December 5, 2011

More Euro Denial

Posted in Articles · 104 comments ·

When the family starts talking more about the doctors than the patient, then you know you have a serious problem. Have you noticed that, when a patient is really sick and the prognosis is truly dire, the relations try to console themselves by discussing the quality of the medical staff? This is because, as the risk to the patient increases because the virulent nature of the disease or ailment becomes apparent, the chances of buying time have more to do with the dexterity of the doctors than the health of the patient.

Equally, when the patient is very ill, the family will latch onto the smallest bit of good news, a recovery here, a sign of vibrancy there, and try to convince themselves that this is the beginning of a change in fortune. This is natural human behaviour and anyone who has been through such an experience will recognise the pattern.

Last Friday, the patient — the Irish economy — revealed its current state, with the exchequer returns showing that tax revenues were running €500 million below target. Our economy is weakening again — and quickly. Yet all the attention was on the doctors.

Let’s think about the euro in its present form through the prism of a patient and doctor. At the moment, everyone is talking about the team of doctors led by Sarkozy and Merkel, the European Commission or the European Central Bank. It is very clear that the solution the doctors have proposed is insufficient and is more about enhancing the reputations and careers of the doctors than helping the patient.

However, the media is so full of people who are enamoured by the “doctor knows best” line that it will spin anything to point out that the “men in the white coats” are right. Therefore, we see in the last few days the media clutching at emergency procedures — such as the massive central bank injection of dollars last Wednesday — and seeing them as a cause for hope. We forget, at our peril, that emergency procedures are performed only when the patient is at a critical stage.

My own guess is that the central banks intervened last week after hitting the panic button. They did so because it was highly likely that last Thursday a major European bank was about to go under, causing a massive domino effect across the ruined European banking system. A European Lehman was on the cards. The doctors have bought themselves time, rather than delivered a solution.

Everyone knows that lending cheap dollars to the banking system, allowing that banking system to borrow money to pay off old debts, doesn’t make things better; it actually makes things worse. All you are doing is adding more debt to a balance sheet that has been destroyed by too much debt in the first place.

The mainstream media reported the extraordinarily bullish reaction of the financial markets to the emergency procedure as being indicative of success or a “corner being turned” — again.

But this is not accurate. The wild volatility of the markets is not a sign of confidence in the future but nervousness about what happens next.

So a panicked market focuses on the doctors and what they are saying — a speech by Sarkozy or an utterance by Merkel. However, we must remember that the patient is the economy, whose health is ailing because there is no growth. Without growth in Europe, the risk of default rises because the tax revenue necessary to pay off the debt is falling and therefore there isn’t enough money around. The remedy proposed is to raise taxes and cut expenditure, so this will cause the economy to falter. Thus, even less revenue flows into the coffers and therefore the debt spiral takes hold again.

Obviously in such a scenario, those institutions that hold the debt — mainly European banks — see their portfolio falling in value. As this happens, the mismatch that underpins all banks’ financing position becomes acutely problematic. The nub of the banking mismatch is that banks borrow short and lend long. This means they lend to you for 20 years in the guise of a mortgage, yet they borrow from your neighbour in the form of deposits that can vanish any day.
At best, the banks can try to “lock in” deposits by offering your neighbour a savings product for a year which means that your neighbour can’t take his money out.

But the truth is that most deposits can come and go as they please. If the banks have fewer deposits than they have lent out in loans, they have to borrow from other banks. So they depend on each other to keep liquidity flowing.

But if the banks lose faith in each other and stop trusting each other, because they feel that a bank may have too much worthless government stock on its balance sheet, they stop lending to each other. Rather than lend to other banks, they put their money on deposit with the central bank.

Last Friday, the use of the ECB’s deposit facility, which pays only 0.5 per cent interest rate, was reflected in an all-time high of over €313.763 billion, even higher than the €304.42 billion recorded the previous day.

This means that banks are depositing money at the ECB rather than with other banks, and therefore the other banks that need money are facing bankruptcy.

This is what has been happening in Europe all week and this is why it is likely a major bank was about to go bust last week.

Now we face into another week of turmoil. The doctors — Merkel and Sarkozy — have come up with the latest remedy, which is fiscal union.
But what they have come up with is not a fiscal union but simply an aggravated version of what we have now, which is all countries issuing their own bonds but with penalties from Brussels if we issue too much. For this they want us to vote on a new treaty.

Snap out of it, Angela. If you want our support, come up with something that helps the patient. The banks are bust, the economy is in a tailspin and you want more rules and regulations when what we need is growth.

Give us a break.

We are moving into phase three of this crisis, and it is time that we in Ireland realised what is proposed in Europe now will do nothing to arrest the collapse in our economy.

It is time to think of the patient and not the doctor.

  1. Dorothy Jones

    [This might be posted twice? Moderator you,ve moved the article and deleted posts, so if it is I'm sorry]

    From Above:

    ‘Snap out of it, Angela. If you want our support, come up with something that helps the patient. The banks are bust, the economy is in a tailspin and you want more rules and regulations when what we need is growth.

    Give us a break.’

    German handling of the crisis is like watching an attempt to take a wide angle-shot using a zoom lens; the resultant antics of European politicians resemble a 17th Century French farce. It would be hilarious….except that it really, really is not

    Strings which are pulled include:

    - Bundesbank President Waidmann is against the Eurobond idea; Schaueble wanted his deputy Asmunssen to be allied to him; both Asmunssen and Waidmann studied together at University under Axel Weber, who……. opposed to the idea of Eurobonds.

    -Same Axel Weber as advisor to UBS and his admirer Josef Ackermann at Deutsche will make sure their interests are protected.

    - New guy for the helm at Deutsche is Achleitner, former head of DD Goldmann Sachs

    Backdrop in Germany now:

    -‘Canary in the coalmine’ Commerzbank may have to be nationalised in the immediate future. [Sign of things to come, keep an eye on Sparkasse, will it follow suit?]

    - Deutsche denies that it will need State assistance to maintain its required capital and intends to sell some of its asets to an already crowded market to make up the shortfall. That old chestnut again.

    And the political spin:

    -Merkel sends out all the wrong signals when she mentions ‘Durchgriffsrechte’ [ability to intervene] in tandem with the fiscal union. Even I blanche.

