September 26, 2013

Banks should be afraid of regulator – Anglo was not

Posted in Banks · 153 comments ·

The structure is familiar to any Irish person. The stout walls, the battlements designed for heavy artillery, perched on an elevated site with good views around it, normally on a military road or overlooking a large river or a bay. The Martello Tower is something we in Ireland hardly even notice now, but spotting a Martello Tower here in Quebec City prompts a double-take.

The Martello Towers in Quebec City remind you that this was a British garrison town deep in French territory for nearly 200 years. The towers were designed to keep watch over the colony and to ensure that the authorities had an early warning system to signal trouble.

The last time I was in Canada, I was working in a restaurant in Toronto in the 1980s, and there was a perception that the Quebecers were far too radical in their approach to language. The other debate that was raging in Canada at the time was whether the banks were being too reckless in lending to the construction sector. Ontario was in the middle of a housing bubble.

Like all bubbles, it burst, plunging Ontario into a recession in 1990.

However, the fascinating aspect about Canada now is just how strong the Canadian banks have been throughout the latest global financial crisis. The Canadian banks – unlike banks in the US, the UK, Spain, Greece, Italy and, of course, Ireland – didn’t need any bailouts.

The reason is regulation. The Canadian regulators did their jobs in the 1990s and the 2000s. They kept a tight rein on the banks and what they were doing, knowing full well that, left to their own devices, banks will over-lend if they get the chance because banks make money from lending out money, not taking in deposits.

The Canadians also understood that, unless the regulators are vigilant, banks will undermine the economy because banks are not like normal businesses.

Think of the banks as pyromaniacs, the economy as a dry forest and the regulator as the firemen constantly looking for dangers. Forest fires are much easier to prevent than put out.

This is why bank regulation is so important because, when it goes wrong, it goes wrong big style.

Regulation is all about policing the banks when they start to lend too much at the very beginning of a credit upswing. By the time the public starts taking money out of the banks and by the time the other banks that were financing Irish banks start calling in their loans as they were doing from 2008, it is already too late.

At this point, the authorities have a choice: do something or do nothing.

Doing nothing means you let the banks go bust and adopt an “it will be grand approach”. That’s hardly an option. We know from the Great Depression and the Asian crisis of 1997 that immediate liquidation of the banks in a panic makes the subsequent recession much worse.

Betrayed by an arm of itself – the regulator and the central bank – the State is left choosing between bad and worse.

The famous English economist, John Stuart Mill, said the following of crashes: “The crash doesn’t destroy wealth, it merely reflects the extent to which wealth has already been destroyed by bad investments made in the boom.”

Wealth in Ireland wasn’t destroyed by the crash but by stupid decisions made in the boom, driven by the effervescence of the herd and fuelled by reckless lending. Every time some mad-cap dream of a developer was financed, the deposits of the ordinary depositor were put at risk. When those loans went bad, the bank had to find the money to make up the shortfall.

This is what the regulator is paid to spot – years before it gets out of hand. The financial authorities weren’t up to the job. The Anglo Tapes reveal the extent to which banks were not fazed by the regulator. To put it mildly.

Banks should be afraid of the regulator. The regulator should be the policeman that is respected and feared – yes, feared – by those it is regulating. If they are not, banks have an almost in-build tendency to lend too much during a boom, pushing up share prices. Share prices rise with profitability but the more profitable a bank is in a boom, the more risk it is taking.

Rather than celebrate bank profits, a regulator should feel queasy and call the bank in and impose limits on lending. But it seemed that in Ireland, the regulator was happy to just watch from the sidelines and cheer on bank profits, continuing until the very end to say that the banks were “well capitalised” when the opposite was the case.

By then, the government had to act to protect deposits. It couldn’t do this by merging bad banks with good ones because there were no good banks in Ireland. They all needed help. The State could have nationalised the banks there and then – but that wouldn’t have protected taxpayers. The government could have let them go bust, which would be like a fireman allowing a forest fire to burn itself out and just hope for the best. The State could have let go toxic banks but AIB, the biggest bank in the country, was on the verge of bankruptcy. Would letting AIB go have been a good idea? We could have grabbed deposits as they did in Cyprus.

There is a narrative in Ireland that blames the bank guarantee for everything, as if there was some other easy, painless option. We didn’t even have a bank resolution mechanism in place! It ought to have been temporary, used to stop the panic, then assess the situation and introduce a bank resolution law negotiating with the bondholders. But, for some reason, the guarantee was extended and extended.

It is important to understand that the guarantee and the bailouts were the consequences of reckless lending and woeful regulation, not the cause. If there had been no reckless lending, there wouldn’t have been a crash and no need for any remedial action.

This is why poor regulation in the boom from 2000-2007 lies at the root of the great Irish credit/property crash. The Anglo Tapes reveal the banks knew the regulator wasn’t at the races.

Unlike the Martello Towers – a form of military regulation – the financial regulator in Ireland, and all over much of the West, was more paper Tiger, than stout fortress. The strength of Canadian banks today shows that regulation can work.

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  1. michaelcoughlan

    Hi David,

    “But, for some reason, the guarantee was extended and extended”

    To save the euro David. The more they extended the more the knew how deep the cancer went.

  2. 5Fingers

    Having looked at “regulation” over the years in its many forms (not just in finance), I find myself 100% disagreeing with most of the thrust of this article.

    In the case of forest fires, it is now becoming evident that the large degree of intervention to keep fires under control merely makes the next conflagration even bigger. Lets be clear why it is happening…the natural culling process of forest fires which took place as a matter of nature is now interrupted to cater for the new property development and recent human incursions of recent years. Am I against human growth? No. But I think we need to be careful about screwing with natural processes we do not understand properly.

    And so it is with banks. The more the banks collapse, the better the recovery – Asia being a case in point. Over reliance on regulation merely Stalinises the process and gives huge power to regulator elites who will due to human nature be gamed/ lobbied or whatever.

    The only thing regulation does is employ economists and wafflers and ass covering wimps that’ll wind up in the pockets of the things they regulate. It just means the next bust will be bigger.

    Banks should only be afraid of one thing. Competition. It just is not there. Too much Nanny Society bull$h1t socialising the losses and screwing over the man in the street.

    • for gods sake it’s banker competition that got us here,

      • 5Fingers

        In a true competition, usually there are winners and losers. Here they all lost. Nope…it was a virtual cartelised monopoly that fell on it ass with a little help from politicians and other vested interests who could not bear to see the good times falter.

      • 5Fingers

        Also, ask yourself, what real choice have you had?

    • DavidIreland

      The problem is human nature.

      People in banks – and everywhere – will push the boundaries, game the system, bend the rules, break the spirit of any code of conduct, if they can get away with it. Yes, they may go out of business but by then, the damage is done and innocent parties have to suffer and then pick up the tab. Even worse, as has happened with the banks, some chancers head off into the sunset with millions in their pockets.

      If our food systems were not regulated then many food processors would be out of business but most of the population of the world would have been poisoned by now.

      So, in my view, unfettered competition and survival of the fittest is great in theory but it’s not the most effective system and will always end up causing a disaster.

      A mixture of healthy competition combined with regulation based on hard won experience is the way to go.

    • Joe R

      It not just that with forest fires. New forests and replacement forest have been planted at densities and with types of trees which aren´t even close to natural and this has resulted in much more intense fires, too.

      If i remember correctly Jared Diamond hit on this it a lot in his book Collapse – in case you are interested.

    • Canada Goose

      Too much credit is given to the Canadian Banks and Canadian Banking regulation for the lucky scenario they found themselves in as the 2008 Recession hit. In fact they would have been in exactly the same position as their US colleagues had they been allowed to merge as they wanted to in the early 2000′s.

      It is JEAN CHRETIEN the Canadian PM of the day that rejected these mergers and saved the Canadian banking industry; NOT the Bankers and definitely NOT Banking regulators.

      • Thanks for that observation

      • Grey Fox

        Having the “basket case” that is the USA on your doorstep would be enough to concentrate any mind.
        It is not only the Banking Industry that needs to be regulated either, in Canada there is far more regulation in the area’s of the Legal Profession (e,g Acting for both sides in a matter) and the Real Estate Profession (gazumping etc…)so it has to be a multi pronged approach to have any positive effect. In Ireland all the professions were drinking from the same glass!
        I have to be careful here, seeing as I hate rules and regulations Ha Ha in truth we do not have to have many many rules but rather serious and harsh punishment for infractions which would act as incentives to stay on the right track.

