“Good job, we got these new trains before all this struck,” said the stationmaster as he threw his eyes up to heaven at Killarney yesterday afternoon. Good job indeed.
I was down in the Kingdom to speak at an event organised by Centra, the convenience shops people, about trends in the economy. Some 15,000 people are employed in Centras around the country, so these people are at the coalface.
And having spoken to a few shopkeepers, it struck me that if you gave them keys to the Department of Finance for a few weeks, they’d have the place sorted out in no time.
The same goes for the staff at the Malton Hotel in Killarney. They were wonderful and on the ball. Again, they were not waiting around for something to turn up. The sense you get from their resolute attitude was that whatever else, Killarney and its tourist industry was not going to take this recession lying down. They are cutting costs, working harder and marketing as best they can.
These people, of all ages and from all parts of the country, underlined the fact that there are plenty of things we do well here in Ireland; among them tourism, food and hospitality.
As we hurtled though the Cork countryside past Millstreet and Rathmore on decent new trains, it’s hard not to agree with the stationmaster. It looks like it’s going to be a long time before CIE place more orders for trains the way its finances and those of the State, in general, are headed.
But maybe one of the reasons for this is the general fatalistic attitude towards our plight. I have yet to hear an innovative idea from the Department of Finance since this crisis began. In fact, I heard more creativity from Suzanne and Cathriona who run the Centra in Dundalk about the plight of the country than any of the people that are supposed to be getting us out of this mess.
Suzanne and Cathriona are both clever, young women with a no-nonsense approach to business. They are trading in Dundalk.
Can you imagine a more difficult place to run a convenience store at the moment?
Dundalk has been decimated by the fall of sterling and the flight of shoppers to the North. Yet they were cautiously upbeat.
The reason convenience stores like Centra are interesting for Ireland is that, like us, they are more expensive than the competition. We have to compete with other larger countries while they, too, are threatened by bigger supermarket chains.
In addition, unlike Centra owners elsewhere in the country, these two women are competing in euros against a weakened sterling 10 miles away. Let’s not stretch the analogy, but the underlying message from Ireland’s shopkeepers is good housekeeping. Yes they concluded, it’s difficult but you just have to be smarter, work harder and get noticed.
When the conversation switched to the economy their answers were pure business common sense.
They both saw our problems first as a “cashflow” issue. Both women agreed that we were running out of cash and this could only be solved by getting in more money either by increasing turnover and cutting costs, selling assets or borrowing to tide us over.
They agreed that borrowing wouldn’t be a problem if you were sure that the problem was short-term and you had a plan in place that could envisage paying back the borrowed cash. They were discussing this as if it were the most straightforward thing in the world.
Imagine such clarity from our politicians?
They agreed the most important thing was to act quickly. If it was their shop and they allowed cash to haemorrhage, they’d be closed.
Suzanne said you had to trade through the difficulties. Cathriona said they’d figure out which part of the shop was not working, where they were losing most money and either they’d try to change it or shut it down.
This process would start with examining the balance sheet every day, down to the minutiae. They’d then try to fix the problems by cutting costs and hoping to attract in more business, but if that failed they’d have to close it down.
Can you think of our politicians or, more pointedly, the highly paid bosses of our semi-state companies, being so matter of fact about loss-making state assets?
At the same time, Suzanne said they would sell anything they could because they’d have to raise the cash to keep the shop open. This is the smalltime shopkeeper’s equivalent of privatisation.
Yet no-one is talking about privatisation on a larger scale. What is the State doing running all these fine trains from Killarney to Dublin? Or what business does the State have owning 30pc of Aer Lingus?
The way to financing a fairer society and spreading the pain, is selling assets that cost you money, where you could raise revenue and invest this in places where the State works well, such as the school system.
Both Cathriona and Suzanne were adamant that while you were doing all this behind the scenes, it was crucial to remain open for business and give your customers every possible reason to come into the shop and not go elsewhere. Similarly, we need to be sending signals that Ireland is open for business.
The longer we wait, the more the competition in Europe will have caught up with us. We have the advantage of being small and nimble in theory, but that’s no good if we are slow and lugubrious in practice.
The moral of the story is more Centra less Central Bank; more corner shop less Cabinet. Our state needs to learn the discipline of good housekeeping before we have to shut up shop completely.
Appealing to the criminal classes of Ireland…
Calling all drug dealers, bank robbers, racketeers, thieves and all petty criminals…
We have need of you. You have experience of being outside respectable society and making your way – despite a system that excludes you.
Without much education, without many books at home, without any of the advantages into which I was born, you have succeeded in carving out a living. Some of you are diaspora criminals, living down in sunny Spain, doing your international business from the back of a car, down a mobile phone, and any other way you can. You are true entrepreneurs.
Polite society fears you. Polite society has its police force focus on you, in the hope that the Gardai will never face them with what you face – being knocked up at 5 oclock in the morning, being followed, tailed, intercepted, listened-in to, having your bins turned out…
My class of people hope to get through life protected by the police. You have police after you all the time. And yet you thrive. You may even do better in this recession and crisis of confidence in the public formal institutions.
There’s never been a time when it would be better to have you running the country. There is honour among thieves, they say. I say we have marginalised criminals, labelled them, discriminated against them – and where has it got us? Certainly not a safer world.
The respectable men have ruled the world, and what have they got us into? In Ireland, respectable politicians, financiers, developers, senior pubic servants have used your criminal ways badly. They have been out of their depth, poor imitators. We now need the real thing.
I call on you, criminals, to make a sacrifice on behalf of your children. Take over. You know how to manage cash flow, you know how to assess risk and dodgy credit, you have ways of dealing with people who stab you in the back. You know how to run a ship. And you have already done all this in the face of a constant enemy, the institutions of polite society.
The Galway tent was a poor imitation of your style. Mr Frank Dunlop, with pounds in his pockets to buy local and national politicians, did his best. He, at least, is prepared to educate us all on how he got away with it for years. That’s public service. I think you’ll respect him as essentially one of your own. Charlie Haughey brought criminality a bad name. He was stupidly lavish, and asked to be caught. But our polite society was too much in thrall to him to do anything for ages.
I won’t ask you to consider the rest of them.
At this hour of need, it is in your interest to take over the show. You would do a better job. Of course you would have a credibility problem internationally. But you’re used to that, and you have your network of international criminals to lend a hand. You are used to tapping the diaspora.
It is, I suggest to you, time for the truth to come out into the open. Criminals, gangsters of the world, you are so full of enterprise, ingenuity, blue sky thinking and a track record of enforcing decisions that you already know how to run the country. You could bring Ireland back to its rightful place.
Rather than take advantage of the crisis, take over. Polite society can only ape your ways, poorly. They don’t have the spunk and creativity to apply your methods well. We have tried the imitation.
Now let’s try the real thing.
Very nice comment Paul, but I dare say somewhat naieve, do not be so fooled by falseoods like “polite society”
The reality is that some very hardened criminals have been involved in control of the government for quite some time. Though they know nothing of honour for any reason.
As Brecht said ‘it’s easier to get money off people by setting up a bank than by robbing one’!!
Listen to Gareth FitzGerald’s interview on RTE radio 1 this morning. I think it’s an important interview.