    -Roesler, the Economy Minister, says that there is absolute opposition to Eurobonds; he says ‘God helps those who help themselves’. [They haven’t forgotten about Depfa, LBB you know; or anything]

    -Schaeuble the Finance Minister says they might be open to the idea of ‘Tilgungfonds’, [whatever they are when they’re at home], which Draghi would accept as a short term solution. He wants to fast-track the EFSF proposals / committee, but the constitutional court in Germany won’t even have this addressed before year end.

    The truth is that there is no German plan to deal with the crisis at all. There is only a concerted effort to save the German banking system.

    The solution for this has to come from outside.

    It’s a Thelma and Louise moment; after Merkel and Sarkozy exchange knowing looks; the car is likely to career off the edge.

  2. Welcome to the United States of Germany

    The Insanity goes deep, they keep raising taxes and cut spending, and this is exactly the prussian policy dictate that causes deficits to grow!

    Funding is conditional on prussian austerity demands that is intensifying, despite recession to hit again all countries.

    The suggestion to boost and strengthen the IMF can be understood from the perspective of the ‘Golden-Rule’ that Merkel speaks of, only, it is a very different rule in deed as those who hold the Gold will rule.

    Technically, the ECB would find it very difficult to impose collateral demands against lending facilities, the IMF is an entirely different story, this is what they do throughout history, this is what the banking mafia was setup for in the first place, to steal peoples assets a penny on the dollar.

    Goldman Sachs banker Draghi accepts the prussian politics and will insist on even greater fiscal austerity, devastatingly deflating European economies further and create what? That’s right, higher public debts.

    The only way to stop this is for the public to revolt, revolt on a large scale, and civil disobedience is only the first name and a rather harmless way of standing up against this enslavement, and it will not be enough. Only a full scale revolt will stop them in their tracks. They are fanatics and they will follow through.

    The intellectuals of each country are required to combine their efforts, the time of serious dissent is now, or never.

    • What, are you mad, go out into that cold? Sure the fire is on and Tubbs…the charming smooth raskell has Michael Buble on the box.

      And then tomorrow night is X factor semi final night…then Liverpool vrs Arsenal and next week the century changing Man u vrs Chelsea!!!

      What? Who’s that at the door? Sheriff who?

      I have to leave now and take some clothes?

      Can I come back? No!!

      Oh well maybe I should have protested but still it was fun while it lasted….the Government will fix things I’m sure….didn’t they promise me outside of Mass one time……

      • @Josey

        You forgot the word ‘ Attachment ‘….when you open your bank account the money is gone , taken by the sheriff / revenue without your knowledge beforehand.You will find one on a ‘mean road’ near you.

  3. ~~~~~~~~~snooze..~~~~~~~ ( where is germany on the map)…~~~~~~~snooze

  4. Philip

    The banking / financial system is smashed. In more normal times, you’d balance the books, do a cut here, a tax grab there and move on.

    In Ireland we have have insolvency due to broken banks. Not due to a broken economy – 70% of that was working well. Now that the 30% due to construction is wiped out, the rest is now being crushed by an international downturn.

    We cannot operate using classic book balancing methods aka austerity/ diet plans which usually kills off the excess to allow the rest to renew. The trouble is we do not know what method we can rely on now.

    Doctors rely of well tried and tested protocols/ procedures. But when the illness was never encountered before, they need to be creative and very honest. Competence is naturally called into question.

    So David or anyone for that matter anyone…what are we to do? Is democracy being destroyed by those leaders who find their hands tied by an angry and mindless electorate/ media, will technocracy arise becasue so called benign dictats are the only alternative available for such a small time frame.

    Messianic times….

    • bonbon

      Merkel is DDR, and resembles Honnecker often who had a different view of democracy, up to the last minute. Also known as the Zikzak Kanzlerin, changing direction all year.

      But now she has 9 Constitutional Court judges, not the slightest bit interested in medicine who have begun to rule much faster. People underestimate the weight of the Basic Law. These judges are in red gowns, not white.
      They tried to claim ignorance in financial matters this summer when ruling against a Euro charge brought by the elite against the government. Next time they ruled in 1 day. Now I am sure they have brushed up – maybe checking this blog ;-)

      So far this Court is the anchor. All kinds of trickery is being tried to get around this and quickly appears in the press.
      Looks like no more zigzag, no wiggle room left, so add on some sound-bites.
      Austerity and intrusion – that it folks.

    • bonbon

      And remember not a single treaty or addendum was ever put to the people – the DM was taken, simply stolen. If Ireland tries to put a new treaty to vote, Germany likely will not get the chance. The treaties are then written into the Basic Law making them Constitutional for the 9 to check. The point is that Germany has a Basic Law, no Constitution, until the entire BRD decides to do one. There are clauses there to make sure the Weimar catastrophe cannot occur again, and emergency enabling laws also not.
      So why should any other nation allow any of these catastrophe’s? No one can say we have not seen that disease before.
      I think Judges have a longer memory than Doctors!

  5. bonbon

    Exactly. But how to make up for 35+ years of no physical economic growth, in Europe and the USA, when most do not even know how to measure the physical economy? They always measure in monetary terms where chaos has everyone fascinated, mesmerized.

    Its more a kind of post-traumatic-shock, rather than denial. As Tavistock “research” shows, susceptibility to any belief no matter how crazy increases with the trauma level. Example “austerity creates growth”.

    Some here are snapping out of shock I notice. A healthy sign.

  6. Juanjo R

    This is weeks late. Credit crunch no.2 has been underway since-mid November the libor and repo markets have been frozen or in disarray since then.MF Global – using the famed and proven Lehmans model – collapsed a while back. Unicredits been at the edge for a while – it posted a ‘surprise ‘ 10.5 billion loss recently that the media didn’t pick up on particularly since the Hungarian default. And Italy = unicredit. The markets did though, hence the bond yields.

    I only wonder how long the euro charade will go on? Like critically ill patient of the article above its only a matter of time.

    Can you get a odds on how long on paddy power I wonder? Its a way to make money.

    C’mon guesses here people!

    • Dorothy Jones

      You are right.
      Not sure if PP is giving odds, but worth a flutter with willing players, never a shortage!
      If Germany and French banks are downgraded this week, I win a few quid.

  7. Adam Byrne

    The ‘latest wheeze to save the Euro’ says Jeremy Paxman, hahaha.

  8. Solidarity

    Why should I – You – need to worry about markets, rating agencies, investment bankers, Comex – btw. they are extremely short at the moment! – Forex, ECB, FED, SDR’s etc.?

