August 3, 2012

What's the EU's endgame?

Posted in Sunday Business Post · 272 comments ·

The headline in yesterday’s Irish Independent was eye-catching. It said that half of all Irish businesses are on the verge of collapse, according to stress tests carried out by business and credit risk company Vision-net.

Companies in the hospitality, construction, IT, motor, and wholesale and retail sectors are least likely to survive, Vision-net said. Added to this is the news that five companies went bust every day this month.

This news came on the day that the central bank pronounced that lending to the private sector continues to slide. On an annual basis, lending fell by 3.7 per cent, with mortgage lending down by 2.2 per cent and lending for consumption and other purposes down by 7.9 per cent in June.

Credit for companies also declined, down by 2.9 per cent on an annual basis. Loans to companies fell by €399 million during June, following a decrease of €338 million in May.

We also have new data showing a complete collapse in retail sales last month, more evidence that houses prices continue to fall, news that long-term unemployment has reached 200,000 and four out of every ten people on the dole have been out of a job for over a year.
The picture painted by the most recent data, is one of a domestic economy that is grinding to a standstill. Far from recovering, this evidence screams that the domestic economy is getting weaker. People and companies aren’t borrowing, we are not spending and there are debt and cash flow problems emerging everywhere in the local market while long-term unemployment, the most significant indicator for absent demand, continues to rise.

Doubtless exports are doing well, but this is coming from the multi-national sector, which is part of the global supply chain and hardly indicative of unique competitive gains in Ireland. The big change in Irish competitiveness has come from the fall in the Euro against our major trading partners. As Ireland does 62% of all its trade outside the Eurozone, we benefit more than most from Euro weakness.

But still the weakness in the local market predominates and the better perfomance in exports is not dragging the local economy upwards. In fact it is decoupling from the local economy. The hope would be that the greater production would be leading to increased demand from the multinationals for products that Irish companies can sell them. But it looks like they are sourcing their inputs abroad, implying that the positive effects their hyper-production might be limited to wages of those directly employed in the sector, which is not that high at just over 100,000.

If this trend continues, Ireland will become an economy where there is a highly profitable multinational sector, a large public sector and a smaller and smaller private domestic economy. The private sector will be turned into the debt servicing agency – a type of extractive industry where rent will be extracted to pay for the public sector but where profitability will be tampered by high local costs and an exchange rate, which although now weakened, is still far to strong for our domestic conditions.

If you think the weakened Euro reflects conditions here, just look at the data released by the EU on unemployment yesterday which shows the lowest unemployment rates were recorded in Austria (4.5%), the Netherlands (5.1%), Germany and Luxembourg (both 5.4%), while Ireland’s rate was almost three times that of the core; Ireland’s rate was 14.8%. The Euro is still far too strong for us.
But maybe that’s the point.

In the course of the next few years, it is likely that the mandarins and the political elite in Ireland and elsewhere will use the current crisis in the Euro to push for greater integration. Political integration means the end of the nation state – make no bones about it. That’s what it means. With the end of the nation state comes the end of the nations state’s ability to engineer its own policies. The first thing that would go in Ireland is our corporation tax. With this gone, the Americans would be out the door like a flash and what does Ireland do then?

For a few years, the local business sector will be squeezed by high costs, maintained by the costs of a large public sector, the legacy of high debts and an exchange rate that offers no support to local exporters. What happens then?

Maybe we settle into the role of an inoffensive group of 5 million odd people on the western fringes of Europe, kept in a sort of concubine existence by some wealthy neighbours, living on Euro handouts which is in turn are used to buy imports made in the productive core of Europe.

Maybe that’s the essence of the coming European deal. Countries like Spain, Ireland, Portugal, Greece, most of Italy, maybe even the new entrants like sunny Croatia and some other Balkan states, see their domestic economic marrow hollowed out in this crisis and credit crunch, but see their public sectors expand, so there are enough sated appetites to keep everything ticking over.

In such an environment, the fiscal compact is delivered without affecting public sector numbers but by wage freezes, higher taxes and off-shoring of the bits of manufacturing that the core doesn’t want to do.

The ECB — as is becoming clearer – will buy up all the debts, opening its balance sheet and operating more like the Federal Reserve. This goes against every monetary value that the Federal Republic of Germany was built on. Why will the more dogmatic Germans, Dutch and Finns accept the deal unless it is part of a grand bargain?

Rather than the periphery acting as a threat to the core via lower costs, it will be allowed to emasculate itself via higher costs and ongoing credit rationing, reinforcing the industrial dominance of the core.

Maybe this is just a bit of sun getting to your columnist, but sometimes events that appear random and unfathomable – like why a country such as Ireland would actively allow its private sector grind to a halt – happen for a reason. Maybe that reason is that these events fit into a larger plan, someone else’s larger plan.
Otherwise why do Germany and its creditor friends countenance what is happening right now in Europe? Why would they let their central bank be looted to pay for the debts of the peripheral countries and why would they let all that they hold dear about not printing money go out the window?

  1. Lius

    I don’t think there is any big plan, it is all just chaos caused by fat lazy EU citizens electing populist politicians who don’t know what, or care about, what they are doing just to get everything they want easy. Where are the Statesmen with morals and ideals? It cannot last much longer.

    Nobody even mentions the word society any more, it just all about economies. It’s pure greed, sloth and ignorance.

    • blackcase

      +1 Superbly put! That is the real issue.

      The media should be a line of defence against these “Statesmen” and educate citizens –instead they follow politicians agenda like they were in the USSR (excluding a few lost voices like Mr. McWilliams).

    • Adam Byrne


    • atchman

      Completely agree 100%

    • FloridaPatriot


      There is a conspiracy. Follow the conspirators (David Rockefeller, Henry Kissinger, and various politicians around the globe) and you’ll realize “their plan” for us.

      Joseph McCarthy, a Senator in the U.S. (Wisconsin), went after communists in Hollywood in the 1950′s. During that time, he also thought that American foreign policy makers were inept or stupid until James Forrestal (an Irish-American and Secretary of the Navy (later the very first Secretary of Defense)) told him “McCarthy, consistency has never been a mark of stupidity. If they were merely stupid, they would occasionally make a mistake in our favor.” McCarthy later said it was the most profound statement he ever heard. He realized that this communist thing was bigger and more infiltrated than he thought. He then tried to go after the globalists (they use communism as a tool) and they destroyed him.

      Look at the bigger picture and you’ll eventually see it. Conspiracies exist and then are successful because people deny them.

      We’re in the mess where in – that is, everyone around the globe – because that’s the plan! All our financial destruction is the plan!

      The whole is controlled by a very few…

      • Tony Brogan

        Absolutely correct.
        The master plan is a couple of hundred years old at least.
        world domination by the monied elites.
        They control the central banking system as the core control but who dominate the political selection precess of “world leaders” and major business as well as the educational establishment by subtle funding of endowments and the use of support by foundations.
        Rhodes scholorships are one example.

        Until people wake up to the fact that the boom bust model is used deliberately to break the western industrial democracies there is no remedy.

        Let us hope it is soon or we the people are doomed to financial serfdom and political control by strangers and aliens.

        The only wayh out is a collective revolution against the central banking system to return to a sovereign money handled through treasury and based on commodities such as gold and silver to avoid the problem of continuous expansion of the money supply and the inflation that causes.

        • FloridaPatriot


          I don’t know if you know who Bob Chapman of The International Forecaster was (he just passed this past June) but he is the one who me up to our very controlled world. He said the hardest thing to do is try to warn people. He also said it will be very painful watching your friends and family suffer because they didn’t prepare.

          Sadly, us folks who are awake may have the greater burden.

          • Tony Brogan

            Hi FP
            Yes I used to read Bob chapman regularly but did not subscribe.
            He was well informed and readable although he did a couple of pump and dump promos that lost him credibility.
            Jim Willie of the Hattrick news letter is a good follow up.
            There are none so blind as those who will not see and non so deaf as those who refuse to hear.

            i have studied these markets for over 10 years now and understand what is happening. For 40 years I could not figure out what it was I did not know.
            Then I realized I knew more than most and it was the writers and newspaper commentators who did not know.

            As Bill Murphy of says. “Price action makes market commentary”

            His friend Chris Powell of says “there is no such thing as a free market”.

            There is also no such thing as a conspiracy theory when there is a ream of factual and circumstantial evidence to prove the theorum.

          • mick downey

            I think that most people just don’t care…you can explain things to them all you want but I’ve found that by and large people wil only try to understand things they have an interested in themselves. E.g. I’ve found that when I get the hump about things political or financial and make remarks about them other people will give out about a thing and when they’ve said their piece they’re happy and have mentally put it to bed as it were. They don’t strike me as having taken on board what you were referring to at all or maybe even believe you. I find this with the girlfriend in particular and take her to represent the majority of people. I can make a comment or ask her opinion about something that comes up in the news about the E.U. or whatever and (perhaps just to shut me up) she’ll just say she’s not interested. It’s obvious when you look at the way people vote here,(or anywhere for that matter)it’s always either a FG or FF based g’ment who are voted into power. In a country the size of Ireland…we have way too many politicians (who aren’t even qualified to represent the people except as a popular choice)and not enough accountancy…if people put some thought into it they’d have realised by now that hasn’t worked for us, and I firmly balieve a g’ment of independent T.D.’s would serve the people far better than party politics in that they might be inclined to be a bit more upfront with everyone and not as likely to hush things up or pull strokes or pull together for the party good to the detriment of social and economic wellbeing. While I respect Enda and his colleagues and sincerely believe they have the country’s best interests at heart they strike me as just a bit too innocent and naiive to be on the European political stage. It all seems to be a bit over their heads and the proof of it is in the way the leaders of the bigger countries look upon them…i.e. the slow child in the class who needs to be humoured and petted every now and again to stop them acting the goat and spoiling the lessons for everyone. As for conspiracy theories…America do not have the clout anymore to take over the world..they’re running on borrowed time (and money) whereas Europe is in a position now to consolidate their international power despite how things appear outwardly (through better management)…and it is the smaller or poorer countries who need to be brought into line for this to work. I don’t know that the ‘new world order’ type theory can work like it might’ve done one time as America is too deep in the shit for it to work for them, and Russia while the potential is there, is too disorganised and corrupt and still steeped in communism to be ever something to be recognised. China are just about at their limits in what they can sell to the world and would never be concerned with international power either to make a move in that direction. Still, who knows what’s round the corner.

    • FloridaPatriot

      I meant to say the whole world is controlled by a very few…

      • Tony Brogan

        That was ok as it made sense anyway

        • FloridaPatriot

          Hi Tony,

          Thanks for those “leads.” I didn’t know about the pump & dumps with Chapman. But, I still think he was a good man overall. We’ve got to trust someone and just hope we’re right. Chapman once said he had conversed with several US Navy Admirals and although they were awake, their hardship was in finding others who they could trust. That speaks for itself.

          I do follow GATA because I believe in (in their respective order):

          1) clean water & food
          2) a weapon to defend yourself
          3) Holding physical GOLD (and silver)

          I will not stop trying to wake folks up. If my batting average is one in a thousand, well, that’s one I’ve woken up who will also wake up one in a thousand.

          Also check out Gerald Celente if you don’t already know who he is ( This is a good clip from a few days ago. He has a really thick NY accent but he’s a straight shooter so to speak:

          Paul Craig Roberts also works at Trends Research:

          And, Max Keiser (a well-respected financial guru who has called a lot of global (financial) events – in advance – correctly). Last week during an interview, he said he believes most of the global financial system will collapse within 9 months or so:

          Are the Irish waking up at all? I’ve seen on a few sites that they are but ever so slowly. I know “We Are Change Ireland” is getting the word out. I’m of Irish heritage (all 4 grandparents born there) and I worry about my people. The EU has slowly destroyed them. Most don’t realize the EU was set up to destroy their independence and sovereignty. They give you prosperity (to hook you) and then take it away (financial destruction leading to dependence). The same global forces at work here in the US. The US is a mess and who the heck knows what kind of damage has been done by our elected officials that we aren’t even aware of yet. It’s not the same country I grew up in. I don’t recognize it! And, now they’re looking to start war with Iran. I have no gripe with those people. They haven’t done anything to the citizens of this country! I’m more worried about Washington than I am Tehran!