  3. The mentality of the ruling classes with there sights firmly set on there pensions are a massive Influence on there decisions . this cancer to an outsider would seem to go right through the Irish
    civil service there special privilege’s above the private sector with there inbuilt mentality that they won’t be sacked no matter how they perform . the Irish civil service don’t do accountability until this is rectified Ireland Is prone to more crashes. A good analysis as usual David,

    • hibernian56

      Thats it in a nut shell. Some of those at the very centre of this mess got rewarded not penalised or even sacked.

      Bertie Ahern, Brian Cowen and the other “ministers” get a pension of ~€150k per year.

      But the civil service take the biscuit:
      Patrick Neary €600k+ golden handshake and €143k pension for life.
      Dermot McCarthy (Secretary General of Government) received a golden handshake pay-off of €713k, with a pension of ~€142k pa.
      David Doyle (SG Dept Finance) €115k pa.

      Then there are the “bailed out banks”
      Eugene Sheehy (ex AIB) €900k golden handshake, alleged pension of €529k pa.
      Colm Doherty, (1 year at AIB) was paid €2.7m in 2010. Mr Doherty is to benefit from a pension pot worth €300k a year when he reaches 65.
      Michael Fingleton (Irish Nationwide) €1m golden handshake, hidden pension details.

      Thats just the tip of the iceberg. We should also consider those individuals who despite no qualifications jump from quango to quango taking huge salaries, expenses and indulgences.

      So tighten your belts peasants, we need to make some “difficult decisions” to pay for this lot.

    • Grey Fox

      This is exactly where the sanction for failure has to be, if you screw up you LOSE all future benefits!
      I guarantee that would focus the mind of Enda and his cohorts.

  4. DarraghD

    Hi Folks,

    I’ve been a weekly follower of this column and our host David for the last 10 years if not more, and I don’t think I’ve ever in my life been more despondent about this country than I have been this week. I run a small business in the private sector and things have never been as bad. All the time, while firefighting, I observe what can only been called profound incompetence and indifference on a fucking galactic scale, recorded in our media on a daily basis, a Central Bank governor who appears to be even more asleep at the wheel than the incompetent clown who got us into this mess in the boom, accountability never seems to have been further away in this country. Today I read the front of the Independent and I see an overpaid useless príck in Mr. Honohan looking out at me with his trademark public sector beard, indicating to me that he is in that public sector 6 digit salary club, saying he hasn’t even listened to tapes that emanated from Anglo when we were all fooled and lied to, the result of which has us owing billions of Euro of debt that in all seriousness, has absolutely fuck all to do with any of us.

    My unique position as a small business owner trading in our utterly WRECKED domestic economy, leaves me perfect altitude to be able to see how us having to pull more and more money out of the economy in taxes to pay for the cost of these profound fucking lies, is slowly wrecking every small business in the country, as people have literally no money left to pay for these LIES and this massive huge deception.

    Then to add insult to my injury, I see another bearded prick on the front of a national newspaper today, who ironically enjoys a 6 digit salary paid for from the public purse, telling me that YET AGAIN, nobody is responsible, nobody will be held to account, and then to polish it all off, this stupid incompetent prick tells us that he hasn’t even listened to the fucking tapes to begin with?!?!?!?!?

    David is there any chance you could organise a village hall type debate for small business owners like myself who are literally living hand to mouth at this stage, such is the state of our domestic economy, and maybe invite Mr. Honohan and the likes of him who work in the public sector, along so as he might have the opportunity to be educated as to the extent of the wreckage that his continuing incompetence, and that of others, is causing to this economy and to our country?

    • michaelcoughlan

      Prof hone-a-scam was declared the biggest fuck up merchant of all by prof kelly of ucd who has been consistently accurate in his analysis over the last number of years.

      The board is really really getting militant.

    • Patrick

      Smell the Coffee. We are not bailing out the Irish banks. We are bailing out Germany. If Ireland, Greece, Portugal etc could not be persuaded to borrow enough to bail out the banks, Germany was going down.
      If Ireland, Greece, Portugal had done on “Iceland” Germany Would now be the country in trouble. They had loaned the money. We had the money.
      Think about it! It explains a lot of Angela’s attitude.

    • redriversix

      Well said Darragh

      Be sure to pay yourself today…

      I know me saying that might annoy you..but i meet too many small business owners who pay everyone else and not themselves..i.e revenue,vat,rates etc

      take care & the best of luck


    • Grey Fox

      Having just come through a tax assessment exercise which took some months and significant correspondence with the resulting man hours expended on both sides, revenue have come up with the final position whereby I have been assessed and owe the princely sum of .08C yes, you see it right eight cents! which I will dutifully pay otherwise I will more than likely be deemed to be non compliant, unfortunately the lowest denomination of postal order one can get is .60c so revenue will owe me .52c.
      Bad day….losing the will to live (in this country at least)!

      • whatamess

        months of man hours and 80cents huh ! lol

        what a sham!

        ENDURING that sounds super tough …ive had a ‘taste’ of that stress, but not as the owner,so no comparison really..

        keep the faith

  5. Dorothy Jones

    A link to this article in The Independent on Irish Economy :

  6. dorn

    “Doing nothing means you let the banks go bust and adopt an “it will be grand approach”. That’s hardly an option. We know from the Great Depression and the Asian crisis of 1997 that immediate liquidation of the banks in a panic makes the subsequent recession much worse.”

    Could somebody elaborate on this a bit further? I don’t understand how it would have been worse than it is right now? Bank goes bankrupt. The bond holders burn (as they should – their investment was a gamble). Another bank swoops in and buys the fixed assets, like mortgages and customer accounts, and all is well.

    How is the current state of affairs where the government is taxing the citizens back into the stone age better than this? Where the bond holders (gamblers) are getting all their money back? Where the banks have all but ceased functioning as actual banks (lending money)?

    The government should never have taken on any banks debt. They should never have interefered in the natural process, except to make sure that the regulator wasn’t someone like Beaker from the Muppet Show.

    • michaelcoughlan

      Hi dorm,

      The whole exercise is and adventure in saving the euro and is doomed to fail.

      It’s not the bond holders they are worried about it’s the depositors. The government can’t cover them all so the losses would back up into the European banking system and kill the euro.

      Human beings will be let die before the single currency.

      • Michael you say human beings will die before the euro . there already dieing all over Ireland Greece Portugal with cuts To health services trebling of prescriptions for medical card holders young nurses expected to work for nothing for 2 years all to prop up German banks, the German people think the Irish people got hundreds of thousands of euros each from there banks where’s we got sweet fuck all from anyone good bad or indifferent .
        what we did get from EU and other regions were about 1 Million immigrants most of who are still here an has to be carried by the Irish tax payer .
        all we had to do in 2008 was Issue the order to stand fast it was Germany that stood to loose there goolles that night not Ireland,

  7. Original-Ed

    The real problem with Ireland is our gobshite politicians – they behave like consultants – you know the trick – ask a client a few questions to establish his/her wishes and then feed it back to them in a form that they want to hear – nothing to do with reality – it’s the same trick as the fortune tellers use.

    Let’s face it, Bertie listened and Bertie delivered – it had nothing to do with reality. A clown could see where it was going but who had the balls to say stop! No politician for sure – even the present shower were cheerleading from the sidelines.

    The guarantee was the best of all the bad options available to halt a total implosion, but it shouldn’t have continued as it did – again it was the inability of the politicians to face up to the situation.

    In Irish democracy the gobshite always wins.

  8. Adelaide

    This article is a disjointed misfire of unrelated bullet points and is a confusing read as it’s based on an anti-capitalist assumption/ideology. “By then, the government had to act to protect deposits.”
    Really? Is this not the mantra of the ‘herd’ mentality that’s routinely spouted as if it’s a God-Given Law. I’ve read enough ‘economic’ critiques at this stage to know that Government-Guaranteed-Bank-Deposits is a fundamental FLAW that systemically encourages the banks and produces their reckless lending, as long it is in place the banks are immune to the consequences of their actions. We can separate Church and State but not Bank and State. Regulation Shmegulation. Remove Government-Guaranteed-Bank-Deposits and you’ll quickly find that the most forceful regulators are the bank’s depositors themselves, they know what’s at risk, their life savings, they won’t be bribed or fall asleep at the wheel like Neary.