    In Germany for example, the amount of people who have a vested interest in stock markets is in the low single digits, but the mainstream media exclusively serves them their daily fix of DAX news. At the same time, as per latest OECD report, the social divide in Germany never was any bigger, the gap between a small layer of rich and super rich and the majority of people with ever decreasing possibilities and standard of living has to be bridged or will be cause for major and longterm social conflicts.

    The social engineering at work here is totalitarian and has no legitimation by the people. The people in power in Europe, and I wrote about it many times here are Lobbies and the overwhelming presence of the right wing EPP in all three major European institutions. Ireland currently is prostituting itself to their EPP friends.

    Here is how I look at it, the socio-economic task of financial systems, and the theoretical economic framework on which they are constructed, are about allocating capital and managing risk. – Correct? -

    Now, clearly both main tasks completely failed to deliver.

    The reasons are multifold, incompetence and national interests, a overwhelming lobbyism, capital cronyism and corruption, as well as major and system inherent flaws in the banking sector that never were addressed.

    However, all this is no coincidence, it is part of a social engineering that is rolled out in front of you by what I would call salami-tactics, and this is why I called it a slow motion coup. The ridiculous budget show in Ireland is a good example on how this salami-tactic works. They present the budget now in two consecutive days instead of one, and of course, the many weeks before this date, to slowly cook the public by means of their controlled media.

    Seriously, it is blatantly obvious what is happening here, and the same counts for the bigger stage.

    While it is encouraging to see that bigger brains than I, like Juergen Habermas, one of the most influential philosophers of our century, agree to the use of the term coup d’état to describe the events unfolding, it is only little comfort.

    What remains is the overwhelming insight that without a public standing up for their rights and clearly stating demands from the political players, there is no hope that the social engineering plans will be stopped in their tracks.

    This requires solidarity amongst the social divide that was implemented in Ireland in purpose. It is not enough if 250 people demonstrate a few hours for their specific cause, or the next week 2,000 people protest for their specific grievances.

    You have to understand that only the solidarity amongst our people has the power to change the events, and this solidarity needs to be expressed across the national borders, a solidarity that is expressed with our brother and sisters in Greece, Portugal, Italy, Spain, Beligum, France, Germany, Egypt, Syria, Iran, U.S.A., China etc.

    The reason why such an enormous Solidarity is required is simple. The global dynamic power shift coincides with the decrease of resources, and this is a dangerous situation. It is comparable to the dangers when a recession coincides with a financial crisis, as Kevin O’Rourke showed recently in his “Trilemma Presentation”

    We need a broad anti technocratic social movement, making use of civil disobedience and resistance to advance the rights for social change that is not based the demands of elitist rich and super rich.

    OWS could be a start into such a broad social movement.

    The deliberate omission by certain Economists and this includes David Mc Williams to acknowledge this movement, their refusal to use their public presence to discuss and support it, this is a statement on it’s own. In Ireland he is not alone, the “Oirish Economy blog” is another striking example of a collection of mainly Yes-men, with a few exceptions that is.

    This solidarity has to be founded on strong foundations that are inclusive and that reject racism and extremist views.

    In the 80s, it was Pope John Paul II who expressed Solidarity with the poor and marginalised and openly supported Lech Walesa and the Solidarnosc movement.

    It is this solidarity amongst our people that is required, anything less will not suffice. Large scale Resistance is the only answer left.

    • Jimmy R

      Having purposefully watched the film “Gandhi” over the weekend, I was given a lesson on peaceful civil resistance. I think it would be in this countries interest to waken up central europe by staging a few days of “fasting and prayer” as Gandhi advocated and shut down the country. If we made sure that the nation was fed during these days then the disruption it could cause to those elites that are taking our money might bring about some change.

      I’m only 23 but it would be nice before I die to live in a society and not an economy for a change.

  9. Tull McAdoo

    There is a point that is being raised regularly by the present government and it is this that the decisions that they are taking in terms of fiscal adjustment are being made to restore Ireland’s economic independence. This idea of economic independence is then usually followed up (by whichever spokesperson that is wheeled out) some rhetoric about how our national sovereignty has to be restored.

    The general view therefore amongst these elected representatives seems to suggest that if these austerity measures are implemented and if all this “pain” is accepted then we can at some point in the future expect to have our economic and national sovereignty returned to us.

    Without making light of the situation, this policy seems to the suggest that if you work hard for the present holders of our sovereignty, which appear to be, in no particular order, the troika, bondholders, ecb, etc. then at some point, when they feel satisfied about the amounts that have been paid over, that they will somehow hand us back the title deeds to the country and we can move on with the roofs over our heads secured.

    We have been asked to rally around this cause, put on our green jerseys and fight for the return of Ireland’s sovereignty. Now just as an aside let me point out one little matter that has been carefully overlooked in these various calls to arms and that is what shape this newly returned sovereignty would take.

    As a further aside this all smacks of the new deal that was promised to British soldiers returning from the world war, who were also told that Britain’s sovereignty was under threat and needed to be fought for through austerity among other things.

    To cut to the chase here, let me point out the obvious which seems to have escaped most commentators over there in Ireland and it is this….. Ireland handed over its Monetary policy making decisions to the ECB……….Next move will be a gradual handing over of fiscal policy, where various criteria will need to be met in order to secure funding and failure will mean severe sanctions.

    I think It was one of the Rothschild’s who said something like, let me control the issuing of a nations currency and I care not who runs their government or words to that effect. The key point here is that whoever controls the currency through monetary and fiscal policy, pretty much controls the country.

    So in conclusion , no matter how much Ireland decides to repay to whom, as long as someone else controls our monetary and fiscal policy then talk of a return of our national or economic sovereignty is a load of old tosh.

    It would be like Leitrim looking for a return of its sovereignty from Dublin. My advice is not to buy this sovereignty argument from those who could give a toss about sovereignty and this was evidenced by the fact that they gave it away so cheaply in the first place to satisfy their own self-interest. Sovereignty in this case is turning out to be the last refuge of these scoundrels…

    Sorry for the extended post, but I needed to tease that point out before to many more gets taken in by it.

    Goodnight Ireland. Sleep well.

    • … whoever controls the currency through monetary and fiscal policy controls the country.

