October 10, 2011

Let’s harness the power of the online Irish network

Posted in Sunday Business Post · 132 comments ·
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In 2009, about one million tweets were sent every day on Twitter.

This year, an average of 233 million tweets are sent every day.

In a year, that would amount to a ten million-page book that – if you read every tweet all day – would take you 31y ears to read.

And speaking of days and time: every minute, 24 hours of video are uploaded to YouTube. Facebook has 750million registered users, which is larger than the population of Europe.

Today, there are more mobile phones in the world than toothbrushes. In a few years, no one will send emails. In fact, for anyone under 18, emails are for dinosaurs. They communicate by Facebook or text.

This is the world in which we now live. It is also the world in which we now do business. This is a world where new businesses are being created and sold in a matter of months and years. It is a networked world, where people are flocking together driven by shared experiences, shared interests and shared heritage.

This is the soft economy. Within a decade, the world and commerce as we know it will have changed dramatically.

Most crucially, the pace of this change will accelerate at a rate not seen before. One of the most interesting things, especially at a time when unemployment is so high, is that this economy can’t be managed or predicted. This is an economy with a mind of its own, and it is accelerating the pace at which big companies become smaller and small companies become bigger.

As this transition continues, old certainties will be abandoned. One of these is that the government should be involved in job creation. It should not. In this new economy, the government can’t ‘create’ jobs.

Much of the conversation in Ireland centres on the idea that the government should create jobs, but governments are very bad at creating jobs. In fact, they are very poor at the entrepreneur game.

So we need to change the conversation away from the government creating jobs to the government providing the environment for others to create jobs.

At the Global Irish Economic Forum This weekend, one of the Irish-American entrepreneurs – a man who has funded the start-up of hundreds of companies reiterated this point again and again. When it comes to start-ups and new businesses, governments should not interfere at all. The best thing a government can do is set the conditions for enterprise and then get out of the way.

In fact, he suggested that a government should not even talk to a new company for the first two years. When it was put to him that Ireland was a good place to start a business because it took only two days to register a company, he retorted that two days was one day and 23 hours too long.

If we examine the real world, he has a significant point about start-ups. The vast majority of new jobs in the US and in Ireland come from companies that are less than five years old. These are the companies which are expanding, growing, employing and trying to grab market share. In the US, the single biggest indicator of prosperity is something called the velocity of new firm start-ups. This measures the amount of turnover in new start-ups and how many are being started in states that are dynamic compared to states that are static.

The more start-ups – not the more startup successes, but the more start-ups, whether they are a success or not – is the best indicator.

In fact, in the US, the big corporate battle is not so much between management and shareholders as between big companies and small companies. Big companies destroy jobs. They are the ones laying people off, while young, small companies are the ones employing.

So the state should provide the environment in which new firms can thrive and let the thing rip. This sounds like good commercial sense.

However, there is something the state could do: it could buy from small, new companies. At a time when the private sector is terrified to spend, the only major spender in the economy is the state. So the state could make a huge impact on the success of start-ups by buying from them.

At the moment, due to public procurement laws, the Irish state buys only from big established companies. This excludes smaller start-ups from seeking business from the very government which is supposed to be supporting them. If we want to promote a culture that generates jobs, we need to promote small, faster, more aggressive companies. We need companies that have everything to lose and can’t turn back.

The first market is always the home market because people do business with people they know.

However, the world is Ireland’s market. But to get to the world market we need help in critical markets. So how do we do this?

Traditionally, we have spent huge sums on organisations like Enterprise Ireland, which has gone out and tried to set up contacts and infrastructure for Irish companies in foreign markets. This is very expensive.

But now the world has changed. In the hyper-networked world of 750million Facebook users, it has never been easier for more and more people to know about your product. We have the platforms, now we need the salespeople.

This is where the diaspora comes in. The diaspora is an enormous potential sales force dotted all over the world. With connections and networks cheaper and easier to set up, the power of the global Irish network is limitless.

If we involve them in our story, they can help us enormously. If we give them something back for this help, they will help more. Sometimes big ideas need to be distilled into their most basic form.

The Irish abroad are a natural sales force for new Irish companies, social media is the natural sales platform and the state is the natural facilitator of this. Get these three things right and we begin to move forward.


  1. Don’t Contaminate The Milk in Farmleigh

    I acknowledge the principle of your article and accept your intentions to be good and no doubt something good will come out of it .I also acknowledge the principles of Mr Moloney of Esat who boycotted the event due to the presence of a powerful business person that was chastised in the Morriarty Report and who costed the Irish Taxpayers a significant amount of money and who is seen to play a game of politics at every level even in the current Presidential Elections.

    The dismissal of the reasons given for the boycott was not mentioned by the Prime Minister or his Ministers as though they were acknowledging the rightfullness of his presence .Aside from the Ideas and Dreams why the meeting took place in the first place there is already the creation of a precedence by the actions of the government not to be seen to raise the honourable occassion to be seen as transparent to the public .

    It is public knowledge that the Irish laws of business conduct written into law are both not working and not enforceable by law and therefore in a state of chaos that is dangerous to any foreign investor in Ireland .It is my opinion that one is wiser to incorporate a company in UK rather in the Republic and open a branch only in the Republic using the English Common Laws and denouncing the local Irish Laws for that reason alone .

    By implication of the actions of the Prime Minister, he has debased ‘the code of honour ‘ initiated in the presence of the honourable guests present and replaced it with more chaos and anarchy in the rules of conduct conducted at that event in Farmleigh.The Prime Minister by his actions is in reality holding ‘a private auction’ of the sovereign wealth of The State to those who have the money power to reap the rewards for their selfless gain .The Public have everything to lose including the rest of the sovereign national resources .

    Mr Kenny in his philosophy is defending the right of businessmen to influence the political system in the absence of a civil society and declaring that it is neccessary for the rich to interfere directly in the political process in order to protect democracy.

    He is advocating the change of power from the people to the elite and puppeteering to the troika in the EU .

    His actions must be arrested NOW before the unfolding events happen at the next meeting or it might turn sour.

  2. Adam Byrne

    subscribe.

  3. mister_jinks

    Yes, the growth of the soft economy has indeed been explosive and there is fantastic potential here. However, there is one threat that is rarely mentioned in relation to the global IT industry. For the global Internet to function, it requires a steady and uninterrupted supply of electricity everywhere. If small parts of the Net cease to function due to interruptions in the local power supply then this could have a cascading effect where the effects were felt elsewhere. Anywhere else in the world in fact. Businesses depending on online ordering systems, electronic invoicing and so on might not be able to do business at all for a period perhaps. That’s just a single example. There are serious challenges in meeting global energy demand in future years, mainly as fossil fuel resources are being depleted and in case case of oil, production may soon enter into actual decline.

    Here’s an example of this, not related to a power supply interruption, but rather an accident.

    http://www.technologyreview.com/web/20152/page1

    Those server farms/data centers use a lot of energy by the way. What modern businesses are not dependent on the Internet to some degree? Very few I would imagine.

    So, the more civilisation advances technologically, the more energy dependent civilisation becomes. As I say, there are major challenges to be be overcome in meeting the energy needs of the future.

  4. Enterprise Ireland won’t talk to any companies with less than 10 employees. If your not in that loop, maybe looking for one of their R&D vouchers of ¢5k, you wont get it; if you do, you can’t spend it on your own R&D, but can only spend it on registered consultants in a particular field. So, vast amounts of money are spent on companies that are already successful and arguably can paddle their own canoe. There are college attached programmes however to stimulate small business startups to provide help in this area. A better approach could be an expansion and focus on educational support at the second and third level in the whole area of science and mathematics, the only innovation at second level is the absurd introduction of ‘Project Maths’ for those challenged in the Maths area at school; absurd cause the approach to learning is anti mathematics and demands a conceptual grasp of English beyond the abilities of the foundation level students who take the course. So, students having difficulty with the abstract nature of Maths, the solution is to hide the abstraction in linguistically sophisticated language the kids can’t understand:)

    • To be fair, Enterprise Ireland have reps across the globe making contacts and getting good info to pass onto Irish business. You could argue that all our Foreign Affairs ambassadors should relocate under Dept Trade and Enterprise and given a new EI remit:) But EI have managed to bring a lot of jobs to Ireland. Leaving the business of dealing with micro business startups to the County Enterprise Boards and innovative and successful programs such as Plato, is still a copout by the Government. Greater stimulus to micro startups as DmcW calls for above, by opening doors re tendering to micro business based on cost/quality approval and evaluation reportage, should be a given. The main problem hindering this is a ‘them’ and ‘us’ segregation between the public service and enterprise.