    • michaelcoughlan


      I don’t agree withhold observation re depositors. The bankers don’t care about anyone not even themselves. They make their most money lending money they have borrowed not what they have on deposit.

      • 5Fingers

        But banks some deposits, some reserve. I know the ratios are blackguarded to hell. What Adelaide is pointing to here is the lack of skin in the game on the part of bankers, regulators and all the rest of them. Seems they can theorise and risk your skin for their gain.

        My question to Honohon and all these guys when i hear them is “where their interest lies”. If it is not tied to the welfare of the Citizens or the Ordinary man, we are in serious trouble.

        We are being decimated. Do you know where that term came from? Pity its not being applied to bankers in the same way.

      • Adelaide

        I agree, Michael, with your observation of banks’ modus operandi, but my point is about the ideology, Government-Guaranteed-Bank-Deposits are in other words Bank-Depositors-Bailouts, what business is it of government to guarantee mine or your savings? If one accept that it is the government’s business, then further down the line, the logical inevitability (in a worst case scenario) would be a full blown Bank Bailout, it is the same ideology behind it.

        Without this ideology in place a bank can still run amok, as you say ‘lending money they have borrowed’ but importantly the State won’t be of the mind set to step in when they go bust.

        This is covered in a great critique “The 86 Biggest Lies on Wall Street” by John R. Talbot (e10 paperback).

        Government-Guaranteed-Bank-Deposits were instigated by/in response to the Great Depression re: ‘Banking Act of 1933′ (and subsequently adopted globally) in the belief that (David’s quote from above)
        “We know from the Great Depression and the Asian crisis of 1997 that immediate liquidation of the banks in a panic makes the subsequent recession much worse.”

        and yet the book points out that there is no consensus among economists as to how the Depression started, when it started, what prolonged it, how it ended, when it ended. I’ve read enough ‘economic’ books to come to the same conclusion. It’s all opinions. Like sports pundits. So like most economic policies, a Government-Guaranteed-Bank-Deposits scheme is based on a guesswork solution to an imaginary problem caused by who-knows-what and invariably achieves the opposite of what it originally intended. Rather then stabilise the banking system it does the exact opposite by rewarding failure.

        • michaelcoughlan

          Hi Adelaide,

          Thanks for your response. I agree with you.

          One point though which I have been making over and over again and missed by you is that you make the following conclusion ” Rather then stabilise the banking system it does the exact opposite by rewarding
          failure” because of your moral conscience. The people in control see the failure of the system as enormous SUCCESS because all the assets accrue to them during the collapse. Read confesions of an economic hitman by Perkins until the penny drops.

          No one believef the gas chambers existed until after liberation because it runs counter to the moral conscience of 95% of the population. The same Warpped logic applies to bankers and their orchestration of the collapse we are experiencing.

          • Adelaide

            “The people in control see the failure of the system as enormous SUCCESS because all the assets accrue to them during the collapse.” +++1. And they’ll succeed too. It’s fraud, end of. The Great Recession, more like The Great Swindle. Masters of the Universe = Masters of the Swindle.

            That’s why I love Max Keiser’s show, so refreshing in his candour. Hope he’s at Kilkenomics.

      • Michael
        The banks do not lend what they have borrowed. They borrow alright. From central banks to add to reserves and from depositors who give them their money.

        Then the bank creates money from the ether using the practice of fractional reserve lending and then lends that money to a new borrower thereby increasing the money supply as well as the overall debt.

        The money the bank borrows is added to their reserves. As they can lend out multiples of the reserves, they do and profit accordingly. The reserve ratio seems to be set by the central bank rather than the government.

        These reserve ratios are set, if conservative, at 10 to 1 and if more venturesome at figures higher. 50:1 have been mentioned.

        So the banks pay interest of a half percent on what they borrow and earn 2-4 percent on what they lend.
        At a 20:1 ratio that means that every 100 dollars of reserve cost the bank 50 CENTS INTEREST PER ANNUM. BUT THE MONEY LOANED “BACKED ” BY THAT RESERVE IS 2,000 AT A 3% AVERAGE INTEREST CHARGE OR 60 DOLLARS INCOME.

        Not a bad business model is it. 50 cent cost for a 60 dollar income. Nobody else in the world can lease, loan or sell what they do not own. But a bank can.

        This is the root of all the monetary/economic evil. Nobody is looking deep enough. This is what needs to be banned. Fractional reserve banking is its name. Putting you into debt based servitude is its game.

        BTW there is nothing stopping us from forming a bank and joining the Ponzi scheme. All we need to do is raise the cash to acquire the required capital and subject to adhering to the regulations we are in business.

        !00 people at 100,000 a share and we are in business with 10 million base reserves. We can immediately lend 100 million as a conservative venture and 500 million if we want to take a flyer.

        One other thing… All bad investments will be bailed out by the government so it is zero risk. Who’s up? Lots of bonuses available for every fuck up. Pensions too if you are so bad that you get bombed out of the bank.

        • michaelcoughlan

          Thanks for the observation re banks Tony. You are correct. Let
          Me rephrase. Banks lend out a self created multiple of at least 10:1 of money which is on deposit or borrowed from other banks.

          Before you kill me on the next paragraph read it fully as inappreaciate you thoughts. The higher multiple itself isnt so
          Much the problem for example if tony brogan got the newly created multiple cash and develops an organic farm which becomes a successful business then this is a good result.

          If the money goes into a bubble where existing assists are bid up in
          Price with no new wealth is being created and no increase in supply then that’s where the problem
          Is? No?

          • Hello Michael. Blessings in abundance to you!!

            Any expansion of the money supply is a problem. The way the banks do it is legal fraud. Legal as it is sanctioned by law and government. Fraud because the practice is a scam. Where else are you allowed to sell or give what you do not own.
            If I were a store and had a bushel of apples to sell, I can not sell ten or twenty bushels or give a piece of paper and say it is as good as apples.

            Studies have shown that it is not necessary to expand the money supply to have a vibrant economy. If silver coin were used and designated by weight rather than putting a stamped value there would always be enough coin in existence. It would act as a unit of exchange, and a store of wealth. If the economy doubled the unit of exchange would rise in value. A half ounce would do the same job as an ounce once used to.

            Fractional reserve banking expands the money supply which by definition is inflation. All current savers and wage earners are immediately deprived of purchasing power.

            Then there is the issue of how the fiat money is created.
            Metal is a commodity and owes no one anything. It is an asset plain and simple.
            Fiat is a representation of money oft called currency. It is created from an abstract, from nothing and so has no value. In addition it always is issued as a debt. There is no money creation until someone borrows it.

            Worse still there is no money issued to allow for the payment of the interest charged on the loan. You borrow a hundred. Where is the currency for you to obtain as the 3 euro you pay as interest. Borrow a 100 pay back 103.
            The 3 has to come from someone else’s savings or cash flow. So the banker has to loan to another to get that 3 euro into circulation so that you can use it to pay interest. That person will be short 6 on his repayment of a 100 loan plus 3 interest. There is your interest and his too. We need a third to borrow to get the money into the system.
            By the time you do this 34 times the 34th person borrowing will find it all gone as the previous 33 need it all to pay the interest they have to pay.

            Now the economy has less and less money in circulation the more that people borrow as the interest absorbs the total issue of money and more besides.

            The US and other countries have reached the stage where every dollar issued actually cuts the economy. At the moment, I read somewhere, that every dollar of loan added , reduces the economy 50 cents. That is why there is no recovery with QE.

            Our system used screws us over and we get farther and farther into debt until we are stripped of our assets and past savings.

            We must have a system where the currency is not debt based and interest bearing and where the money cannot be increased.

            It does not matter how much or how little money is available at the beginning as there is always enough to do the job. It does not matter if you use a 10th of an ounce or ten ounces for a transaction as long as it is consistent.

            Money is a catalyst for trade and is never consumed in the transaction.
            Suppose 10 people went to work for each other. All earned 10 dollars. Each was owed 10 dollars from another. That is 100 dollars of work. Nobody has any money except one who has 10 dollars in his pocket.
            He uses it to pay the person owed. Who then used it to pay the person he owed. Pretty soon everyone used the same ten dollar bill to be paid and in return pay the next. The one with the money in hand was the first to pay and was the last , in this case, to be paid, but when he was, everyone had been paid for the work done and the same person still had the same 10 dollars in his pocket.