          I’m also looking into how much the Rothschilds’ hands have played in what’s going on. Just read that Cecil Rhodes was financed by them as well as quite a few American industrialists. I learned that for the first time a few days ago. Interesting but scary stuff.

          I will not go down without a fight. As the old saying goes “I’d rather die on my feet than live on my knees.”



          I agree that some people just don’t care but I also find a lot of people just can’t deal with it. You could show them video-taped confessions and they wouldn’t believe them. I’ve often heard that only 20% of any given population is capable of seeing genuine reality. And, it only takes about 10% of any given population to institute real change. Let’s hope this is true.

          • Tony Brogan

            Well FP I just work on one person at a time. i was surprised when I put a bunch of people on a friends and associates email list that I email items to and send a rant now and then, because when I asked if they would prefer not to have any more emailed to them said no it was fine as they found it all interesting.
            so I continue.

            This is a world wide problem. It has been 250 years in the making or longer. 1690′s was the Bank of England.

            The bankers have control of nearly every country in ther world through the central bankers org. They control the monetary policies of the countries.
            All credit based and leads to boom and bust. Deliberate policies.

            The end game is near as the internet is getting the info out to the public and more people are aware.
            It will get harder for the controlers to control and so they will have to make a move soon or lose the game or at least be set back so severely that it may take another 200 years for them to recover if ever.

            Have the courage of your convictions and you will prevail.

  2. michaelcoughlan

    There are two reasons you ask the questions which to me are so stupid at the end of this article is because you don’t have the capacity to view what’s going on in the world from a political perspective AND because it is obvious that you STILL haven’t read the two books by John Perkins titled Confessions of an Economic Hitman and Hoodwinked. The grand plan and ‘reason’ you refer to in your questions is EXPLAINED IN DETAIL in those two publications.

    If you bother to read those books you might begin to understand how much nonsense this post is.

    • He did say that the sun might have been taking it’s effect.
      He admits he is as confused as anyone else and this is surely a change from the usual arrogance of Irish commentators

  3. Lord Jimbo

    Unfortunate characterisation of the public service, lacking in nuance, many within the service do essential work for low pay, pay taxes, levies and have seen their salaries cut, makes life very stressful as it was already tough enough. They don’t get speaking fees on what it is like to be a guard at a road taffic accident, a nurse comforting the bereaved, cleaning staff wiping blood and tears from the hospital floor, they don’t appear on the Late, Late, their story is rarely told.

    Private sector as debt servicing is only partly there, private sector by which I mean banks, builders/developers have sunk the state, small businesses in that sector are being squeezed (a lot of their consumers would have been public sector workers ironically), there is a strong overlap/mutually beneficial cycle between the two sectors, it is the layer at the top across both sectors however who have both failed in their duties and utterly betrayed the Republic.

    The private sector in Ireland is big dog eat small dog, something that rarely if ever gets pointed out!

    • hibernian56

      “do essential work and Pay taxes”. Are you taking joking? They are paid with taxes FULL STOP. Perhaps thats a concept that escapes most Public Sector. They are paid with taxes and work for the Tax Payer / Citizen in order to make their life better, not more miserable.

      Lets do some SIMPLE maths.

      Example 1;
      Public Sector Weekly pay = €400, with tax deducted say €100.
      Thats Trough – €400 +€100 = -€300

      Example 2;
      Public Closed Sector Weekly pay = €3000, with tax deducted say €1200.
      Thats Trough – €3000 +€1200 = -€1800

      Example 3;
      Private Sector Weekly pay = €400, with tax deducted say €100.
      Thats Trough – €0 +€100 = +€100

      So as you can see it takes 4 PRIVATE SECTOR to pay 1 PUBLIC SECTOR just to balance the books. Everything goes to hell when it comes to the Closed Sector, it takes 18 PRIVATE SECTOR to pay 1 CLOSED SECTOR leech (mandarin / ex-muniteoir now “statesman” etc.)

      That doesn’t include VAT, Car Tax, Property Tax, PRTB, TV Licence, Dog Licence, Breathing Licence etc.

      Will I do a spreadsheet? Its not Rocket Science, but then again if barely any accountants work in the Department of Finance… Perhaps it is hard for the Public Sector to grasp this basic concept. Again, they are paid by the taxes.

      Anyone reading this post, ask yourself a question; Are you reading this on your time or “Trough Time”. By “Trough Time” I mean that you are being paid by the state to do a job, not read blogs or check Facebook.

      If its your time, fine. If its “Trough Time” YOU ARE PART OF THE PROBLEM.

      • Lord Jimbo

        The other obvious reality is that private banking debt was socialised by the former government, an insane exercise which caused traders to laugh down the tele-conferencing system at the bank guarantee. The reality is fare from laughable, with the unsuspecting general public having to carry an unsustainable load while the political overseers talked of ‘no other way’, ‘taking the medicine’, ‘we all partied/lived beyond our means’, which changed to ‘the worst is behind us’, ‘we’ve turned the corner’, ‘green shoots of recovery’ – again the political spiel and reality could not have been further apart.

        Both sectors along with the general population (the unemployed, the disabled, the old) are being squeezed in a ludicrous, Weimar Republic style repayments process which is leading to complete disaster (see condition of domestic economy/consumption figures), once again politicians boast about export figures and how things are getting better, which given what has gone before is more reason for the population to come together to demand an end to the insanity.

        • gizzy

          It is very important to consider the role played by professional advisors who spanned both sectors advising government, bankers and big business.
          They were at all the big deal in a lot of cases initiating the deals and sometimes representing more than one side.

          And they are still going strong

        • bonbon

          Well, I am amazed. You got most of that right!

          Now what about the London repeated calls for bank splitting explicitly along the lines of Glass-Steagall.

          A wind of sanity has altered course, what?

    • hibernian56

      Of course the second part of you comment is entirely true.

      Whatever way you cut it, there are far too many low level public sector and a disgusting number of upper “closed sector”.

      It seems in most councils today everyone is a manager or “executive” something or other. Titles that sound un-impressively expensive.

      • Lord Jimbo

        My understanding is the majority in public service earn less than €40,000 per annum (with a lot on less than that), which after taxation in a high cost economy isn’t a whole lot, especially when you factor in negative equity, car loans, creches costs etc

        The public service at the lower levels has no bonus/incentive culture, people aren’t off cashing cheques, going to the races or taking half days when the sun shines, they do critical, often live saving work (of course there are exceptions but you get that everywhere).

        The corporate media has a bone to pick, ideological battle to fight and papers to sell. In both sectors at the higher end, there are people making a killing. cabinet level, government advisors, spin doctors, management consultants, NAMA, property developers, bankers etc.

        The unfortunate part is when people mention ‘public service’ they do so without nuance, so the entire sector comes across as freeloading, work dodging, and feckless, the reality could not be further from the truth.

        At the end of the day, it is not about public v private, it is worker (in both sectors) v exploiters, those who sit on top of the crap pyramid, firing rocks down to keep people demoralised, disillusioned and afraid with the corporate media willing to act as an organ of propaganda. All basic social control mechanisms in western neoliberal economies. The power elite maintain their hegemony by keeping people on the edge of survial while telling these same people they have ‘mercedes pensions’ and ‘incredible terms and conditions’ so take a pay cut and shut up.

        • hibernian56

          Agreed, thats why I always refer to the “Closed Sector”. Then when asked what do I mean by closed sector I can explain without any bias.

          I would also place the upper levels of unions into the closed sector bracket, they are about as corrupt as they come. Their power comes essentially from creating unrealistic targets in their subscribers minds despite knowing they are unachievable or just plain wrong.

          The Closed Sector have perfected the art of divide and conquer, they have a foot in both camps, private and public, but always try to paint a “generalised” picture as you say.

          It has been a triumph of theirs to create this rift. But at the end of the day a greatly expanded public sector makes any governments onerous tasks that bit much easier. A prime example of this is the Fianna Fial plundering that went on unchecked once they gave the unions whatever they wanted.

          • Lord Jimbo

            It would seem appropriate to quote Gore Vidal (I totaly agree, Unions have failed):

            “The genius of our ruling class is that it has kept a majority of the people from ever questioning the inequity of a system where most people drudge along, paying heavy taxes for which they get nothing in return”

          • gizzy

            Idealogically it is great to think that all who earn a lot are wasters and all below 40k are good. but it is too simple.

            Ask any nurse and they will tell horror stories about their colleagues and the same in teaching.

          • Lord Jimbo

            @ gizzy – that is why I said there are exceptions (in both sectors), still doesn’t change the fact that the majority of public sector workers are not on a king’s ransom and I suspect the same is true in the private sector. Those making over €100,000, €150,000 to the millions are not a huge bunch, but they are vocal and given space to express their dissatisfaction with the masses. Self-serving of course.

            Think the point made on the role of ‘advisors’ is a critical one and still those talking heads dominate the air waves, tells you a lot about elite power and their spokespeople.

    • keoghville

      The fact that you see yourself as a Lord says it all

    • joe hack

      I like the sentiment of what you say MR. Jim.

  4. hibernian56

    “so there are enough sated appetites to keep everything ticking over”

    That sums up the Public (Closed) Sector succinctly.

    We have more than enough gorging at the trough in who’s interests it is to maintain the status quo. Why change anything if it means starving the elites, the mandarins and their butlers?

    These self interest traitors will play this to the end rather than suffer any personal deprivation. Their mindset is NO PAY CUTS. Let the peasants work harder, tax them more, tax their daily bread and water. Tax the air they breath.

    This select scum are convinced there would be chaos without them.

    They have thought this way for nearly 90 years. Where is the Utopia they promised? Oh, they are testing it first. The peasants aren’t ready yet.

  5. Philip

    I am waiting for my number and for the charismatic fella that’ll walk the earth freely -No. 666- and carry us forward to the next boom and then bang bang bang Judgement Day… :). Might get a ring-side seat!

    David, I wonder are we not making the mistake of relying on the tunnel vision of the many philosophies we always hold dear to ourselves and in the process see no more options. After all, did everyone think they could be a version of what Germany is today and we’d have 27 of them sitting side by side? That’s just plain nuts.

    This is a multi-polar world. We better get used to it and embrace it. Planet earth is logistically the same size as Ireland was 200 years ago -a journey from Dublin to Cork being the same today as one from Dublin to Sydney. Companies who think they can sell the same stuff globally as the man in New Delhi or Bangkok either better be better or cheaper or think of something else. No amount of credit from banks will alter this fact.

    Yes, we’ll likely become part of a super state. Public services need to be preserved at all costs for now or you have civil strife – and you need police/ hospitals and schools (bulk of expenditure). Make no mistake, they too will be streamlined regionally under the new structure for reasons stated earlier. Do we really need a health board per country? Ditto for security etc.

    I was looking at Draghi yesterday. He’s the look of a weary crumpled/ disheveled civil servant trying to make the best of a messy situation. Let’s wish these guys luck. The is a lot to be said for muddling than ramming in half baked solutions that go nowhere fast.

    It’s far from over and it’s a new world out there. Reach out and leave your old ideas and nonsense behind you.