    • bonbon

      Right about currency. Nobody believes a word from Kenny. The problem is how to effectively counter it.
      I think Ireland has a better chance than the U.K, where the riots recently showed the complete breakdown of society cut off from any culture. The “Sceptered Isle set in a silver sea” has lost its Bard.
      But not completely I am sure.

  10. bonbon

    Closer to home than India, and the great Ghandi who faced down the British Empire and the Raj, but much more recent, 1989. Ghandi’s mentor was Gandhar Tilak.

    Amazing how Germany “forgets” itself. The DDR was brought down in a spontaneous march from Leipzig, that no-one was prepared for, not the Stasi, and especially not Bonn. They used to meet at Thomas Church (Bach’s church) and an almost forgotten priest Father Führmann (kein Witz) spoke often. The crowd gathered one day, numbers building steadily, and faced down the Stasi, and the DDR army, who refused to shoot. This is a world record. Everyone saw them on the Wall, but not at Leipzig. Why Leipzig? Culture!

    Typically Germany will not talk about this. First because of the inferiority complex ex-DDR people have, and second to look “European”. Never forget what the Stasi was, riddling the people with “Spitzeln” spys. Merkel herself was one at the Uni. But the main obstacle is the Wessies, the west Germans after 60 years of CCF cultural brainwashing the DDR did not have, simply are incapable of any kind of Leipzig march. Something was not lost in the DDR even with dictatorship, that was almost but not fully erased west.
    This is a bit similar to Eire Tigers. This “something” is almost gone. Previous generations had it, and President Higgins talks about it. This is why FF,FG/labour get away with daylight robbery.

    Second Ireland is not prostituting itself, FG/Labour is, like FF. Every country has them – of course “ours” are worse than “yours”. Some German and Irish politicians are doubling over to look “European”. Kenny did an especially good european pantomine. Merkozy do walk the walk, talk the talk like europeans, don’t they?

    But both the Leipzig and Solidarnosc movements lost the core concept and were “westernized”, so the job is not done. Missing was an understandable economic concept.

    So we need each sovereign country to rescue its own unique national culture, and at the same time demand clear beneficial changes for “the other” – Westphalia Treaty at work.
    Germany with Schiller, Leibniz, Bach, Mozart, Ireland with Arthur Griffith, and more music than I can list here, France with Bailly, Carnot, Fermat, Rabelais, Spain with Cervantes, Italy with Dante, Macchiavelli, Greece with Plato…
    What culture Europe has, an unbelievable mine of ideas! Not all lost, and all that remains after the elites destroy the economy.
    The banksters would like nothing better than a mob with no past, no future, cut off, and totally lost, adrift. Their “culture” is money.

    • bonbon

      Treaty of Westphalia, foundation of Europe, rests on this one principle : each sovereign state develops itself fully and regards its self-interest to develop the others fully, and vice versa.
      Ireland has I think no problem with this and instinctively knows what this means.

      Blair and others speak of a post-Westphalian epoch – this must be refuted. Maastricht and imposed austerity are a flagrant violation of this basic principle. A dagger in the heart of Europe. The EU is not a state committed to development of the other. It is a post-Westphalian construct, in other words feudal.

  11. bonbon

    Why not organize an active Westphalian contingent to represent the interests of Ireland, meet with a Greek contingent committed to exactly this and next stop Germany, Portugal,…? Since elected figures are not representing national interest why not do it ourselves? I am sure common interest projects would spontaneously be proposed. If we need a bank use one that has been thoroughly glass-steagalled.

    National interest as the commitment to the full development of the other. I think it will be easy to find others who think this way. Fair-trade is easy then. No need to stop anywhere with this. It could be a start.

    OWS people are tough, might represent a national culture to the world, committed to this principle.

    Occupy the vacuum created by the implosion of the financial system.


    It is time to stock up on ammo and get some extra crispy calibers to defend your property and your rights!


    The annual charge is €100 but it seems you will be able to pay it in four instalments but the Bill doesn’t give full details of the instalment plan. You can expect the €100 flat charge to increase after 2012. The betting is that the charge will ultimately end up at close to 0.5% of the value of a property each year, in other words if your property is worth €300,000, the annual charge will be €1,500 but to stress, the Bill introduced this morning is for “just” €100 and future changes to the charge is conjecture at this stage…..There’s a late payment fee of up to €10 for payments being up to six months late and €20 for 6-12 months late and up to €30 for 12+ months late payment. You’ll also need pay interest at 1% per month on late payments. Unpaid charges can be registered as a charge on the property and sellers will need evidence they are up to date with their payments.

    • It is estimated that there are some 1.6 million residential properties that will be liable to the charge.

      If people just continue to eat the shit sandwichs they dish up and do not start to act upon what is unjust, well then they just deserve what is coming down the pipe.

      So what could be done?

      It can only work if this is happening on a grand stage, with massive participation.

      One idea would be to start talking to the occupy movement and coordinate a country wide county council occupation as long as

      1. household charges and
      2. water charges are removed

      You would be astonished to see how quickly things can change if enough people come together. I am not talking about a few thousand. I am talking about a few hundred thousands, and this for as long as it takes.

      Anything below that will not suffice.

      That’s all I can say about this.

      • Suggested it to the Occupy Dame Street people:


        Coordinate a country wide occupation of County Councils until

        1. Household charges and
        2. Water charges are removed


        Because: It is estimated that there are some 1.6 million residential properties that will be liable to the charge.

        If you get that right and mobilize enough people to seriously disrupt every county council in the country for as a long as it takes, you will create a success that THE PEOPLE achieved. It is an example, and from there on things can change.

      • Unfortunately you’re living in the wrong Country if you think this will happen.

        You won’t get 100 people at any county council office.

        We will continue taking the crap sandwich as you say because the people believe the media that this is the only way out.

        I’ve tried to convince people and it got nowhere, I’ve given up on them and I’m looking after myself from now on.

        We’re just preaching to the converted here, yeah it’s therapeutic and that’s all.

        Look after yourselves, educate yourself and care for the other but don’t waste your time on those who don’t want to know the truth.

        Most people will think the budget was ok cos they didn’t put up the price of a pint!!!!!

        Sad but true!

  13. BANK RUN!


    Deposits early 2010: 237 bn
    Until end of In August 2011 down 49 bn
    September 2011 down 5.4 bn
    October 2011: down 8.5 bn

  14. On Newstalk 8AM news: The budget for the Irish Secret Service doubled to 1 million.

    Irish Secret Service? Gimmi a fucking break….