            That money was the catalyst to get the job done 10 times and was ready to do it again. 5 dollars or 100 dollars would work just the same. There is no wear and tear on the money and it is ready to keep working for you.

            If the money we use suffocates with the debt and interest and it is not necessary to increase the amount of money in an economy we have to get rid of the debt and associated interest.

            Money is basically private property when it acts as a store of wealth as it is carried or saved as an account of your past work. You should be entitled to use whatever you like as money. But it has to be acceptable by other people that you deal with.
            Presently as national currencies are expanded and devalued and become distrusted nobody wants them. So what money is acceptable to most people?

            There is no problem having a national currency but it should be issued by treasury and interest free.
            They could stop the production of fiat from the central banks and replace all existing notes with treasury notes. They would work just as well as a medium of exchange but without the crippling debt and accumulating interest that make the bankers fat and sassy.
            Then monetize all bone fide silver coin in existence so that there is a competing currency. That way the government money is kept honest. If tampered with people would favour the alternative.

            To monetize the silver coin it is offered as a certain weight of silver of assured quality. There are several producing such coins in existence. They are assigned a monetary value by decree that is at least 20% higher than the world spot price of the metal. The monetary value assigned is just in the national currency. If the spot price of the metal decreases the monetary value of the coin stays the same and NEVER decreases just like a denominated paper bill. But as it has no printed value on the coin it can be raised if the spot price goes up.
            In this way the coin retains its buying power just like the bullion and never will fall. It always will stay in circulation.
            The Irish mint can produce such coins on demand in exchange for paper notes until demand is sated. The 20% differential in the price of bullion and the coin will be enough to cover the cost of production and to give the government seigniorage. This way the government accumulates bullion on its own behalf and which will act as a backing for the treasury notes.

            The currency will strengthen and as the debt and interest is removed the country will prosper. There is no other way to obtain these benefits.

            It will be opposed by all vested interests in the current system and will be difficult to be rid of the current fiat unless there is a national will to have it done.

            The survival of the people require it to happen. Central bankers must be outlawed , sued and prosecuted for fraud. Fractional reserve banking of any kind should be outlawed with heavy penalties for counterfeiting or other fraud.

            A sound money system is essential for all nations and peoples. It is the basis for sovereign integrity.

            For further discussions I can be reached at

          • michaelcoughlan

            Thanks Tony.

            The 20% rule on the coin is superb. I want to get this currency operating in the coop we have set up in Limerick so I’ll email you shortly.

            Everyone else should remember that YOU don’t need the permission of the gov to get your own method if payment set up you must ensure you call it a barter unit NOT
            currency and also you MUST pay taxes applied to the spot value of the coin exchange per transaction with all taxes needing to be considered and paid for.

            Imagine freeing yourselves from the banks!

    • Joe R

      No the article is the first decent one D McW has produced in a while. The last one was particularly bad, actually.

      It points out, albeit a bit quietly for my taste, that the regulators, the Central Bank and ultimately the Government should correctly bare the blame for letting the banks get away with what they got away with and for burdening the Irish people with this mountain of debt.

      Odious as they are the likes of Drumm and company are not the ones that deserve the biggest chunk of out wrath for trying it on. It was the `expert´ organs of the state that were negligent.

      This is the lawful situation. This should be addressed as part of any remedy.

  9. DarraghD

    The problem here Dorn is that you have a cabel of arseholes running this country who know nothing other than working in public sector type jobs where the money lands into the bank account every month and the salary just keeps going up automatically every year in line with automatic increments. These salaries and automatic increments and the highly protectionist regimes that these jobs fit straight into, all have to be paid for, generally by people in the private sector who don’t enjoy any of the same salaries, any of the same terms or any of the automatic increments that come with these kind of jobs.

    The problem is that the people who are making the decisions to tax this country into a place where the domestic economy is now completely frozen for want of cash, have never in their entire lives had to take on the responsibility of self employment, of generating sales, of having to generate enough profit to cover staff wages, premises rent, utility bills, etc, while staying on top of the statutory responsibilities that are placed on top of small business owners, such as VAT, etc.

    This is a huge statement to make, what I am just about to say, but it is now impossible as a small business owner to actually stay in business, in my opinion, if you are trying to run a legitimate business and these are not the word of some lazy businessman paying himself 40K or 50K a year, while sitting in a lofty office somewhere, you haven’t a hope of staying on top of everything from VAT to rent to rates, to minimum wage and more for labour, the whole small business model has been undermined in this country, a huge part of the problem is that due to the toleration of black market activity in this state, which in my opinion is part of the wider problem we have in this state with holding people to account for their actions, the price point now for many goods and services is actually the black market price. If you are charging VAT, you are immediately at sweet fuck all and you will be told so if you are not prepared to eliminate the VAT.

    Why haven’t I reported this to Revenue you will ask? I did in writing several times, but no action was taken, one of the market leaders in the goods that I sell in this country is a black market seller. Yet again, who is responsible within Revenue for this not being investigated by the authorities and the massive loss of VAT to the Irish state? Nobody!

    • michaelcoughlan

      The contracting prices for small construction jobs has been below cost for the last six years for that reason. The good guys know this and have quit.

      Manny of the people operating now in the industry are taking on jobs below cost knowing that they will never pay their suppliers or subcontractors and simply hide behind the ltd liability status when the whole thing collapses. Everything has been dragged down to the lowest common demoninator.

    • DB4545

      You’re seeing the tip of the iceberg DarraghD. What you don’t get to see is a wall of corruption in the State Sector. There are webs of family/county/old school allegiances who run tranches of the public sector like a family business with one key difference. If the business was in the private sector it would be bankrupt by now, but with the taxpayer providing a blank chequebook it lumbers on and the cronies collect their pensions and sail off into the sunset. There are decent and hardworking people in the public service, but there are armies of “administrators” absolutely fleecing the system.

  10. DarraghD

    That’s exactly it Michael and if you think it’s bad in construction, you should try having a look under the bonnet of the motor industry, it’s gone so far beyond a joke it isn’t funny anymore, if you are legit now you are at absolutely and utterly fuck all, that’s the word in the trade.

    • silverbullet

      Try the taxi industry, no regulation, massive underqualified oversupply,discounts given to mostly state bodies of between 25%-45% all that to be absorbed by the driver, the owner of cab firms fees remain particularly high, and these discounts do not result in lower base fees.

      You have guys renting 12D cars from well known cab firms, driving long hours, at high speed just to cover radio and car rental at a minimum of €350 per week before paying for fuel and sundries, on a weekly T/O of €1,000 they’re lucky to clear €210, the dole is €188, go figure.

  11. 5Fingers

    So David, based on all the loyal blog following on Regulation and the kind hand of our Governing classes who are decimating industry and real business everywhere, what do you think now?

    Still…what are we whining about. Property up 10.5%. We are out of our recession. CNN is saying nothing about Fiz Cliff II…all as safe as houses. Very very odd you want yet another big brother to tell us another pile of lies.

  12. Steaf35

    All in time for another elitist, insider protectionist budget while the middle/whats left working class, get hammered and thrown out of their family homes; The line thats coming is ‘suffer one more time and you shall be fine’;
    The majority of the Irish electorate are turkeys on a playground roundabout afraid to step off!!

  13. DarraghD

    For a country that claims to be broke and hasn’t a pot to piss into, you’d have to wonder how on earth 57% of properties that are currently being sold, are being bought by a CASH BUYER?!?!?!?!?


    Of course you won’t see any investigation into this, as the money is probably of course coming from the public pursue to pay off retiring public sector workers, who retire on huge lump sums, so you won’t see Labour or FG upsetting their voters by targetting any of these parasites for a greater tax burden.

  14. whatamess

    So David,any suggestions on what mechanism(s) could provide this “stout fortress ?” tp protect our future ?

    21st century Glass Steagall perhaps?

    I care not what name we attach to the regulation,but without strict regulation,what chance do we have of history repeating itself?

    • michaelcoughlan

      He won’t give an opinion. No chance.

      • whatamess

        maybe we ought not underestimate our host tooo quickly?

        McWilliams says:

        “Banks should be afraid of the regulator. The regulator should be the policeman that is respected and feared – yes, feared ” …..

        “If there had been no reckless lending, there wouldn’t have been a crash and no need for any remedial action.”

        “This is why poor regulation in the boom from 2000-2007 lies at the ROOT of the great Irish credit/property crash.”