Even though I’m told he took a bank bailout in the 1980s, he sounds a credible witness to me. A sort of prophet. Pessimistic too…
Paul,
Garret says property tax should be introduced. I agree. When I floated this idea a few months ago on this forum, the response was generally silent. The words ostrich and sand come to mind. No one wants to pull their fair share. Everyone is expecting everyone else to carry the burden, its the continuation of the cute hoor mentality that got us into this trouble in the first place.
Ireland needs to do the following
1. Introduce Property tax
2. Introduce 55% tax band on incomes greater than €80000, increase 41% rate to 45%
3. Scrap Single parent allowance in 10 month’s time, if you want children, then don’t expect others to pay for them.
4. Cut Children’s allowance by 75%, same reason as above.
5. Make pensioners pay for phone, tv licence etc.. the days of associating poverty with being a pensioner are over.
6. Cut Garda Overtime to Zero, same with Nurses, Junior Doctors etc…
7. Introduce University Fees, Considering antics in rag week, receiving an education needs to be seen as a time of endeavour, not of hangover.
8. Reduce Rent Supplements paid to landlords.
Quote from Colin: No one wants to pull their fair share. Everyone is expecting everyone else to carry the burden, its the continuation of the cute hoor mentality that got us into this trouble in the first place.
So Colin, tell us which of the above measures would impact you, allowing you to ‘pull your fair share’ ?
Paddy
Paddy,
1. Hope to own property in the future. Will be more than happy to pay property tax every year
2. I’m an exile paying top rate of tax in UK. On return to Ireland, will be happy to pay 55% above 80000
3. I haven’t sowed my seed, and when I do, I don’t expect anyone other than myself to cover the costs
4. Same reason as above.
5. On reaching 66, I’ll be happy to continue to pay for phone, tv licence etc…
6. Country can’t afford this overtime in my opinion
7. I’m still paying back my loan (€22000 in fees alone) for the education I received.
8. I am not a landlord, but we all surely agree rents should fall, don’t we?
So, there you go Paddy, does that make you feel better? What are you prepared to do to take the pain?
Colin,
Good for you. I’m glad to see you’re willing to chip in, while the going is good.
Though, for your sake, I hope you never fall on hard times, lose or suffer a fall in your income, especially if you have a family and are trying to keep food on the table, and a roof over your head. You might reconsider some of your opinions above if this were to happen. Life is full of twists and turns.
Hopefully, you’ll never be old and isolated, and in need of a few basics.
As for me, I’m doing my bit. I work hard, pay my tax, and whatever happens happens.
I do recognise not everyone is so lucky though.
Paddy.
do you research before you make such generalisations, look into it, as it is dangerously ill informed
G,
Who died and made you king of Scotland?
You have absolutely no right whatsoever to order me or censor me. Get a life.
May I suggest that the hard work of thinking through the economics of survival needs to continue. That’s stating the obvious.
But: without huge political change, at least in thinking and talking, without public confidence in political leadership – there will be no worthwhile change. Economic improvement depends on political improvement.
Without this change, the most likely senario is, as Gareth FitzGerald said today:
Ireland will have to go cap in hand to IMF or EU, and will have to hand over all control of its political and economic affairs.
Guys, it’s Dr. Garret Fitzgerald, not Gareth : http://en.wikipedia.org/wiki/Garret_FitzGerald
He’s a good bloke, used to be Taoiseach for a while, but didn’t last because he suffered from the insurmountable political handicaps of being highly intelligent, extremely well-read, completely honest and straightforward, and a nice person.
He was Taoiseach for most of the awful 80′s, so he’s well qualified to talk about what options might be available to Ireland during a recession/depression.
Dr. Gareth Fitzgerald –
He came from an Old Ireland a one of our parents or
grandparents, where respect and trust was uniform and somethimes opinions were
not nevertheless, in those times everyone had and showed their dignity and carried it
around .Their faces were unmasked so were their intentions to make a better place .In
those times we had needs and we knew what they were .We had no money .We
shared instead .Education was very hard to find that was worthwhile .We learned
everything in company of friends and neighbours .Newspapers were less frequent
than they are today and television was non existant .Cowboy films gave a great buzz
that usually resulted in your friends jumper being pulled from him at the back on the
way home and a talking to by that boy’s mom ( cowboys & horses ) .It was a simple
Ireland , maybe hard but it was an Ireland we all understood and loved.
Today , Gareth Fitzgerald seems to have lost the hope we all once had together and
is sad that that that old Ireland is now dead and gone , that our leaders have
abdicated and calling in a foreign power to rule and bring us back to the abyss of
another 800 years of servitude .
Very good John.
Comparing us to a corner shop is fair enough. Problem is, a corner shop has a clearly defined business model – they sell stuff at a premium to people who can’t get to Dunnes or Lidl. Ireland inc does not have a plan, and this is a major problem. Sure, we’re talking about re-trainiing blocklayers, but re-training for what, exactly? Shut down the non-profitable areas of the “shop”, focus on the profitable ones, but what are these profitable areas?
Back of beermat SWOT analysis of Ireland:
Strengths
Good natural resources -wind, wave, soil, climate
Excellent potential for innovative agriculture
People friendly and open…the “meitheal” still exists (i lived in UK for years, major contrast)
Relatively well educated (for the moment)
Strategic position between Europe & US, in terms of language and geography
Low population density
People here (i’m talking working classes) have a problem solving mentality (often ignored)
Weaknesses
CRONYISM
begrudgery
post-colonial inferiority complex
innovative & problem solving empolyed in “cute-hoorness” rather than productive economic activity
Opportunities
World energy crisis looming (oil running out)
Need for cheap & innovative solutions to service human need (food, warmth, medicine, health etc)
Threats
Massive national debt
Out of control public spending
World recession/depression
The need for cheap solutions to food, medicine, warmth etc will be growing in the world-wide recession. Micro-electicity generation, new ways of growing food, more effective use of natural resources will be growth industries in the next 10 years. We’re a small country, so we should be manouverable enough to develop a strategy that takes advantage of this. Yes, we need to knock out the massive “weaknesses” i mentioned above, but Ireland inc needs a strategy. We’re small, we cab service xsome of these nicehes mentioned, we could even brand ourselves nationally….
I know that this doesn’t solve the immediate problems, but we need a strategy for engaging in “real” economic activity.
Oh yeah, nearly forgot. We have one of the most productive landscapes in Europe regarding food. I could tel you stories about what I manage to grow on a single acre…we should be producing added value products instead of focusing on cheap agri-commodities as we do at the moment. Our agriculture services the junk food industry rather than the high end we should be pitching at. We’ve done this because we have not had “vision”.
I know i don’t have proper solutions, but shouldn’t we think carefully about the business model for Ireland inc.? What industries do i want to see my kids contributing to? We’ve done nothing meaningful to foster indigineous enterprise, and look where it has got us. So we need to change the culture, get a plan, and everything should be decided in that light. Bail out the banks? hmm, does it help us achieve our vision? If so, get baling. At the moment we are purely reactive. I’m remined of how a chicken looks just after the axe has fallen.
UnderTheBridge: Thanks for that excellent analysis. Occasional gems like this show what a worthwhile exercise participation in DMcW’s blog can be. Finding the right solutions depends on understanding and discussing the characteristics that you have listed. I am sure we could all add to each of your four categories, and it would be a worthwhile exercise for each of us to copy and paste with additions. I’ve made a start here:
STRENGTHS
Good natural resources -wind, wave, soil, gravel, limestone and granite, climate
Excellent potential for innovative agriculture
People friendly and open…the “meitheal” still exists (i lived in UK for years, major contrast)
Respect for individual privacy
Relatively well educated (for the moment)
English language spoken here.