  6. miec

    David as someone close to my age you should be able to remember the 80s. As a child / young adult of parents who ran a small business during that period, the private sector was squeezed within an inch of its life back then, similar to today so I doubt it has anything to do with Europe. Also as pointed out by Lord Jimbo, the people who helped keep our business afloat was the public sector workers.

    In addition the one area that the government has been adamant is the low corporation tax. They know if that gets messed with the multi-nationals will flee and considering they seeking to attract more FDI I find your above commentary has the element of sensationalism.
    “it is the layer at the top across both sectors however who have both failed in their duties and utterly betrayed the Republic” +1 on this.

    • Philip

      Multinationals never pay anything like 12% anywhere -even in Germany. Never be fooled by headline numbers. Germany is typically 8% due to all the breaks you can use. Parts of France is 0%. It’s all smoke and mirrors about corp tax. It is total unmitigated toss to throw people off the real issue – why are small companies not allowed thrive. Why are some many cartels big private/ public concerns allowed to exist? The real fear is visibility of our corp tax regime as it is really excuted and that the German finance dept might start to see who is really paying their fair shate – something IBEC etc might not like at all at all…

      • Eireannach

        Why doesn’t Ireland adjust its headline corp tax figure upwards, while keeping the effective corp tax rate stable?

        I’d like to know the answer to that.

        • Philip

          Years ago it was good. It gave us the necessary industrial and knowledge stimulus by helping to pull in US MNCs. As a headline, it was good advertising.

          Today, the game has changed. e.g. Germany’s local industrial fabric is strong enough to be an effective support for many of the inputs for an MNC and an attractive final effective tax to those who leveraged it accordingly. You simply cannot do the same in Ireland as MNCs have little use for local inputs aside from the usual local energy and logistics stuff. By increasing the tax in Ireland at a headline level we would have no quid pro quo to effectively lower it.

          The scam element plays out as follows: MNCs of their nature only employ staff, cause construction for a few months, need more logistics and consume energy. They do nothing else. In fact in recent years they procure only at a global level any other services they need – meaning other parts of the Irish Knowledge or Skilled economy are of no use to them. They pay for construction, logistics and banks (for washing the money thro’). All of the these are about as useful to the long term growth of the economy as sugar is to a growing teenager. And worse – it diverts the eye away from the real wealth creation potential of this country – which is not making viagra.

          The Low Corp tax is killing this country. It is responsible for economic middle class paralysis of 100K individuals where prospects will dwindle more rapidly. It encourages a persistent over emphasis on construction and keep the remaining part of the country ignorant, neglected. The scam is that it allows us to continually confuse GNP with GDP and it is only benefiting the rent collectors in all its forms.

          • Puschkin the Black and White Cat

            Philip ,
            I agree, but it’d take a brave person to say that in public. On a side issue, I have often reflected on the fact that Ireland boasts of it’s software industry but having been in it for 31 years I don’t really see any indigenous industry. Even if there was one (an Irish software industry), why do Government agencies waste hundreds of millions on foreign software? As a software insider the only way an Irish company could bid for an Irish government contract would be to open a UK office and pretend to be from the UK.

          • Philip

            Government procurement must follow EU rules and many software houses in Ireland simply do not have the resources to spend time to answer what are complex tenders. Ditto for local MNC corporates whose global procurement policies are probably worse.

            Software Industry is more than just supporting transactional and decision support analysis as well. The interesting opportunities are the ones who feed into middleware and embedded systems which are most demanded by corporates. This is an industry for those who want to travel.

            What is also intersting is the hi proportion of paddies in large software corporates located internationally who are high up. So Irish have it and we need to keep leveraging the diaspora not for a geographical sod off the coast of europe…but for the race of paddies who will remain global and a diaspora.

    • Puschkin the Black and White Cat

      Emmm. Is this similar to blaming the “English” for rack renting in the 19th century when in fact the most cruel landords were Irish ?.

  7. mediator

    The first glimmer of understanding – of enlightenment, as sherlock holmes put it – “How often have I said to you that when you have eliminated the impossible, whatever remains, however improbable, must be the truth?”

    Mainstream economists like David have denied the obvious for so long but now the sheer weight of evidence – of things happening that were forecast by the crazies ten, twenty and more years ago now coming to pass mean that at last they must confront the evidence.

    There is a big plan and everything else to just part of it.

    Witness Draghi – at the core of it
    Witness Monti – at the core of it
    Witness the various flunkies in the EU – barroso et al – at the core of it.

    Unfortunately not sure what we can do about it and thats the crux. Far too many citizens of this and other countries are in denial and will not challenge the moves that are on to strip them of their freedoms.

    God bless you David – If you continue on this line of reasoning I’d expect you to be sidelined.



  8. Dilly

    Europe is run by unelected civil servants. I wonder are the copying the Irish model of government ?.

    Look how well that turned out.

    • Lord Jimbo

      Europe is run by a power elite, who use politicians as their voice and senior civil servants to implement policies which favour them. Politicians then go on to sell/defend those same policies, which disporportionately favour the rich and famous to the downtrodden and pissed off voting public who have an idea they are being ransacked by criminal budgets. Sometimes politicians win and get elected, sometimes they lose and are dumped from office but policy remains almost unchanged apart from a few crumbs thrown to keep the mob from storming the winter palace or nearest parliament.

      • Jonathan Hannon

        its not a conspiracy that their are ‘power elites’ running europe. People always seemed so shocked by this and continously paint themselves as ‘truth seekers’ out to inform the conformist unconscious ones. Weber wrote about this 100 years ago as did more recent writers such as C Wright Mills. The fact their is elite control is not really the issue. The state has been hollowed out so the system of checks and balances is broken. Globalisation has brought centralisation of capital and well as power. The real fight to change the will and strength of the people. There will always be a power elite, even if this present neo-liberal one falls. check out Chomskys lecture in libertarian socialism. Interesting stuff

      • Puschkin the Black and White Cat


      • hibernian56

        And when they do get dumped out they have engineered the system so they a highly compensated at the expense of the honest citizen.

        These people ain’t no human beings.

  9. michaelcoughlan

    ‘The first glimmer of understanding — of enlightenment, as sherlock holmes put it — “How often have I said to you that when you have eliminated the impossible, whatever remains, however improbable, must be the truth?”’

    Please Please David observe the wisdom in the above passage by another poster and read Confessions of an Economic Hitman and Hoodwinked by John Perkins. Please Please David!

  10. Jonathan Hannon

    David, I’ve just spent the summer researching the amazing Mondragon Co-op of the Basque country..Without any of the leftie rhetoric, its totally outside the free market and trades with the world on its terms. It relies on the natural industrious nature of Basque people, everything down to the supermarkets is collectively owned and they manufacture. The profit pays pensions and dividends to the ‘members’ and all the money and profits is kept within the basque country and in their banks. instead us irish constantly look out for some knight in shining armour, in the shape of global capital to come and give us little Irish people a job. carl yung once said ‘those who look outside dream, those who look within awaken’ looks like its the Basques who are wide awake, while our politicians dream and walk us all into more disaster.

    • We are very close to the stage where Mondragon is becoming better known outside of Spain than within it. It certainly is a different model but many people who study it want to believe so much that there is another way that the blinkers come on.

      Beyond the predictable heresay which always comes up in any discussion of the Basque country, I don’t have any specific take down. The opposite really, all my interactions with them have been what its says on the tin.

      Here is Spain, I´m surprised it doesn’t achieve much attention both in the press and among researchers. I would be interested to read your research when its done.

  11. Puschkin the Black and White Cat

    David, you print a very gloomy picture indeed. I agree with what you say.
    I see fit to add some observations of my own. You describe a country with a destroyed private sector a huge hungry public sector and a “foreign” investment sector which is insulated/isolated. Yes, that is the picture. Of course the big question is, “What happens next?”

    The current national crisis has different dimensions to it, temporal, social, monetary, justice, governance, temporal and personal. To map a future from this very “bad place” we are now, we must divine a tau line (a multi-dimensional path) though the many dimensions of the calamity.

    a) The temporal dimension, we will have to wait for up to 100 years for European shifts to stop and for any stability to appear, of course it has always been this way. Even at an interest rate of 1.7% it will take 102 years to pay back what we owe.
    b) Social, the insiders versus outsiders “war” will tear us apart and damage our very fabric as a nation. The insiders (public service in the main) will relish doing the bidding of their masters in the EU super state.
    c) Monetary, we will never have any monetary independence ever again. In fact all monetary activities will eventually be removed to the EU core.
    d) Justice, well we know the story, justice is a commodity and is/will be owned by the rich. More and more EU legalisation will just alienate the citizen more and more.
    e) Governance, Governments in Ireland have already given almost all power to the office jockeys of the EU, and from now on the only role of an Irish “Government” will be enforcer of EU law.
    f) Personal, the citizen will be under more and more state scrutiny and will in effect have no civil liberties what so ever.

    The end result will be a poor depopulated island/Ireland on the very edge of the EU superstate which will eventually (over 150 years) reach a population of 1.2 million. This will be just enough to farm the country and support the necessary infrastructure to export our resources, food products, fish, oil, gas and minerals to the EU core for processing.

    Last point:
    Ah…… but we could say “NO” to this. Come on people of Ireland, it’s time for the “Yes” nation to say “No”.

    Good Bye from a depressed Cat

    • hibernian56

      Meow to that.

      Very well put. To elaborate on what Lord Jimbo says, the “them versus Us” is a construct of the elite who are surreptitiously removing our independence, our wealth and more importantly our humanity.

      They want things to eventually degrade into a war. How else would they convince modern man to jump into the slaughter trenches unless the very food he needs is threatened?

      Then they can purge the earth of many hungry peasants and profit while doing so.

    • bonbon

      More like a depressed Tiger! Still gripped by the fading “exhuberance”?

    • Tony Brogan

      You do not have to be depressed. It is time to kick some butt!!
      Say no to the Euro.
      no to the Eurocrat
      no to the superstate.
      no to foreign monetary policy.
      no to exploitation of natural resources without royalties to the people. (eg fisheries ; oil and gas))

      Yes to a sovereign nation in control of its own affairs.

  12. I just wonder how long more time will it take, and how many more disasters, and at what stage in subjugation and emasculation of the citizens, will the penny finally drop and people realise the simple fact that democracy, as a political experiment, had utterly failed. The political system described as being democratic is a flawed and dysfunctional system.

    Inherent in that system, a continuation of the feudal hierarchical power structures, is the slow but sure concentration of authoritarian rule from the few elites at the top.

    NO economic policy can work, long term, if the very political system itself is dysfunctional. Why do politicians kick the can down the road – because THAT is how the system is designed.

    All these problems are nothing new.The feudal elites were always ensuring that the real power and control never left their hands. Our present democracy is a sham. We have no say now and in the future we won’t have any say and won’t have any power to prevent the bureaucrats from deciding our future – that of a monsterous eu dictatorship, just like the US corporate dictatorsip at present. Welcome to the future – just more of the past!

  13. DavidIreland

    Hi David,

    I don’t think it’s part of a larger plan. I don’t think politicians are that visionary. Certainly, the ones we elect here in Ireland are not. They just muddle through looking for advantage, mostly just being swept along by waves of economic, technological and cultural change. There was a time that the very powerful could steer society to some extent but I wonder if that’s true anymore. The change is just too pervasive and too relentless. Sometimes the politicians make impacts here and there and shout loudly if they think there are votes in it. Often they are carried along, somewhat bounded by outdated ideologies that have no relevance anymore, if they ever did.

    I think we actually do need a larger plan – not some 5-year one listing specific outcomes. Instead, we need to define what is good about human nature and behaviour and then come up with a plan to articulate, measure and celebrate the good stuff in life and in business.

    Maybe then, those inevitable waves of technological and economic change — nudged along with a bias for good – will have a better chance of bringing us all to a better place.