        DMW’s diagnosis is spot on , but the “economist,broadcaster and best-selling author” offers no prognosis and CHOOSES to IGNORE the feasible treatments? …(the word “choose” being the operative word)


        why not even a whisper … just leading us on a merry dance AROUND the issue ! we need to get to the meat on the fu*$ing bone here!!!!!!

        If DMW writes about a posssible Punt nua,he doesn’t really hold back…no need to read between the lines in those articles!

        There is a clear and present danger that these banking socio-paths ,with incendiary tendancies ,could again set the world on fire!!

        Let’s take the matches from these pyromaniacs ,before it’s too late !

        • Paul Divers

          “We need to get some meat on the bone ..”

          What is the difference between that and ‘skin in the game’. Disgusting expressions in my opinion

          It is time to up the ante. McWilliams insults our intelligence and speaks with forked tongue.

          That is my opinion for all it matters.

      • Paul Divers

        Hi Michael,

        Why won’t he talk about GS?

        It strikes me as odd.

        • Paul Divers

          “Those of us whose heart path lies in the ‘shadow professions’ are more at risk than most – as our culture de-friends free thinkers and opponents of the status quo. Anything in the shadows is a challenge to the ‘system’ that holds the status quo together by withholding and controlling information not supportive of its agenda.”

          Culture is Not Your Friend

          • Paul Divers

            Actually from a copy writing point of view a compelling quote and THEN a headline makes a link irresistible.

            OR. Why not break the rules completely and use TWO headlines.

            It’s a technique I hadn’t considered.

            Rant over.

        • michaelcoughlan

          Your answered your own question on why McWilliams in my view won’t prefer ideas and solutions to real world problems.

          McWilliams is a classically trained economist and like the rest of us is an imperfect human. It’s much easier to keep stating the obvious and be proved right over and over again because you are nice and cozy within your comfort zone.

          GS was dismantled by the psychopaths in charge of the worlds financial system, Talking about it here isn’t going to get it reinstated because even if we all agreed non of us are in a position to put it back in place anyway.

          We can only influence our own behaviour and decisions in the face of what’s going on. Brogan is the leader in this regard because he is consistently preaching policies that will allow true believers to not just survive but PROSPER when the whole thing crashes down GS or NOT!

          There’s no point analysing solutions that only work in the mind of classically trained economists non at all.

          • whatamess

            “none of us are in a position to put it back in place anyway.” …

            well there you have it!…nutshelled..You are DEFEATED!The banks have won !”the too big to fail” are now too big to even challenge !

            “Imagine freeing yourselves from the banks!” you said earlier Michael…

            The antidote,of sorts,IS available!!!!!
            The first inoculation anyway!

            The financial sector is NOT your master!
            YOUR Government can assume control,if the electorate decide so.

            and yes Tony Brogan’s contributions are as always worthwhile and his sound money approach is superbly enlightening!

          • michaelcoughlan


            I’m defeated in what way exactly? Be specific. The antidote,of sorts,IS available!!!!! If so let’s see you define it. Spare me the shite about GS it was gotten rid of. If it can be implemented what are you waiting for? Moreover why are you wasting your tome on McWilliams website?

            The Irish government in control? Really? Are you as mad as
            bonbon? They need money from outside the state to keep the lights on.

            I’m following Tony brogans lead. I’m not in conflict thankfully with anyone even though the government and bankers seem to want to pick a fight with me. Therefore I’m not defeated because I’m in control of my own destiny.

            As for instructing the Irish government to do anything read adeleaide’s post above to understand the duplicity and double speak of Irish politicians.

            Finally please don’t wind up in the same tiny room as bonbon endlessly banging your head off a wall repeating to yourself the same unworkable mantra you have come up with because that isn’t going to make any difference either.

          • whatamess

            “I agree from a logical perspective that GS will work, has worked and is viable.”

            ..that’s what you wrote 3 articles ago ?

            And not to take that quote out of context ,in fairness,you qualified this by pretty much saying that you had zero faith that the politicians would deliver same…fine!no problemo..

            You’ve lost faith in the power of democracy and your politicians,but the “shur politicians are just a shower of wankers and wasters” type of comment and attitude i can hear ANY nite ,ad nauseum,in my local pub!
            Engaging that way,definitely “won’t make any difference”.

            The proverbial horse bolted when they repealed GS in ’99. BUT We can shut that stable door again !!
            If even the Vockler Rule becomes a reality,we will be heading in the right direction!
            It needs to be promoted!The awareness isn’t there that this is an OPTION!

            i do commend you Michael on your positive attitude to life and all your get fit and self improvement etc and as an individual,all such suggestions are super worthwhile…

            But UNLESS we create a firewall,REGULATION,we ALL run the risk of again getting napalm’d in the next round forest fires ! Then you will realise the “control” you thought you had, was but an illusion !!


          • michaelcoughlan

            Thanks whatamess,

            I’m going to tone down my response because I can see from your posts that you hold your point of view to be sincere.

            I’m not opposed to your line of thinking nor even bonbon.

            Let me put it this way; glass stiegal will only be reinstated AFTER polices have been implemented by the manny which rests control of the situation from the psychopaths in charge. That is all. You and bonbon don’t have to tell me and the board over and over again that which I know already and have accepted.

            Example; anti Jewish laws were only dispensed with AFTER Germany was turned to rubble;

            African Americans were only put on the road to emancipation in the US AFTER 600000 bullet stoppers
            were slaughtered on both sides.

            Mandela only freed Africans in Africa AFTER armed struggle and 30 years in Jail.

            None of theses goals were achieved by the various people involved by sitting in a tiny room banging there heads off the wall repeating the same mantra over and over again; I think we should introduce a law which treats all citizens equally before the law.

            If you can’t understand the point I’m making about the futility of repeating the same mantra over and over again to people who are doing the exact opposite of what you are preaching then we will simply have to agree to differ.

  15. whatamess

    So David,any suggestions on what mechanism(s) could provide this “stout fortress ?” in order to protect our future ?

    21st century Glass Steagall perhaps?

    I care not what name we attach to the regulation,but without strict regulation,what chance do we have of history repeating itself?

    • Ryu Hayabusa

      That Larry Summers should be nailed to a cross! He’s a financial terrorist par excellence…

      This shortlist they’ve got for Bernanke’s pew. Summers (at least up to recently), Geithner, how ’bout Pol Pot, General Amien, Mary Whitehouse. . .

      What a festering cesspool of turgid gloop!!!

      • whatamess

        hear no evil,see no evil,speak no evil

        Yea Larry was a ‘friend’ when you needed one alright..exempted his ( and Obama’s) buddies from any oversight! …”let’s take sum magic mushrooms and de-regulate Wall St!” ….c’mon ,what’s the worst that could happen??

  16. Paul Divers

    Very interesting article David that got me wondering about the Scottish and French influence in Canada. Then I remembered Fred The Shred at Royal Bank of Scotland letting the side down.

    Back at the ranch everyone is distracted with this silly Seanad business and ringing Joe Duffy (whose show I’ve never heard even after 13 years living here)

    The guy entrusted with regulating the banks has said he has not listened to the Anglo Tapes!

    Is he having a fucking laugh???

    But the best one has to be the one about the property developer who sells apartments which fall apart after 5 years looking for new investors in England while the police found 200 grand in readies under the floorboards in his former home. It defies belief.

    No wonder this blog is becoming more Militant. And quite right too.

    • Ryu Hayabusa

      Ah now Paul.. Sure isn’t Enda after ‘explaining’ that the 60 grand in the bathtub was all part of the oul Tiger codology… sure that’s grand so. It really puts the mind at rest, when he ‘explains’ stuff. :O

      • Adam Byrne

        What a fuckwit that guy is. And all the sychophants laughing along with him at whatever makey-up conference he was at. I’d bitch slap that guy if I caught a hold of him, that’s what he needs.

        • Ryu Hayabusa

          Did you check out the new wave he’s got in his fringe.. makes him look deaad fearsome & authoritative, not to mention a smidgen authoritarian! He must have an Italian Barber nameofa Benito. Issa a Bella fringe, besta all week!
          The guy should be pistol whipped up ‘n down Castlebar. Ah but I digress, It’s that bleedin’ Michael Noonan fella.

          He was at the Dell Shindig today looking as nonplussed as Jabba the Hut.
          Guy looked totally zoned out.

          The three lads. . .
          Groucho, Chico & Harpo.

          No actually that’s offensive to the clan Marx.