  5. Eireannach

    Join worldirish.com today.

    I did this morning. See you there, in the virtual village!

  6. wills

    David,

    http://www.duffyandpower.com/Duffy_%26_Power/Welcome.html

    I did this few days ago.

    My book RAGE LOCK I spent 16 years researching and writing.

    I agree internet is a paradigm shift on a scale similar to the gutenberg press and steam engine and electricity.

    What we do with the technology is all there to play for, I agree.

    We are on the frontier of its new age, I agree on that too.

    What this new *wheel* has in store for us all is up for grabs.

    I am ready.

  7. JHShanahan

    David,

    You will recall, no doubt, that I sat right up front in the first “Economics Without Boundaries” class over a year ago and made the very same point.

    There’s a saying in Texas — the part of the USA where I grew up — that goes like this: “Dance with the one that brung you.” For Ireland, that means looking to develop a market of over 40 million Irish-Americans, most of whom want to travel to Ireland (and most of whom, as was said this past weeked), think better of Ireland than do the Irish that live here.

    So do join up to “worldirish.com” and do remember the words of President Obama on College Green: “Is feider linn!” Work to remove the trade, investment and residency restrictions for the Irish in America and the Americans in Ireland. Put substance as well as shamrocks into the “special relationship” and don’t judge all Americans by what the whacko right-wing politicos who grab the American press. (|Hey, Ireland’s got its own stable of political nut jobs, remember.)

    Promote tourism, trade, educational exchanges and centres of excellence in innovation and development of technology. Take lessons from the Americans in banking regulation — and tell the boys in Brussels that while we’re happy of be at the heart of Europe, we’ve got other relationships (USA, UK, Canada, Australia and New Zealand) that we’re going to tend to as well. Open the doors to the diaspora and invite them to come and give the Auld Sod a hand. What have we got to lose?

    All the best,

    John Shanahan
    Drogheda, Co. Louth

  8. paddyjones

    The dot com bubble burst in 2001 , the internet is one giant non profit making excercise , I doubt the longetivity of companies like facebook or twitter its only a fad and will pass in time to the next fad .
    The main problems for Ireland are the deficit and the debt.
    The deficit is 18 billion to be cut by 13 billion to 5 billion by 2015, this involves austerity on a scale not seen before.
    The debt is the other problem , there is 115 billion of national debt which will rise to 230 billion by 2014. Then there is the 160 billion ECB debt and also 35 billion NAMA debt .
    The internet is a cost to most companies and is profitable to a very few and these profits are not sustainable . I am a “internet doubter” its all hype without any substance , technology will out pace it and at the end of the day its about the bottom line. Many Chinese internet companies which listed in America are failing like ren ren , the Nasdaq has lost half its value in the last 10 years.
    So its all wishful thinking …….

    • RE “the internet is one giant non profit making excercise”

      The internet has changed forever the telecoms industry, global communications, the music industry, the ecommerce industry, online payment systems, eLearning systems, R@D, journalism, entertainment, the newspaper industry, politics, democracy…to name a few.

      Wakey, wakey:)

      • paddyjones

        Telecoms => less profitable than 10 years ago. Music industry => less profitable than 10 years ago
        Banking => less profitable than 10 years ago
        newpapers => less profitable than 10 years ago
        elearning => yes a definite improvement I’ll give you that
        Why has the NASDAQ gone from 5000 to 2500 in the last 10 years ?
        I have only ever paid for air travel online , how do companies like facebook , twitter etc make a profit ? they dont .

        • Next you’ll be telling us all to burn all our books and computers and eat all our children because they don’t make a profit?

          Perhaps you need to reevaluate what the term profit means? Or just do a video Skype call with a friend of yours in Beijing:)

        • Deco

          Dot Com 2.0

          How will it play out ?

          Just look at Dot Com 1.0……

      • Nice one Colm

        “Releasing the first of what will be a steady stream of quarterly reports on national Web sales, U.S. Secretary of Commerce William Daley reported Thursday that e-commerce retail sales topped $5.3 billion (US$) for the fourth quarter of 1999″

        http://www.ecommercetimes.com/story/2646.html

        People love to communicate and that is the real reason for the success of the internet. There are all sorts of ways of communicating and one of them is by selling. Selling you, your product or service. All it takes is some style, imagination and most of all trust

        You have a product or knowledge and experience and you communicate this intelligently then people will pay you for your product or service. I have sold products and services from the web and have proof that it works. I may not be perfect but I try

        What they didn’t tell me was that it takes years to become savvy enough to learn the web and learn it well

        David’s article in one of the best I have read in ages and I know that the message he is conveying is genuine and that there is much we can do with technology to harness the potential of a joined up Irish diaspora which if done well could improve the lives of Irish people the world over

        We literally have the world at our fingertips and anyone with a laptop or mobile phone can be running an empire from their kitchen table

        I saw this potential ten years ago when everyone was into getting rich quickly and I know now that I made the right choice in choosing to learn about the internet and the power of the millions of human networks at our disposal. You need to believe and you can only do that if you open your eyes and see the potential in serving others. If you do it for purely selfish reason you will probably fail

        That is why Mr Jones and people like him won’t be getting phone calls from people with bright ideas who need strategic advice, in plain English, on what to do and how to do it well

  9. Malcolm McClure

    David: Great to see you back in top form with carefully reasoned solutions that build on your sessions at Dublin Castle. The key factor that impressed John Mauldin on his recent visit was in this paragraph:
    “It seemed everyone I met was a member of the Chamber of Commerce. They would tell you why Ireland needed to adopt one policy or other, what their views were, and then at the end they would pull out a figurative brochure and tell me why I needed to “buy Ireland.” Bring your business here. Set up shop. Hire the locals, who are flexible and educated and willing to work, etc. They speak English. They are skilled workers.”

    Building on this, you say: “But now the world has changed. In the hyper-networked world of 750million Facebook users, it has never been easier for more and more people to know about your product. We have the platforms, now we need the salespeople.”

    As Mauldin says, we already have the sales people in every small town with a chamber of commerce. What we need is an continuously updated section on each town’s website that describes the facilities available there for a start-up. This should contain a standard list of features:
    Industrial parks? Empty factories? Size of unemployed skilled workforce? Local inducements. Broadband? Distance to trunk road network and to ports, airports, Derry, Dublin and Belfast. Schools. Technical Colleges Empty houses. Average cost of modern detached house, etc.
    These sites would be linked from a spreadsheet on a government website, ranking them on the basis of the various facilities on offer so that startup and incoming companies could select their most favourable location on the basis of commercial criteria.

    This can be done on the basis of a groundswell of local support for the idea. We don’t have to wait for top-down solutions.

    • MT25

      Yes agree – a simple community database on resources, logistics etc. is a must for prospective investors. Icredible that they don’t exist.

  10. CitizenWhy

    Davi, David, David,

    I agree that “we need to change the conversation away from the government creating jobs to the government providing the environment for others to create jobs.”

    But we need to take a closer look at what government can and cannot do, and the risks of abuses that the private sector is too willing to indulge in.

    GOVERNMENT’S JOB

    The benefits that government should provided need to be clearly defined. I would include a good Social Security system, a well run health care system, a food and environmental protection system, a disaster relief system, policing and defense, a fair tax system, and a few more.

    I would include creating jobs on a temporary, quasi-emergency basis until the private sector invests in hiring to a sufficient degree.

    THE COST STRUCTURE OF GOVERNMENT

    This is certainly a problem in Ireland. We need an accurate breakdown of costs and how to reduce them. they are excessive. This includes how public sector pensions are funded.

    MORE FORESIGHT FROM GOVERNMENT

    Ireland needs a Senate that includes representatives elected from from the five provinces of Ireland, representatives elected from 5-8 cities/metro areas, representatives elected form the management of of a few key industries, representatives elected from the memberships of labor unions (as a whole, not union by union), some representatives elected form money managers who are responsible for pension funds and other investment funds, representatives from NGOs/Non-Profits (as a whole, including some church leaders), representatives elected form those younger than 28, representatives elected from university economics and sociology departments, and some appointed by the President of the Republic.

    Such a body would concern itself with long range policy and programs, and arrange itself into committees to do so. This body would have various segments of society talking to each other about what is good for Ireland as a whole, now and in the future. They would pass model legislation or recommend reforms to be debated and passed by the Dail. They could also veto Dail legislation, and if the Dail turns down a Senate proposal they would have the right to put it to a referendum by the Irish people. They would be limited to 3 referenda a year.