    • Puschkin the Black and White Cat

      Agree , but it will mean the people of Ireland will have to say “NO”. A “Yes” nation can never consider what you suggest.

  14. Horus

    The plan was laid out years ago at Jekyll Island (The Creature from Jekyll Island – Griffin) The Federal Reserve System is now rolled out worldwide bar a few countries. Funnily enough those countries are being “democratised” one by one. Recently Iraq, Libya…Syria and Iran next. We are down to a handful. The banks that control the Fed are the same banks that own the IMF. No degree in economics needed, just read Perkins, Griffin, visit etc.

    • Tony Brogan

      Right on Horus. Easy to identify and easy to defeat once the knowledge is attained. A single politician can not defeat the banksters as they are systematically assasinated. The people must rise in anger with the certain knowledge that the central banking system must be destroyed.

      Demand a monetary system not debt based,but commodity based. All out lined in previous blogs and posts

  15. Norman Speight

    I’m afraid you people in the Republic have it all wrong!
    You will keep concentrating on the unemployment, the appalling political leadership, the collapsing businesses and the Banks. Here in the UK we now view it all differently. We’ve taken a view of our situation like the Romans did all those years ago. The ‘solution to the problem(s) is Bread and Circuses. So we have the Olympics. The resounding successes of this can be judged by the emptyness of London Town, The regular breakdowns of the Underground, the boasting confidence of those issuing tickets (like the New Zealanders outside the Olympic Stadium whilst their tickets are in New Zealand, sent there by the ‘managers’ of the ticketing agency). All of this, according to our comic-book mayor and Lord Coe a resounding success.
    You see. All you need is a re-configuring of your thought processes and an understanding of ‘new-speak’.
    Oh! Just to put the icing on the cake, the Bank of England just made another 80 Billion available for the banks to loan out at extreme rates of interest, the Banks of course being our good friends. We are, of course, contributing some (19.2 Billion to the EU spending programme ( by closing some hospital emergency wards, schools etc in order to provide this. Rather like the Irish Republic. But. What the hell, so long as we have the Olympic Circus, people won’t notice they can’t get to work, shouldn’t fall ill, or indeed educate their kids and show they are happy to contribute to the EU spending machine – after all, there’s no unemployment in EU circles. That’s why the Irish view is all wrong. Why don’t you try the Roman solution?

  16. molly

    Does this government know what’s it’s doing?
    I believe that when the government comes out with figures saying theirs a 10 percent drop in retail sales last year it’s all lies they can’t be trusted to tell the real truth
    Retail like the domistic have all seen savage drops in consumer spending and the drop is far more the ten per cent so why lie, because telling the truth would be to admit that this government is losing.

  17. Norman Speight

    I’m afraid you people in the Republic have it all wrong!
    You will keep concentrating on the unemployment, the appalling political leadership, the collapsing businesses and the Banks. Here in the UK we now view it all differently. We’ve taken a view of our situation like the Romans did all those years ago. The ‘solution’ to the problem(s) is Bread and Circuses. So we have the Olympics. The resounding successes of this can be judged by the emptiness of London Town, The regular breakdowns of the Underground, the boasting confidence of those issuing tickets (like the New Zealanders outside the Olympic Stadium whilst their tickets are in New Zealand, sent there by the ‘managers’ of the ticketing agency). All of this, according to our comic-book mayor and Lord Coe a resounding success.
    You see. All you need is a re-configuring of your thought processes and an understanding of ‘new-speak’.
    Oh! Just to put the icing on the cake, the Bank of England just made another 80 Billion available for the banks to loan out at extreme rates of interest, the Banks of course being our good friends. We are, of course, contributing some (19.2 Billion to the EU spending programme ( by closing some hospital emergency wards, schools etc in order to provide this. Rather like the Irish Republic. But. What the hell, so long as we have the Olympic Circus, people won’t notice they can’t get to work, shouldn’t fall ill, or indeed educate their kids and show they are happy to contribute to the EU spending machine – after all, there’s no unemployment in EU circles. That’s why the Irish view is all wrong. Why don’t you try the Roman solution?

  18. Harper66

    Interesting comments about public/private sectors

    I think that the manner in which both the private and public sector do business in Ireland needs to be looked at more…

    For example on a personal note I dread having to order a new piece of equipment at work. The reason for this is that it is practically impossible to source items in the Irish market. when it is possible to actually find what I’m looking for the costs are prohibitive for buying in Ireland.

    I have recently attempted to source a pretty common piece of equipment. I could not find one supplier in Ireland. I then began contacting UK suppliers and after a short search I found the item priced about the 500 pound mark plus postage which could range from 25 to 50 pound mark. I ,by chance, was put in touch with a German supplier who could provide the same item for 368 euro plus 18 euro delivery.

    The majority of Irish business websites are also awful.I cannot understand why this is.

    I have friend who works in public sector and he tells me of horror stories when ordering such as finding an item at a cheaper price from a different supplier but unable to order it due to the inflexible and cumbersome ordering process. He also told me of the inordinate price he had to pay to get two strip lights fitted in an office space. He told me it is common place to have to pay well over the “normal” price for work such as this as contractors will “stick a bit on” when tendering for these jobs. They do not seem to undertsand they are “robbing” from themselves.

    It seems for the both the public and private sector it is death by a 1000 cuts…

  19. redriversix

    Well Done David

    Excellent article….and No,the sun is not getting to you….their is a larger grand plan and appears to have been for some time now.

    Their is no solution and it seems clear now the picture you paint,debt is the 21st version of slavery.

    A continual crisis is handy as it keeps wages down and keeps people “waiting” in a state of limbo,hence lack of spending etc etc…..

    This is a Banking Crisis and the dawn of a new beginning,for the worst for most.Like the fabled “War on terror”it will/is reducing standards of living, make people even more like sheep and increase profits for the few at the expense of the many.

    Another War loams high on the horizon as people live in perpetual fear.

    Constant Analysis by many is futile,The cabal’s do not want a solution ,that is now crystal clear.

    So what do you do ,? Take care of yourself and your family…. try to help those who ask for help and let go of those who don’t.

    What I grew up with now appears to be a lie.Our society seems just to be a thin veneer of Civilization with a deep layer of evil underneath.

    What now for your “seismic event” Mr Kenny

    Have a great day

    • cooldude

      I agree RR6 this is all part of the plan. Why design a currency system that had zero hope of ever working unless the plan all along was for the system to FAIL and to use the ensuing crisis as an excuse to bring complete political union. This has been the plan all along even from the early days of the EEC. This is all happening to a well choreographed plan and at the base of it is the control of the money system. This is how the elites exercise their power. They don’t care who the politicians of the day happen to be and if anyone refuses to carry out their agenda they are simply removed. We must reeducate ourselves to this reality and John Perkins and Ed Griffin are a good start in this. Once we understand the manipulation we can see there is nothing to fear and we can take control of our lives.

      • redriversix

        “Live free or Die Hard”……!!

        Ed and John are very good.

        Once you realize the system is a fake,life becomes a lot better , bit like Toto pulling the curtain back to reveal a old man acting as the Wizard of OZ..!!!

        Free at last !

      • Tony Brogan

        Good post 1+

    • Tony Brogan

      Agreed RR6

      I am having a great week on the boat. brilliant sunshine, good breezes and no time for watching Olympics.
      hope all is well with you. Take care of your family and enjoy them.

      • redriversix

        Cheers Tony.

        Weather sounds great , Kicking back on the boat sounds like “real” life.

        Enjoy,stay safe,have fun.


      • Adam Byrne

        Have a good one. I’m in beautiful Southern Illinois where the weather is great and the people are friendly. The Olympics are a load of crap.

  20. Philip

    Look, the art of engineering, planning, you name it, that goes on in corporations – combined with the ability to mine and analyze terra and yollabytes of data about all around us will drive optimizing solutions that look very similar and lead one to the suspicion that one or two guys are running the whole shop. These companies use the best minds in these kinds of activities and they will tend to arrive at the same solutions…outsourcing/ transfer pricing/ centralizing capital/ optimal skill sourcing/ you name it.

    Now, this means that your average dumb dumb public body made up of very average minds with tools usually 10-20 years behind what corporation guys have are always on the back foot and cannot counter the deleterious effects. As for the laws and institutions, we’d be lucky is they were only 100 years behind.

    For all you Terminator fans….Skynet is up and active and has been for decades. Now – what are you going to do about it? One thing is for sure…blaming an “elite” or “incompetence” is missing the point. We need better laws and we need less fear. We need to see where the real value add is and we need to embrace the new world. Quite a lot of it is actually very good for you. And as for the big and “nasty” corporates…well you ask how come you’re able to blog so easily.

    Learn and Work the system – stop looking into the past and be prepared to travel.

    • redriversix

      Hey Philip

      with respect , fuck the system,its a fraud and a fake,its Spin,Lies Deceit.It IS DESIGNED To fuck the people and have them say thank you !.

      I am not a hippy or a freak,nor was I ever a activist,I was A roaring ,successful capitalist who honored my commitments [ more fool me ] !

      But that was then and this is now…..and a couple of years ago I woke up,too late to stop myself going broke but early to learn what is really important…..and participating in a fraudulent system is not part of my plan.

      This entire episode in history is a grand financial War and I am now a conscientious objector.

      I try and take care of my family and those that want help…….otherwise I enjoy walking our dog and breaking my ex Bank’s ball’s at every opportunity.!

      Have fun,enjoy life,Read DMcW. Try and chill out on a daily basis……some days are better than others ,but hey ! what can they do ? ABSOLUTELY NOTHING !!

      Peace , love happiness and all that Jazz !

      • molly

        Well said and as soon as people realise that they don’t have to go along with this fucked up system the better there life’s will be.
        Remember what we where told as we started to grow up and we swallowed all the crap hook line and sinker ,bring back the barter system.
        Rip of Ireland is only rip of if you let it be.
        A local shop beside me selling sweets got a new line of sweet in and my 84 year old mother loves them,so once a week I would buy her a bag of the sweet,the shop keeper sold the for 2 euro 70 cents and when he seen they where a good seller what did he do ,he put the price up to 2 euro 99 cents .
        So I stopped buying them and discovered them in tesco for 2 euro 40 cents ,so you see the rip off iis only a rip off if you support it.

        • redriversix

          Hey Molly

          People like your local Shopkeeper will continue to fuck up until it is too late..unless they change,they will lose,emotionally,financially & spiritually and will look for someone else to blame.

          Every day you get a chance of a new life,don’t waste it giving your business to people who clearly don’t want it.

          • molly

            The one good think about not having much work is I don’t earn enough to pay tax so in some way I don’t support this unfair banana republic .
            When I thing of all the money I payed the state over the years I may as well have put all the money on a bonfire .

      • paddythepig

        You seem to think you are the voice of the people.

        • gizzy

          Ah jaysus lads the local shopkeeper is a rip off merchant and Tesco are the saviour. That is warped to say the least.

          • molly

            Tesco is in no way the saviour they make big profits and pay the staff low pay.
            In a fair system I would rather support my local shopkeeper.
            But I am not going to be ripped off .

      • paddythepig

        conscientious objector my ass.