    • Georg …if you have never heard about them they must be very good …..they have that …fith fath …changing colour ability to move unknown around you.

      • ISS perhaps operates in the international space station then? LOL

      • bonbon

        And hide behind spears, run through autumn forests with no leaves crackling.

      • bonbon

        We live in very dangerous times. The British Empire’s man Obama is about to start WWIII, and kidnapping-assassinations are to be expected. The financial system can under no circumstances be saved.

        President Higgins openly said Glass-Steagall, which DC was warned by London to be a Hostile Act more than 2 years ago. Any publicity on “secret services” should be taken as a threat.

        Make no mistake, the Empire starts killing in such crises. Germany and Italy have experience with the RAF/BaaderMeinhoff, Gladio, P2 etc… Kidnapping and murder. In less tense times.

        Put massive secret service around all leaders right now, no matter what personal opinion. The consequences of a major drama were incalculable.

        And stop the rabble-rousing “Volksverhetzung”, incitement to violence all over this blog.

  15. HD855126 Exo Planet Super Earth 36 light years away in the galaxy of Velo has the same living habitat as our own planet ………..SO….if you don’t like the Euro gene they go to space where no man has gone before …and don’t forget to bring the missus and enough food.

  16. Alan42

    How can you have growth when you have so much debt ? Central banks only get involved when the situation is almost out of control . Google ‘ Long Term Capital Management ‘ for a run down .

    The banks are bust and the leval of debt has reached breaking point which is why a certain Mr Geithner is worried and is telling the EU what to do . Even the ratings agencies are waking up and they are staffed with people who are not good enough for Wall Street .

    The banks are up to their eyeballs in debt and CDS’s and it will bring the whole system down .

    The Western world has reached the end of the debt cycle .

    I have my money in gold , silver . I also invested heavily in some properties along the Great Ocean Road in Oz which I bought cheaply when rich idiots had to sell to meet margin calls in 08/09

    There seems to be this weird idea that Ireland is doing so well in meeting its IMF / EU targets by slashing and burning and that the lazy tax dodging Greeks are getting everything that they deserve .

    Bail out all the banks while murdering your economy ? Economy is people . Its about young people trying to get a job , older people trying to raise a family and eldery people trying to live out their later years in comfort . Its not about getting everybody to pay for the banks .

    How is NAMA working out ? Banks back lending again ? I heard Enda talking about Microloans for business . WTF , do you want me to make a donation to

    • wildata

      Is it not time we started a movement based on “No Taxation without Competent Representation”, and started suggesting to our Masters that we will withhold taxes possibly in some Escrow Device, until a sane and believable debate takes place on where we go from here.
      Simply put the unwritten understanding amongst the ruling sector is to borrow and keep borrowing to protect income and pensions of Politicians and Civil servants, short of extreme radical action of this nature little will change.
      This forum is probably one of the few places where the beginings of such an approach could incubate ?
      The alternative is ?
      What say ye !

    • bonbon

      Microloans from microbrains for the Liliputians. NAMA for the Brobdingnagians.

      We need a Swift Gulliver part 2, a voyage. Nothing has really changed!

  17. bonbon

    Monster Monti finished the sentence this lady just could not bring herself to say.

    Italian Welfare Minister Elsa Fornero breaks down in tears during austerity measures announcement

  18. Alan42

    You people are nuts . You are now cutting disability benifit to fund bust and broken European / American banks ?

    Have you ever heard investment bankers discussing their bonus ?

    You are morally bankrupt .

    • Dorothy Jones

      Yes it is crazy. Disability benefits cut… comparison with the salaries paid to NAMA employees.. not to mention bonuses. namawinelake blog gives, to my knowledge, the most information on the salaries. But anecdotal evidence on the ground is that the troops are well looked after. The entity is a bit like some creature which does not have any natural enemies; it has all those behavioural exhibits.

    • bonbon

      You mean the elites I presume?

      See my post on T4 here. Morality takes the form of putting that memo in public view, collecting the signatures on the cuts now, and reminding the perpetrators of what happened at Nürnberg.
      No rage, courage to just clearly tell everyone what is going on and how to stop it.

  19. Morning,

    The German nature of the new EU architecture is likely to become very obvious in the next few months. It will be interesting to see if we are asked to vote again.



    • bonbon


      The bankrupt nature of the new EU flavor of the week is already apparent. Being asked to vote on what kind of bankruptcy, in 17 different languages is a bit ridiculous, but something they might just try.

      Chapter 11, Chapter 7, or a whole new chapter not yet written?

      So what mega crisis would be necessary to soften up the voters for a “yes”, I wonder? A financial Fukoshima? That will happen so they just bide time.
      Commerzbank and Unicredit were precursors.

      Then an “Ausstieg” (Merkel’s favorite word in 2011), exit from democracy, because it is obvious it has caused the mess. Pure hysteria.

      Fukoshima finance anyone?

    • Juanjo R

      The Irish people have to vote on EU treaties – it is in the Irish constitution, is it not? Nobody else has to, am I correct there?

      A better question for you to ask David would be how is the ´ Merkozy´ going to get around the Irish people – because there would likely be a no vote to any treaty.

      The answer I think is that the Irish puppet government would have to change the constitution first. It will be interesting to see if they try.

      Remember what the Lisbon Treaty was – the EU constitution by the back door; French and Dutch voters had given the Constitution the thumbs down so it was put through via national parliaments in the form of the Lisbon Treaty so as not to give the population of Europe a say. We were the only ones to have a democratic vote on it. We spoke and we were told wrong try again. And we duly obliged!

      Sarkozy admitted that Lisbon was deliberately done this way to bypass the population of Europe he admitted this in Dublin when he met Boyd Barrett, Patricia McKenna and Declan Ganley in the French Embassy his comments were reported from those in the room on radio – but not in the Irish printed press. – Truly amazing.

      I won´t be voting – 20,000km is too much of a round trip to make.

      But at least I live in a sovereign democracy now!

      • ….And the Treaty of Limerick …we all know what happened there ….it was broken .

      • bonbon

        The real question is how Merkel will get around the German Constitutional Court, attempting to use the European Court, to make it a crime or a human rights violation to go over 3% deficit, after Merkozy repeatedly broke that.

        Anything is legal as long as a Judge signs it off – Crown Jurist Carl Schmitt.