    Members of this Senate could campaign for office based only on what they want to do for Ireland as a whole, or, if going for re-election, what they have done for Ireland as a whole and what they intend to do once back in office. Some of the constituencies would be broad, and others would be smaller, with special knowledge or experience. This kind of Senate would balance the current parochialism and cozy special interest pandering that plagues the Dail and the PM and the PM’s cabinet. But it would leave the present Dail in place.

    BUSINESS

    The US is plagued by businesses moving jobs from one state to another based on special tax breaks and a lack of labor protection. Even when business reduces the role of labor within the US to low-paid serfs, business will pack up and move jobs to factories abroad where the labor is reduced to near slavery or slavery. Did you know that the migrant workers that work in the factories of the big industrial cities are not entitled to health care and cannot vote? Business loves this.

    Business is willing to pollute the environment and to shove out unsafe products and food.

    Business is not the province of virtue and government the province of vice. Balance please.

    Yes, let start-ups go ahead fast and furious. Trim back severely the paperwork and bureaucracy, but enforce the laws that apply to all – environmental, for instance.

    CONCLUSION

    Business does want its vice heard, fair enough, and absolutely necessary. But its voice must be heard in the context of other voices being heard and the common good being protected. That is why I suggest a Senate as described above.

    • Senate should be shut down, huge quango waste of money. We need more effective government without outside, wasteful ‘consultancy’ quangos such as The Senate. Spend the money on improving education and health care. Debate you describe can take place in the media, the 3rd arm of effective democracy:)

    • Realist

      You look very confused with things you put down.
      Some requests are just contradictory like:
      1. “GOVERNMENT’S JOB, MORE FORESIGHT FROM GOVERNMENT, .. ”
      means to pay more taxes, so less money in private hands.
      So how is possible for private sector to invest sufficiently when government took it and try to create the jobs they want, and not what private capital wants to satisfy consumer wishes.
      “I would include creating jobs on a temporary, quasi-emergency basis until the private sector invests in hiring to a sufficient degree.”

      2. “Trim back severely the paperwork and bureaucracy, but enforce the laws that apply to all — environmental, for instance” – so how you are going to enforce the law without paperwork and bureaucracy ?

      3. “But we need to take a closer look at what government can and cannot do, and the risks of abuses that the private sector is too willing to indulge in.”
      One thing is clear that private sector needs customers to feed them. Governments and state only need the police to get taxes and does not need to give you back any good product. They will always have customers no mater what quality of service they provide :)

      4. “This is certainly a problem in Ireland. We need an accurate breakdown of costs and how to reduce them. they are excessive. This includes how public sector pensions are funded.”
      That is not possible without privatization of many, if not all stuff, government does.
      Public sector pensions are funded from taxes we all unwillingly and unvoluntarily pay (coercion).

  11. Incident

    If you want a taste of what the immediate future has in store for the internet and social media,have a look at this!

    http://www.youtube.com/watch?v=aR6jLD1USW0

  12. Praetorian

    Is this H G. Wells’ ‘Men Like Gods’ before us? I think not.

    Think it is ludicrous to suggest the government can’t or should not create jobs. Think it is equally ludicrous to let job creation totally up to the private sector and finally I think it is ludicrous to suggest that all things will revolve around the internet and the so called ‘virtual economy’.

    The real economy is just that, it is real, goods are manufactured, bought and sold and within that process jobs are created and sustained. The real economy to use that dreadful phrase, going forward, should work side by side with new developments in technology but technology will not come to replace the real economy (just as they said bookshops would vanish with the advent of the internet, the i-pad, e-books etc, it hasn’t happened and it won’t happen). The government can and should create jobs especially in areas like health, education, transportation (would not like to see any of those areas privatised) while start-ups, entrepreneurs and others should be given the kind of support and encouragement they require. What is more important is that the culture in Ireland changes, risks need to be taken which is counter-intuitive in a time of so called austerity.

    I think John Allen has made some important points above which I would echo. I think those inside the tent are getting carried away with their own self-importance, the illusion of grandeur. I expect next to nothing to come from the Global Economic Forum, it is a talking shop for insiders. So Failte Ireland get their act together and bring in a few tourists, a website gets setup, people congratulate one another but in 2 years from now we will still have hundreds of thousands of unemployed and why? Because what we saw at the weekend was an elite get together. The government have no clue where to begin, they are not prepared to put in place the kind of programme needed to turn things around, they either lack the imagination or the money isn’t there, I expect it to be the latter. But important to be seen to be doing something.

    So all this talk about exports etc is plain nonsense, the servicing of the debt (which Clinton said was important not to default on, remember the Glass-Steagall Act) is sucking the life out of the country and next week another 1000 will emigrate.

    Everything that is wrong with our current situation was encapsulated in that meaningless gathering, meaningless for the people that is.

    • Realist

      > Think it is ludicrous to suggest the government can’t
      > or should not create jobs. Think it is equally
      > ludicrous to let job creation totally up to the private > sector and finally I think it is ludicrous to suggest
      > that all things will revolve around the internet and
      > the so called ‘virtual economy’.

      If the government is so smart, why not give it all 100% of our salaries in taxes so it can produce everything for us????
      Where is the margin what government should create and what private sector should create ?
      To be concrete. Government is paid by taxes taken from private sector, they do not need to provide any quality service as you cannot choose between them and some other services. No competition.
      Private sector is the sector that creates jobs that are meaningful to satisfy end consumer. If they create for example bread nobody wants they will go bankrupt and close down.
      Government no mater waht never closing down, they just ask for more taxes to spend it on administration and ridiculess projects.
      I do not want more government employment, I want government to leave private sector alone, reduce stupid taxes and downsize itself to marginal level.

      • CitizenWhy

        You push positions to extremes. There is a legitimate role for government and for business. Multi-national American and British corporations have been huge examples of misrule. The Irish state is a piker compared to them.

        In the US big companies have trillions in cash that they invest in Wall Street’s financial speculation, not in growing businesses and jobs. The environmental practices of many big corporations (not all) are horrendous. And they certainly love hiring the slave labor available to them in China. Now if Ireland were to choose to ruled by corporations, perhaps they could create slave labor there too. yes, “communist China” is ruled by the Communist party and their favored corporations, not by the Chinese people. Millions of migrant workers are not even allowed to vote in the few elections (local) that they do have.

        If you want to be ruled by corporations, good luck.

        • Realist

          Why are they misrule ?
          Is it not because of the government given monopolies to those same to print money.
          Is it not due to removed gold standard in 1971 and introduction of fractional banking system.
          Is it not due to them telling everybody the best way to invest is in government bonds.
          Is it not because government owned central banks bailing out both governments and those banks.
          Why politicians are protecting banking system ? Is it not because nobody will sponsor bankrupt government and broken politicians.

          China is the example of centrally governed economy that is failing. Who is going to bail them :) ?
          http://mises.org/daily/5701/The-China-Bust-Tic-Toc

          You just did not get it that I want opposite of China.
          I am austrian economist and libertarian.
          I want small or no government and small or no public sector. China is opposite of that.
          Of course for that we need time, so we need to go slowly there, privatizing one by one.
          Where we are going is pure socialism and communism, not to mention fascism:
          http://mises.org/daily/5752/The-Fascist-Threat

  13. November 2nd,…mark it in your calendar

    As suggestion for the note in your calendar
    2/11/2011
    neoliberal Talibanism continued!

    € 700,623,555 unsecured senior bonds… Anglo Irish Bank of course!

  14. redriversix

    Sorry David

    I see this as a non-article.

    The web is a very good tool to be used by Companies and County’s or Country’s as a means of information or marketing and all that that entails.

    But we still need to get back to basic’s as a country.

    What are our resources ? natural and otherwise.

    Tourism , agricultural production , education.

    As a people we have a excellent standing throughout the world as we were never a colonial power.

    We need to default, close any Banks which are insolvent with immediate effect.

    Tear up the agreement the previous Government’s made with Shell and make a more professional deal.

    Have a maximum of two Banks for our people and business’s, for a period of 5 years and then review financial sector to see if their is room for more.

    These Banks would have to be audited every three months to comply with the regulator.

    We have the youngest population in Europe.

    We have a very good reputation for education.

    When and if we default , Business people will always look for opportunity’s and Ireland would be a very attractive place to do business.

    We should concentrate on our strength’s which I believe our Farming , Tourism , I.T and science to name but a few.

