Fine Gael Fine Fail Coalition Farce!
April 26, 2020
You can download the framework here: https://www.fiannafail.ie/wp-content/uploads/2020/04/April-15-Framework-Document-Final-Version-1-1.pdf
“We now commit to rebuilding for the future and ensuring a fair recovery for
Ireland, socially and economically. ”
This is the first lie you meet in this document.
Read the document carefully, it’s riddled with obscure waffle that is essentially meaningless propaganda without substance or truth.
“All decisions with regard to our national finances must be fair and sustainable.”
The doc states p3 “Fianna Fáil and Fine Gael have engaged bilaterally to draw up this document, which has at its core 10 missions that all centre on the wellbeing of Ireland’s
citizens. The ideas behind this document seek to build on ideas from all parties
and none.”
The only idea worth upholding for interested parties in looking and contributing to this document is one that is based on disdain and contempt. This document is a very dangerous if not ludicrous document indeed.
Underlyng the extremely shallow approach of this document:
“Reigniting and Renewing the Economy
- Universal Healthcare
(We’re bored with that Fine Gael lie brought out annually since 2017 and earlier. We know how far down that road we’ve come)
- Housing for All
(We’re bored with that Fine Gael lie brought out annually since 2017 and earlier. We know how far down that road we’ve come..we can repeat ourselves ad infinitum with this lie, but again look at where we are after a decade to fix this)
- A New Social Contract
(Again nothing but disguised austerity putting the squeeze on the unions)
- A New Green Deal
(Something for the Greens maybe a grow bag to get them to join up with the nefarious coalition)
- A Better Quality of Life for All
(Aha they left out a wish for World Peace)
- Supporting Young Ireland
( It was Young Ireland in their droves voted them out of office and who supported Sinn Fein )
- Opportunities through Education and Research
( Universities have seen their ratings drop under these parties and teachers their incomes decimated )
- A Shared Island
( After twelve weeks of talks this lack of substance sounds really pathetic )
- At the Heart of Europe: Global Citizenship.
( PATHOS! )”
The document states: “To assess the performance of a new Government, we must look beyond economic indicators. We will create new, credible, quality-of-life measures of
individual and societal wellbeing and progress.”
This is the first indication of what lies at the heart of the craven underbelly of this ludicrous document. It’s based on the false premise under the ECB that we do actually control our destiny. The reality is the ECB will determine how much lending will be sent into the Irish Central Bank as “loans” to eg SME’s.
By way of illustration, consider the SME with a coach company providing service to wedding parties? Under Covid restrictions wedding parties will at least require double the number of buses to achieve social distancing. Who can afford that? In terms of lending in the new Covid Economy, many companies such as this will be considered as subprime!
“In order to manage the new territories that came under their influence, the Romans created formal provinces and appointed former political officeholders to manage them. Given the distance between most provinces and Rome, these governors often had considerable power and flexibility in dealing with local issues. The Romans tried to create a balance between giving governors enough power to control their provinces and preventing governors from becoming so powerful that they could challenge Rome’s authority.”
https://www.khanacademy.org/humanities/world-history/ancient-medieval/roman-empire/a/roman-republic
We are now 13 weeks without a government following the election. The “Greens” have now decided to enter into tentative talks with FF and FG re the formation of a government. Talks will take more weeks to conclude, the result will be put to their members. Yes, we do need a referendum setting a ceiling on this charade that damages democracy.
However, let’s be realistic, our politicians have less power than Roman consuls or praetors, we’ve essentially a government that is tasked with governing this island under the EU and the ECB. Policies such as those of Sinn Fein are to be smothered and stamped out under this regime of compliance and obedience to the policies of austerity masked by terms such as Fiscal Space.
“..look beyond economic indicators” Alarm bells should go off at the first indication of smoke and mirrors. We all agree economic indicators lie at the heart of our assessment of the performance of any government, so we should be wary of governments asking us to look elsewhere when it comes to economic matters.
For those of us who would look to see the bones of an economic plan in this document, you won’t find it here, its kicked into the future the intention being:
“Launch a National Economic Plan, with input from employer and
employee representative bodies, to build a new economy for Ireland
that is based on good-quality jobs and income growth; and coordinate
with the EU, so that our national efforts can achieve more.”
