being put beyond the reach of ordinary investors willing to buy homes or invest in property for their business, is one that is choking the real economy.

In its place we have a virtual Frankenstein of smoke and mirrors that gravity will make fall sooner rather than later.

Government Response

Minister for Finance, Mr Noonan, is as rich in good news about the economy as Goebbels or chemical Ali propaganda minister, he injects wild announcements about billions in savings that will be saved by the Irish economy on its bailout obligations.

By twisting failure to renegotiate recapitalisation of the Irish banks from his ‘European partners’ into success at achieving minor clipping of interest rate coupons, he’s turned failure into success! But only if you understand failure to mean success.

The motif of black is white continues with the recent announcement AIB, Allied Irish Bank, will be sold at expected return of €3bn for 30% of its shareholdings. This expected sale return is on foot of alleged return to profit of this bank and turnaround of the Irish economy.

Shane Ross recently made the point if AIB had maintained their provision for bad debts at last years level at €738m instead of reducing the provision to this year’s $92m, they would have had to declare a loss of over €200m.

Instead they posted a profit of €437m fan-fared by RTE. Needless to say any write-offs of mortgage debt fed into the lower figures on negative equity recently afforded by the ESRI.

Good Goebbels like, gobbly deduke surrounds AIB when you consider the false floor being given to property assets by bubbly from international vulture funds, rich investors and the majority, who cannot afford such prices.

Meanwhile as a counterweight to the financial funny money that sloshes about the Irish economy, the majority pay for the spree through austerity, USC(Universal Social Charge), property charges, water charges.

Providing backdrop to this looting is Austerity as it plunders the health and education services with cuts.

More Goebbels trickery surrounds the alleged 70,000 new jobs created over the past year in our economy. Show me the jobs! Lets do an audit. It might surprise you what is today considered a job, a JOB BRIDGE working in a school for free… Some jobs will rebound in any dead cat bounce.

But with “Size of the Global Derivatives Market at $1,200 Trillion Dollars … 20 Times Larger than the Global Economy” sloshing around the hedge funds, investing in property in Ireland and other European peripherals under water, becomes a better prospect than allowing such fiat conjured out of nothing, to remain and do nothing.

Thus we have a fungibility index whereby real currency value, being a function of real economic indices such as employment stats, eg production, the creation of real and valuable marketable goods, education, health, the service industries, is being eroded to nothing.

In its place in Ireland an economic management committee taking orders from the banks and financial industry who perform chicanery.

Money Transfer

Democracy itself is suffering corrosive erosion with a massive transfer of wealth through austerity into the hands of the super rich. Even the super rich cannot fund in the medium to long-term a reworked and revamped false economic model designed to favour the 1% at the expense of the 99%

In such a ‘black is white world ‘ of financial trickery and subterfuge, its likely that dead Frankenstein property portfolios held by NAMA will be sold off to international vulture funds. 30% of zombie banks such as AIB will sell for €3bn to these funds.

Poodle politics will resume as usual with Phil Hogan and Enda Kenny privatising the rights to Irish water that will be levied as a new tax on Irish taxpayers. Business as usual with €50m wasted on bad advice from consultants feathering nests for themselves and crude incompetence.

Meanwhile we await more good news on the economic front from a Minister Noonan, pet poodle messenger boy of the troika and Ireland’s ‘economic management committee’. He speaks against the embarrassing backdrop of failure to renegotiate our bailout heist saving German and French banks.

A real economy is being groomed through austerity to be a financial protectorate monoplised by the ECB instead of an elected parliament of people by the people.

With a global derivatives market of $1,200 Trillion Dollars a lot of smoke and mirrors and conjuring out of nothing and many poodles, can be bought. Ireland’s debt at circa 130% of GDP, under austerity, is doing great, according to the poodles.

Don’t believe a word of it! Welcome to the world of smoke and mirrors, ballooning debt where no pins exist.

Where homelessness is increasing, where rent prices are forcing families and the vulnerable onto the streets, crime increases and a widening disparity between rich and poor is growing; a massive transfer of wealth from social services, health and education and utilities such as energy and water, is transferred to the super rich.

till next time


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