    Irish-American’s or anybody who want’s to invest in Ireland, want to deal with People or Country’s who make realistic deals and can honor real commitment’s , our present EU /IMF commitments are unreal and unsustainable.

    With a clean slate , we could work with investors and Companies to develop real partnerships and long term growth with “proper jobs” with tangible products.

    Perhaps restructure health system and create health tourism ?

    I believe if we were brave enough to take bold steps , even if it meant defaulting.

    Investors would look at us in a very professional manner.i.e

    1/ Can we make money in Ireland ?

    2/ Can it be sustained ?

    Business look for opportunities everywhere ,from Argentina to Brazil , North Africa to Iraq.

    Germany and France are still at odd’s with each other over how to solve crisis..Merkel looking for changes to Lisbon treaty.
    Europe is dithering so much , the U.S are able to openly say that the financial crisis is actually Europe’s fault and we are stopping the U.S from recovering…!!!!

    Debit’s and credits, profit and loss. It all boils down to these factors at the end of the day.

    It may be simple and needs a lot of work but the basics of running a shop or a Country are the same , profit and loss.

    The world is in a Depression and we need to make groundbreaking decisions if we , as a small nation need to be innovative.
    We cannot prosper while the world is in turmoil,
    but we can began to rebuild as a Nation while the rest of Europe is….
    “under construction”

    Remember , Tomorrow is the start of the rest of your life…..

    Take care..and take care of your families first.

  15. Not much comment here about an interesting rift that has occurred between Enda Kenny and his european political masters, in the person of Angela Merkel.

    Angela has stated political changes will be required

    http://www.ft.com/intl/cms/s/0/8497b0a4-f354-11e0-b11b-00144feab49a.html#axzz1aPUUxntw

    “Berlin wants new rules to impose discipline, even if it means rewriting the EU treaties.”

    Forget about the Franco/German standoff explored in the article. I’d like to highlight another standoff here:

    The standoff is one between Merkel and Kenny. Kenny has signalled he doesn’t want any changes to the european treaties, he want any changes, if required, only within the terms of the current Lisbon Treaty.

    You see changes proposed by Angela Merkel would require a referendum. That’s the last this our FG/LB dinosaurs want.

    They do not want the Irish people to be given the opportunity to vote against changes to the Lisbon Treaty, to vote against the pro bank policy of FG/LB.

    They don’t want to be publicly humiliated by the Irish electorate.

    Come on, Enda, enough of this blueshirt, fascist, bancocracy nonsense, support Angela Merkel in giving democracy back to Europe!

    Give the Irish people their referendum on the banks!

    • redriversix

      Hi Colm brazel
      Its always good to read your articles so thank you for them.

      In relation to Angela Merkel , I am not sure if the referendum she requires is one that we would want….!

      Best
      RR6

  16. grougho

    hi all,
    a few of us took the day off work and travelled from cork yesterday to stay the night with the occupy dame street protest.
    its worthwhile and it draws attention to the national heist we are witnessing
    In solidarity we dressed as bank robbers and stole some tax to give to the ecb/imf, you can view more and photos here
    http://www.demotiximages.com/news/866801/occupy-dame-street-protest-continues-day-3-dublin
    and here
    http://www.thejournal.ie/in-pictures-occupy-dame-street-protests-reach-day-three-250403-Oct2011/#slide-slideshow1
    and on the facebook at
    http://www.facebook.com/OccupyDameStreet?sk=wall

  17. goldbug

    THE TARGET IS GERMANY

    SEE MARKEL AND SARKY AND BARROSO DO MANY DANCES…

    “BE AFRAID” “BOGEY MAN” “THE END IS NEAR”

    ONCE GERMANY IN SWAG BAG …

    LET THE RIGHT_DOWNS BEGIN

    HOW MUCH DEBT IS WAITING

    double DIGIT TRILLIONS

    • Lord Jimbo

      Indeed, seems it is all finally coming to a head, with serious heavyweights on the sidelines calling for resolution once and for all. Next 10 days could be momentous.

  18. The new/old brainwash mantra you will hear now increasingly!

    Getting _______ back to work means fueling a culture of entrepreneurialism, a culture of competitiveness, a culture of inspiration and optimism.

    Yes, these were real words dribbling from a politicians mouth recently, and no, it is not important who that was, or where it was, that’s why you can blank the nationality, and just fill in the one you see fit.

    Fwiw, the quote is from House Majority Leader Eric Cantor, criticizing occupy wall street as un-american and more.

    You will hear it coming from Irish, German, Greek etc. politicians, legions of economists, Banksters, Industry Bosses etc.

    The apologists are coming out sooner than later with their waffle to deafen your senses, it already started…..

  19. Lord Jimbo

    The real economic and fiscal storm may only be about to begin (with the Irish government not having a leg to stand on)
    http://www.guardian.co.uk/commentisfree/2011/oct/10/stop-another-great-depression-debt?commentpage=last#end-of-comments

    • Malcolm McClure

      Great link, Georg. Sulik hits the nail on the head in each of his responses. Would that we had a Sulik defending our position at the meeting in Bratislava tomorrow.
      If Slovakia refuses to support the EFSF its game over for the Euro.

    • wills

      Brilliant interview on Euro at the link. Thanks.

    • coldblow

      Read it, but not impressed. He’s blunt all right, but what are his politics? He comes across like a blogger.

      • Malcolm McClure

        Interesting result from Slovakia tonight. The vote to increase the EFSF to €400 Billion has been defeated. As the increase requires unanimous support from all Euro members, that plan has been defeated, at least until Slovakia can be persuaded to change its mind.

        There is hope yet for democracy.

  20. Gege Le Beau

    Don’t think we have reached the bottom, but sense it is very close after 3 years of stalling politically, will be amazed if the crisis especially in the eurozone doesn’t escalate.

    Government can do some very positive things, it can go beyond helping to create the conditions or environment for employment. What did FDR do after the Great Depression? Tried to create employment through government programmes (the New Deal), government led stiumlus, no way the private sector can do it on its own, it is one of those myths while both sectors suffer from inefficiency, incompetence etc but when they work together for the benefit of all, then it can produce some interesting results like winning the Second World War.

    The 3 Rs”: Relief, Recovery, and Reform are as applicable today as they were then. That is, Relief for the unemployed and poor; Recovery of the economy to normal levels; and Reform of the financial system to prevent a repeat depression. Some Republicans unsurprisingly opposed the plan seeing it as an ‘enemy to business and growth’. The New Deal could be seen to be one of the best examples of good governance in action and was continued by Johnson with his ‘Great Society’ in the 1960s.

    • Gege Le Beau

      Parallels with 1929 are uncanny.

      The Crash of 1929 & The Great Depression (PBS)
      http://www.youtube.com/watch?v=ccNilnpvbJg&feature=related

      • Julia

        Very interesting Gege. Just watched Frontline, a bit of Vincent Browne and now finally Prof. Joe Lee talking to Cathal Mac Coille on “One to One”, RTE 1. He teaches in New York these days and always has a fascinating insight into life in Ireland right up to the present day. You can watch it on Player.

        • Gege Le Beau

          I stopped watching Browne, was getting a headache from the shouting and roaring, while each week he has a new position. Frontline has its moments but I tend to avoid the moralising and pontificating from Kenny. Recorded the Joe Lee interview as stuck in Martin Sixsmith’s 1000 year history of Russia. Lee has some interesting things to say no doubt, was aware he was in the US, well appreciated I suspect while his book Ireland 1912-1985 is still the definitive take on 20th century Irish history, outstanding academic.

          • coldblow

            I agree with you about Lee. You have to return to his book, to remind yourself about what happened. His take on the Irish self-image is viciously funny (I’ve quoted from it here), on Irish ‘entrepreneurs’ of an earlier generation, on Irish academia and the general unwillingness or inability to think. I can’t watch the podcast of the interview though. As I said here before, I’d love to hear his views.

  21. Stiofan

    Am I not tired of this sort of nonsense? David, this is not your normal standard at all. You cannot declare that the state shall get out of the way, and then that the state shall be the first consumer supporting SMEs. You can’t have a remote state and a Keynsian state. You have to live somewhere and stop jumping between positions. Either the state is useful, and we get it to do useful tings, or it’s a waster and we get shot of it.

    And this diaspora thing is a complete bollocks. This is the first generation in many years that has no Diaspora. They stayed at home, David. The Diaspora is a thing their parents recognize. They won’t have a Diaspora for a few years yet, until their mates are all married and settled abroad. Those old people in some other country who cling to some strange Irishness are as much use as the Irish State. Which is no use at all. And then suddenly it’s everything in the world.