        I think the true Honnecker character is now beginning to show to even the most delusional deniers.

        Its a kind of vindictiveness – The Berlin Coalition cannot make the slightest move on Eurobonds, money printing by any back door, because of the 9 judges watching every move. The opposition jump on this full well knowing the 9 are watching them too. So Merkel takes this out on other members with legal tools. Maybe all of this legalese is because of a Basic Law and no Constitution. The EU also has no constitution, so resorts to courts.

        Looks like not only bankers are having a field day, but lawyers too!

    • It is a desired split into an exclusive Franko-German Europe and the rest of serfs with a multi generational debt sentence.

      There is no middle way left, it has been dismantled by captured politicians.

      Only outright revolt stands a chance to change the events unfolding, in Ireland and abroad, the chances of that happening are slim as the threshold for such an uprising is known and continuously manipulated.

      Mainstream economics has failed to deliver.

  20. Alf

    At the start they told us – Ireland has to ‘bail out’ the banks, it is was an ‘honourable thing’ to prevent massive losses to the EU bondholders. They told us it would ‘save the EU banking system’ and had full approval of the EU. They told us ‘it was the right thing to do’ and nobody would lend to us if we didn’t do it. Make no mistake, this action had full approval of the ECB and the EU. Now that the chickens have come home to roost, the policy destroyed faith in Ireland and Ireland is now bankrupt. However, what is the solution that the EU proposes? Give up what is left of our sovereignty so they can milk the population more efficiently. Now that this policy has destroyed the economy, they tell us we are ‘bad managers’ and we must give them control so they can ‘fix’ us. See how the story has changed. This is just a ploy to get more control, to make bailing out the banks easier. Less red tape.

  21. bonbon

    As it seems o.k. to mention FG/Labour who after all were voted in, and have delivered a vacuum, I suggest looking here. No one in the Dail is calling for guns&ammo as seems to be implied by some commentators here.

    They got it right. Clinging onto the financial system and all its murderous mesmerizing arithmetic is bad for your health.

  22. Moon Wobble

    A total lunar eclipse, a close encounter between Mercury and the moon, and a planetary tour de force are just some of the amazing sights skywatchers can see this month.

    11th- 12th Dec – Communications …something happens

  23. bonbon

    Make a list of grievances just by scanning this blog. Then look at this list compiled by Franklin. Uncanny resemblance, point for point.

    Get a taste of empire. No matter how you complain it will continue. It knows no other way. It is starting to kill the old, weak, sick, and then it is coming for you.

    Kenny is behaving like a Viceroy no different than Monster Monti of Goldman Sachs. FG to the core always ready to serve, yer highness.

  24. Gonie

    This is just wrong. Cutting disabled people’s benifit and heat allowance so unsecured professional gamblers get paid out on horses that didnt win.
    Capitalism breeds greed…

    • bonbon

      Add shutting hospitals, cutting healthcare already underway. Categorizing people for diagnosed treatment by age. Accountants deciding what a doctor can do. Diagnosis quotas.

      All copied directly from Obamacare, by Peter Orzag modeled on the N.I.C.E , Blair’s National Institute for Clinical Excellence, better known as National Institute for Citizen Elimination. Have a look at Life Pathway.

      Killing people NICE-ly – just practice the Blair grin – Kenny has not got it quite right, but he is working on it, to give him his dues.

  25. aidankingbcn

    Nice quote on Nouriel Roubini’s blog by JFK which Id like to add here

    ““There will always be dissident voices heard in the land, expressing opposition without alternatives, finding fault but never favor, perceiving gloom on every side and seeking influence without responsibility….

    …But today other voices are heard….voices preaching doctrines wholly unrelated to reality….which apparently assume that words will suffice without weapons, that vituperation is as good as victory….and that peace is a sign of weakness…

    …[T]hey see that debt as the greatest single threat to our security. At a time when we are steadily reducing the number of…employees serving every thousand citizens, they fear those supposed hordes of civil servants far more than the actual hordes of opposing armies.

    We cannot expect that everyone….will ‘talk sense to the…people.’ But we can hope that fewer people will listen to nonsense.”

    John F. Kennedy

  26. aidankingbcn

    Here’s the link to the articles its quoted in, on Roubini’s Economonitor by Dan Alpert.

  27. stiofanc02

    HEATING ALLOWANCE: SEAI, for the purposes of a BER conducted on a dwelling, define the “Irish heating season” lasting for a period of 8 months per anum. This heating season begins in Oct. and ends on the last day of May. The non heating months are the obvious, June through the last day of Sept. However if you have experienced a summer here it reminds one of the quote by Mark Twain,”the coldest winter I ever spent in my life was the summer I spent in Ireland”, actually it was San Francisco but you get the drift. While the heating season is more or less correct, these months equal a combined total of 17.42 weeks. If you take into account 52 weeks in the year, there are a remaining 34.58 “heating season weeks” as defined by our own government. We wont go into the fact that they essentially took the UK BER program and removed the Crown and put a Harp on the software package, and then added mispellings and some unfortunate heat loss calculations and assumptions making it one of the most unreliable and inaccurate way of measuring a homes energy efficiency or not, but this thumbnail sketch and extremely rough guideline is what we have. So, and here is the point, if the heating allowance was already 2 and a half weeks short of the actual heating season, and if you are over 70, I am willing to bet thtat your heating season is more like 42 weeks instead of 32, they have cut it down one hell of a lot more than 6 weeks friends, and your Mother or Grandmother might really be affected. The minister dosent worry about the next oil fill, he dosent have to. No excize on solid fuesl? No, just less and less of it.

    • bonbon

      Maybe the geniuses have calculated in “global warming” to heat the poor?

      There is a big shock coming – we are going into an ice age (again for the 22nd time) and very likely now a mini ice age like when the Thames froze over, all related to the Sun’s activity. This cyclical cooling is hitting just as the financial system collapses.

      Cad a dhéanfaimid feasta gan adhmad?

      is a reference to an earlier time when the forests turned to turf – climate cooling.

      • stiofanc02

        Global laming is more like it.

        • bonbon

          At Nürnberg, the argument that they did not know the effect of their actions, was countered by the Judges that to be in their position they could and should have known, was proof of guilt. They hanged for this.