You thought it would be in the document, didn’t you?
“Exercise sound management of the public finances, by reducing our
deficit as the economy grows and comply with the EU Fiscal Rules and
the Stability and Growth Pact.”
The EU fiscal rules prevent borrowing that would have allowed for the expansion of our Public Health service in recent years. “Universal Health Care” bandied about by Fine Gael for decades you can look at with a fair amount of contempt comparing to the performance deficit of Simon Harris and Fine Gael as emphasized by the trolley crisis in recent years as austerity slashed the number of beds in hospitals and growing turmoil in the health service led to the fleeing of professional, nurses and doctors to other countries.
However, there will be massive borrowing that will be in the form of loans. Interest on these loans will have to be paid for the present and coming generations of Irish people. Needless to say the rich will benefit most from the loans, further austerity will accompany payback. The rich will buy up the losing assets sold off by the poor. The divide between rich and poor if not economic collapse before this, is a recipe for social and political disaster and resulting in extreme nationalism across Europe. The Fine Gael and Fianna Fail Coalition has its eyes set on rich pickings.
The Irish public has rejected this coalition at the polls. We do need a referendum to restore democracy to give at most 40 days to form a government or return to the polls.
The heart of this nefarious document lies in the following:
” vi. No increases in income tax and/or Universal Social Charge (USC) and no
cuts to established core social welfare rates.”(p6)
In fact, you can throw away the rest of the document as thin waffle, essentially the document is encapsulated in this one sentence.
The insiders are worried that the bill will come to their door. The landlords in Fine Gael and Fianna Fail and all those others who benefit from a tax system weighted by the rich against the poor, need protection.
The rich need protection against the austerity that is coming down the tracks and they don’t intend to pay for it.
No need to write anything more about this document. A Leaving Cert student could with a little competence come up with better.
Don’t be taken in by it.
We voted these people out for good reason. They are still there.
Coronavirus The EU response:
“On Thursday night, impasse gave way to an agreement. While you may be reading headlines of an impressive sum of €500bn to rescue Europe, the truth is far less heroic. In fact, the price of reaching the agreement was impotence. Instead of the 16% of total eurozone income (€2tn) stimulus needed, the eurozone will throw a derisory 0.22% (€27.7bn) at the crisis. To make the numbers sound better, and reach the magical €500bn figure, they will extend credit lines to countries such as Italy, via Europe’s bailout fund (the European stability mechanism, or ESM), to the tune of 2% of a recipient country’s national income. And they will allow for more loans, of about €100bn, to the social security systems of countries whose unemployment benefit bill spikes more than others – on condition that the monies will be returned when unemployment subsides.”
(Yanis Varoufakis is the co-founder of DiEM25 (Democracy in Europe Movement) and former finance minister of Greece)
If the European response to the Coronavirus effects at the economic level rate little lower than that of subprime mortgages that led to the downfall of the financial system 2008, expect the dramatic fall in the value of the euro to continue its downward spiral, down to 1.08 against the dollar. Debt piles further obligations on Europe’s weak economies
Coronavirus shambles shows economic mutton pretending to be lamb
There’s one Irish journalist with her eye on the ball largely ignored by the powers that be and the rest of the media. She has been asking awkward questions regarding the so-called management of our Coronavirus virus. Her questions relate to data, statistics and lack of same. Her name is Eilis O’Hanlon see Sun Indo, P26
But before I venture into her article, a word to the wise:
Minister Harris in congratulatory mode has been of tv stating transfer rates of the virus have fallen form 1:4 to less than 1:1. Therefore our approach has been working. This is not so. There is not enough testing, not enough data quite apart from data that is questionable, to make any such conclusions.
Not to say that the rate of transfer of the virus has not probably been reduced because of lockdown. It has. But that rate of transfer remains dormant awaiting reignition when conditions return. Minister Harris has done precious little to commit to supporting the investment needed in our health service to make it fit for purpose to tackle coronavirus let alone the hospital trolley crisis pre corona. That is, if you leave out his crazy spending on the ill-conceived Children’s Hospital with its profligate and irresponsible and financially disastrous decision to build in the James St area without spending controls in place.