    Bollocks the world is Ireland’s market. When did you ever sell in Chile or Congo? Of course never. And utter tripe about the number of (corporate) births being a valid indicator. It’s the failure rate David. Paddy can go to the CRO in the morning, have a company on Wednesday and be bust by Friday. Efficiency is the ratio of outputs to inputs. It is not simply the number of inputs.

    So, you are a fine fella, and this was a poor article. All the best wishes for Kilkenomics.

    • Realist

      Excellent comments.
      This one particularly as I am unsure where David stands:
      “Either the state is useful, and we get it to do useful tings, or it’s a waster and we get shot of it.”

      From all I know the state is not useful. I cannot see what they are doing or can do better than the private sector (competition drive, consumer satisfaction driven, …) ?

  22. CitizenWhy

    The New American Dream (also being exported to Europe under the brand name “austerity”):

    … To get rehired, take a big cut in pay.

    … Get the government out of the way of business so businesses can be free to underpay, offshore jobs, pollute the environment, buy politicians.

    … Bail out the Big 5 banks on a continuous basis so they can divert capital from investment in business growth and jobs to unproductive (except for the rich insiders) financial speculation. Oh, and let the Big 5 Banks help bankrupt Europe’s government and people too. That’ll show them.

    David, I would not be so quick to buy the Kool-Aid that says “business is always better than government.” Balance please.

    • Realist

      “business is always better than government.”
      Of course it is, if not poluted by government privileges, laws, grants, benefits and tarrifs.

      Government allowed the monopoly to banks to print money and nurture their fractional reserve banking.
      You obviously did not know that government bonds were used as collateral in ECB to print money from thin air.
      E.g. 100 billions of Irish bonds outstanding, ended partially in Irish banks and partially in other European banks, used to be deposited as collateral in ECB to print up to 10x more money, and such money then used to boost “excellent” businesses aka builders and bankers salaries and bonuses.
      http://mises.org/books/bagus_tragedy_of_euro.pdf

  23. Malcolm McClure

    The euro zone marriage is over
    http://reut.rs/pxOibd
    Quote:
    “How long will the Germans carry on financing this orgy? Like a bishop at a Berlusconi bunga-bunga party, they will either explode in a destructive rage or find the temptation to join in irresistible.”

  24. CitizenWhy

    60,000,000 fewer children in developed countries than in 1965. Huge economic implications. In USA a shamefully large number of the children are in poverty.

    http://www.catholicculture.org/news/headlines/index.cfm?storyid=12002

  25. Philip

    I was told that the invention of the wheel was not that great an innovation. Clever. interesting to those who like wheely things. but useless generally. The real innovation came someone figured out how to use 4 of them together. This one wheel is where the internet is at right now. They are already figuring out how to get the mind to control machine with no surgery to the brain. Will Gibsons world is just around the corner.e

  26. Shortage of Cash

    Ask anybody working in the local branches of the Post Office and listen to what they tell you about the recent uncertainty of cash availability .

  27. Bertie Ahern still get’s his platform!

    The so called World Economic Forum, in Abu Dhabi this time, is a meeting of 1% representatives, and guess what Ahern is there.

    It was reported here: http://www.independent.ie/national-news/ahern-i-didnt-act-for-developer-2901555.html

    Both Ahern as well as Cowen are also sitting on the council of state, and both are nothing but feckless Gobshites.

    http://www.youtube.com/watch?v=Q2GWakI4XAo

  28. SLICKMICK

    As the world has become more globalised, the Irish economy has hit more problems.Lack of economies of scale is a major hindrance.Irish abroad can’t even vote.Peter Sutherland, LOL .

  29. Praetorian

    “The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back” ~ J. M. Keynes

    Let Kenneth Galbraith have his say.
    http://www.youtube.com/watch?v=hN8yPLaBVm8

    • I have to watch this tonight, but one comment:

      The study of economics is camouflaged as science, well, one can argue it is social science, and in deed a handful of economists do practice social science, but the overwhelming majority does not. They rather pursue the mathematized modeling way of things and engage in other ways.

      The main motivator is a short track to funny money, easy wealth creation, they are mostly the leaches in the system, those who are dominating the scene later and are the well known yes-men.

      Economics is ideologically infested by schools of thought, and the determining factor who’s school is winning is coming from the 1%, by means of sponsoring, lobbying, bribing, applying elitist structures and much more. It is manipulated by Goldman Sachs, and other major Banks as well as a matter of course.

      Now look into the Irish reality and see who is up the chain, people like John Mc Hale, Alan Ahern etc. – Q.E.D.

      • Praetorian

        Think the documentary will benefit you. As Galbraith says in the opening section, “all groups produced economists, especially the Scots and the Jews but not the Irish who were either too artistic or too civilised to do so” :-)))…….”economists differ a great deal but they ever agreed on anything, they’d all be wrong”.

        He highlights Adam Smith who disagreed with Professors at Oxford taking a state wage, he felt they did no work as a result, instead he felt Professors should have been paid based on the number of students they had and by those who felt their lectures merited a financial reward (let the market decide). He didn’t put this abstract theory into practice in his own life, nor today do those who preach privatisation and the cutting the minimum wage, politicians and those at the ESRI are paid from the public purse, something we should not forget.

    • coldblow

      Great quote. I’ve used it myself here, I think in response to Malcolm dismissing any but technical solutions as ‘utopian’. The question now is, what’s the next Big Idea to be distilled out of the ether?

    • I remember now, yeah it’s good, I’ve seen it a few years ago.

  30. ladygee2

    Hey,Gege!I agree with what you had to say about Pat Kenny on The Frontline, and I have to agree with you in some part in relation to Vincent Browne, but come on! The proposal that is going to be put forward by that barrister from New Beginnings sounds as though it’s a really good solution to the problems being felt mortgage holders who are in negative equity and to the mortgage holders who are in distress.What was it the barrister said about the proposal that it was a WIN,WIN,WIN situation for the mortgage holders, as well as the banks and that it would also help to stimulate the domestic economy by people having more money in their pockets???
    It’s ideas like this that should be nurtured and brought to the fore in order for the country to get out of the mess that it’s in!!!

    • Gege Le Beau

      @Ladygee2 – Ireland is a country with people who have some good ideas (that has always been the case, but the really good people rarely get a look in as the little pond has long been dominated by big fish who are given or claim the credit for everything but rarely take the blame for anything. Assisting those with mortgage difficulties will always get my support.

      It is good ideas like that get air time if they are dicussed in a fair, mature and sensible way (I do wonder how many good ideas actually get implemented, while really good ideas that challenge the status quo, well, I think we know what happens to them), my point was on that particular show which to my mind has become a little too ‘punch and judy’ in style. What I don’t need in the evening is some shouting match, I would prefer an intelligent, measured discussion of the ideas, drill down into people’s thoughts etc, but that hasn’t happened in a long time so I look elsewhere.

      There are serious questions to be asked of the media in Ireland generally, for instance, how is it the same people making all the noise before the collapse about ‘soft landings’, ‘modest growth’, ‘get on the property ladder before it is too late’ are still appearing regularly on all the major shows, I could list the names in about 5 seconds. Tells me a lot about the collusion and agenda that goes on, and of the failure to truly shake things up. I find it hard to stomach the Frontline especially when they had a programme one night pitting the disabled and the poor against Ireland’s foreign aid programme, I thought that was a disgrace. Also have a problem with the huge sums some presenters at RTE make, especially in these times, making hundreds of thousands of euro per annum and then hosting programmes on austerity, poverty, the travelling community, emigration, exclusion etc seems farcical but then one leading presenter did say that compared to soccer players RTE presenters were paid peanuts, he failed to mention however that soccer players are not paid from the public purse.

      • ladygee2

        @Gege Le Beau-It would seem that we’re some how at ‘crossed purposes’? I wasn’t criticising what you had to say in relation to Pat kenny or Vincent Browne. I was agreeing with you. I do find them both irksome at times like you do. The Barrister or is he a Senior Counsel explained his idea with the help of some graphics provided by the Frontline and as far as I’m concerned it was a very good way of helping people who were in negative equity as well as those mortgage holders who are in distress. Those very same mortgage holders would be helped out as well as the banks being paid every cent of what they’re owed and then the domestic economy would receive a boost by those people having more money in their pockets to spend in that economy. As I said it’s a WIN, WIN, WIN situation! The only trouble is will the ‘bankers’ go for it? If they don’t then it will just go to prove that they’re a complete and utter shower of idiots!!! Another thing that might happen though is that the Government more than likely will do their utmost to take that extra cash off those very same mortgage holders in extra taxes such as water rates and property taxes to name but a few in order to keep bailing out both the banks and the so called senior bondholders. If the people in this government have got any sense at all they should be ‘twisting’ the arms of the bankers to make sure that the New Beginnings barristers idea is implimented quickly.