Strategic position between Europe & US, in terms of language and geography
Low population density
People here (i’m talking working classes) have a problem solving mentality (often ignored)
WEAKNESSES
Toleration of liars
Cronyism
Weak judiciary
Begrudgery
Post-colonial inferiority complex? (haven’t noticed recently—M)
Innovative & problem solving employed in “cute-hoorness” rather than productive economic activity
Lack of openness and freedom of public information
Lack of competition in many key industries
Cost of living
Lack of national grid of fast broadband provision
Traffic in Dublin
Proportional representation leads to too many compromises
OPPORTUNITIES
World energy crisis looming (oil running out)
Oil, gas and mineral potential— attractive terms for explorers.
Need for cheap & innovative solutions to service human need (food, warmth, medicine, health, energy etc)
THREATS
Massive national debt
Bureaucracy
Nimbyism for gas pipelines, nuclear power stations, windmills etc.
Out of control public spending
World recession/depression
All of these sub-headings and many more could be discussed in detail, but that, I think, is beyond the scope of a DMcW blog.
A great advantage in David’s use of the Centra story is that he offers us an accessible example as architecture for his main thrust.
Margaret Thatcher told stories in her rise to power. She told stories about how a grocer’s daughter remembered her mother running the household budget. Thatcher captured the public’s imagination. I only mention this to make a point, the power of stories. They can be used for good and ill.
Gareth Fitz. told a story this morning of how T K Whitaker told the incoming government in 1957 it would have to change all its policies or else Ireland would have to join the UK. According to Gareth, Dev & Lemass buckled under the pressure of his argument and the rest is history…
FitzGerald was asked whether there is a TK Whitaker today? No, he said he couldn’t see one.
Neither do I.
Senarios:
(1) More of the same, increasing social unrest stopping short of bringing the country to a complete standstill, we limp into the hands of IMF…
(2) More of the same, increasing social unrest, Fine Gael do something radical and use the standstill to force FF to call an election and FF is completely wiped out and we go forward under FG leadership…
(3) Brian Cowen wakes up transformed and decided to make the speech I wrote for him yesterday (see my blog “omaniblog”), the whole situation is transformed…
(4) More of the same, seriously escalating social unrest, trade union leaders lose control of members, the houses of ministers are burned, no banker dare go out in public, total public disorder, the Gardai rebell, sections of the army too, all foreign investment ceases, everyone who can emigrates…
(5) More of the same, something totally unexpected happens, aliens land, total eclipse of the sun, moon and stars, we all become priests and nuns, Eamon Gilmore become Taoiseach…
No 4) is the most likely realistic outcome based on the current situation-
But in Ireland people mobilising in that manner will stop on the way to the pub and there will be a long discussion on no 5) instead.
That interview with Garret on RTE1′s morning Ireland was very depressing. He saw no one taking leadership. He saw no candidates or even anyone trying to come forward – something you’d expect in times of great need. I felt he was more or less resigned to the fact that we have lost control of the country.
@John Allen – Another 800 years of servitude? To be honest, we never quite left it. The landlords never went away. I think FF are just hanging on for a job of local protector for the IMF/ECB. The irony in all of this is that the PS will be serving the needs of the new landlord/foreign magistrate while the vilified private sector (albeit hamstrung with debt) will be the only real holders of the soul of the realm.
Still, I cannot help feeling that we need to stand right back and look at this globally. We are a very exposed economy and are subject to what happens elsewhere. I think the IMF is running out of money. I also believe the ECB will have much bigger problems than Ireland. I think if we are thinking of ceding control, we’ll have to take our place in the queue. I was listening to Newsnight last night and it seems the UK regulator has a lot to answer for as well and then there this morning’s biggest corp. loss ever reported in the UK
This whole situation of financial cockups, mismanagement, corruption & greed is global. We see Obama may be looking for yet another Trillion in a few months time. For me, it’s merely a case of all the ponzi schemes that were built up since the era of reaganomics just unwinding. People are merely resisting the fact that a lot of it was criminal and based on fiction. There is also resistance to the FACT that productivity has dropped dramatically over the same period. The time of acceptance of these facts has yet to come. In the meantime, people try to rationalise the random brutality of this unwinding by conspiracy or a variation of alien invasion.
Ultimately, everyone’s demise is a personal thing. The leaders are ineffective. There is no one to run to for help. The best we can do is recognise this and help others and then yourself. This is not meant to be cryptic – but in this regard, the cornershop probably has a lot to teach us.
Underthebridge,
Thank you. Your SWOT analysis is great. We could all contribute to that and create a gigantic SWOT.
We could harness the power of the diaspora to enrich it, and
We could display it for all to see and do one for their country.
We could build a World SWOT Movement (WSM)
Philip,
You are entitled to be very depressed by Gareth FitzGerald’s interview. You have been let down. He was part of the system, the social clique that abused the country’s assets and ended up taking one hundred risks too far.
I contend he is accurate when he says there is no one in the ranks of the influential public servants who has T K Whitaker’s calibre, who has half T K Whitaker’s ability and courage.
If you are a public servant,
in charge of something important,
with the ear of a minister
with a belief that you are as half as good as TK Whitaker,
I challenge you to show your face
(anonymously if you need)
use these pages, and
give us reason to believe that ministers are getting good advice.
My hypothesis is that the leadership example shown in Ireland 1975-2009 has destroyed the capacity of leaders to think responsibly in public, and has elevated the culture of the ‘cute whore’ to normality.
Philip, Gareth is challenging you and me to help rescue things.
Ire_in_Exile,
I laughed. Thank you for that. We badly need humour. More please.
OK- did you hear the one about the Irish economy?
To those of you who don’t know how Facebook works and only know the name:
Get someone who has a Facebook page to show you how it works. Believe me it’s a powerful tool. We can use it.
If you still have difficulty understanding the Facebook Group that I set up for us, let me know and I’ll write detailed instructions.
Above all, set up your Facebook account and join our group
RBS Posts Biggest Loss In Corporate History
http://news.sky.com/skynews/Home/Business/RBS-Losses-Royal-Bank-Of-Scotland-Unveils-24-Billion-Pound-Loss-Biggest-In-UK-Corporate-History/Article/200902415230042?lpos=Business_Article_Related_Content_Region_3&lid=ARTICLE_15230042_RBS_Losses%3A_Royal_Bank_Of_Scotland_Unveils_24_Billion_Pound_Loss_Biggest_In_UK_Corporate_History
Ex-RBS Boss Asked To Forego £650k Pension
http://news.sky.com/skynews/Home/Business/RBS-Sir-Fred-Goodwin-ex-Royal-Bank-Of-Scotland-boss-Asked-By-Treasury-To-Forego-650k-Pension/Article/200902415230094?f=vg
Will the Irish Govt follow the British lead?
Alan Dukes was on the Vincent Brown program last night, excellent for anyone looking for a calm simple description of where we are.
