We need to IRexit and join Brexit

August 7, 2016

Anybody watching the Olympics and admiring the wonderful apartment buildings built in a short number of years to house the athletes with state of the art accommodation? Wondering why we can’t build the same here to house the homeless, our student population, first time buyers requiring starter homes at a reasonable cost?poor_europe_chappatte

Fiscal rules imposed on us arising directly out of our membership of the EU prevent us developing this state in the way our people wish for and require.

Wondering why our Irish Water fiasco has continued to date with a committee deliberating on overturning the will of the Irish people against privatisation and off the balance sheet accounting? It’s the odious fiscal rules again.

We have the longest hospital waiting lists per capita in the EU, standards in our universities nose diving because of poor funding,  rising teacher student ratios, natively educated doctors and nurses fleeing our health service and our banks coming out bottom of the pile in European stress tests.

But according to the CSO with growth rates of 28% of GDP we should be the fastest most prosperous economy in Europe. Hell no.

CSO is a state propaganda machine peddling unreliable statistics for years mostly based on sand. In this case jigging the figures from dollar based multinationals suddenly their income in euros goes up because of the falling value of the euro against the dollar; more companies from the US acquiring mailbox identities in the IFSC.

Before the practice is guillotined by incoming new presidential candidates whoever they may be.

Little tax is paid here by such companies. Hey presto we have a GDP of 28% sparking government panic wishing to predict growth forecasts of less than 1.5% to keep wage rises at those austerity levels while income rises of 10-15% are the norm for France and Germany!

You would think with rents rising to astronomical levels government would urgently address the problem as they have in Vancouver, Canada by imposing a tax of 15% on foreign property investment mostly effecting the vast amount of capital pouring into Vancouver from China.

That bubble has burst.

Nope, NAMA here in Ireland has a policy of selling off vast property portfolios tax free to vulture funds with eyes upon a quick buck in the Irish rental sector.

Irish companies and individuals pay tax on their earnings and profits; vulture funds through accountancy tricks can even set themselves up as having charity status meaning on earned profits of eg €25ml immediately exported to parent companies offshore with €250 tax  paid, I kid you not.

Meanwhile we read propaganda that there is a huge rise in people from NI and UK wishing to take out Irish passports  because of the UK’s wise Brexit.

They would prefer to remain in Europe!

Lets look at Europe’s economy and its banking sector for a moment.


Mario Draghi’s Negative Interest Rates and QE is quickly running out of steam.

“More specifically, 20% of the €10.4 billion ($11.7 billion) of corporate bonds the ECB bought between June 8 and July 15 had negative interest rates. Another €3 billion of company debt has been purchased since then, with plenty more negative-yielding bonds probably mixed in….

While negative interest rates are great for issuers—they are effectively being paid to borrow—this relatively new financial phenomenon has downsides, particularly for banks. European banks have announced relatively grim quarterly earnings over the past few weeks, with many bemoaning how hard it is to make money when interest rates are so low, compressing the “spread” between what they can charge for loans and what they must pay out to depositors.

ECB board member Benoît Cœuré warned in a speech last week that there comes a point when the detrimental effects of negative rates on banks outweigh the benefits of the institution’s bond-buying program. That point has not yet been reached, he says.”

In other words the EMU is running on nothing but hot air at the moment. QE is pumping billions into the banks that are being steadily suffocated by negative interest rates. Bond buying by Draghi is saving banks and corporations across the emu that without such QE stimulus would see them go under sparking the domino effect.

Loss making enterprises are being financed to make more losses while the euro itself is being pillaged and looted to have its purchasing power reduce and reduce. The savings and wealth of the 99% is being squandered away to pay for the ongoing losses of the 1%.

But global economic problems run even deeper than problems with the euro. Today across Venezuela and many countries in Latin America its currency in crisis food queues are the hallmark of an oil rich economy.

Likewise many countries in the third world have seen their GDP dropping in the face of falling mineral revenues due in part to falling commodity prices  in a self reinforcing spiral of a slowing global economy and more and more fraudulent manipulation of currency movements and global financial markets serving the needs of the 1% at expense of the 99%.

“In 1996, economist Paul Krugman (Nobel Memorial Prize in Economic Sciences, 2008) summarized the post-Nixon Shock era as follows:

The current world monetary system assigns no special role to gold; indeed, the Federal Reserve is not obliged to tie the dollar to anything. It can print as much or as little money as it deems appropriate. There are powerful advantages to such an unconstrained system. Above all, the Fed is free to respond to actual or threatened recessions by pumping in money. To take only one example, that flexibility is the reason the stock market crash of 1987—which started out every bit as frightening as that of 1929—did not cause a slump in the real economy.”