  31. coldblow

    Is this what David means by govt creating the right conditions for business?

    http://www.guardian.co.uk/commentisfree/2011/oct/09/george-osborne-economy-lending-growth

    Hutton begins:

    “Mervyn King, the governor of the Bank of England, was right — Britain is in the grip of possibly its worst-ever financial crisis. George Osborne was also correct when he said the crisis was made by people and so could be solved by people. But both men, now championing £75bn of quantitative easing, cannot be allowed to escape without challenge.
    For the economics that both espouse has been shattered by events. They are being forced into policy measures that their credo overtly forbids.

    “Quantitative easing should not be needed in their world, in which credit markets always work optimally and efficiently. There should never be a need for the state to intervene in the financial system, in effect socialising business lending, to promote the flow of credit to business, as the chancellor has now proposed. In their universe, public debt was meant to crowd out private debt; cutting public borrowing decisively would mean an automatic increase in private borrowing as interest rates fell and confidence grew.

    “It was and is complete nonsense. On the Today programme on Friday, the chancellor, still clinging to the intellectual wreckage, could not agree with the obvious: that too much saving would now hurt the economy. He declared he was not going to tell the British how much to spend or save — that was up to them. It was a breathtaking refusal to acknowledge economic reality, an abdication of economic leadership.”

  32. 13.14: So the next bail-out tranche of €8bn will become available to Greece “most likely, in early November.”

    Watch the toxic derivative trades the following week going up!

    Next round of gambling is announced.

    I imagine Trichet dressed like one of those ladies in a boxing ring between the rounds.

  33. coldblow

    Emails soon a thing of the past? I think not.

    Have so far fought a successful battle to keep the internet out of the house. It’s getting harder, going forward, but, I think, manageable when you know right is on your side. I don’t know my mobile number, I don’t know where it is, and that’s the way I want to keep it. There’s a CD player – let’s not be silly, you have to move with the times. Or as J. Allen might say, Move With Time. n txtng is gd2, as you don’t have to talk. Cool.

    Can people do business over the internet? How is this possible, seeing as once you finally get past the elaborate graphics you can probably already guess the jist (but, like RTE News, they’ll tell you anyway), but when you go looking for actual detail it’s never there. And then social media. I mean seriously, but seriously though… Trying to arrange for three people to meet at the same time and place is impossible – scientifically proven. And they’re living next door to each other. Seriously, like.

    • Re “Have so far fought a successful battle to keep the internet out of the house. It’s getting harder, going forward, but, I think, manageable when you know right is on your side.”

      Don’t condemn your family to rubbish tv and seek to prevent their brains forming with this wrong attitude.

      coldblow, throw away your tv, get a decent laptop, find cable to connect your tv to your laptop, make sure tv supports this functionality; or, get a digital projector and a screen to project your laptop screen onto it.

      Welcome to home cinema.

      Go to Youtube and search under middle ages, history, politics, architecture, or a decent online documentary or film, whatever takes your fancy, get some popcorn for the kids, sit back and enjoy freedom from the rubbish that goes for tv today:)!

      Get an Ipad and download the classics for free from Project Gutenburg.org

      Is this the Amish forum? Lol

      The internet has freed us from the tv!

      • coldblow

        Ah Colm, I had an idea you’d be looking to save me from myself! I don’t know what an Ipad is, but I do know I don’t like it. I’d ask people to explain this stuff to me. But I’d be afraid they’d tell me…

  34. We are Witnessing a Great Moment of Change feel the stretch as the Full Moon Opens ……….NOW.

  35. Adelaide

    The smart economy/the soft economy/the online economy is one of the myths in “23 Things They Don’t Tell You About Capitalism” by Ha-Joon Chang. This sector creates very few actual jobs compared to the hype it generates. For example, “Cloud” computing will generate a mere 8,000 jobs in total, worldwide, while displacing 80,000 jobs. The domestic washing machine has had a far greater impact on civic society than the internet and the production of washing machines has/had created more jobs than all the digital-age jobs combined in total.

    Does anyone remember The Digital Hub in the liberties?

  36. Adelaide

    The hype and myth of the post-indutrial economy of the digital knowledge economy is also featured in “The 86 Biggest Lies on Wall Street”. The UK jumped wholeheartedly on to the bandwagon, relegating its traditional industries to become a nation of call-centres, digital start-ups and financial advisors, easy to establish and yet easy to dismantle and relocate. Their precarious economy is built on a bed of shifting sand.

  37. Adam Byrne

    Very correct Adelaide and I worked in the online economy for years so it’s not like I’m biased against it. Another excellent point that Ha-Joon Chang makes is that too many people go to college these days and there is an ‘arms race’ going in education whereby it’s not enough anymore just to get a degree; you need a Masters, Phd, MBA, whatever – just to keep up. Being a mature student I can honestly say that 50% of the students in my class should be fired out on the street as they have no business being in college. Education (of type third level) is wasted on them. Of course, I wouldn’t want them on the streets actually but there’s plenty of honest trades they would do better in than spending their time lounging in lecture halls, acting like monkeys in their grey tracksuits and wasting everyone’s time, including their own. It’s about time we went back to making real stuff, setting up new (eco-responsible) factories to make things that people need (like washing machines) rather than importing endless crap from here, there and everywhere and hoping that every muppet is going to get a job in the smart economy because they are not! They are NOT smart enough!

  38. coldblow

    Re public procurement, I wasn’t aware that small firms were discriminated against in favour of the large ones. Probably out of my league. With the smaller stuff the idea is generally to get the cheapest quote, provided you have a fair idea they’ll do a reasonable job. When you come across a few new ones who don’t you have to fall back on those you can rely upon. There’s more and more red tape involved, on both sides, as far as I can tell, in an effort to ensure fairness and objectivity. I’d imagine it can get very time consuming for small businesses making a no. of tenders – that in itself may skew the process in favour of the big cos.

    I’m also wondering how the diaspora can be involved more. David referred in one of his books to the fact that 3rd gen or so Irish abroad have no citizenship rights. If it could be arranged (a very big ‘if’ admittedly) then a vote for the Presidency (which has been mentioned) would at least show willing. And if not votes for the diaspora, at least votes for emigrants.

  39. CitizenWhy

    It;s time fro some creativity from Ireland. I suggest a production of the Madd Hatter’s Tea Party starring Merkel as the Queen of Hearts. Other casting ideas?

  40. Realist

    Hi David,

    Very mixed from me as I am unsure where you are sitting here.
    It looks like you cannot tell it openly :)

    This is excellently said and well known.
    > In this new economy, the government can’t ‘create’ jobs.
    > but governments are very bad at creating jobs. In fact, they are very poor at the entrepreneur game.

    Not sure what new economy means ? Economy was always economy.
    Maybe you mean by new, more government controlled economy.

    What environment you are talking here about ?
    > So we need to change the conversation away from the government creating jobs
    > to the government providing the environment for others to create jobs.

    If it is to cut taxes and leave more money for enterpreneurs to invest than good.
    They should stay aside and remove barriers to the business they already imposed.
    If you mean government direct involvement in jobs creation than no.

    So, what exactly you mean here ?
    > The best thing a government can do is set the conditions for enterprise and then get out of the way.
    > However, there is something the state could do: it could buy from small, new companies.

    I do not agree with this.
    > At a time when the private sector is terrified to spend, the only major spender in the economy is the state.
    > So the state could make a huge impact on the success of start-ups by buying from them.

    The state is taking our taxes to spend it on what they think is appropriate.
    Is it not better leave such money in our hands so we buy what we think is best to buy.
    E.g. I want nice meal from time to time, what government is going to buy instead (Gay Mitchell’s posters) ?
    Also, is it not the best to buy from who has the best product regardless is the business small or big ?
    Why they should buy anything from small businesses, if they are less efficient and worse ?

    > This excludes smaller start-ups from seeking business from the very government which is supposed to be supporting them.
    > If we want to promote a culture that generates jobs, we need to promote small, faster, more aggressive companies.
    > We need companies that have everything to lose and can’t turn back.
    Does this mean Amazon’s, Google’s and other big companies are not job creators ?
    Only market can decide what is wrothwhile to invest in Ireland and that is from where the jobs will come from.