          We are rapidly heading to a new Nürnberg. Obama’s healthcare is already killing. Make no mistake his architect, Orzag, and Ez-kill Emmanuel, who set up the Death Panel to list those to go first is exactly the same as the damning T4 memo of 1938. Berlin’s Health Ministry doctors at Tiergarten 4 signed a document to deny healthcare to categories of ill, and pre-dated it to before the war. This opened the door to the Holocaust later. This was the first step, usually never discussed in polite company. These doctors, Brandt, for example were found guilty at Nürnberg – they should have known.

          So the signatures on these cuts are damning evidence for a tribunal soon. Better public trials, than any rage. Tell them now immediately that this is the slope to hell. Tell them bluntly of T4. Do not flinch.

          “We display the Bank Guarantee signatures as evidence, your Honor, as the root cause of the following Irish depopulation”.

  28. Might be of interest to some, the first newsletter of the World Economics Association:

  29. tony_murphy

    1/2 the country is pickled in Alcohol, the rest are drugged by their rulers so they can’t think straight. And they call us conspiracy theorists!!

    wake up!!!

    As for David’s article. Well people should just remove the need for any government dependency and they will be alright.. So AUSTERITY IS THE WAY TO GO, like it or not. don’t expect the globalists to save you, because the have the opposite agenda

    Globalist Scientific and Technological Tyranny

  30. Deco

    Interesting comment from the London Daily Telegraph.

    Euroland’s crisis is not about Greek pensions or Italian labour laws, but about a vast and catastrophically ill-designed edifice of interlocking bank debt and sovereign debt.

    You cannot separate the two. The sovereigns are destroying banks, and the banks in turn are destroying sovereigns. The two disasters are feeding on each other. This will continue until there is a circuit-breaker, both to act as lender of last resort and to end the slump.

    On the way up, as the leveraging increased, the entire EU political establishment, completely ignored economic reality. They pressed for lower interest rates so that they could implement their political agendas, and centralization policy within the EU, on the back of a wave of optimism fuelled by low interest rates.

    Now, on the pretext of it all going wrong, they want “more supervision” and “more powers” “to deal the crisis”.

    What crisis ? This country would not be up to it’s neck in debt if we did like the Icelanders. The whole thing has turned into an Orwellian nightmare.

    If we had to stop borrowing we would be forced to live within our means. We would employ people in the public sector based on their ability to get the job done, not on their enthusiasm for canvassing for political parties. We would get rid of the quangoes. We would stop the waste on such debacles asn the National Conference centre.

    The entire ECB project and EU project is driving loads of dysfunctional behaviour.

    As as the Austrian School advocates, it is behaviour that drives results. Look at the results. The EU is turning Europe into an Orwellian hellhole, where the rich are provided with security, where the middle classes are programmed to be incapable of waking up, and where the rest are programmed to be distracted by “bread and circus”.

    Yes, folks, the EU is the new Roman Empire.

    Lest, you forget – in it’s last century of existence, the Roman Empire was a decripid, dysfunctional, corrupt, bankrupt, weak, badly led, lacking in vigour, stupidity invested, costly, bureacratic, hellhole.

    The barbarians broke the Western Roman Empire because they had a more direct method of getting things done. The current debacle in the EU leadership was played out before when the Roman Imperial leadership was incapable of making any decisions on anything, except to be more passive, and to make passive decisions and inform the people that all was well. “Don’t worry, everything will be fine”.

    • bonbon

      The EU is a protectorate, a satrap. Who then is the Emperor(ess) ? And yes all empires go bankrupt.

      The Austrian School of Hayek, Mises, is actually the model for the London School of Economics Fourth Rome economics. Mont Pelerin Society. The “Economist” magazine has a “Schumpeter” column. Look up Schumpeter, his mentor Sombach – the wiki’s tell most of it.
      Creative Destruction = Innovation, Schumpeter, at work.

    • coldblow


      Re Roman history, here’s Hudson’s analysis:

      “Rome’s creditor oligarchy wins the Social War, enserfs the population and brings on a Dark Age

      Matters were more bloody abroad. Aristotle did not mention empire building as part of his political schema, but foreign conquest always has been a major factor in imposing debts, and war debts have been the major cause of public debt in modern times. Antiquity’s harshest debt levy was by Rome, whose creditors spread out to plague Asia Minor, its most prosperous province. The rule of law all but disappeared when the publican creditor “knights” arrived. Mithridates of Pontus led three popular revolts, and local populations in Ephesus and other cities rose up and killed a reported 80,000 Romans in 88 BC. The Roman army retaliated, and Sulla imposed war tribute of 20,000 talents in 84 BC. Charges for back interest multiplied this sum six-fold by 70 BC.

      “Among Rome’s leading historians, Livy, Plutarch and Diodorus blamed the fall of the Republic on creditor intransigence in waging the century-long Social War marked by political murder from 133 to 29 BC. Populist leaders sought to gain a following by advocating debt cancellations (e.g., the Catiline conspiracy in 63-62 BC). They were killed. By the second century AD about a quarter of the population was reduced to bondage. By the fifth century Rome’s economy collapsed, stripped of money. Subsistence life reverted to the countryside as a Dark Age descended.”

    • bonbon

      Up to recently the circuses were football, but now turning really Roman with Nerobama having Gaddafi murdered and dragged through the streets, Osama murdered before camera and watched live in the White House. Nerobama organizes basketball on the deck of the USS Carl Vinson, because they threw the body into the sea from there.

      Nero is back! Will he set the world on fire and blame someone?

  31. redriversix

    Financial strike NOW…….

    Simple and effective,do not pay or only pay 10 % of any Bank or state related bills.

    Pay yourself and your families first….

    Very Simple.

    Do not expect solution’s from any Leader’s.Forget about them.

    Look after your own priorities.


    Financial Strike NOW…


  32. Malcolm McClure

    David suggests that ‘as the risk to the patient increases….. the chances of buying time have more to do with the dexterity of the doctors than the health of the patient.’

    In fact, if there is something seriously wrong with the patient, his case is passed on to a consultant. Already consultants recognise that many serious illnesses have a genetic basis. They are interested in the family history of the complaint and increasingly seek guidance from analysis of the patient’s DNA. It is becoming feasible to treat some complaints with drugs that attach to a specific gene and with stem cell modification of a target defective gene.

    Thus we are entering the realm of eugenics and, remembering Mengele, we need to proceed with the utmost caution. Scientists recently announced the discovery of a gene that causes over-sleeping in many individuals. It may soon be possible to identify the genetic potential for criminal behaviour.