Eilis has focused on the numbers:
Around 90 people in Ireland per day die. Each death is a tragedy. “Even the worst day of this crisis so far last Monday, April 20, when 77 were recorded as having died as a result of the virus – saw fewer than the average number of deaths from normal causes on any ordinary day in any ordinary year…” “…no other day during this crisis has the number exceeded 50”
The question is how many people with underlying conditions would die anyway even if they did not also have coronavirus?
Eilis points out “John Ioannidis, Stanford University’s professor of medicine, epidemiology and population health, is co-author of a study of Covid-19 outbreaks which found that, in Europe, those over 65 were between 34 and 73 times more likely to die as a result of coronavirus, and that those under the age of 65 “have very small risks of Covid-19 death even in the hotbeds of the pandemic”, and that dying without underlying conditions was “remarkably uncommon”
Eilis O Hanlon describes how eerily quiet our hospitals are becoming with people staying away from them for fear of coronavirus. These people may require treatment for cancer, diseases of the heart, pneumonia and other respiratory diseases. Our lockdown and fear of hospital may result in a greater than otherwise increase in death from these causes.
Obviously resources need to be concentrated to protect the old and the vulnerable. But the rest of the population can apparently ride out the worst of symptoms and survive. Is radical lockdown killing our economy worth it?
More scientific data underlying the decisions being made managing this crisis needs to be gathered and reliably analysed.
Otherwise, Covid-19 is nothing more than a weapon of mass destruction whose consequence will in suicidal stress, loss of economic stability, fake news and false reporting, lead to a consequence for Ireland that will be dire.
“There are currently fifteen African countries involved in war, or are experiencing post-war conflict and tension. In West Africa, the countries include Cote d’Ivoire, Guinea, Liberia, Nigeria, Sierra Leone, and Togo. In East Africa, the countries include Eritrea, Ethiopia, Somalia, Sudan, Uganda.”http://www.africasunnews.com/wars.html
They’ve paid a terrible economic price. Our war against Covid-19 sees us reaping the same economic destiny as theirs.
https://www.thelancet.com/journals/laninf/article/PIIS1473-3099(20)30243-7/fulltext
https://www.nature.com/articles/s41591-020-0869-5
Click to access s41586-020-2271-3_reference.pdf
https://science.sciencemag.org/content/early/2020/04/24/science.abb5793
Till again..
The Covidean
April 3, 2020
The man from the NTMA, Conor Kelly, NTMA’s chief executive, has reassured us all on the country’s borrowing requirements. NTMA he assures us well placed to ” increase its borrowing activity in the coming years arising from the economic disruption related to the Covid-19 pandemic “.
“In a statement, the NTMA said this increased borrowing activity will be as a result of measures by the Irish Government aimed at stabilising the economy and addressing the economic challenge.”
Since 2008 this wording is usual code for the need for extended period of austerity. This can mean anything from the closing of the numbers of hospital beds to increased taxes to less public services for all.
The ECB has announced it will print €750bn to buy public and private assets over the rest of the year. It has stated it will print “by as much as necessary and for as long as needed”. Stress tests on European banks have been suspended.
The Stability and Growth Pact states that countries with a high public debt need to put it on a firm downward path. Basically, most countries including Germany and France have ignored those guidelines. The public and private assets referred to above refer to a mixture of public borrowings by governments issuing bonds the ECB declares it will buy in order to help countries deficit spend their way out of the economic challenges imposed by Covid-119. It also refers to banks eg in Italy formerly on the precipice of financial default, to ensure their liquidity in the face of market place aversion to the purchase of bonds from other banks where doubt exists on whether investment banks will get their money bank.
Basically, the financial market place has collapsed and the ECB has stepped into the role of lender of last resort. Reading the financial press and writers, such as Dan O’ Brien, Indo, 22.03.20, this is the ‘shock and awe response’ we need. The goal is to reassure markets and get investment going again stimulating stocks and shares and stabilising the value of the euro on world Forex markets.
According to the Irish Times, NTMA is poised to issue bonds to raise the billions needed in the wake of Covid-19 deficit spending requirements. Not only deficit spending but presumably also to deal with the economic tsunami heading towards us in the wake of Covid-19. So, can we be comforted by the above political and ECB approach to resolve the financial setbacks challenging our economy through the fallout of Covid-19. In a word, ‘NO’!