    > The Irish abroad are a natural sales force for new Irish companies,
    > social media is the natural sales platform and the state is the natural facilitator of this.
    > Get these three things right and we begin to move forward.
    If Ireland has something to sell you will not need a lot of sales or marketing.
    The businesses will come once the facrors of production become cheaper and more relevant for the international economy.

    I cannot see what is the role of state in here ????

    Thanks, Realist

    • juniorjb

      Realist (rather presumptuous moniker, maybe?) I think most posters here know where to get the gospel according to the Austrian school if they want it! There are I am sure a good number of sympathetic souls here too. One of the things I like about this site is the fact that there are well-informed contributions from a broadish range of perspectives and a healthy focus on specifics. Another thing I like is that I don’t get bombarded with dogmatic assertions and the endless links to the von Mises institute that seem to turn up with a strange regularity elsewhere! At the risk of presumption on my part I would suggest that clear statements of where-one-is-sitting end up in a tiresome ideological and theoretical ding-dong that does nothing to persuade and everything to polarise and divide. You’ll gain more traction with the skeptical by offering the kind of specific analyses and practical proposals that show how and where your theories work in the real world.

      • Realist

        If you like different opinions then why would you discriminate my freedom to post a different view here.
        What arguments did you put to tell me what is wrong with above comments.
        None.
        So better use arguments than just policing around.

        • juniorjb

          Nobody discriminated against your freedom to post, so stop behaving like an adolescent.

        • Re “If you like different opinions then why would you discriminate my freedom to post a different view here.”

          I don’t.

          You should be as free as you are to express your views there, just as I am.

          Feel free to comment on my own views and expose any stupid arguments I make as well:)

          Actually, I believe you are far smarter than the views expressed by you above, you’ve just got more learnin ahead of you, as we all do:)

    • @Realist,

      Sorry to be so blunt, but your post there is disturbingly stupid:

      Re “The state is taking our taxes to spend it on what they think is appropriate.

      No, they are given a democratic mandate vis a vis election policies plus protocols to adequately fund state services, education, health, transport, etc

      Is it not better leave such money in our hands so we buy what we think is best to buy.

      No, one of the reasons we have a state is because Realist can’t afford to buy a school to educate his children in

      E.g. I want nice meal from time to time, what government is going to buy instead (Gay Mitchell’s posters) ?

      Stupid argument:)

      Also, is it not the best to buy from who has the best product regardless is the business small or big ?

      That’s an argument in favour of giving business to small business when often its excluded from the market based on size alone

      Why they should buy anything from small businesses, if they are less efficient and worse ?”

      No, you need to turn your own argument on its head: Why they should buy anything from large businesses, if they are less efficient and worse ?

      Certain lack of realism above:)

      • Realist

        I will skip things like calling me stupid and try to use arguments :)

        > No, they are given a democratic mandate vis a vis
        > election policies plus protocols to adequately fund
        > state services, education, health, transport, etc

        Yes, they are and I am not disputing that.
        You voted for 4 years politicians term, so they can go and bail out banks/builders with 100′s of billions of tax payers money. Or they can decide this December any kind of budget and you will still call them legit of course.
        Excellent democracy really, especially if you are living in that high class cast.

        > No, one of the reasons we have a state is because
        > Realist can’t afford to buy a school to educate his
        > children in

        If I am not to give half of my money to government through income tax, vat (backward imputed income tax), inflation tax, bailed bankers tax, …. I am sure I will have enough to pay for the school.

        > That’s an argument in favour of giving business to
        > small business when often its excluded from the market
        >based on size alone

        Does this not mean your democratic government is wrongdoing when excluding small ?
        I above only suggested size should not mater, all companies are equal so whoever can deliver should be chosen.

        > No, you need to turn your own argument on its head: Why
        > they should buy anything from large businesses, if they
        > are less efficient and worse ?

        I have nothing with neither small or big businesses. Government favours their own companies to deliver them goods regardless are they the best value for money. They can use reasons like local companies, big or small, it does not matter, but what I want is to not waste money.
        Telling they should buy from small, or even local is a bad policy. Whoever can deliver the best product for particular usage should be doing that.
        No favours for inefficient, ethier big or small.

        > Certain lack of realism above:)
        I would leave things like that for others to judge.

        • Actually agree with your arguments there, currently government discriminate against small business, favour cronies, builders, eg NAMA, bankers, Pravda RTE salaries etc wastage and pouring your taxes into rotten banks while betraying the electoral mandate of the people given to them to deal with the banks.

          It should be made more democratic, efficient, certainly but eg they are damaging the education and health of the nation….I get your point, stupid me:)

          • Realist

            Agree with that.
            No, we are not stupid :)
            I might offend you all with my links to mises.org
            I am not going to put one link anymore, even if they are very educative (unsure why nobody likes them).
            I will try to use real examples in the future and be more concrete.

        • juniorjb

          I expect you’ll find that most people here will agree to some of the principles you refer to, but the point is: how does this help us? There is a huge hinterland of research, argument and reasoning behind the various economic theories subscribed to and it is simply not persausive or useful to make basic assertions. You need to show how these principles effectively describe specific situations and when you make claims to the effect that, for example, in the abscence of taxation you will fund your own education etc., it makes for a much better argument if you can show us how you will get from precisely where we are now to where you claim we should be. I think most of us have heard all the arguments you make many, many times before. They are easy to make. The difficult bit is applying them.
          I’m not going to get into an abstract theoretical argument – I’ve seen many come and go with little enough consequence and this certainly is not the place for them. I would encourage you to adopt a more flexible attitude to such things: I believe you’ll find it’s less embarassing when the time comes to look back.

          • Realist

            > I expect you’ll find that most people here will agree
            > to some of the principles you refer to, but the point
            > is: how does this help us?

            Firstly, it helps many people to revert from thinking that government will help us out.
            They are not the same as private enterprise, nor having voluntary consumers, nor producting product to compete with other enterprises.
            You can hear only in public sector that there isnot enough of something, e.g. hospital beds, water, police, or whatever they are suppose to deliver.
            In private sector if consumers want more of something it is delievered to them.
            What government wants more is money to spend it on many useless projects.
            How on earth they can know what the whole society needs, when the society means you, me and 4 million of others who are deciding every day what we want to buy, eat or drink.

            > There is a huge hinterland of research, argument and
            > reasoning behind the various economic theories
            > subscribed to and it is simply not persausive or useful
            > to make basic assertions.

            I know there is a lot of research, but that does not mean all are good.
            This is why I am trying to persuade people to look for alternatives.
            This crazy printing of money around the world by Keynesian economists who uses complex and wrong mathematics to explain things is obviously pulling us into the bigger and bigger hole.

            > You need to show how these principles effectively
            > describe specific situations and when you make claims
            > to the effect that, for example, in the abscence of
            > taxation you will fund your own education etc

            How private companies work you see every day.
            For example car insurance is fully private and you can pick it from at least 20 companies.
            Electricity, gas and other services are mainly private so you have competition and proper pricing.
            Bakeries and many other stuff are private.
            I lived in the country where I had only 1 type of bread produced by public bakery.
            Also private companies produce product that you can try and discard if not good, take some other from other company.
            This is why I do not see why government needs to take more and more things into their arms as they do not know what consumers want.
            They have no ability to test their products and services on the market, they just give us and we can like it or not.

            > it makes for a much better argument if you can show us
            > how you will get from precisely where we are now to
            > where you claim we should be. I think most of us have
            > heard all the arguments you make many, many times
            > before. They are easy to make. The difficult bit is
            > applying them.

            I know applying them is not an easy task, but that does not mean it is impossible.
            But that is not in interest of politicans to give up the power, to give up their salaries and benefits.

            > I’m not going to get into an abstract theoretical argument

            So, you tell me what is your solution, when you are so smart ?
            My solution is that private and competitive free market is away better than government owned non-competitive service.
            That means we should slowly go and try to privatize one by one government functions, starting from removal of central bank and adopting sound money and not fiat money.
            If you say that is impossible, you find me the reasons why not.

          • juniorjb

            I don’t need to have all the answers to be able to tell you that you do not have them either. You are arguing from first principles, which is fine as a scholastic exercise, but my original point stands: show me the details, how do you get from precisely where we are now to where you want to go? That requires attention to a whole range of economic, historical, social and political factors. I would at least suggest that none of the things you ask for will ever be instituted in the pure form your theory demands for a number of social and political reasons.