        • DB4545

          I seem to recall that he was bitch slapped already by the previous little french president(whose name I can’t recall) and he hadn’t even got the balls to deck him. What do you expect from a guy who hasn’t the balls to go on the Vincent Browne show?

          • Adam Byrne

            Haha well reminded DB4545. I would have knocked Sarkozy out of the park for putting his hands on me like that. It was cringeworthy.

          • DB4545

            Thanks Adam. Mr. Sarkozy is 5′ 5″ tall and Mr. Kenny is 5′ 10″. It just shows the level of contempt that the little guy had for him. The sad part is that we have him playing poker for Ireland. Michael O’Leary may be a a self admitted “little b****x” but do you think Sarkozy would have pulled that stunt with O’Leary? Any wonder that that bankers and everyone else can see he has no backbone?

    • Grey Fox

      Thanks for that mini thread, had a good giggle, sure ya have to laugh otherwise one of us would actual go out and beat the P**@ outta enda but unless we all go together the result is entirely predictable….

      • Paul Divers

        I am always game for a bit o humour GF and glad you laughed. The first reply made me laugh out loud because it is exactly what a good friend of mine would have said. He taught me that kind of Irish humour but sadly he is not around to make me laugh any more as he is one of the 200,000 who have left the country.

        When he worked in the public service they listened to Joe Duffy every day and talked about it all afternoon.

        Whenever he heard he complaining he would say ah sure why not call uncle joe?

        Uncle Joe the 400k a year socialist.

  17. Ryu Hayabusa

    Oh and the best piece of advice you’ll receive this week.

    If you’ve never heard Joe Duffy or his show,,, KEEP IT THAT WAY!!! Count your lucky stars. He’s a denegration to the earhole of humanity.

  18. DB4545

    1. Abolish the Seanad 20million saved?
    2. Reform the Court System how much saved?
    3. Referendum to remove/ scale down to the average industrial wage all civil service pensions. We can’t afford to pay for this nonsense any longer.

  19. redriversix

    Morning all

    Everything needs to be brought back to basic’s

    Banks will continue to grow stronger and fatter on the backs of the people with the help of compliant Governments everywhere.

    Government does not care one iota about you,me or anyone else.

    Bankers are a protected species,they have,can & will do whatever they want..whenever they want and to whom ever they want….

    It will not change shall get far far worse….

    Their will be no more health care..even though you paid for it through your contributions

    Their will be no more social welfare..even though you pay for it through your contributions

    Their will be no State pensions…even though you paid for it through your contributions

    Education will be stripped bare…unless you can pay for it privately

    Your civil & human rights shall be stripped bare….until you just have the right to life and even then that will depend on geographical & social circumstances.

    Their will be two massive super states or super powers and you will work,fight or die for one or the other.

    No Countries borders or rights will be protected…these countries are the food chain to supply thesetwo massive Matrix with assets,wealth & bases

    Gotta go,but you get the picture

    We are fucked..if you want to be…but we do get to decide how exactly we want to play this..Democracy is dead

    Look after yourself & your family and be a conscientious objector to this financial War.

    Fuck em

    Have a nice day


    • Paul Divers

      If there is another financial meltdown all those predictions may well come true Barry.

      Have a nice evening.

      • whatamess

        “If there is another financial meltdown all those predictions may well come true Barry”


        trying to sidestep the landmine of sounding ‘tiresome’ on the topic, but to PREVENT RR6′s ‘prophecy’ coming to pass , why are the politicians NOT regulating the banking sector? Is it coz there’s no pressure on politicians coz joe & jane public are not aware of such legislation and regulation.These tools ARE available in the Government’s ‘toolbox’ !!

        There’s a financial pandemic ! We all agreed on that!

        If there was an agressive&contagious influenza threatening our global population,then the medical’experts’ would consult on all viable remedies to meet the challenges! Wouldn’t it be BIZZARE if a consultant pathologist was SILENT on a KNOWN treatment that has proven to be robust in dealing with the contagion??

        BONKERS more like ?!!

        DMW is one of Ireland’s top 10 “go to guys” in the arena of economics …for some he is their #1 ‘go to guy’,but , and yes i’m saying it again,sorry, but his silence is deafening !

        “Ain’t no money in the cure, the money’s in the medicine!!!! Chris Rock says it best,in 2 mins

        • Paul Divers

          If there is another financial meltdown Barry’s predictions are a certainty. When the lynch mobs hit the streets McWilliams and fellow journalists will be living in fear and will flee the country.

          The ensuing violence will leave them with blood on their hands because for years these guys sat on their hands and said nothing.

          They talk a lot and say nothing.

    • michaelcoughlan

      Your 100% accurate, insightful, in your face honest posts should come with a health warming.

      I felt my stomach tightening when reading it. Scared the bejesus out of me!

      • michaelcoughlan

        I’m on a short holiday in Connemara McWilliams and the hotel owner just told me that rickets has been diagnosed locally. It’s the first case in the doctors career to see it in Eireuba. She said the doctor told her it’s the middle income families have lost their jobs and that yhe result is the kids are going to school hunger.

        Time to stop banging the head off the wall (bonbon like) about housing bubbles and start writing real Hard hitting articles don’t you think?

        Dont respond by asking me for evidence I have none but you might earn your fees by holidaying down here instead of abroad for a change and digging up some for yourself.

        • Rickets is a dietary problem. I was diagnosed as having rickets when I first tried to walk as a toddler of two (Yes I was a slow starter). I was put into leg irons to correct knock knees but my father took them off as he said they only turned my ankles over.
          For 5 years he straightened my legs twice a day by hand. I was also immediately put on horseback and spent hours riding daily.
          Rickets is a vitamin d deficiency and perhaps calcium and potassium. Twenty minutes a day of sunshine on the face and hands will give you all the Vitamin D required, not to mention it is plentiful in fish oils. Also fresh leafy vegetables help. Seaweed might be good.

          I was lucky to recover well, but in later years in adolescence my right leg bent again but so far still works. I can no longer run but still skip and dance and cycle!!

  20. Grey Fox

    Anybody find it even a little strange that this is the only skyline image of Dublin, Deutsche Bank could find to use on there home page or is it a subliminal message of intent.ha ha

  21. Grey Fox

    Apologies, to anybody who is not familiar with this image, the building or rather group of buildings on the left of the image is the headquarters of Ulster Bank Group (RBS)…….

    • 5Fingers

      Well when you compare it with DB websites of other countries, it just shows how under represented Ireland is in its thinking. Looked at a few other countries and the images are very iconic and representative or conveys a sense of wanting to do business.

    • Paul Divers

      Notice the symbolism where all the buildings are capped with pyramids. Secret societies love their symbols and those boy scouts have a lot to answer for.

  22. Grey Fox

    New York (September 26, 2013, 4:13 PM ET) — U.S. Attorney General Eric Holder said Thursday that he had met with representatives of JPMorgan Chase & Co. amid reports that the bank is considering a multibillion-dollar settlement to resolve investigations into its sale of ill-fated mortgage-backed securities.

  23. Trapped

    The prime minister of Iceland was interviewed on RT last night. It was interesting and refreshing to hear him explain the approach they took there.

    I know nothing of the man, and of course, he is a politician. But, compared to the sneering, two faced gutter slugs that always seem to float to the top of the Irish political cesspit, he seemed quite sincere.

  24. Paul Divers


    sligo, Ireland, 27,09,2013, 18:23 GMT

    A Mr Divers of Castlebaldwin, Co Sligo had a rare wtf moment Friday PM when he raised his eyes heavenwards only to be struck humble by the voice of God. Yes. The very man himself.

    ‘Please help me for I tried to be a good man living under the rules of society God but I have questions for you regarding this notion of “God’s Will”‘ pleaded Mr Divers but God was out on very important business in the village.