That was way back in 1996. At that time the benchmark of the gold/dollar peg was the value of gold expressed in terms of global economic activity based mostly on industrial output and industrial activity.  Over the decades since 2010 financialisation has come to dominate:


“Financialization describes an economic system or process that attempts to reduce all value that is exchanged (whether tangible or intangible, future or present promises, etc.) into a financial instrument. The intent of financialization is to be able to reduce any work product or service to an exchangeable financial instrument, like currency, and thus make it easier for people to trade these financial instruments.”

The problem is financialization has long since lost its base in industrial output and agricultural activity. The means by which the financial world slices and dices financial instruments through hordes of people whose livelihoods depend on these activities has become a virtual pretend black is white falsehood world exploiting and fraudulently manipulating and corrosively damaging the global economy.

This is a world hoovering of resources by too big to fail banks upward to the 1% powerful enough to benefit from the vast manipulation of money and markets. Steadily resources have been stripped from the middle class, from democratically built institutions, from governments and now countries eg Venezuela and Greece are wantonly being consumed by such pillaging.

In the last scenes in the movie “Margin Call”, bond traders attempt to save the bank by selling what they know to be dodgy doomed to fail assets on their books to whoever will buy them.

I suspect on the other end of these lines were mostly traders from European banks. These dodgy assets are still on the books of eg Deutsche Bank.

Acknowledging the collapse of 2007/8. Aware that the policy of printing money QE is damaging the world economy and only postponing inevitable collapse, something must be done.

Bernie Sanders calls fr 21st century Glass Steagal Act   https://berniesanders.com/yes-glass-steagall-matters-here-are-5-reasons-why/



4. The repeal of Glass-Steagall is further corrupting the culture of banking – if such a thing is possible.

Sanders was right when he said on Saturday night that “the business model of Wall Street is fraud.” The traditional practice of what Sen. Elizabeth Warren calls “boring” banking – opening savings accounts, reviewing loans, and providing other customer services – has largely been supplanted by high-risk gambling and the aggressive hustling of dubious investments to unwary clients.

The level of fraud unearthed since the 2008 crisis is nothing short of breathtaking. (The fact that no senior banking executive has gone to prison for that fraud is, if anything, even more breathtaking.) How did that happen?

Citigroup’s Reed wrote that the repeal of Glass-Steagall led to the “very serious” problem of “mixing incompatible cultures” – which, he said, “makes the entire banking industry more fragile.” He discussed the relationship-based, sociable culture of traditional banking, emphasizing its incompatibility with the risk-seeking, “short termist” mentality of investment bankers who seek “immediate rewards.”

Something much more radical than Repeal of Glass Steagal must be done. Nothing more than the repeal of the decision to end the gold/dollar peg is an urgent necessity.

“On the afternoon of Friday, August 13, 1971, these officials along with twelve other high-ranking White House and Treasury advisors met secretly with Nixon at Camp David. There was great debate about what Nixon should do, but ultimately Nixon, relying heavily on the advice of the self-confident Connally, decided to break up Bretton Woods by suspending the convertibility of the dollar into gold; freezing wages and prices for 90 days to combat potential inflationary effects; and impose an import surcharge of 10 percent,[11] to prevent a run on the dollar, stabilize the US economy, and decrease US unemployment and inflation rates, on August 15, 1971:[12][13]

  1. Nixon directed Treasury Secretary Connally to suspend, with certain exceptions, the convertibility of the dollar into gold or other reserve assets, ordering the gold window to be closed such that foreign governments could no longer exchange their dollars for gold.
  2. Nixon issued Executive Order 11615 (pursuant to the Economic Stabilization Act of 1970), imposing a 90-day freeze on wages and prices in order to counter inflation. This was the first time the U.S. government enacted wage and price controls since World War II.
  3. An import surcharge of 10 percent was set to ensure that American products would not be at a disadvantage because of the expected fluctuation in exchange rates.

Speaking on television on August 15, the Sunday before the markets opened, Nixon said the following:

The third indispensable element in building the new prosperity is closely related to creating new jobs and halting inflation. We must protect the position of the American dollar as a pillar of monetary stability around the world.

In the past 7 years, there has been an average of one international monetary crisis every year…

I have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold or other reserve assets, except in amounts and conditions determined to be in the interest of monetary stability and in the best interests of the United States.

Now, what is this action — which is very technical — what does it mean for you?

Let me lay to rest the bugaboo of what is called devaluation.

If you want to buy a foreign car or take a trip abroad, market conditions may cause your dollar to buy slightly less. But if you are among the overwhelming majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today.

The effect of this action, in other words, will be to stabilize the dollar.[14]

The ending of the gold/dollar peg was meant to be temporary.

It is leading to ruination of the global economy, its growing instability, it threatens democracy itself, it’s an unfair burden on the 99%.

It is leading to hunger, homelessness and war even in countries once thought to be prosperous with a bright future.

Time to end a failed experiment doomed to fail more……


till again



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