  21. DB4545

    David I’ve read this article and many of your comments over the years and you and a few others forecasted the manufactured property bubble well ahead of the pack. A lot of the debate is shoulda, coulda woulda done this that or something else. We have a national culture of “ah jasus but”. We’re a small Island on the edge of Europe. We have developed a business and political culture of cronyism and nepotism which has led the State to the eve of financial destruction.
    This cronyism and nepotism is clear to most Citizens who have a brain between their ears. When our Citizens go abroad to work in the public or private sectors or develop businesses in global markets the opportunity and ease of success with hard work is clear and measureable. We find the NYPD captain who was declined entry by the the Gardai. We find well qualified but poorly connected teachers expensively educated by taxpayers in this State who seek work abroad while local vacancies are filled by retirees(and all funded by our taxes). We find the Michael O’Leary’s of the world who deliver tourists and revenue to the State and pay taxes in this State despite scorned by elements of our political and social elites while tax exiles(just like absentee landlords) are feted when they deign to visit our shores.
    So what’s the solution? We don’t need to re-invent the wheel.Look at Switzerland. Look at Norway. Look at Iceland. Representative and accountable democracies who hold their political and financial elites to account in order serve the interests of the Citizen NOT the State. No State is a Utopia. The interests of the wealthy will always be well served. These are States that work. Our State is broken. And we’ve all contributed to that in small or big ways by sitting on our arse and smiling at the these Gombeens and saying or doing nothing. Look at Zimbabwe. An economic basketcase led to destruction by well meaning elites. We ARE Zimbabwe with(mostly)white faces.And largely for the same reasons. Cronyism,Nepotism and local Tribalism. It’s way past time to reform.

    • Philip

      The way you counter this well identified curse is to shun it and starve it.

      David has his diaspora idea back to front. He wants the diaspora to look after the Geo Accident called Ireland. I want the great and the good people marooned on this place to become the diaspora and let the Gombeens etc die off. Be part of Europe, Asia, US etc. Leverage your contacts like those before us. Get out there – family and all. Pay your taxes to regimes/countries that deserve them and look after your communities and those you work with and for and those you support. Keep the diaspora alive and make it the certification of what it is like to be a model human being – that might be going too far…but you know what I mean.

      50 year from now…Germans Herren Murphy und Walsh running a robotic factory they own near where their father was reared and had to leave because the local plant was outsourced to India.

    • Puschkin the Black and White Cat

      Ah , sure , you’er not suggesting that the proud nation of “yes” sayers should someday say “No” now are ye !, God almighty that’ed lead to ………..

    • molly

      Yes you hit the nail on the head ,that’s why I have given up on Ireland .
      The sad truth is the majority in Ireland want this that’s why they vote FF,FG,LAB,I believe most people on the dole are sick and tired of FF,FG ,LAB,the ones that are working have not suffered enough under these 3 party’s ,so when these have suffered enough then and only then might we see change.
      The majority of people in Ireland are afraid of change I am not,but there’s not enough of Ian nots yet.
      Face your fear head on and don’t turn your back on it because FF,FG!LAB feed of people’s fear.

  22. shlomosh

    The periphery does not need to be or stay emasculated, on the national as well as as on the European level. Every country has a periphery, every city has a periphery. Sure, many of them are emasculated, but not all. Some have the energy and vision and gumption to find their path to success.

  23. michaelcoughlan

    I don’t know about anyone else but I am really sick of this public/private argument. It nonsense. Let’s say you force every single public sector worker to accept the same pay and conditions as the private sector workers you would wind up for example the headbof The esb on about 2m PA and tow or thre others in financsl control etc with similar pay and everyone els on min wage.

    Will that stop our republic sliming into financial tyranny? No. Will it solve the unemployment problem? No. Will it prevent thd internal GDP economy from imploding?. No.

    Stop the nonsense. Stop taking your Eye off the
    ball. The people turning Ireland into a debt servicing agency are the ENEMY!

    • 2m? That’s pathetic. Give him more. Much more

    • bonbon

      And we have ways of dealing with this enemy – take away their toys – the “investment” arms of rotten banks.

      With banks thus flea-dipped, the enemy will look like a shorn sheep in winter, bleating.

      Some have seen the flea-dip coming, and decided to join the human race. We welcome them back!

  24. DC

    As per Chris Hedges
    “The greatest crimes of human history are made possible by the most colorless human beings. They are the careerists. The bureaucrats. The cynics. They do the little chores that make vast, complicated systems of exploitation and death a reality. They collect and read the personal data gathered on tens of millions of us by the security and surveillance state. They keep the accounts of ExxonMobil, BP and Goldman Sachs. They build or pilot aerial drones. They work in corporate advertising and public relations. They issue the forms. They process the papers. They deny food stamps to some and unemployment benefits or medical coverage to others. They enforce the laws and the regulations. And they do not ask questions.
    Good. Evil. These words do not mean anything to them. They are beyond morality. They are there to make corporate systems function. If insurance companies abandon tens of millions of sick to suffer and die, so be it. If banks and sheriff departments toss families out of their homes, so be it. If financial firms rob citizens of their savings, so be it. If the government shuts down schools and libraries, so be it. If the military murders children in Pakistan or Afghanistan, so be it. If commodity speculators drive up the cost of rice and corn and wheat so that they are unaffordable for hundreds of millions of poor across the planet, so be it. If Congress and the courts strip citizens of basic civil liberties, so be it. If the fossil fuel industry turns the earth into a broiler of greenhouse gases that doom us, so be it. They serve the system. The god of profit and exploitation. The most dangerous force in the industrialized world does not come from those who wield radical creeds, whether Islamic radicalism or Christian fundamentalism, but from legions of faceless bureaucrats who claw their way up layered corporate and governmental machines. They serve any system that meets their pathetic quota of needs.
    These systems managers believe nothing. They have no loyalty. They are rootless. They do not think beyond their tiny, insignificant roles. They are blind and deaf. They are, at least regarding the great ideas and patterns of human civilization and history, utterly illiterate. And we churn them out of universities. Lawyers. Technocrats. Business majors. Financial managers. IT specialists. Consultants. Petroleum engineers. “Positive psychologists.” Communications majors. Cadets. Sales representatives. Computer programmers. Men and women who know no history, know no ideas. They live and think in an intellectual vacuum, a world of stultifying minutia. They are T.S. Eliot’s “the hollow men,” “the stuffed men.” “Shape without form, shade without colour,” the poet wrote. “Paralysed force, gesture without motion.”
    It was the careerists who made possible the genocides, from the extermination of Native Americans to the Turkish slaughter of the Armenians to the Nazi Holocaust to Stalin’s liquidations. They were the ones who kept the trains running. They filled out the forms and presided over the property confiscations. They rationed the food while children starved. They manufactured the guns. They ran the prisons. They enforced travel bans, confiscated passports, seized bank accounts and carried out segregation. They enforced the law. They did their jobs.
    Political and military careerists, backed by war profiteers, have led us into useless wars, including World War I, Vietnam, Iraq and Afghanistan. And millions followed them. Duty. Honor. Country. Carnivals of death. They sacrifice us all. In the futile battles of Verdun and the Somme in World War I, 1.8 million on both sides were killed, wounded or never found. In July of 1917 British Field Marshal Douglas Haig, despite the seas of dead, doomed even more in the mud of Passchendaele. By November, when it was clear his promised breakthrough at Passchendaele had failed, he jettisoned the initial goal–as we did in Iraq when it turned out there were no weapons of mass destruction and in Afghanistan when al-Qaida left the country–and opted for a simple war of attrition. Haig “won” if more Germans than allied troops died. Death as score card. Passchendaele took 600,000 more lives on both sides of the line before it ended. It is not a new story. Generals are almost always buffoons. Soldiers followed John the Blind, who had lost his eyesight a decade earlier, to resounding defeat at the Battle of Crécy in 1337 during the Hundred Years War. We discover that leaders are mediocrities only when it is too late.
    David Lloyd George, who was the British prime minister during the Passchendaele campaign, wrote in his memoirs: “[Before the battle of Passchendaele] the Tanks Corps Staff prepared maps to show how a bombardment which obliterated the drainage would inevitably lead to a series of pools, and they located the exact spots where the waters would gather. The only reply was a peremptory order that they were to ‘Send no more of these ridiculous maps.’ Maps must conform to plans and not plans to maps. Facts that interfered with plans were impertinencies.”
    Here you have the explanation of why our ruling elites do nothing about climate change, refuse to respond rationally to economic meltdown and are incapable of coping with the collapse of globalization and empire. These are circumstances that interfere with the very viability and sustainability of the system. And bureaucrats know only how to serve the system. They know only the managerial skills they ingested at West Point or Harvard Business School. They cannot think on their own. They cannot challenge assumptions or structures. They cannot intellectually or emotionally recognize that the system might implode. And so they do what Napoleon warned was the worst mistake a general could make–paint an imaginary picture of a situation and accept it as real. But we blithely ignore reality along with them. The mania for a happy ending blinds us. We do not want to believe what we see. It is too depressing. So we all retreat into collective self-delusion.

    In Claude Lanzmann’s monumental documentary film “Shoah,” on the Holocaust, he interviews Filip Müller, a Czech Jew who survived the liquidations in Auschwitz as a member of the “special detail.” Müller relates this story:
    “One day in 1943 when I was already in Crematorium 5, a train from Bialystok arrived. A prisoner on the ‘special detail’ saw a woman in the ‘undressing room’ who was the wife of a friend of his. He came right out and told her: ‘You are going to be exterminated. In three hours you’ll be ashes.’ The woman believed him because she knew him. She ran all over and warned to the other women. ‘We’re going to be killed. We’re going to be gassed.’ Mothers carrying their children on their shoulders didn’t want to hear that. They decided the woman was crazy. They chased her away. So she went to the men. To no avail. Not that they didn’t believe her. They’d heard rumors in the Bialystok ghetto, or in Grodno, and elsewhere. But who wanted to hear that? When she saw that no one would listen, she scratched her whole face. Out of despair. In shock. And she started to scream.”
    Blaise Pascal wrote in “Pensées,” “We run heedlessly into the abyss after putting something in front of us to stop us from seeing it.”
    Hannah Arendt, in writing “Eichmann in Jerusalem,” noted that Adolf Eichmann was primarily motivated by “an extraordinary diligence in looking out for his personal advancement.” He joined the Nazi Party because it was a good career move. “The trouble with Eichmann,” she wrote, “was precisely that so many were like him, and that the many were neither perverted nor sadistic, that they were, and still are, terribly and terrifyingly normal.”
    “The longer one listened to him, the more obvious it became that his inability to speak was closely connected with an inability to think, namely, to think from the standpoint of somebody else,” Arendt wrote. “No communication was possible with him, not because he lied but because he was surrounded by the most reliable of all safeguards against words and the presence of others, and hence against reality as such.”
    Gitta Sereny makes the same point in her book “Into That Darkness,” about Franz Stangl, the commandant of Treblinka. The assignment to the SS was a promotion for the Austrian policeman. Stangl was not a sadist. He was soft-spoken and polite. He loved his wife and children very much. Unlike most Nazi camp officers, he did not take Jewish women as concubines. He was efficient and highly organized. He took pride in having received an official commendation as the “best camp commander in Poland.” Prisoners were simply objects. Goods. “That was my profession,” he said. “I enjoyed it. It fulfilled me. And yes, I was ambitious about that, I won’t deny it.” When Sereny asked Stangl how as a father he could kill children, he answered that he “rarely saw them as individuals. It was always a huge mass. … [T]hey were naked, packed together, running, being driven with whips. …” He later told Sereny that when he read about lemmings it reminded him of Treblinka.
    Christopher Browning’s collection of essays, “The Path to Genocide,” notes that it was the “moderate,” “normal” bureaucrats, not the zealots, who made the Holocaust possible. Germaine Tillion pointed out “the tragic easiness [during the Holocaust] with which ‘decent’ people could become the most callous executioners without seeming to notice what was happening to them.” The Russian novelist Vasily Grossman in his book “Forever Flowing” observed that “the new state did not require holy apostles, fanatic, inspired builders, faithful, devout disciples. The new state did not even require servants–just clerks.”
    “The most nauseating type of S.S. were to me personally the cynics who no longer genuinely believed in their cause, but went on collecting blood guilt for its own sake,” wrote Dr. Ella Lingens-Reiner in “Prisoners of Fear,” her searing memoir of Auschwitz. “Those cynics were not always brutal to the prisoners, their behavior changed with their mood. They took nothing seriously–neither themselves nor their cause, neither us nor our situation. One of the worst among them was Dr. Mengele, the Camp Doctor I have mentioned before. When a batch of newly arrived Jews was being classified into those fit for work and those fit for death, he would whistle a melody and rhythmically jerk his thumb over his right or his left shoulder–which meant ‘gas’ or ‘work.’ He thought conditions in the camp rotten, and even did a few things to improve them, but at the same time he committed murder callously, without any qualms.”