    And what sort of business would that be wondered Divers as he knew all the people in the village? Sure if I hurry I should catch the old fucker down at the Mace Garage he pondered but on second thoughts he decided to follow strict protocol, get dressed and get down there and set down to business

    He reasoned it was obviously a huge a mistake as it had been many a year since anyone in the village had merited a visit from from someone of considerable importance never mind The Big Man. I mean it was May 25 1967 since his last good piece of work and what reason would he have for returning now, today of all days

    At God’s office in the village the secretary suggested Mr Divers might like to wait as God should be back very shortly and would he care to relax with a cup of tea and a selection of sounds from God’s personal jukebox. Mr Divers was a touch disappointed when the secretary returned with a mug of Barry’s and not Earl Grey in a bone china cup painted with pretty flowers. (wild local flowers of course)

    Mr Divers expected a better touch of class from The Big Man and was slightly disappointed. He didn’t realise that even God himself was suffering and had to go Lo-Fi and suffer austerity lest he be accused of betraying The Green Jersey and being an elitist. Even God need good PR and fears a bad press

    With some imagination she could be a porn star secretary and Mr Divers, not to be a man of unreasonable expectations OR fantasies consoled himself with tea and the sight of her crossed stockinged ankles which protruded from from under her table. In another life he pondered. Sure it’s the last thing to go in a man of imagination

    This song stood out :

    Mr Divers was dumbstruck and had an ‘I Saw’ moment much like Sissy Spacek in her Southern drawl and he was extremely humbled by this life changing experience.

    Sure wait till it gets round the village. Castlebaldwin will soon be as well known as New York as the faithful descend from across the blue yonder wanting to speak with me and take them around the places where I have felt the presence of The Big Man.

    Joking aside, Ireland really is God’s country when you compare it to the craic that is going on in Greece. I am afraid Ireland will move even more to the right and completely lose the plot.

    Over my dead body.

    • Paul Divers

      Stein turned a bottle throwing rabble into world beaters within 3 years. We are not losers and the world would admire us if we rid ourselves of Gombeeninsm and corruption within 3 years. This is the standard I demand and nothing else is acceptable!

      It can be done but as Stein said you can’t do it without taking control and there is no point taking full control if you don’t know what to do with the power bestowed on you.

      “Football without fans is nothing”

      Just as a country without sovereignty is nothing.

      Are you ready to meet the standard?

      • “Football without fans is nothing”

        Ohh, that would invitabely result in news without football.

        Applaus….No… make that standing ovations. ;)

      • michaelcoughlan

        Hi Paul,

        I hate to burst your bubble but Irish soccer in the early 1980′s was lucky to have between 5k and 10k at an international. Then a great englishman took over and you had 50k plus armchair warriors ( lumpen proletariat) belting out the national anthem at the matches!

        Don’t waste your time trying to make the Irish see sense. We are too lazy. Help the few who want to be helped and don’t break your heart and become

        • Paul Divers

          I’ve given up on football Michael and can’t relate now. I’d rather go hillwalking on a sat afternoon and collect blackberries on the way home.

    • Dorothy Jones

      That’s great!

      • …”Sure if I hurry I should catch the old fucker down at the Mace Garage he pondered but on second thoughts he decided to follow strict protocol, get dressed and get down there and set down to business…”

        He had an interview, that was all.

        LOL ;)

    • michaelcoughlan

      Hi Paul,

      God lives in Dalky and is one of David’s neighbours. His name is Paul Hewson (Bono).

      Ireland isn’t a country worth dieng for so refocus your efforts on your friends and your community. There is a world of difference between you, your neighbours and the community and the failed Irish state called EIre.

      We had a revolutionary during the war of independence called countess markiozwitch who had a romantic utterly deluded idea that every young 20 year old man should be proud to die for Ireland! It never crossed her totally fucked mind that it would be a much better idea that all those young men should be proud to LIVE
      and work and screw for Ireland.

      The ONLY thing worth dying for or having dead bodies around the place Paul is to save your Kids!

      Brogan is showing everyone the right path if ye listen. The man wants to work and grow and create and spread the good news that you don’t need the permission of the bankers to do any if it or indeed that there is no hope when all that any of you need to reach out to receive total abundance in your life is to rid yourself of negative thoughts and start yourself along the path of that abundance by taking the first step.

      Start walking people!

      • michaelcoughlan

        First step.

        1) clear your mind of negativity.

        2) get fitter. I for example am a fat bastard. However I’m a fat bastard who lost 3.5 stone on the last 3 years but I need to lose another 3 stone.

        3) grow spuds. A simple no dig no weed system is to buy potato sacks in your garden centre put in soil and a spud on the spring and ipp out a nag full of spuds in the autum.

        A small spray of Bordeaux mixture now and again euill prevent blight. Of you can recycle plastic bags you won’t need to buy potato bags in the garden centre. If you need dil you can get 1cu m3 from
        the GIY website for €30.

        4) pay off your credit card. I started 3 years ago and have reduce my bill from €4.5k to €500.

        5) save for purchase rather than borrow to buy. Developing the discipline alone will benefit you.

        6). Bike to work. If on the dole bike to the post office.

        7) if you can’t get suitable employment get active with voluntary groups helping people more unfortunate than yourself.

        8) if you have a small space buy a couple of laying chickens to provide you with fresh eggs and beautiful manure for your compost heap.

        9) bake your own bread. Buy a packet of strong flower and follow the instructions on the side of the pack.

        The bankers or politicians aren’t stopping ye from doing any of that are they?

      • Paul Divers

        Hi Michael,

        Brogie is leading by example and I admire his outlook.

        I am half way there as I unplugged from the nonsense in 1998. The reason being the world didn’t feel right and even though I was ‘doing well’ it felt empty.

        The link I posted on Culture explains the feelings I had back then.

        I am just back from a walk down the village and on the way back I collected a brown paper bag full of blackberries. Great fun. It made me think of Brogie

        • michaelcoughlan

          Great. Good on you. You can buy a bag of jam sugar in superquinn. Use an equal weight of sugar for berries and you can make beautiful jam. The jam sugar had pectin already added to achieve a set in the jam. The jam sugar is the same size bag beside the normal sugar.

          One tipp when picking berries make sure that there is no worm in the green centre where it was attached to the briar. Some times the flies can lay their eggs and the worms use the berry for food. Don’t let that put you off though.

          • Paul Divers

            Thanks for the tip Michael.
            It’s a pity I don’t have a large freezer as there are literally thousands of berries in the hedges on the quarter mile stretch of road.

          • Adam Byrne

            Sounds like a lot of sugar though. I think I’d rather just have the berries ‘as is’.

            People’s intake of sugar and salt is already way over the top. In the States, they put sugar on salads to ‘make them taste better’ – no thanks.

          • Hi Michael, I tried some strawberry preserves as I was over supplied and need to save some for future use.

            I put the strawberries in a pot with low heat. Simmered and then still on the heat mashed the strawberries some. I added a little sugar brought to a boil and then ladled into warm, sterile jars with self sealing lids. I did not use mason jars (the best way) but reused jam and honey jars with a seal in the lid.
            Much to my surprise they all sealed.
            I used the “strawberry sauce” on deserts of all kinds adding to other fruit dishes and pies etc. I used them up in a few weeks but they looked like they would last a while.

            The amount of sugar added was just to sweeten to taste and not anywhere near the 50/50 jam requirement.

            As an aside I rarely eat jam anymore as I find no need of it. I rarely eat bread or pasta either. I prefer a selection of lightly cooked fresh vegetables laden with butter and a little meat added of the better cuts.

            Exercise by working and such food gives me a BP of 105/65 and a pulse of 52 at rest.

            Congratulations on your weight loss. That is a tremendous amount to loose. I still can’t get rid of the band around my middle and should shed another 10 lbs. It does not want to go!!

            Meanwhile back on the farm….

        • Blackberries are a wonderful free gift of nutritional goodness. See strawberry comment below to save some fruit of any kind.
          Happy ramblings, one of life’s better pleasures.

  25. Deco

    David – the latest nonsense about real estate in South East County Dublin, deserves an article at some stage in the Month of October.

    Especially considering that so many state policies are designed to engineer a housing bounce, and so many others are engineered to prevent people having any disposable income.

    In fact the institutional state seems to be taking out a massive bet (since the time of Lenihan’s promise “cheapest bank bailout in history) on house prices. The bet will pay off if the people are separated from their cash.

    The banks learned very little.

    The institutional state seems to have learned absolutely nothing.

    And the political state seems as clueless as ever.

    There is a lock down in the housing supply in Dublin, from NAMA, the banks, the local authorities who control planning approvals, etc…

  26. I enjoyed this article . The context however is restricted to an ‘ economicsay’ talk show that is elusive to the reality of what really matters in the real world.

    ‘ regulation ….policing the banks …..when they start to lend….’

    In my opinion that statement is selective and funnell minded.It reminds me when I use to meet ‘dancing girls’ from the regulation office in Central Bank ( because everyone else was claiming to be too busy or on carreer drugs )only to hear that their mandated function was providence only full stop.