          • Realist

            > in the pure form your theory demands for a number of
            > social and political reasons.

            It is not the theory, it is a fact.

            I understand it is too hard to implement when all powers are int he state hands, so who is going to change that and how is hard to grasp.
            Also I am not sure how to tell 30% or whatever number of public and public related workers to work in private sector in 5-10 years from now.
            They will all say that is utopia.
            Of course it is as it is easier to live on somebody else’s back.

            Till there are people like you who oppose any progress in mankind the state and government will only grow in size till people get sick.
            This time might already come as you can see more and more people are complaining about stupidity of government expenditures.
            How big taxes they are going to impose this December and how democratically we are going to object :)

          • juniorjb

            Exactly – you have no idea whatsoever how your theory will play out in reality. If you insist that what you are proposing is a fact rather than a theory then I can only insist that you are refusing to acknowledge any reasonable distinction. BTW, we have heard all this before ad infinitum – there are other websites you can go to if you wish to chant “four legs good, two legs bad” and so on but if you stay here I for one would prefer it if you read the other contributions for a while and post when you have something original or pertinent to say. That is just my preference, you can of course do whatever you please. I hope you don’t now feel oppressed or discrimated against, but then again, no one forced you to write that cheque so don’t be upset if I ask you to cash it.

          • Realist

            juniorjb – how practical you want me to be.
            Is it not practical to privatize education, healthcare, welfare and other things from government hands.
            If you want them public just look back in the past for socialist/communist countries where everything was centrally governed.
            Anything that is public is just waste of money and efficiency due to proper reasons.
            I do not know what is your stance on all of it, as cannot see from your post anything ?

          • juniorjb

            That’s a ridiculously simplistic way of looking at it. There have been welfare states in the West since Bismarck at least but you sum it all up by invoking the USSR? You should get around to studying something other than mises.org and add a bit of subtlety to your outlook. Anyway, you are confused in what you want – on one hand you want nothing less than a total re-organisation of the global economy and society (remember, if people are to fund their own this, that and the other almost no taxes and almost no state, fiat money etc) yet your only half-concrete suggestions are for piecemeal reforms. I just don’t think you have thought it through beyond the nostrums of private good/public bad.

          • Realist

            My views might be simplistic, but simplicity doe not mean it is wrong.
            Do you expect me to invoke mathematics in all of this, even I know a lot about it. I used to compete in it a lot but that does not mean I should apply it to everything.

            Do you want me to explain this crisis and problems with it in econometrics ?
            If you are seeing this current crisis being nice to mankind and is driven by wrongdoing of governments and their economists by using crazy complex mathematics and jargon nobody understands you are no better.

            I anyway have no clue what you are talking about as I did not see one argument from you or that you put yourself to any side. I can only guess that you are a public worker or politican waiting to do well in your public service.
            Good luck with it.

          • juniorjb

            The reason you don’t get an argument from me is that you are very keen to line everyone up on either side of the neat little Manichean divide you use to orient yourself. To engage you in that way only reinforces your sense that this gives you some purchase on the world. I think your attempt to pigeonhole me (entirely off the mark btw, I’m self-employed) demonstrates that only too clearly. I don’t take issue with your views, just your manner of argument – you are dealing with a complex reality by painting it in stark black and white. Very dramatic, but intellectually lazy. Try reading some of the people you don’t agree with for a change – I’ve never met anyone who was entirely wrong about everything. Not as exciting or comforting as them and us, but more honest.

  41. EFSF

    Bingo!

    Allianz, which has trillions in fixed income exposure all over the world, so it is no wonder it is pushing hard for the world’s taxpayers to bail it out.

    http://www.zerohedge.com/news/latest-incarnation-european-cdo-cubed-bailout-swiss-army-knife-multi-trillion-insurance-policy

    • Georg, tks for interesting article there. I’m not sure I fully understand the twist of turning EFSF into an insurance type bond. I get it that Allianz is exposed to fallout of €450 bn vis a vis European banks, so there is the amusing thought of an insurance company issuing insurance to itself against its own losses.

      I’ll leave it to your imagination the thought of a company funding losses when it already has lost that amount of money.

      But maybe I’m missing more on how the EFSF as insurance bond is meant to work. If you have further explanation to add the the piece, please do:


      With time running out to finalize the euro zone’s bailout fund, a plan by giant German insurer Allianz to turn the fund into a bond insurance program is gaining traction, the company’s top executives said Tuesday.

      The proposal to turn the European Financial Stability Facility into a institution that protects investors against a portion of losses has garnered support from other major European insurers and banks in the region, Paul Achleitner, the proposal’s architect and a member of Allianz’s board of management said during an interview with the Wall Street Journal and Dow Jones Newswires. After initial setbacks, the plan is now also being taken seriously by euro zone governments, Achleitner said.

      With EUR450 billion invested in European assets, Allianz is the continent’s largest investment institution.

      “Don’t use the EFSF as a lender, use it as a bond insurer,” said Achleitner, who added that his plan would expand the impact of the EFSF, which currently has a lending capacity of 440 billion euros, to cover more than EUR3 trillion in bonds. That estimate assumes that 20% of the debt issued is insured and that it draws upon the full EUR780 billion that euro-zone governments have agreed to guarantee as backstop to the EFSF.”

      Correct me here, if I’m wrong, is the above stating that only 20% of the EUR3 trillion in bonds, will be covered by the EUR780 billion? So the logic is, we could have EUR3 trillion in losses, lets cover them in an insurance bond with a backstop of EUR780 billion, the losses because of the way insurance works, will have to be proven, this will take, decades; by the time losses are proven, crisis will be over, some of those bonds will stop being losses?

      Anyways, don’t have a full handle on the bond concept, anybody has further info on the conceptual side of this insurance, appreciate letting us know. I’ll keep an eye out for further info.

      • At this point it is stupid to even comment on these ridiculous daily releases. Issue bullshit rumor, rinse, repeat, and so on until the latest portion of bullshit sticks to the wall for at least 24hours. Then start process all over again.

        • Yep, to me it shows the uncertainty, disorganisation, and plain panic of a lot of turkeys waiting for Christmas….there’s an extraordinary amount of activity as they attempt to prevent the mudslide that’s coming..

      • Malcolm McClure

        Insurance fund is a stupid idea. It simply lets the vendors of CDS cover off the hook. IGS would be delighted as would Goldman S., and ultimately US taxpayers via TARP2.

  42. CitizenWhy

    Very interesting article about growing jobs locally. One approach, that of Austin Buetner, calls for harnessing area resources to help attract new employers. The other approach, that of John Kotkin, favors growing small businesses from local seeds that already exist.

    Both approaches call for trimming back the bureaucracy and paper work imposed on small businesses in favor of simplicity and harnessing resources the businesses could use to grow.

    http://www.nytimes.com/2011/10/02/business/jobs-crisis-in-los-angeles-and-two-possible-approaches.html?ref=jobs

    “We’re not using the assets we have, not thinking creatively how the public and private can work together.” Austin Buetner

    Worth a read.

  43. CitizenWhy

    “There are two novels that can change a bookish fourteen-year old’s life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves Orcs.”

    -John Rogers

  44. The Economy of Hauz Khas in Delhi

    Generations of traders in this vast ancient middle class shopping center have preserved the very old trading traditions that have never changed over many many centuries .Reincarnation is venerated at every corner and observed by simple ways of recognition such as a small flower placed near a place of an ancient event a long time ago. Recipes have never changed or codes of work practice .All products are the same and in the same part of the building over all those years and with the same families that have written history longer than any modern aristocrats .Dickesian characters mix with the complexity of its walled in economy and a solid sense of purpose bonds the customers that have visted this market over its moments of life.

    There is only one change over all these times of events and that only is PRICE .

    Our supermarkets are the inverse of Hauz Khan just look at empty shop display areas.

    Maybe we need to learn more about Reincarnation to bond our local markets and keep our traditions and famiies intact.

  45. Noonan needs to be fired asap, and these shites of his consultants as well.

    • Excellent link to videos, tks guys, I guess we won’t be getting our referendum, or John Major or Monckton over here then..maybe we could have a bankers Feis Ceoil, Enda Kenny, Noonan, Suds, Dukes, Micheal Martin(remember him?) on the Late Late singinging along with our Magnificent Seven(you know who those spoofers are:)

      metastasizing totalatitarianism …do you get the impression from Barroso of similar reassurances to us re his plan that recall reassurances given to groups of people herded onto trains in WW11

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