A few highlights,
On the current cuts, he said his big mistake was they didnt cut anywhere near enough at the start.
and
his biggest frustration was that every budget he had to give the entire paye tax take up just to pay interest, so his options were really limited.
and
when asked was it not time for another Tallaght strategy he said back then Ray McSharry took his place and actually was more effective implementing what Alan was trying to do…. so the only thing he could really do was back him…. This time its different, the clear message was that this time, theres no one or no strategy to back….
and
his suspicion is it will take 4 to 5 years for the US to turn round…. A bit more optimistic than some here but the consensus was the US wont be saving us in 2010 by having its recovery then … …
The other thing he said is media coverage on Anglo is focused on the wrong area…. he refused to say any more as he is a director there but it was an interesting observation
I don’t know if the TV3 people put shows on the net but I have to say this show was worth more than last months output from RTE’s Q&A
Sorry, I usually agree with DmW, but this is a bit far fetched. Sure the politicians are utterly gormless, but every one of those Centra shops will also soon be gone once the cash strapped consumer realizes he/she needs to save every penny possible. Come to Germany to see what happened all the small corner shops!
I agree- convenience stores by their nature are financed by people prepared to pay more for less effort on their own behalf, but when the chips are down these little luxurys are the first to be stopped.
It’ll be cheese rolls made at home raher than bought on the way that will prevail…and the corner stores will suffer a very hard time of it indeed.
Garret Fitzgerald is right that an interim budget is needed to help redress the mismatch between government income and government spending. That should mean two things though:
1) an increase in taxes and tax income, rebalancing, PRSI, etc, etc ….
2) PLUS a reduction in state spending, cutbacks, etc …
And all government spending to be based on an absolute immediate need. In other words, do we really need a new library at XX million at that University? There is no doubt enough space already for students to study in. Cant they study where they live in idle lecture theatres, etc, etc?
There are 1000′s of things that can be done. We can all think of probably 100 each …..
But the incomings and outgoings need to be redressed, and sharply, any corner shop owner will tell you that, because otherwise you will be out of business very quickly.
Quite ironic that social security offices are closed today from what I hear. Those that are from the 50k on average public sector denying those that are in dire straits.
I do applaud the Gardai for protesting on their day off, much better than the ill-revered blue flu day which I was totally against. However, their requests do not seem fair in the current climate. They have good conditions in terms of overtime, rates of pay, increased payments for Sunday, etc. And most are worried because their pension levy will eat into their ability to pay mortgages! Yes, its that property/credit bubble coming up again in a different guise.
Garret didnt mention it but we need to nationalise the banks, forget the capitalisation, get them super efficient, use the profits that they make to drive down the cost of mortgages, etc. Really an efficient market actor like a bank should be able to offer mortgages at the rate of ECB+0.1%. That will help those in the PS worried about their mortgage costs.
Its also time to call for an election.
If I was FG and Labour, I would make a huge protest in the Dail, but then follow their words with some actions. They should walk out of the Dail and protest (yes, the TD’s should protest) outside the Aras, 24 hrs a day, and request an immediate election. If FG, Labour and other parties want to effect change, they need to ‘rebel’ and protest as much as the people do. Giving out about FF and the Greens and debating in Leinster House, whilst a role of any political party in opposition, is not producing anything at this point in time. They need to comprehend that the game is now changed, the rules are changing, and its time to be radical.
Cometh the Hour, cometh the men and women, hopefully ….
MK1
I think it was Varadkar who in an interview alongside some Union person put it like this… You have a square table – Each side is covered by Government, Developers, Unions and Bankers. Notice who is missing.
It’s the same in nearly every country. RBOS mess in the UK just a perfect example. The ponzi scheme of Government depending on Developers borrowing from Bankers while Unions took from the froth of the ensuing bubble has been derailed. The history of recessions has countless accounts of where such ponzi schemes (so called wealth management entities) have fizzled leading to losses of people’s savings and pensions.
Pera, I like your last post, I see what you’re getting at. You might find Raymond Crotty’s “Ireland in Crisis” and “A Radical’s Response” enlightening as to the structural reasons for economic and political failure. Regulars here might recall me on this subject before – but don’t listen to them. Short sentences – this hospital uniform is very tight… hard to type. (By the way David I think I saw you the other day through my “office” window here in St Finan’s as you passed down the road on your way to the corner shop.) Anyway, if you’re interested, in the words of Alice Cooper: “Welcome to my nightmare”.
It reminds me a bit (but not much) of the first time I visited an English friend in Sweden in the 80′s. After two days he asked:
“Have you noticed anything yet?”
“Noticed what?”
“This place.”
“No, it all seems perfectly normal. You mean the girls?”
The following day:
“Have you noticed it yet?”
“I think I know what you mean…”
Here are a few recent articles by Will Hutton about the world situation:
http://www.guardian.co.uk/commentisfree/2009/feb/14/comment-tax-avoidance/print
http://www.guardian.co.uk/commentisfree/2009/feb/15/us-economic-policy
http://www.guardian.co.uk/commentisfree/2009/feb/23/recessioin-creditcrunch/print
The main points are… I’m so sleepy… figure it out for yourselves. And he mentions Harry Hopkins! I found that quote I mentioned before (I got it nearly right) along with a bit extra from David M. Kennedy’s “Freedom From Fear”):
“Other former allies had already parted company with Roosevelt. Al Smith told a Liberty League banquet at Washington’s Mayflower Hotel in January 1936 that he would probably “take a walk” during the November elections. He compared the New Dealers to Marx and Lenin as well as to Norman Thomas. He accused Roosevelt of handing the government over to dreamy professors and bleeding-heart social workers. “Who is Ickes? Who is Wallace? Who is Hopkins? And in the name of all that is good and holy who is Tugwell and where did he blow from?”"
How could I have forgotten Tugwell, to say nothing of Ickes?
And Al Smith had been the Democrat candidate in the 1928 election. Then someone only goes and says that Hopkins was a spy for the Russians, and just who is Norman Thomas?! The pieces were just beginning to fall into place and now my head is hurting again…
Right where was I?
Yes. Wills, I beat you to that ‘credit is just a utility’ line by a year and a half. Alright I borrowed it from Hutton, and I said ‘banks are’ and not ‘credit is’, but I claim the “credit”.
You see I went in too deep and now it’s too late to turn back. “They” warned me but I would not listen. Look, I can’t stay long, the people here don’t like me visiting this site, Sister said she’d increase the dose if she caught me at it. That’s what got me into this mess. The doctor (a big ignorant f…..r of a sport-obsessed gobdaw who carries a hurley with him everywhere) says I have a personality disorder because I let slip – I must be more careful in the future – that I agreed with everyone on this blog, including the “Johnny Giles c..t” (I think he means Malcolm). You’re either for a thing, he says, or you’re against it. If only I could get back to such mental clarity!!! And forget about Fennell, he says, and “your man from Roscommon”. Think for yourself. They’re only f….g clowns, he says, muppets. And he asked me if I saw Alan Dukes last night on TV3. Dressed like he was in a cult he says, like the Moonies, a white smock with a kind of leather waistcoat over it. (So “they” have got Dukes too!) We only have RTE News here, on a permanent loop as a sedative. 24 hours of Obama’s speech, just the same one sentence over and over again. “Listen very carefully, we will say this only 800 times, v-e-r-y s-l-o-w-l-y …”
(apologies to Breandán Ó hEithir.)
I take it your reference to Sweden is. that the noticeable thing is that people don’t waste any time talking B*ll*x?