    These armies of bureaucrats serve a corporate system that will quite literally kill us. They are as cold and disconnected as Mengele. They carry out minute tasks. They are docile. Compliant. They obey. They find their self-worth in the prestige and power of the corporation, in the status of their positions and in their career promotions. They assure themselves of their own goodness through their private acts as husbands, wives, mothers and fathers. They sit on school boards. They go to Rotary. They attend church. It is moral schizophrenia. They erect walls to create an isolated consciousness. They make the lethal goals of ExxonMobil or Goldman Sachs or Raytheon or insurance companies possible. They destroy the ecosystem, the economy and the body politic and turn workingmen and -women into impoverished serfs. They feel nothing. Metaphysical naiveté always ends in murder. It fragments the world. Little acts of kindness and charity mask the monstrous evil they abet. And the system rolls forward. The polar ice caps melt. The droughts rage over cropland. The drones deliver death from the sky. The state moves inexorably forward to place us in chains. The sick die. The poor starve. The prisons fill. And the careerist, plodding forward, does his or her job.

    • A link to ‘The Careerists’ was posted by me the other week. It is a very good read

    • DB4545

      Nothing has really changed. A modern example might demonstrate the modern careerist. The UK and Ireland have a shared problem with laundered diesel. Road diesel and Agricultural diesel attract different rates of tax and duty. This makes ‘Green’ and ‘Red’ Agricultural diesel much cheaper than road diesel. Organised criminal gangs remove a dye marker in Agricultural diesel and then sell it at a discounted rate to road diesel and pocket the difference. This ‘black market’ road diesel can damage vehicle engines, is used by rogue road hauliers to unfairly compete with honest road hauliers and drives them out of business and robs both States of much needed tax revenue. UK and Irish Customs ‘Officials’ came up with the bright idea of a common dye colour and a common ‘chemical’ marker for both States. A more cost effective solution for taxpayers would be to tax diesel at one rate (the road diesel price) and allow tax credits to the Agricultural sectors based on usage over the last five years. This would ensure consumer interests are served, eliminate the diesel laundering business at the stroke of a pen and ensure fair competition for road hauliers. Unfortunately it would also eliminate the little empires of Customs Officials in both countries!

    • paddythepig

      A load of cack.

    • cdivision

      Truth that scours the heart. Thanks for posting this DC.

  25. Great stuff

    The stats contained in this article would bring a tear to a glass eye. It is truly eye watering stuff and does not mince words. It is a far cry from some of the idiotic ramblings of dishonest journos who try to convince the nation that we are the good boys in the class and that we deserve the Germans and the Finns to pass us the sweetie bag for our good behaviour. This article proves that what some of our esteemed hacks write is plain bullshit

    We are in deep denial

    We have a minister for health refusing to tackle a 300m overspend and whose colleagues can’t stand the sight of the arrogant bugger and a minister for Social Protection who thinks this is acceptable as long as it avoids industrial anarchy. There are some things you can’t cover up with lipstick and powder Miss Burton. Not even a moosh like yours

    “Maybe this is just a bit of sun getting to your columnist, but sometimes events that appear random and unfathomable — like why a country such as Ireland would actively allow its private sector grind to a halt — happen for a reason. Maybe that reason is that these events fit into a larger plan, someone else’s larger plan.”

    Now are talking

    • bonbon

      Of course there is a “larger plan”, but the planners have done an about turn. This is happening now so fast, clinging to trendlines even for writers previously ahead of the wave, better pay attention.

      • Tony Brogan

        There is no about turn for the grand master plan of world dominion.
        There are a few false leads sent our way to dupe us into thinking a saviour is at hand. wish it were so.
        Go further than separating commercial and investment banks.
        eliminate the central banking system and fractional reserve banking .
        Put monetary policy back with treasury and get rid of debt based fiat currency and return to money which is private property, and commodity based. (ie leave the Euro)
        China will bring commodity money to the fore anyway in the near future but Ireland could get a head start and start to prosper now.

        • bonbon

          There is ample press coverage of a change. In military affairs there is no guarantee, and the fear of that amongst the ranks prompts utterances of “nothing will change”. Just deep seated fear.

          Stop hanging on to the past, Glass-Steagall is merely a necessary step to reconstruction of the economy, but an essential acute requirement now.

      • There is a trend appearing on these boards

        People know the system is fckued and they have no faith in it whatsoever

  26. michaelcoughlan

    The Article by DC is simply outstanding. It’s the best I have read from four years reading this blog.

    To put the article in financial context let me enlighten all of you. After Anglo failed you would imagine that the people involved would never be given a job again. Such naivety! David drumm former CEO is gainfully employed in the US on another monster salary and can anyone explain why after he fucked up so royally in Anglo?

    Brian Goggin former CEO of BOI who was there when all the dodgy loans were given out and subsequently pensioner off has now been rehired by a US company specialising in buying distressed loans precisely because he knows where all thd bodies are buried! Paid to fuck the whole thing up and now paid to make a killing in the unfolding disaster!

    McWilliams ends the above article with questions because he still isn’t able to think like a Nazi when analysing the worlds financial system. Let me Enlighten you McWilliams in the parallel Nazi Universe it is perfectly normal behaviour to fads people to death and be promoted in your job for doing so. In the financial universe it is perfectly normal to rape your customers, employees, shareholders, country, environment and be promoted in your job for doing so!

    The guys who run these companies are not smarter than the rest of us they are the type who are so short sighted as to the consequences of their actions they don’t have to deal with the physiological consequences of such actions because their limited personalities don’t allow them to understand cause and effect.
    Remember chimpanzee bush after the 9/11 attacks asking the question ‘why did it have to happen in my watch?’

    Sooner or later David reality will kick you harder in the ass than than those of us who know that in this world physopatic careerists in financial organisations all over the planet can kill more people than in the gas chambers because when you drop a two ton bomb on a wedding reception in Afganistan from 5 miles up it’s impossible to hear the visceral screams of mutilated children on you monitor unlike a gas chamber!

  27. The Irish brothers are angry today. Before it gets out of hand I think it time to consult the bard

    Ye see yon birkie, ca’d a lord,
    Wha struts, an’ stares, an’ a’ that;
    Tho’ hundreds worship at his word,
    He’s but a coof for a’ that:
    For a’ that, an’ a’ that,
    His ribband, star, an’ a’ that:
    The man o’ independent mind
    He looks an’ laughs at a’ that.

  28. bonbon

    DMcW is doing a forecast based on trends, statistics. In the real world we know better. The future is decided otherwise.
    I posted here breakthrough action for major banking changes, decisively placed on the table by London.

    Here is a clip from German leading press, in English, to get the message across

    This is a very clear message from the Editor, Georg Mascolo in 2 languages. Maybe a broadside on Geithner?

    This is what is coming, not seen in tea-leaves, trends, or statistics. After all statistically speaking there should be no economists, only ecologists.

    • bonbon

      Citi’s just retired Sandy Weill, who very surprisingly called for Glass-Steagall restoration, has a plaque on his office wall “The Shatterer of Glass-Steagall”. Article above details this.

      No tea-leaves or statistics could have possibly forecast Weill’s Damascus Road conversion.

      This is why the posted quote on Sherlock Holmes (really Occam’s Razor) is utter incompetence. Finance blustered “impossible” when FT, then Weill, now Spiegel, shattered their belief in statistics. Occam would eliminate the impossible, for the simple. Daft!

  29. bonbon

    EIR to Draghi: “Pentiti”! Draghi: “No!”

    ECB President Mario Draghi lied today answering a EIR question, whether he “should not join Sandy Weill and say ‘we made a mistake, we should go back to a full separation between commercial and investment banks,’” since Draghi “personally abolished banking separation in Italy with legislation that carries” his name.

    Draghi answered that there had been no banking separation in Italy, but separation between banks which could make short-term versus long-term lending.

    “So, that is the only thing we abolished and the advantage today is that we have banks that can do both.”

    Answering that way, a visibly upset Draghi showed that, like Don Giovanni, he has no intention to repent. He is lying through his teeth, because if it was true that the Italian system was formally regulated along “specialization” lines, it is also true that before his financial reform in 1998 there were no investment banks except one, Mediobanca, and all Italian banks were commercial banks or specialized banks for agricultural or industrial credit. After the “Legge Draghi” reform, {all} Italian banks became universal banks!

    The exchange between EIR and Draghi can be followed on video, at minute 28.18: html/webcast_120802.en.html

  30. bonbon

    How many financial contracts are actually fraudulend, hence null and void?

    Munich Law Firm Sees Sound Basis for Legal Charges Against LIBOR Manipulators

    Munich-based law firm Roessner contradicts the mainstream media “assessment” that legal challenges to the banks of the LIBOR cartel allegedly have poor chances, because plaintiffs would have to prove that they were defrauded concretely, and by exactly how much — which most media (and bank lawyers) claim is virtually impossible.

    The Roessner team argues that plaintiffs, obviously, would never have signed contracts with any of the banks, had they had the slightest suspicion that interest rates could and would be manipulated. Not only are the contracts null and void, therefore, but plaintiffs have to be fully compensated for the losses caused by the banks.

    The Roessner argument reflects aspects of the March 2011 constitutional court ruling in the Ille case, in which the judges found the contracts sold to the Ille firm by Deutsche Bank unethical and fraudulent from the inception. The bank was forced to reimburse the firm. Roessner lawyers are among a handful in Germany that have actually won cases against Deutsche Bank and other banks in the past, because they did not fall for the sophist traps laid by the lawyers of the bankers.

  31. bonbon

    Mr. Draghi, author of the Italian universal banks, where is your nuclear bazooka?

    Draghi Promises, But Fails To Deliver on Ultimate Bailout Now

    The U.S. Federal Markets Open Committee (FOMC) on Wednesday, and the European Central Bank (ECB) meeting on Thursday came and went, without the committment to the immediate, unlimited, opening wide of the hyperinflationary spigot demanded by insane financiers to keep their ficticious paper afloat.

    Draghi could not announce anything but that he has ordered plans to be drawn up for a nuclear bazooka, because of continuing, growing German opposition to a re-run of Weimar 1923 hyperinflation. One paper reported that the Bundesbank voted against even ordering that planning. So, Draghi announced that only planning would proceed, and that before hyperinflationary “help” could be given to Spain and Italy, they would have to ask to be put into Troika receivership, and even that required the yet-to-be created European Stability Mechanism.

    “Where Is Your Big Bazooka, Mr. Draghi?,” the business editor of London’s Daily Telegraph headlined his angry response; ECB chief Mario Draghi did not deliver on his promise to “do whatever necessary” to save the Euro. Bill Gross, head of the world’s largest bond trading operation, PIMCO, told Bloomberg TV that the ECB had once again “kicked the can down the road,” “disappointing” the high expectations of speculators, and if this wasn’t changed within a week, no one, and certainly not PIMCO would purchase Spanish bonds ever again.

    The Spanish stock market lost over 5% of its value, with the Italian markets chasing behind them. Italian Prime Minister Mario Monti flew off to Madrid to huddle with his Spanish counterpart, Mariano Rajoy, warning, according to a nervous Daily Telegraph report, that if Europe didn’t put “real muscle behind its rhetoric” soon, “you are going to see a eurosceptic government take power in Italy.”