The ECB since the financial crash of ’08 through QE has been hosing European markets https://www.ecb.europa.eu/explainers/show-me/html/app_infographic.en.html with liquidity that theoretically was meant to follow this path:
1. ECB buys bonds from banks
2. Money is created in the banking system and the value of these bonds is sustained through growth.
3. Interest rates fall and loans become cheaper.
4. Business borrows more and spends less to repay debt.
5. Consumption and investment increase.
6. Economic growth and job creation follow.
7. As prices rise, the ECB achieves an inflation rate below, but close to, 2% over the medium term.
In inflation rate and Consumer price index check vs financial markets
https://tradingeconomics.com/country-list/inflation-rate
nb
https://www.investopedia.com/terms/i/inflation.asp
In spite of the NTMA injection of confidence in how our response to Covid can be managed, the rating agencies are putting Ireland on the downside. For example, Fitch https://www.irishtimes.com/business/financial-services/fitch-lowers-bank-of-ireland-and-aib-outlooks-to-negative-1.4218312 “…leading credit ratings agency, has lowered its outlook for creditworthiness of AIB and Bank of Ireland to negative..”
The tourism industry from which Ireland gains 10% of its revenue will be severely affected with widespread job losses leading to doubts that mortgage repayments for growing numbers will be negatively effected. “The Central Bank has warned that the coronavirus crisis is likely to blow a €22 billion hole in the State’s finances and could see half a million people losing their jobs.”https://www.irishtimes.com/business/economy/central-bank-warns-of-22bn-hole-in-public-finances-from-coronavirus-crisis-1.4219419
“The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation.”
https://www.investopedia.com/terms/c/consumerpriceindex.asp
NB
One curious aspect of the CPI in Ireland compiled by the CSO is the contribution housing makes to the number crunching. We do know cost of renting has been leaping, cost of housing without government intervention price control not existent. What exactly has been this parameter in the compilation of CPI that has kept the CPI inflation index down into the lower 2 – 4 %. One suspects chicanery and manipulation and false reporting. This is worthy of further investigation through competent journalism. However, in Ireland in financial journalism, there are no journalists of the calibre of Michael Lewis. Most poodle the policy of our Central Bank instructions from Brussels or just fail to look inside the box.
““Second, it is remarkable how little formerly organised anger there is. I know there was some marches and all the rest, but if you’d have told me that your government was going to do what your government did — and essentially repay Merrill Lynch and Goldman Sachs and lots of other financial actors 100 cents on the dollar on the bonds; even they didn’t really think they were going to get more than 50 cents on the dollar — and they were going to do this by really squeezing the ordinary Irishman until his pips squeak, I’d have said: ‘You’ll have a revolution.’
“It didn’t happen. The character of the nation is so different to the character of most nations. It’s impressive.”
He’s indeed right, having failed to create a government for this length of time following a democratic election, most countries would not tolerate our current debacle finding those we voted out, still at the helm. Perhaps we prefer to be led by the nose than by the space between our ears.
What happened after the last crash through bailout was the rich got richer; the poor, poorer. Injection of capital funding rewarded failure bailing out property speculators and large institutions that had failed; the average Jack & Jill paid through the nose as hospital beds were closed, public services cauterised, taxes were increased.
We now face an imminent larger economic collapse than that of 2008. Banks with losses in employment of 25% and upwards will see mortgages increasingly under threat of non-payment. Will this be another windfall for the rich?
The worst scenario which has every likelihood to happen is the ECB will step in with a bail-in for Irish depositors that will see their bank savings trimmed back so in return for saving banks, they get only 40% back or worse.
At the other end of the scale, the significant losers, rich financial institutions, will be refinanced and accompanied by vulture funds from home and abroad will feed on the carrion leftovers of a devastated property market marked by desperate bank sell offs or mortgages such as we’ve seen in recent years.
This could facilitate a further massive transfer of wealth from ordinary people into the hands of the rich.
Oppotunity exists to protect the CPI from suffering massive inflation endangering currency collapse not only in Ireland, but in the euro area as well.
Since 1972 and the floating of the dollar on world currency exchanges. Wealth has prospered and been squandered on the financial services industry as it coined real value into paper value wealth it has mostly transferred to the 1%. Education has suffered across the world. In the US a generation of young people are shackled with debt piles they will never recover from, to pay for what the world should be providing free to its most gifted instead of to the most financially gifted. Likewise, through financial turn key manipulation of financial trading in derivatives, the housing and property market has been taken beyond the reach of ordinary people. Homelessness and a perverse distortion of economic values has taken the world to the brink of economic collapse.