Will Hutton is a maze of contradictions. As an economist he gets it right about 40% of the time. As a writer he is always effective at impressing the reader with all sorts of nonsense. As a political genius, Hutton always manages to weave his way into an unassailable space. But as a journalist he has great skill at covering his tracks. Four years ago I remember him telling us that China was going to collapse – he even titled his book “The Writing is on the Wall”. Well China is in a chaotic state. But The Chinese are sitting on a massive reserve of US Treasury bonds and are in more control than ever. Hutton got that wrong. Will Hutton vs. The Chinese ?? My money is on the Chinese. Hutton points to corruption in Beijing – but hey, what about Brussels ?? He won’t cover that.
Hutton also endorsed Blair and Brown. Said they were doing a great job. Hutton talked about the entertainment economy and Britain’s leadership in the entertainment industry, and the financial services sector. I laughed at the absurdity of it. You cannot feed a city like Newcastle on the proceeds of reality TV shows. But, it did not matter, the dothery genius had spoken,and he was always right…since the crisis began he has left those comments aside and changed focus…
Hutton lambasted the French a few years ago for their tight credit policies…and the failure and inadequacies of the French banking establishment…if only they could issue out loans like Barclays and Northern Rock, then France would be a much wealthier economy….but it seems that he has dropped that also….
Then last year, Hutton pulled off another clever manoevre. Sensing that the Democrats were going to get into power in the US, and that this would open opportuinities for him to make speeches on his mix of capitalist consumerism and social democracy, Hutton starts to praise the Americans for virtues that he never seen in them, even under Clinton.
Ever the opportunist. I think he should concentrate at his paid position at the UK government funded “Work Institute” and come up with a better plan for Britain than trying to employ everybody on the set of a reality TV show, or selling scarves for Chelsea soccer. Britain is in it’s current state because of advisors to New Labour, like Will Hutton.
Ireland is in enough trouble, without having to follow on the same path. The highest ranking Social Democrat in Germany regards that route as ‘crass keynesianism’ and ‘utterly dangerous’. And President Sarkozy was reassuring the French, two weeks ago that France had not gone down the same disastrous road as Britain, and that France was not as exposed to the financial adventures that New Labour promoted and tolerated.
That said, there are issues about Will Hutton was right – in relation to the mangement of Britain’s public infrastructure.
We should give Will Hutton the credit he deserves – because Hutton got it wrong. And if this is mentioned to him, then maybe he might use his position of influence more responsibly and start getting it right, more often. Hutton did not have a problem with lack of financial regulation until it caused a problem. Well, is he any wiser than anybody else on the planet ?
And another point – the first ‘spend your way of a recession’ politician was not Roosevelt. Roosevelt did many good things. But he also squeezed the private credit markets with his government borrowing. Another issue that needs to be resolved.
We will not get anywhere taking advice from people who have gotten it wrong. In Britain Hutton is about as well received as Austin Hughes is here. Best option – figure it all out for yourself. And don’t trust what the media tells you. They take advertising money – and it influences what they print. As is evident from any edition of the Irish Times Business Supplement between 1996 and 2007. There should be a museum dedicated to the follies that were perpetrated by the credit consumer economy over the last ten years – for the benefit of our society..
Form a national government
Make Micheal o leary ceo of ireland inc.
Give him a 3 year conract with a 100 billion payoff if sacked early.
Fast forward to 2012 Finicial Times Headline reads “Ireland most competive Global economy Celtic Tigers Back”
Maybe.
With reference to Todays Indo article-
http://www.independent.ie/national-news/goinggoinggone-no-bids-but-home-is-snapped-up-1653732.html
I received the following below Today….(a sober reminder of the adage : accepting you have a problem is the first half of solving it.)
“Having taken a quick look at myhome.ie, it seems that home owners in Ireland have not really come to terms with they’re predictiment yet!”
Houses you can buy around the world for USD $500,000
http://www.moneycompare.com.au/blog/house-prices-compared-what-usd-500000-buy-worldwide.php
House you can buy in Dublin for USD $500,000
http://www.myhome.ie/residential/search/brochure/104-bunting-road-walkinstown-dublin-co&-city/MHMUI391780
LADIES AND GENTLEMEN IRELAND INC. IS A CONNECTING WEB OF PONZI SCHEMES.
THESE GREEDY PIGGIES WILL DO ANYTHING TO STOP CREDIT = UTILITY
PONZI SCHEMES CANT WORK WHEN CREDIT = UTILITY
PONZI SCHEMES ALL AROUND ARE FALLING DOWN.
WILL NEVER BE ABLE TO BE PUT BACK TOGETHER AGAIN.
IRELAND WILL SHOW THE WORLD THE UNDREAMED OF WEALTH CREDIT = UTILITY WILL BRING.
The recession seems to be especially good for comedy writing.
So far there are about 14 members of the Facebook Group inspired by this blog. There’s still time to join before the free offer expires, and the prizes are handed out.
If you’d like to join – and can’t figure out how – ask your son, daughter or grandchild.
HI paul,
The ‘the recession’ is a collapsing ponzi scheme smash and grab.
Wills,
what about “shake n’ bake” instead of smash and grab?
Reasons to be cheerful:
1. The present system is crashing
2. Corruption will no longer be tolerated
3. People are been shaken out of their apathy
4. A new system is possible based on justice, honour, culture and ability
5. We’re still alive…so anything IS possible :-)
Hi Josey
A1
Bloggers : I am going to publish my film etc on face book soon – here is an extract of the intro :
Crime and Irish Banks
Mr. John ALLEN qualified as an Accountant in 1997 and remains in practice to-day in Limerick , Ireland. He is a former lifeguard and with two others in May ,1968 he rescued up to 8 local policemen from turbulent waters under Sarsfield Bridge on the River Shannon .During the early 1980’s he made new taxation history , that allowed ladies on their year of marriage where they married a farmer with a small holding to claim back taxes with two annual tax allowances , one as Miss A and the other as Mrs B .Tax case breakthroughs were rare then. The Revenue subsequently changed the laws in due course .
In 1992, in Stephen’s Green, Dublin he acted in the prevention of a perceived Crime taking place by two drunken English men against Bank of Ireland .He was charged on false and perjured evidence made by the Bank .The case was acquitted by the Judge and costs were awarded .The Fraud Squad sent a file on Bank Officials to the Irish DPP. The Bank of Ireland continue to refuse requests to investigate the case any further .
In 1993 , John ALLEN reported to Police Head Office in Dublin at the earliest moment of a perceived international banking crime taking place from Limerick by an Israeli Jew .Unknown to his staff , the local police , and professionals he continued the reported developments with Dublin .During that process he was threatened by written legal civil prosecution by the Israeli Jew after he reported that crime to Coopers & Lybrand , Denmark . In due course he was requested by Danish Prosecution to assist them in their case against the Israeli Jew and others in Denmark which he did that resulted in a successful prosecution . A book ‘Wissum Sagen ‘ was written by a national Danish writer on that event. Also in 1993 , the Limerick Leader published an article attempting to blackmail John ALLEN on false information given by another qualified accountant in practice in Limerick .That accountant was subsequently disciplined for his actions by his Institute .
In 1997, John ALLEN became the agreed first professional taxation agent to work for a criminal ( a new referred client ) with the Criminal Asset Bureau in Dublin and to subsequently make the first written agreement of its kind in Europe to be followed by more.