    It is likely that risk-taking has a genetic basis, and who knows, perhaps fecklessness with money. Already, US Border and Immigration officials can request a blood sample from entering non-citizens. Others have palm and finger prints and iris scans taken.

    Looking ahead, how long will it be before there is an EU directive that everyone is required to have a passport chip that contains the individual’s complete genome? (Feasible very soon.)

    David’s doctor-patient analogy was intended to illustrate an important point, but if the EU comes to regard the PIIGS as being genetically imperfect, what are they likely to do to make us “better”?

    • bonbon

      John Maynard Keynes, British Cambridge Eugenics Society treasurer for 30+ years, said in 1946, after the holocaust and Mengele, that Eugenics is the most important science. This is the financial guru foisted as a “solution”. This (lipsticked) “genius” was stopped in his tracks by Dexter at FDR’s Bretton Woods Conference.

      This is the father of the Bancor world currency idea, that the Mundel Euro is based on – look at the BRIC idea.

      Slightly embarrassing, what?

      • Adam Byrne

        Genetic engineering is already here. Some form of it, practised upon humans is inevitable as we move into the future. Some, like Ray Kurzweil, would argue that it will be a positive force for humanity’s survival.

        We are sticking our heads in the sand if we believe that this kind of science will not become ubiquitous one day. Better to embrace it and use it properly.

        Before anyone goes nuts, I’m not proposing that the population of the world gets reduced by 5 billion. There’s enough nutters in here as it is without me joining the party.

        • bonbon

          Genetic engineering for food does seem to work well, if Monsanto etc were not allowed to patent genes, and sell seeds to poor farmers that cannot propagate, locking in revenue.
          The problem is that genes are not “programs” in the current idiom of Kurzweil and others.
          Proof of that is a very interesting Russian experiment for Sturgeon egg production. Every expert knew that is the fish lay eggs along a river they pace them out. To increase production tanks were used and immediately 2 headed fish, malformed appeared. First it was thought to be a virus modifying the genes, a teratogen. Nothing was found. Someone then remembered the pacing and found fish did this for eggs 15 or 20 days older.

          So they tried this in tanks, and wondered why eggs not paced malformed. So biologists separated eggs of different ages in quartz boxes separated by optical filters. Quartz passes UV, glass not. They could produce and stop the malformation with filters of various optical bands. Now fish production goes ahead.

          What appeared as a genetic mutation, was in fact an optical effect. Pasteur was the first to show living cells had special optical effects.

          Some carcinogens of the Benzene ring type, Toluene, are very active in UV disrupting the cellular activity.

          So medicine is still in the stone age of chemical DNA strung like beads on a line. Life is far more clever than that.

          Think of all types of radiation that arrive in the biosphere all the time and wonder about the 62 million year repeated mass extinctions (dino’s for example). What is living matter doing on this time scale? We turned up only recently.

          Eugenics is not science. The above is. With that we will very likely soon be able to grow replacement organs.
          The Shuttle trip with Glenn at 70 on board was to find why astronaut bone damage resembled ageing, but is reversible on return. They thought it was gravity, weight. They found it is the radiative environment.

          I wonder if the big dino’s bones simply broke with no genetic change, as the 62 million year radiative environment peaked.

          We had better find out more about this or we may go the same way. Manned spce travel is essential and Obama killed that this year.

  33. Another economic policy to boost property- what can you say? Memories of a goldfish (apologies to any goldfish reading). Thank God it won’t work.

    • bonbon

      I posted above about the T4 memo, and I see Noonan in that article says “it is worth looking at disability again”. Maybe he realizes his signature will be evidence at the next Nürnberg Trial. If not he, and any doctor consultants he used, must be warned unflinchingly using the T4 document of what he is doing and what awaits them.

      Pussy-footing, prayer, imploring will not work. Use T4.

  34. I remember initially when I joined this great site we wrote a lot about ‘denial’ .Then that denial was in a different mindset . It was then about the Government and the Truth in Irish Banking and their efforts to deny the electorate access to the facts and it was also about the electorate and their disbelief in the facts .

    Now its about EU Heads of State , our new leaders and their plan to save themselves and sacrifice the Irish Electorate and its Constitution.

    So we had national eugenics and international eugenics .Which is easier ? What is next ?

    • bonbon

      You mean the people have snapped out of denial, but the elites are in even more?
      The elites have more access to the facts.
      Sounds like a terminal schizophrenia phase.

      Some elites know the financial system simply does not exit – it vaporized in 2007. How to tell that to people who still have some euros in the wallet?

      This is more than denial – a kind of expressionist art – all light no substance. All sizzle no steak.

      Expressionist Finance!

      • Expressionist Finance

        I like that : I must tell the family next door of Pierre BONNARD , a great expressionist artist and the prophets ‘Les Nabis’.

        • bonbon

          We badly need artists – the true legislators (Shelley).

        • bonbon

          Gauguin was the example for that group. Look carefully at The Ancestors of Tehamana :

          The writing in the background was unknown to the pacific people, considered magic until it was read in the 1970′s. Gauguin faithfully painted what no-one at the time could read. I mention this because Easter Island Rapa Nui was discussed here. These are the same people, with exactly the same script.

          Bankers do not paint like this!

        • bonbon

          Just found out Gauguin could write rongorongo, the pacific script. His Totem tahitien au Christ en croix, a wood cylinder has inscriptions of christian contact polynesian. So it looks like the story of Easter Island is not over!

  35. Chai Steamer

    I just returned from my local AMT Kiosk and was informed that the price of my daily cup has risen by 10% ….and thats before Xmas ….and before …devaluation …and before the onslaught of the rapid FG Inflation yet to arrive later next year ……how will I survive ?

  36. Wat a disgusting spectacle!


    The “built in” back tracking on the disability allowance is a propaganda stunt!

  37. I think we want David to preform an Impressionist act and open the next article .

  38. Deco

    No cutbacks for the Anglo Bank Bondholders.

    The market was punishing the idiots for being stupid enough to trust Seanie Fitz.

    And the corporatist federal state decided to introduce Marxism for multi-billionaires. The rest is misery.

    • coldblow

      Gore Vidal coined the phrase: “Free enterprise for the poor and socialism for the rich” although the expression in various forms goes back a long way. At least according to Wiki.

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