Dear reader, for an introduction to the world of derivatives, if unfamiliar, google and eg “Traders, Guns and Money: Knowns and unknowns in the dazzling world of derivatives Revised edition (Financial Times Series) Paperback – 13 Jan 2010”
This writer proposes a new bailout based on a new currency unit, The Covidean. Let’s not be arrogant about this, what I’m proposing is discussion and thought, analysis and argument for and against; weighing the benefits in the unique circumstances provided by Covid.
This time the holders of derivatives, bonds and paper money need to be burned. This world of deregulation has led to economic collapses and its cancer could yet destroy our civilisation. The G9, The World Bank, The FED and Central Banks across the world need to radically cauterise the financial world.
Lets begin by protecting the CPI extending it to the world of education provision, housing provision, food provision, transport provision based on environment factors. A standard fixed currency free of manipulation and highly regulated based on a return to a common standard, gold, silver or crypto currency or combination of these, or a better standard if it can be found.
Link the CPI to the Covidean as its currency.
Every country across the planet deserves this new currency organised in a way. There is precedent:
“Taylor met with Lincoln in January 1862, and suggested issuing unbacked paper money. Taylor said “Just get Congress to pass a bill authorizing the printing of full legal tender treasury notes… and pay your soldiers with them and go ahead and win your war with them also. If you make them full legal tender… they will have the full sanction of the government and be just as good as any money; as Congress is given the express right by the Constitution.”[4]
Issuing unbacked paper money was not an idea Lincoln really liked, but soon there was mounting pressure in Congress to do something. The government could either print its own money or go into deep perpetual debt to foreign creditors. So the President was quick to endorse Taylor’s proposal.[5] On February 25, 1862, Congress passed the first Legal Tender Act, which authorized the issuance of $150 million in United States Notes.[6]
The reverse of the notes were printed with green ink, and were thus called “greenbacks” by the public, being considered equivalent to the Demand Notes already known as such. These Notes were issued by the United States to pay for labor and goods.[4][7]
Earlier Secretary Chase had the slogan, “In God We Trust” engraved on U.S. coins. During a cabinet meeting there was some discussion of adding it to the U.S. Notes as well. Lincoln, however, humorously remarked, “If you are going to put a legend on the greenbacks, I would suggest that of Peter and Paul, ‘Silver and gold I have none, but such as I have I give to thee.'”[nb 1][8]
California and Oregon defied the Legal Tender Act. Gold was more available on the West Coast and merchants in those states did not want to accept greenbacks (U.S. Notes) at face value. They blacklisted people who tried to use them at face value. California banks would not accept greenbacks for deposit and the state would not accept them for payment of taxes. Both states ruled that greenbacks were a violation of their state constitutions.[8]
As the government issued hundreds of millions in greenbacks, the value of the greenback against gold declined. But though the decline was substantial, it was nothing like the collapse of the Continental dollar.
In 1862, the greenback declined against gold until by December gold was at a 29% premium. By spring of 1863 the greenback declined further, to 152 against 100 dollars in gold. However, after the Union victory at Gettysburg the greenback recovered to 131 dollars to 100 in gold. In 1864 it declined again as Grant was making little progress against Lee who held strong in Richmond throughout most of the war. The Greenback’s low point came in July of that year: 258 greenbacks equal to 100 gold. When the war ended in April 1865 the greenback made another remarkable recovery to 150.[9] The recovery began when Congress limited the total issue of greenback dollars to $450 million. The greenbacks rose in value until December 1878, when they became on par with gold. Greenbacks from thereon became freely convertible into gold.[10]”
https://en.wikipedia.org/wiki/Greenback_(1860s_money)
In the desperate measures we face through Covid, we need the CPI based on a basket of ordinary goods protected against inflation or the looting of the rich, the Covidean could be issued into the present market place. This would take the wind out of the cancerous financial world ravaging the planet with meaningless paper, a global currency system that has failed and continues to rain havoc on all countries using it.
Till again…
Colmbrazel's Blog 