Mr. John ALLEN had learned extensive experience on how Financial and Banking Crime operates in Europe .In April 1998 he was one of three invited by The National Crime Forum at Civic Offices in Limerick to make a written and oral submission on ‘Irish Banks and Crime’. At the time he was fully aware of the unpopularity of the subject matter and how it might embarrass the national banking fraternity .He employed his own Film Crew to record the accuracy of the event to protect his integrity. His submissions were never reported in the Press by the reporters present .This film ‘The Green Deception’ , records the events of the actual submissions made that day.
In these submissions the following exact predictions to the year were made :
1 Change in Irish Banking Shareholdings ; and
2 Weakness of the Irish Currency ; and
3 Contagion of collapsing of Moral in Irish Society due to anthromorphism and iconisation of Irish Banks ; and
4 The need for proper governance of responsibilities and duties of Irish Bank Managements .
Wow. John, that’s dramatic stuff. I’m from Limerick, though I left there in 1968, and I’ve never heard of you. Looks like I’ll be asking round about you: I have family there.
Thank you for posting that.
At risk of turning into this blog’s boring fart, how about joining the Facebook Group?
Interesting take from Dr Constantin Gurdgiev, on why the government only raised 4 bn euro on bonds:
“ECB’s blind eye to Ireland?
From ECB’s point of view, this might fly for only a short period of time. Here is why. The ECB is fully aware that the Irish Exchequer is bound to come knocking at its doors sooner, rather later. Yet, a publicly open and transparent loan from the ECB would have to carry serious policy prescriptions with it that would be matching those impose by the IMF on other countries: a 15-25% pay cut for the public sector, a 10-15% contraction in public expenditure across the board, a reform of public sector pensions and a significant divestment by the state out of its industrial shareholdings. These policies – necessary to keep cool other would be borrowers from ECB – will cost Brian-Brian-Mary their jobs and can potentially derail the Lisbon II ratification.
Hell, they might spell the end to the Euro itself, as a transparent rescue loan to Ireland will be followed by the demands for the similar lending from Italy, Greece, Spain, Portugal and possibly Austria.
So the ECB is absolutely desperately trying to find some face-saving formula to allow Ireland access to funds without opening the door for other Eurozone states and without imposing punishing conditions on our incompetent Government and overweight public sector.
Hmmmm… has anyone gave it a thought how are we going to squeeze out the remaining €15bn without anyone noticing, then?”
sorry forgot the link:
http://trueeconomics.blogspot.com/
Dear All
I am on FF’s mailing list – I received this today – please see my open email to Brian Cowen TD below.
Dear G,
Ireland’s economy has been damaged by the global economic downturn. I have been honest with the country and acknowledged that the times ahead will be tough. While we work night and day to get Ireland through these difficulties, I want to engage with you directly, so that you know what we’re doing.
That’s why, in launching a new Fianna Fail website, I want to offer you an opportunity to ask me directly about the challenges we face and the route that I’m proposing to get Ireland back onto the path of sustained economic growth.
Ask your questions by clicking here and I’ll post a video on March 12th answering as many as I can:
http://www.fiannafail.ie/askthetaoiseach
Ireland is facing economic conditions unlike any we’ve seen before. Our banks required government support. Unemployment across the country is rising and many businesses are being hit hard. The public finances have suffered and we’ve been forced to make really tough choices.
We’ll meet these challenges head on. We’ll fix our banking system. We’ll make sure that a new regulatory system is put in place that the people can have confidence in.
We’ll help people to retrain if they become unemployed. We’ll extend further help to businesses for whom credit is no longer available and whose future is under threat.
We’re taking tough decisions now, so that Ireland can emerge from this recession quickly and fairly. We’re building Ireland for tomorrow – and a better future for us all.
If you ask me – directly and simply – about our plans, I will respond in kind. Submit your questions to:
http://www.fiannafail.ie/askthetaoiseach
I’ll admit we haven’t got everything right, and if you want to tell me where you think we can improve our proposals or offer alternatives, I’ll listen. Only by listening to each other, learning the lessons of recent times and working together – summoning a national effort – will we move back towards the levels of economic growth which have made Ireland the envy of many over the past 20 years.
I look forward to hearing from you.
Brian Cowen
Taoiseach
————————————————————-
An Open Email to Brian Cowen
Dear Brian,
I fear like many, the penny hasn’t dropped, so let me spell it out – IT IS OVER. Lines like ‘we are making the hard decisions’ may suit kindergarten but not an informed and educated electorate.
You and others have blown the only period of sustained economic growth this country has ever had. You will not survive as Taoiseach and your party will be lucky to survive as a political entity. You have a core FF vote of 20% and that is it. You haven’t taken any hard decisions but instead tackled the sick, the disabled, the poor, the lowly paid and the unemployed. The Budget last year was the most appalling legislation ever put before the Dail in its 90 year history and that from a so called ‘Republican Party’. FF lost that when the tent in Galway went up and you were all seduced by easy money and quick talking money merchants who have destroyed the State.
You failed to plan for the rainy day, you failed to create a reserve fund of money for the end of economic cycle that a first year history student could have predicted.
You failed to diversify the economy, you failed to regulate the banks, you failed to tackle the ultra rick, you failed to come up with imaginative solutions to our current problems (a 1 cent increase on text messages would have raised the €100 million needed to cover the medical card issue but no, you got talked into it by Civil Servants and did your party immense political damage).
You failed to close off tax havens and give the regulatory bodies the staff and resources they needed (because you didn’t want to send the wrong signals to the business community or international markets).
This country could have been a world leader in green technologies. We could have built affordable and environmentally sound homes, we didn’t. We let cowboy builders, developers, corrupt solicitors and accountants dominate the game, a game which is now crushing hundreds of thousands of people.
The best thing you can do for the country is call a general election. FF is damaged irreparably. I don’t believe in the ‘leadership’ you, Mary Coughlan and Brian Lenihan have provided. It has been one false step after another. I accept we are in a changed economic environment but the economic policies pursued by this government since 1997 have over-exposed us to the global downturn. You and others buried your heads in the sand because you were happy to see the revenue roll in the door (40% of government budget came from property – the Germans must have thought we were nuts). It wasn’t laissez faire politics, it was lazy politics.
You failed to diversify the economy and relied too much on property and US multinationals, which like Samson’s temple, have collapsed around our heads.
I didn’t buy a house because I knew it was a bubble, I didn’t get into debt because I knew what has come to pass would happen. I knew we are over exposed, I knew our economy was too dependant and followed the Chicago boys export orientated/’financial services’ model too much. The decision cost me in personal terms but I am one of the lucky ones, I have no debt and a permanent job.
I will be amazed if FF is not completely devastated in the upcoming elections. It will take a generation to recover. The party is over my friend and the great bubble that surrounds Leinster House with its comfortably rooms and high salaries has been punctured by the reality of the world outside – all I would say to you is this, if you do just one thing to save your reputation then call the election – now that would be a hard decision made.
Sincere regards,
G.
G, I received that too. I will, certainly, ask him a few questions, alright!
I think that we all should………
G,
“(a 1 cent increase on text messages would have raised the €100 million needed to cover the medical card issue but no, you got talked into it by Civil Servants and did your party immense political damage).”