    Even the bloody IMF issued a statement insisting that “further monetary easing an unconventional support” is needed to “ease tensions.

  32. Nonsense – the Irish economy is not grinding to a halt – the Purchasing Managers Index for Manufacturing is surging since April, as tweeted by Constantine Gurdiev during the week.

    Keep it real David, don’t always be such a drama queen.

    Data is here:

    • Stiofan

      Why do you think this is the case? The reason is, as the article points out, the multinationals are flying. I take your point, sometimes when writing the articles, I miss certain things but I do still think we are seeing this hollowing out of the small business sector. Thanks for the chart.

      Constantine is an old friend. His blog is brilliant and in my opinion, he has one of the best economic minds in the country. So post more of his stuff here. You will get nothing but support from me for it!

      All the best


      • bonbon

        In Germany, CD’s are being purchased by officials with long lists of Swiss bank accounts where billion in tax have disappeared “offshore”. The latest was in NRW last month.

        Ganley and Gurdgiev are running this operation. To call an offshore tax-haven after our most famous Saint Columbanus, honored in Swiss St. Gallen Scriptorium, is beyond hypocrisy, but a telling indication of the activities of such. Ganley is well known for his call for a United States of Europe. I wonder did he mean to include Switzerland?

        True economics with offshore tax-havens for the rich?

        • bonbon

          I wonder where this is going?

          Flight Capital from Spain Already Equals 25% of GDP

          As reported by the left-wing German website {Telepolis} today, capital flight from Spain is accelerating: 41.3 billion euros fled from the country’s banks in May alone–EU10 billion more than in April. In the first five months of 2012, a record EU163 billion left the country, altogether; during the first five months of 2011, a net inflow of EU14.6 billion was still reported, however. The capital drain has been continuing for 11 months now, with altogether EU260 billion leaving Spain–which equals 25% of the country’s GDP. The figures are from a report of the Spanish central bank.

      • David,

        Undoubtedly the multinational sector is performing well here, although skills shortages are a constraining factor to this sector (e.g. technical skils, languages). I work in the IT sector, trying to address the shortage of circa 7,000 software engineers needed in Ireland at this time (see [excuse the plug!]).

        The domestic economy is getting its act together gradually – many businesses that were designed for boom-time are defunct. Those that have survived this far may have what it takes to survive. Other new ones are starting and doing well in the post-boom environment.

        Small businesses are undoubtedly finding it tough, but I don’t think its all doom and gloom….and am encouraged by the PMI indicators in recent months.

        Keep up your provocative blogs – they are a great addition to the national dialog on economics/politics.

        Best Regards,

  33. lar

    Debt and Unemployment:

    Today, almost every country in the world has such huge debts that governments are now forced to either borrow more, spend less, or print more to meet their budgets. Realistically, none of these options are sustainable.

    Printing money devalues the currency, meaning you can buy less with it. Also, since it enters the economy as a debt, it is subject to interest. Since the money to pay this interest doesn’t even exist, it ultimately requires another debt – and more interest!

    Public spending cuts ultimately means job cuts, creating further unemployment, while private companies continually replace staff with machines that can work faster and cheaper, to increase their productivity and profits.

    Paid employment is the oxygen of the monetary system. Without it, all you get is more debt. This unemployment and debt cycle will ultimately bring about a global monetary collapse.

  34. Morning

    Thanks for all the comments. Just getting to read them now. Interesting take on things. BTW this was not a public v private article, that’s not my agenda. I am simply increasingly worried about the passivity of the country in the face of big trends which we can all see emerging.



    • Colin


      I’m sure in the homes of the long term unemployed, the men are far from passive when it comes to venting their frustrations out on those close to them. The other common alternative is to vent it inside themselves by turning to drink, drugs and other addictions. Very few have the capability to rise above it all, and get some perspective, but at least you through your columns books and media performances can make them realise that they are not culpable for how their lives have turned out and for their hopes and dreams of the future have been extinguished.

      I have no faith in any Irish government past present or future to do what should be the primary objective of the government; to look after the people of the country by making the best decisions for the people of the country.

  35. It’s worth bearing in mind that the Rothchilds spend half their day deleting money.

    Once a loan is repaid to a bank the money no longer exists. This is a very important point and it explains why there is less money during a recession.

    As David points out in the article people are not borrowing from banks. Consequently all other measures of the economy will be negative since money, the lifeblood of the economy, comes from bank loans.

    The only way to run an economy smoothly under this system of money creation/destruction is for us to collectively take on more debt than we repay. To date this has primarily been achieved through mortgages taking longer and longer to repay. However they’ve reached their natural limit taking 30 years to repay. As such this is a unique recession.

    For more detail on what I’m saying you can have a look at a recent 9-page document we published for the Department of Finance;

    • bonbon

      Well, the Baron does not want us to delete, shred his derivative mountain, which he started in 1973 with the Inter-Alpha banking group. Glass-Steagall will do that, and right at this moment, it is not known if the Baron called for Glass-Steagall with the FT editorial on Jul04. If Citigroup’s Sandy Weill, “Shatterer of Glass-Steagall”, can have a Damascus Road conversion, it is not beyond the bounds of reason for others to see the danger of the collapsing derivative overhang.


    How does Pat Hickie from the OCI get away with consistently garbage performances in the Olympics ? A small fortune has been spent on a small no of so called athletes. No excuses.Just as bad as the soccer tea. Most nations don’t even bother sending a boxing team.

  37. michaelcoughlan


    The Idea tha money is created by taking on debt from banks is only partly true. In America paper dollars come into being when the us government borrow them into existence from the fed by selling bonds to the fed on which interest is paid ! However the us coin in circulation is government issued interest free currency which is the way paper money was created in the US up until 1913 when this function was given to the fed by the president who later realised his mistake and admitted he had inadvertently destroyed his country for giving over this function to a privately owned bank!

    The following video by bill still illustrates the whole operation and is an award winning documentary. Whilst long it is worth viewing!

    • bonbon

      You mean Teddy Roosveldt, unelected, commissioned the FED. He committed high treason against the US Constitution (Hamilton’s Credit Clause), and knew it!
      There is a story there.

      Hamilton’s First US National Bank and 2 following, were repeatedly sabotaged, the FED being only the most recent. FDR and JFK used Hamiltonian methods with the RFC, Reconstruction Finance Corporation, to rebuild the economy. Lincoln used this for Greenbacks to defeat the secessionists.

      The lesson for us is to first study Hamilton and how he defeated the British banking methods, and how FDR rediscovered this and gave us Glass-Steagall. It then becomes clearr why Sir Alan Greenspan, Sandy Weill etc repealed that law in 1999 giving us this unbelievable crisis.

    • Hi Michael,

      What you’ve said is true. However cash forms only around 3% of the money supply of most developed economies.

      The other 97% is in the form of the balance of everyone’s current accounts and savings accounts. These number are used to facilitate 99.9% of transactions by value and as such cash is now negligible, with the production of coins even moreso.

      It the the commercial banks which create 97% of the money supply usually in through advancing loans so almost every euro, dollar, pound etc. does have a corresponding debt.

      Of equal importance is the fact that once a loan is repaid to a bank the bank effectively cancels the money out of existence since the borrower’s current account goes down, their debt to the bank goes down and no other account is affected. This is why there can be less money during a recession.

      Paul Ferguson
      Sensible Money

  38. michaelcoughlan

    Here is a passage from a sole opponent to the south sea co and bubble delivered in the house of commons as long ago as the early 1700′s. Seems to me his latter day incarnation is the floppy haired one who must be obeyed.

    ‘Mr. Walpole was almost the only statesman in the house who spoke out boldly against it. He warned them, in eloquent and solemn language, of the evils that would ensue. It countenanced, he said, “the dangerous practice of stock-jobbing, and would divert the genius of the nation from trade and industry. It would hold out a dangerous lure to decoy the unwary to their ruin, by making them part with the earnings of their labour for a prospect of imaginary wealth. The great principle of the project was an evil of first-rate magnitude; it was to raise artificially the value of the stock, by exciting and keeping up a general infatuation, and by promising dividends out of funds which could never be adequate to the purpose.” In a prophetic spirit he added, that if the plan succeeded, the directors would become masters of the government, form a new and absolute aristocracy in the kingdom, and control the resolutions of the legislature. If it failed, which he was convinced it would, the result would bring general discontent and ruin upon the country. Such would be the delusion, that when the evil day came, as come it would, the people would start up, as from a dream, and ask themselves if these things could have been true. All his eloquence was in vain. He was looked upon as a false prophet, or compared to the hoarse raven, croaking omens of evil. His friends, however, compared him to Cassandra, predicting evils which would only be believed when they came home to men’s hearths, and stared them in the face at their own boards. Although, in former times, the house had listened with the utmost attention to every word that fell from his lips, the benches became deserted when it was known that he would speak on the South-Sea question.’

    • bonbon

      Excellent. Unfortunately Europe has been infested with bubbles, and only in 1933 was a solution found – FDR’s bank separation known as Glass-Steagall. Speculation with savings accounts of others is what led to 1929 and the current collapse.

      Now Financial Times of London on July 04, US Independance day, published the widely covered call for Glass-Steagall. That is a huge difference, and not forecast by statisticians. The public discussion has started.

      Of course the pro-imperial faction in London will not lightly change their ways and try war, modern thermonuclear war, so there is not guarantee. There is a fight!

    • Adam Byrne

      ‘the floppy haired one who must be obeyed’, haha

    • Adam Byrne

      Great passage about Mr. Walpole too.

  39. bonbon

    DMcW is worried about rampant passivity in Eire, and rightly so. Here is the Icelandic spirit in contrast :

    Iceland Parliamentarians Introduce Bill To Break Up Speculative Banks; Cite Glass-Steagall

    Álfeiður Ingadóttir, a member of the Parliament of Iceland, has submitted a motion to Parliament to to stop banks from “using state-backed deposits to finance risky investments,” reported Bloomberg/Business today in a lengthy article that recaps the collapse of the speculative bubble in Iceland in 2007.

    Citing the Glass-Steagall precedent, Ingadóttir says, “Lawmakers in all parties agree on the necessity of separation. So I’m confident that this will pass later this year.” She “says the best way to stop banks creating asset bubbles is to pass laws akin to the 1933 Glass-Steagall Act, which separated commercial and investment banking in the U.S. for more than six decades,” Bloomberg reports her as saying.

    The news service adds, “It’s a proposal that’s gaining traction elsewhere. Even Sanford “Sandy” Weill, whose 1998 creation of New York-based Citigroup Inc. triggered the Gramm-Leach-Bliley Act that paved the way for financial behemoths, now says investment banks should be separated from deposit-taking banks.”

    Ingadóttir’s party, the Left-Green Movement, is a member of Iceland’s governing coalition, with Economy Minister Steingrimur J. Sigfússon being a member.

  40. bonbon

    Looking at the passivity and the sweeping changes DMcW cited above, there is a grave danger of “solutions” such as these to be enforced. I think this is why we should all be worried. Here is a Canadian think tank and its 70+ offshoots, including the Open Republic Institute in Ireland :

    Bare-knuckle capitalism

    The cited list of this tank, supported both by neo-liberal Milton Friedman and Austrian School Friedrich von Hayek :

    - Lower and flatter taxes
    - Maximum privatisation of government functions and services
    - Privatisation of public pensions
    - Commercialisation of the public health care system
    - Provision of increased ‘choice’ in the education system
    - Ending of minimum wage laws and more rigid control over unemployment insurance
    - Reorganisation of welfare programs to ‘encourage’ the unemployed into low paid work coupled with a reduction in government support for those still unemployed.
    - Greater reliance on charity and voluntary work to cater to the needs of the less well off
    - Liberalization of trade, both nationally and internationally

    Basically the abolishment of the Nation State committed to the General Welfare.