I almost hate to tell you this, because it makes me SO ANGRY everytime I say it or read it, but, here goes:
It was Seanie Fitzpatrick of Anglo that talked Brian into cutting the over 70s’ medical card, not the civil servants.
Aaaaaaaarrrrggghhhhhhhh!
Ask him why he surfed along as Minister for Finance, as Bertie’s lackey? Ask yourself what you were doing knocking on doors, and putting posters up on lamp-posts to elect these gombeens?
Ask him how he intends to fill the 20 billion hole in the public finances? What tax increases will he be imposing on the citizens to fill this gap? Ask him when will the real cuts start? Ask him whether the paltry 10% cut in expenses sold to the public by that muppet O’Donoghue, will make an iota of difference?
Ask him has he the bottle to do the job?
Paddy.
paddythepig, Why not ask him yourself? Weigh-in!
Here is the link:
http://www.fiannafail.ie/askthetaoiseach
Whooops- getting very hot here, private FF information the lot, they’d have found a way to have closed this forum down by now anywhere in the UK or EU…but as Tim mentioned recently the authorities in Eire just ain’t got the smarts…
Want to hear something funny: http://www.independent.ie/breaking-news/national-news/politics/ecb-head-praises-govt-handling-of-economic-crisis-1654916.html
paddy, Lol, he wants “more wage restraint and less regulation”!!!!! A true banker! I just know that his view of regulation applies to the banks and his view of wages definitely doesn’t!
Anyone surprised?
Bankers, obviously, don’t think the game is up, yet.
The ECB head is an unelected representative, making policy pronouncements that have a negative impact on millions – wonderful.
Did you see the room where he spoke? What are these people thinking? All crammed in like sardines, and people giddy with excitement as Rome burns, what a bloody joke, go to France if you want to me a Frenchman but don’t fly this guy in thinking his statements will reverberate in the cynical global trading rooms thinking that it will lead to an economic boost.
Christ, what have we been reduced to? It is amateur hour at the Zoo with these people.
Long live freedom, this really excites me, they are being exposed :-) we have our moles everywhere….keep it up folks…
…whats the quote about good deeds are done out in the open and dark ones done behind closed doors???
Trichet said he would like to see more wage restraint and less regulation.
Man this guy and many more like him have not got the message.
You’ve got to admit he/they have necks like jockeys ….!
These guys together with business run our lives.
They run the money for businesses here and there to help them pay as little (and none at all) tax as possible- all in the name of business.
Business who feel tax is just squandered on welfare and utilities which (they think) should be private.
Then they have the insolence to stretch both their hands, one for business, one for themselves to be bailed out.
This is crazy boys; absolutely over the top.
This is a Bertolt Brecht play and we’re in it for real.
You can’t even be center right and see reason in this unless you’re wealthy.
David, It’ll take more than a corner shop approach to the economy to rescue us from disaster. Apart from the banks, the loss of competitiveness is by far our biggest problem and this will continue to drag us down for years to come. Selling/dumping assets to shore up a collapsing bubble doesn’t make any sense. The anti-competitive drive, from which we’re now suffering, was primarily conducted by the politicians themselves – Bertie gave himself and other politicians 24 increases over ten years, on top of that you had publicans, doctors, lawyers,builders, estate agents and others, all acting like parasites on the back of the productive sector. Nobody at the top seemed to care that the proverbial goose was being strangled and now we’re here we are at the bottom of the pile with the same chancers still in power – we Irish are clowns and we deserve what’s coming.
http://www.independent.ie/national-news/bertie-the-man-of-the-people-whose-pay-rise-is-more-than-the-average-industrial-wage-1206208.html
http://archives.tcm.ie/irishexaminer/2007/04/06/story29752.asp
Here Come the Commies
A quote ascribed to Karl Marx has been popping up a lot lately:
“Owners of capital will stimulate the working class to buy more and more of expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable. The unpaid debt will lead to bankruptcy of banks, which will have to be nationalized, and the State will have to take the road which will eventually lead to communism.”
— Karl Marx, 1867, Das Kapital
Anyone ready to support a petition to the IMF to please come in and sort us out?
For 18 years I have had a small business employing 7 local people. Yesterday for the first time we put everyone on short time. Two years ago we first felt the effects of the downturn.
Once your job goes, you stop being a contributor to the exchequer, you become a cost on social welfare. You have no money to spend. You go into the black market competing with businesses who have to pay tax, insurance etc. Soon you will not be able to pay your mortgage back. Eventually the bank will reprocess your home and have another useless asset on its balance sheet. And so it spirals downwards.
This is the 3rd recession I have experienced. This is the worst. Trust has disappeared and fear has taken over. There is absolutely no hope of the Politians of all types, Unions, Business Leaders etc. sorting this out. They are busy defending their own inflated salaries and power base.
Where can I write to ask the International Monetary Fund to take over Ireland inc. asap? I am thinking of setting up a Facebook group so that ‘ordinary’ people like myself can gather virtually as a group. If enough of us agree, and we send our request to the IMF surely they will listen and come in. If you have any suggestions how we could gather a petition from the people of Ireland and present it to the world bank please let me know. We need qualified and independent people to come here and sort out the mess asap.
Mother of Three, I’m sure that MK1 will weigh in on this one, at some stage, but the IMF may not be as “independent” as you expect; I used to think it was, but he caused me to question my position and do some research.
As a result, I urge caution against what you propose. We must move, yes; but we must move stealthily, as well as urgently – not one without the other.
Thanks Tim for you insight. Like many others, I am just so frustrated, I feel utterly powerless. Have you any suggestion how the ordinary people can put all their voices together and be heard? We are smaller than Manchester. If we could get a petition together with the majority of people requesting a change, perhaps ‘peoplepower’ can get the changes to happen. Now we have the internet, tools like WordPress and Facebook, surely we can find some way to be heard. Clearly the present systems are not working in this crisis. The Swiss I believe have this kind of mechanism. Any suggestions Tim?
Hi mother 3.
The IMF is behind the gov working away with the irish gov
to absorb us all into deeper debt bondage anyway so mailing
an invite maybe unnecessary.
@ mother of three
You’d want to be completely out of your mind to want the IMF to come in, if you think it is bad now just wait until the IMF get a hold of this place, pick up any book on that organisation and you will see the damage they have done all over the world. Forget it buddy – the first thing they will do is slash public spending focusing on health and education and dramatically increase taxes, it will be a slaughter, no way.
But surely G, this is going to happen anyway! Have you any other suggestions to sort this out?
@ Mother of Three,….ah old Facebook ( old news really these days Twitter is now the ‘pop’ hub ) you will be up setting poor Paddy from Cork here who I think it was this week got around to a Facebook page so someone else is trying that. If you were not listening to Today FM this week Finna Fail have now hired in Obama’s web site boys to set F.F. up on line ,…so just email your leader tell him You with your three children and 7 employees are now going to shoot him when you see him on the streets , I’m sure he’ll call the IMF ! straight away ……
Brendan, Welcome back!
Brendan, what are you doing? Are you still trying to put-off newbies with your bile? Why? Have you decided already, on behalf of all of us, that Mother of Three has nothing worthwhile to contribute?
Brendan, I sometimes enjoy your vitriol, but I have taken the time to appreciate it – she has had no time. Go easy.
“Please?” *bows*.
Folks, I have just emailed An Taoiseach’s link to Vincent Browne – let’s see if he publicises it. *judging*.