    • joe hack

      What No mention of a Glass Seagull,
      Are ya not well, will call the doc



      • bonbon

        That’s the choice – killer austerity, destruction of the nation, or splitting the banks. No wiggle room. Do not get sick – the health system is only for the healthy. Cheaper that way.

    • cooldude

      All of the above measures sound like sensible policies to me. We are living in a state where we borrow 19 billion euro every year to fund a “public service” whose only goal is to serve itself and let the rest of the people be damned. The only thing these people care about is their own entitlements even if it means hoisting massive debts on future generations. We need to balance our budget with a much smaller public sector. We need to give tax breaks to all new ventures to encourage our young people to become entrepreneurs and try and stop the scourge of youth emigration and unemployment. These young people need to be given a chance and the fact is most of these so called public servants are delighted to see them leave so they can keep their measly jobs. We need to give entrepreneurs the right environment to create jobs and stop hassling them with endless regulation and tax. The above measures look like a good start to me.

  41. joe hack

    Mr PAUL it is,
    you are as deserving of that title as is anyone else, this is a very polite blog even the anonymous are generally polite here, they are mostly are here to learn and contribute their mussing and mostly stay on topic. Sometimes too polite to himself he has a little bit of a feudal Blog here the master must be listened to……‘Seriously’…..Maybe he will throw you 20euro and tell ya to get a good meal too, like the master Quinn apologists were pointing to a “lovely man”

    I won’t be here much from now on but I will jump in to stab McWilliams in the back when I get a mo, some will smile at that.

    My therapist said I have ween myself off it

    I Did not say you were a ‘sycophant’ but is seems maybe you found a catch word for yourself?

    As for my spelling it’s a cross between laziness and ‘dyslexia’, why do they make that word so hard to spell.

    I heard there a bit of crack up at Strand Hill this week end go and enjoy it.

    • joe hack

      you made me giggle. I think I know what time bonbon gets home at you can tell who works and who don’t on here. This blog will be less active if the country get back to work again it the called the blogger Index.

      If the social welfare police don’t see you post in the day they know your out at work, but in your case your day starts at midnight or are you doing a night shift with access to inter-web leach.

    • It is getting more polite but a couple of years ago many of us were full of rage and this was reflected in some of the comments. In my case it was a rerun of the early 80s when Thatcher was on the rampage tearing up the fabric of communities in Scotland and the North of England. Finding a job was murder and many of us left the place. Anger fizzles out eventually because you get sick of feeling like shit all the time

      Better to take Seamus Heaney’s advice and dig with your pen. It’s all some of have left now

      All part of a bigger plan the guys are talking about here below this article and if it not part of a bigger plan as some claim then the evidence points to the contrary

      It is nice to be nice and let our logic do the talking. There is an interesting post above that struck a chord with regards to anger and apathy. People need to be strong and rise above this despair and it takes strength to do it. They won’t kill me and I can tell you that for sure and I have known poverty before and am not afraid of it. I won’t have dinner tonight. Sure I had dinner yesterday. (joke)

      Don’t worry about the spelling. It’s what you have to say that counts

      I penned another story joe. You know where to find it. If you want me to run the rule over anything you write then the offer is always there. You have my email address. Take care you old sycophant

  42. Third of graduates plan to emigrate for work

    How things change huh

    • molly

      Yes only I would have thought it would be more who emigrate.
      I was in a carpet shop today and I asked the manager how much his sales where down on last year,the government said trade was down about 10 percent,he fell around the shop laughing quote does the government think the Irish people are fools,I wish it was only ten percent ,more like 30+.
      Now spread this across the hole country and think about the people running this banana republic the system has failed and will continue to fail on till we stop being lead banana republic style.

      • I would have laughed too Molly because if someone came in and told me a story opening with ‘the government says’ I would not be able to help taking the piss

        As for the Irish people being fools I reckon most of them are. Most populations consist of a large herd led by a bunch of cute whores.

        • molly

          “When plunder becomes a way of life for a group of menliving together in society, they create for themselves in the course of time, a legal system that authorizes it and a moral code that glorifies it.”      Frederic Bastiat — (1801-1850) in Economic Sophisms

  43. Deco

    Fascinating article. In fact it perfectly describes how misleading the entire statistics produced by the ESRI etc.. have become.

    Albert Eintein’s quotation on measurement describes exactly how state policy (and indeed EU) policy is producing a dysfunctional economic environment.

    “not everything that can be counted counts….and not everything that counts can be counted”.

    Our idiot official planners are looking at “grote”. This means GDP growth. During the last General election there was a big excitement in the broadcast media about “growth projections” from the various parties, and how they calculated growth to occur in the future. Of course none of them had a clue. I mean none of them seen it coming. You only have to see the promises they mad in 2007 to see this (which incidentally were even more ludicrous).

    Ireland is having it’s economic life hollowed out. Gombeenism is still alive and well. It never died. It morphed into something else. You only have to look at the NAMA saga to see that gombeenism is alive and well. The professional classes having hooked up with the crooks are now hooking up with the regulators. The whole thing is unreal.

    The fact is that there are too many cute hoors in this society who are continually using access to power as a means to design win:win scenarios. All that they need is a naive public too provide the suckers.

    So folks, please do not be naive. As many posters commented, be careful when you spend your money and do not support gombeens. And do not support naive people who support gombeens either.

    Spend your wages on businesses that respect your custom, that respect your person, and that respect your community.

    This country needs to start from respect for self, and that means throwing out the “proud” nonsense, and the comfortable tendency to prop up deceivers and gombeens.

    Also I think it is high time we organized a petition to cut down political pensions by 90%.

    In fact we need to have petitions as a means of emabling the people to demand policy changes.

    • gizzy

      Agree just heard KPMG who structured a lot of propety deals and brought them to now bust clients who were advised by other professionals to sign personal guarantees, got another bid receivership on Friday from the powers that be. Win Win is bang on DEco.

  44. joe hack

    A PLAN ? —YES -it’s Called the EURO / EU

    The problem with Angela Markel’s earlier insistences of no help until fiscal/banking/further integration was in place, was; -it did not build- it came across as insincere, insane , mad and dangerous “trust” – to steal a little of your writing style (which I have noticed is changing) ‘akin to not supplying the medicine to the dying until they cure themselves’ -it easy to see why this would not be believed or could not be relied upon by nations “trust”. Ireland been the exception -the eternal optimists — believing that because our begging bowl is small it is easy to fill? A psychologist not an economist is what is needed in Ireland.

    We depended on bigger economies to push for us, what if they had not, what if they had not fallen in the way we did.
    We have so far been lucky with the timing of the fall of Spain and Italy and even the ultra right in Ireland must think that the election of Hollande is a positive.
    There is a plan it is called balancing the books across the EZ and outlawing the creative accounting that temporary politicians use the get reelected.

    THE PLAN!!!!

    The importance of a continuity in the easy to admonish long-term bureaucratic systems in the EU and here in the civil services is often under estimated. If we are to remain in this BLOODY loss of sovereignty Euro thing they the bureaucrats will control it, and its stability {{{{{DOH! THE PLAN THE ESM and more}}}}} and in someways, as hard as this is to say it will be a good thing in other words no short term gain for an elected state government of the day to chase votes by lying about balance sheets (Greece and others), as is the governments of the day will be the policeman of the bureaucrats!!!!!

    What is it the media people want in its 3 min segmented world FLASH BOOM BANG headlines,competing for attention. In he TV version of your business, presenters shout at me the viewer via the microphone, the news anchors are employed on the basis of the sound of there voice. {{{{{!!!!!!TODAY IN THE EU DRAGHI HAD SHIT!!!!!!}}}

    Jingoism does not make good plans there is no climax for your next piece in the Sunday business post.

    This is not you?

    Where are all the journalists gone, out looking for Xfactor style attention

    What politician tells bad news when have you ever seen a politician announce the closing of a factory but they are always there to cut the ribbon you may remember the cynical announcement on the day before the ESM vote.
    This is as much the fault the the people who have little or no interest some don’t even bother voting or inform themselves prior to a vote it should a compulsory subject in education system.
    Maybe you should focus a little more on the psychology and social issues of economics / the people.

    ‘Seriously’ -I am glad to see my subliminal massages are getting to you- it is dangerous for some who might believe that you are a omnipotent soothsayer -you will get it right once in a while, like the clock will strike six pm once a day.

    What if someone did or did not buy a home based on what you have said C.1999 and then panicked and bought
    in say 2006 or maybe went in property business C.2006


    Will your book be priced in equivalent punts?

    I have not bought any of your books but I might chance the next one

  45. gizzy

    Thsi is getting a tad confusing to say the laest . People who are blogging that the world is run by an elite and that people are victims of corporate greed will condemn a small business and go shop in Tesco for a saving of 50 cents. Ah my head is done in.

    • joe hack

      love it

      what has logic got to do with debate

      But i guess saving 50 cent can mean allot to someone who only has 50 cent left after shopping, it may not be by choice that they shop to save their 50 cent it may have more to do low wage or no wage.

      So their point may still be logically valid?

      • gizzy

        Maybe, but it seems the theoretical values are miles away from the practical actions, probably for all of us.

        • joe hack

          How the fuck do we address that,!!!!!!!!!!!!!!!!!!!!! HOW, HOW,!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! this get to the nub, all are fallible,,,,, are we fools because we care and end up we nothing because we don’t abuse,,,, or are we kings,,,,

    • Adam Byrne

      Hahaha the whole world is in a state of chassis.

  46. Brian Cowen is not ruling out a return to law or politics and Da Bert is doling out advice on leadership

    How absurd can it get. For Cod Sake. Get me out of here!

  47. joe hack

    Its the silly season David all politicos are away at the races and such, you need change you holiday plan to fit with the time

    But maybe it’s the clam before the storm of the great awakening on the streets

    but i doubt it


    u owe some black stuff I will pounce on u for it if you land in my bar

    unlikely i would do that i am to reserved i choose my company very cearfully

    truth is if you sat beside i might buy u

  48. MIT

    Hi David,

    What I think may be happening has got nothing to do with Ireland- we are irrelevant at this stage – what is really important to the core countries are Spain and Italy – these are still very important export markets for the core countries so it’s in the interest of the core to keep them ticking over with monetary transfers. (Remember the poor in the Spain and Italy don’t buy expensive German goods, so they don’t matter to the political and industrial elite of the core countries).

    So, to me, that is the grand plan.

    As for Irish corporation tax, well, this has not even crossed their minds – they will just tell us what rate they want it to be. And yes, you are correct, our Government will just roll over in exchange for a token reduction of the bank debt interest rates.

    • bonbon

      See Draghi’s desperate “Euro is irreversible” on the EU tv link I posted.
      We have again, as in 1989 Honnecker’s famous last words:
      “The march of Socialism will not be stopped by Ox or Ass”. 2 months later he was out, the Wall fell.

      Now we have Frau Honnecker “doing everything for the Euro” with Führer Draghi in the bunker.

      Care now to make a prognosis?

  49. joe hack

    “The headline in yesterday’s Irish Independent was eye-catching”


    the media is Jingoistic

    if only they just tell us the facts then we might be able to call it NEWS

    • bonbon

      Amazing spelling. 100% correct.

      The news is London has decided in a change of policy. That’s the news, not on RTE for sure. It is not a fact – in war there is no guarantee, just certain oblivion if you stick to the facts.

      See Einstein’s quote above now in a different light…

  50. bonbon

    RT Max Keiser tonight – Pecora commission and a new FDR’s Glass-Steagall needed! HSBC in the crossfire!

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