Vincent,
http://www.fiannafail.ie/askthetaoiseach
This is the link to the Fianna Fail website where the Taoiseach is asking for and inviting submissions/questions from the grass-roots.
Please announce this and invite ALL of your viewers to communicate with An Taoiseach, directly.
Kind regards,
Tim.
Excellent idea Tim. Thanks from the rest of us !!
All, I apologose for my outburst last night and I am willing to see where David is going with this, though watchful.
I am VERY grateful for the encouraging remarks that some of you have expressed.
Still conflicted, but, respectfully yours,
Tim.
Folks, Vincent didn’t do it. Let’s all try other media outlets? Report here, on any outlet that publicises it?
Hi Bloggers n Tim,
Fascinating day watching all of this unfold in the media,..
Even the Brits are scratching their head over the loolaa running rbs
trying to leg it with his pension.
Hi bloggers n Tim (welcome back)
On a lighter note, been listening to new u2 cd
and its sounding like old U2 are back, apart from
the sexy boots number.
They should hang up their sexy boots Wills
but at least they say they’re paying there taxes :-)
Hi,
Tim, good to see you are back.
I thought the Taoiseach question thingy was publicised on a news item by RTE. I read it somewhere today I thought.
Other interesting economic news bits today:
– Government have an 86% dissatisfaction rating ….. if that doesnt cause the President to become concerned, then nothing will.
– Strangely only 52% want an election now, with 40% not wanting – typical Irish electorate inconsistency there.
Other small bits:
– Revenue found 1.6 million of unpaid tax in, you guessed it, Revenue. Looks like the people we employ to collect tax dodge tax themselves! Not so unique says you, Doctors live unhealthily, Gardai commit crime, etc. Still, “my my, its an embarassment” – its madness anyway.
– Revenue found that a selection of Barristers/Solicitors avoided tax of 800k or so. Not the 1st time nor the last time that the legal profession will break a law/regulation.
Other news:
US Budget 2010 (fiscal):
government income 3.606 trillion
government spend: 5.777 trillion
hence a deficit: 1.171 trillion (or 32% of income)
Our estimates (back in Oct 2008 for year 2009) for Ireland, in case of doubt:
government income 43.5 b
government spend: 58.2 b
hence a deficit: 14.7 (or 34%)
http://www.budget.gov.ie/2009/downloads/WhitePaper2009.pdf
But since then our figures are trending worse and could be:
government income 38 b
government spend: 58 b
hence a deficit: 20 (or 52%)
We’re in bad shape.
Note that the ECB 3% GDP rule would indicate a deficit of approx 6.5 billion. We are breaking the rules and now spending way beyond our means.
I am still calling for:
– Budget, increase tax intake (especially curb all tax shelters now!)
– PS optimisations, cost cuts
– general election
David Mc, do you call for those too???????
MK1
Mk1
Revenues from an increase in tax intake will be wasted.
Hi G,
Rather courageous to post that letter.
They’re sensing FF grass root support is quietly melting away across the emerald isle.
I’m no FF’er, anyone can get that email, just put your details on their website, it’s just a way of seeing what is going on from their point of view.
All I have is my voice, they’re trying to take everything else away from me – my freedom through debt slavery, my confidence through job uncertainty, my education through increased registration costs and fees, a roof over my head through absurd house prices, I could go on and on but I think you get it.
Government have to go, I am prepared to put my shoulder to the wheel to oust them, I believe anyone with a sense of dignity and fairness should do the same.
I have followed with interest this Banking crises and the underlying culture of Banking both in Ireland and abroad and have come to this conclusion.Irish Bankers pursued profits in property to the benifit of themselves ,their shareholders,etc no need to labour the point,we all know this.For them it was a profitable Buisness.Im sure they hoped the bubble would deflate with a soft landing,with a worse case scenario of about 8% default on loans based on other countries data.They probably figured that the Government coffers would be in reasonable shape as they had done well from the property boom (mc creevey’s pension reserve fund etc.)and would be able to absorb and smooth out any of the social issues that arose from the 8% defaulters.Ireland’s AAA rating and the ECB’S obsession with inflation would have left the deflated bubble still bankable.Enough said move onn.Now its my contention that these Banks in the absence of an Irish property bubble would have pursued similar profits by buying into what became known as “toxic” and undermined the balance sheets of Banks throughout the globe.Anglo would have led the charge into the USA and shareholder pressure,bonuses etc. would have dragged the others into the frey as had happened with the homegrown property bubble.Which was the lesser of two evil’s??? It’s obvious to anyone that the Dept of Finance,Central Bank, Regulator, would not have saved us from either of these bullitts.The sad fact is we the Taxpayers were going to be wounded one way or the other.In the light of all the recent information I think any reasonable person would agree with my contention on these matters.
Jim, being a reasonable man I’ll agree with that (and your other offerings). I really regret not having studied economics when I was younger – I just couldn’t suspend disbelief long enough. Trouble is that leaves the field clear for the crooks and chancers.
As our host says in his latest magnum opus, there was too much money sloshing around the world looking to make a profit. There’s a book by Martin Wolf of the FT which I’ve read about but not actually read called “Fixing Global Finance”. Apparently he saw the problem as the refusal of China and middle eastern oil exporters to let their currencies rise to reflect their export strength and their surpluses were recycled to the west, particularly the US, who were saddled with the role of spender and borrower of last resort. Add to this all the hot money swiling around. Nothing new there. So the poor were lending their savings to the rich. The US and the rest could either engineer a recession to control this or allow the money to be let at low rates to fuel a lengthy boom. Wolf contends that if you give the banks more money than there are reasonable outlets for it you get subprime, unorthodox financial instruments etc. He oints the finger at the Chinese in particular who did not want to liberalize and boost consumption as this would threaten Party rule. This confirms my gut feeling that blaming the west for being spendthrift and encouraging us all to emulate the BRICs or whoever else is too facile. Mind you, I still want to jail our bankers and a few others besides! Actually punishing fines would be better.
Now if we are to have anything worthwhile from all of this, I would recommend the following as the most sensible way forward.1. The D of F ,Central Bank,Regulator must employ whatever expertise thay require,and put in place all the necessary stops and checks in place to make themselves and this Economy as bullitproof as is humanly possible. 2.Anglo to be charged with the responsibility to manage down all non-performing and distressed loans with the aid of newly appointed personnell with the expertise and resources by way of funding and insurances,levy’s from other Banks etc and managed over a time frame. Result’s orientated incentives and daily updated audited and verified accounting practices should be employed to expediate these matters.3.AIB and BOI to become the systemic backbone of Irish Banking with the following provisions enforcible by statute.Low cost and properly stress tested, accounts verified and credit history checked etc. loans and finance to be made available to Consumers,Buisness,Students etc and all others qualifying under above terms.4. Total ban on AIB & BOI lending for speculation,including purchase of securities on margin,leveraged buyouts,leveraged hedge funds,derivatives trading and all other exotic and potentially toxic financial vehicles to be outlined by the Regulatory bodies as unsuitable for Banks which are systemic to the Economy of Ireland………… Now David there’s a wheel I’ll put my shoulder to.(non-negotiable instrument)
What about banning Credit Cards and only allowing Debit/ Laser cards, would avoid the widespread debts the youth and shopping mad women rack up?