    Regulation embraces crime prevention a term totally ignored by economists who rather retain it to fiscal and monetary speak that raises the ante of the academics of economics and claimed as theirs by economists only.This attempt to be inclusive and exclusive amounts to ‘pass the buck ‘ by both economists and bankers .Recent years robberies in Bank of Ireland led to stand offs between the Garda Commissioner and Management of Banks of Ireland because they gave two fingers as if saying its none of your business how we act when crime is committed’.

    The term ‘stupid decision’ used in this article relegates the reader to an oppressed idiot that should not be allowed to understand the real criminal motives of the Irish Bankers . Stop genuflecting to these gangsters and use effective words that delivers your message clearly.

    Should any reader visit at any time the Law Library and read through the current files of senior barristers you will experience the abundance of criminal allegations and evidence against these banksters and their committed treasons against this depleting Republic ..

    ‘reckless lending’ is also an understatement .It is murder .

    • Hi John,

      +1 wholeheartedly agreed!

      The forces at play here are engineering societal realms that have many signs of totalitarian flux, changing the dynamics and future development on a global scale.

      As for DMcW, I gave up long ago to get him out of his cage. Well, he now publishes in CAPITAL as one of four economists and… blah blah blah…

      The system has failed? Nope! The people driving the system failed due to unforseen cirumstances? Nope!

      They “failed” deliberately. Period.


    • On Flew Over The Cuckoos Nest

      Initially I thought the article was written by Jack Nicholson acting as The Joker without a Batman and Robin to be seen anywhere never mind a batmobile .

  27. I posted too much so an under moderation. Here is the posting in pieces

    The reverence applied to Canadian Banks and Canadian finances got me to thinking. I was uneasy as this did not reflect the truth.

    I seemed to remember all kinds of bailouts but have not thought about it a lot.

    Here is Huffington Post with the explanation that the Canadian bailout compares on a per capita basis with the US.
    “But what has become clear — and what neither side can really dispute — is that the fantastical notion of Canada’s banks being immune to global problems is little more than an illusion. And it’s a notion that — for the sake of our own well-being — needs to be shattered.”

  28. There is a lot more, e.g.


    It would seem that David has read the press but done no research here.
    Shoddy or no research leads to misinformation and a reputation quickly lost.

    I recall that Air Canada has been bailed out three time for a total of 1.5 billion. It was used to put private enterprize companies such as Canadian Pacific Air out of business to establish a monopoly.

    “Canada government debt tops $1.2-trillion”

    All this BS about Canada being the shining poster boy of restraint is BS.

  29. Do your own research and you will find that all governments in Canada except Saskatchewan are running deficits.

    Any country with a central bank under the finger of the BIS is a train hurtling to destruction. It is deliberate banker policy. Nobody can be that stupid so it has to be planned with predictable outcomes.

    I begin to think David is the shill on this blog. He pushes the disaster of central banking policies. I need to see a retraction of this thinking and an open debate on our monetary system.

    It is a debt based, interest bearing Ponzi scheme and unless David examines this issue rather than ignores it I will stick to this opinion that he is a central bank shill and it will grow in conviction the longer the money exposé is ignored.
    This is a life or death issue. Too many people are in trouble and 100?s of millions more will soon be added to the death and sickness rolls.

    The time to be polite is passed. RR6 sees what is coming down and others here know it is deliberate policy.

    Meanwhile, down on the farm………….

  30. bonbon

    Austrian Candidate Frank Stronach: `Reintroduce Glass Steagall’
    Austrian-Canadian auto parts magnate Frank Stronach, with Team Stronach, call for a Split-Banking (Trennbankensystem) along Glass-Steagall lines – Format Magazine.

  31. bonbon

    EU Forces Monte dei Paschi di Siena (MPS) to a Mini-bail-in. Savers money simply seized.
    The oldest bank of all (since the Bardi-Perruzzi collapse ) MPS blew out earlier this year, and JPMC was involved.

    • whatamess

      How’s life Bonbon?

      I’m hoping you have your DMW notification turned on ??…

      I appreciate that anonymity is like a warm blanket to you,as it is to me

      i’m just dropping you this line,in an old thread, to explain i was having some fun with mCough of late and i hope i’m not cramping your style and hoping you don’t find my writing style,disconserting, as it sometimes mirrors your style?i will cease and desist now…he’s suitably paranoid :)hee hee…very infantile of me..i can be criticised for that

      Thanks for all your contributions here over the last 2 years

      eye and mind openers

      MUCH needed


      • whatamess

        and i wonder will Max K and D,Ariely read this blog ? hmmm

        a blog will hardly undo their conditioning??

        in a movie with gene hackman in the movie “class action” ,gene’s wife to be,in the line of sight diring the filmed prceeding,uses her lips,and mouths “McArthur is a croook”"McArthur is a croook”"McArthur is a croook” ….a type of subliminal advertising that intrigued Gene

        no link for you regrettably…i did search


  32. bonbon

    Here one can see a breakdown of the Crimes of Wall Street.

    This is the environment leading to Glass-Steagall, and the wave has already reached Austria and Switzerland, at the EU borders.

  33. DB4545

    Bonbon you’re right, now take the night off and have a few beers and chase a few girls. Jesus Christ you have a one track mind.

    • michaelcoughlan


      Bonbon will go away when you ignore him. That is all. If you look up any profile of mr Larouche you will find that they considder themselves to be morally and intellectually superior to everyone else. Fascist in every sense of the word. That’s why he will ignore your requests and everyone else because it suits his own agenda.

      He’s wrong though. The policies which
      need to be put in place will only be done AFTER the whole thing collapses. It’s an awful mistake to focus your mind on
      Legisitave change which will Only happen after the collapse. It’s much better to focus your efforts on preparing yourself for the calamity about to befall the world.

      • bonbon

        To wish a crash, as von Hayek did in 1983 interviews, is a blood curling lust for the deaths of billions. I would tent to call that a morally inferior position, would’nt you think?

        Now dump Austerian School von Hayek’s genocidal lust, and that of his population reduction collaborators like the IPCC, and take a much more constructive approach, starting with the future we must have :
        The World’s A Mine — Transcript.

        • michaelcoughlan

          Fair play to you bonnon you always take the bait. I knew when I had a go at larouche you’d respond.

          Your response to my post above totally twisting it into saying I wish for a crash is evidence of how truly sick and twisted you and your friends are.

          Further more bombon like all cowards when I eventually get you to come out from under your rock to post your perverted ideology all you do is display to the WHOLE world never mind the board such perversion showing everyone why no one in a million years would ever take you serious!

          The MORE you post you madman the MORE you fuck yourself.

          Love cuddles and kisses.


          • bonbon

            Do not try to fool us – Hayek’s recipe is genocide. The entire Austrian School mantra is simply that, eugenics dressed up. Now we Irish had all that in 1846, so we are not easily fooled. Glass-Steagall is the only way out of this murderous trap set by the dying oligarchy.

            So cut out the crap with “after the crash” or stand exposed as expounding genocide.

        • “The world’s a mine” is good commentary but your gratuitous derogatory remarks put you into the category of a raving loony.
          Trying to tie Hayek in with the IPPC is bizarre.

          • whatamess

            The IPPC chairman says his organisation’s latest report provided “unequivocal” evidence that since 1950 the atmosphere and oceans had warmed, and that scientists were now “95 per cent certain” that humans were the “dominant cause” and now the financial markets are the only hope to stop it!


            Bonbon has made his position clear on this issue? i.e. that the climate change is NOT ,entirely, if at all, man made.

            The IPCC are laying the culpability on the human species (pollution etc)and the only remedy is to TAX carbon further…

            (I get suspicious when the almighty $ is the FOCUS for any remedy)

            “95% certain” indeed :)

            we ALL know Bonbon is not a Hayek fan,so why “bizzare” Tony.

            They are both erroneous in their claims

            Hope you’ve enjoyed your Sunday Tony..i imagine you fishing or hiking

            keep posting…we’re all still learning

          • whatamess

            and of course “the population reduction collaborators like the IPCC” are of the same ilk as van Hayek and his”genocidal lust”

          • bonbon

            Hayek “I wish a crash before die” was exposed in 1983 simply as a lust for massive population reduction. The IPCC recipe is simply that, best exposed by Dr. Shellnhuber’s “1 billion” optimal population. Poodles in the same bed.

            Now Tigers can be excused for a lot, even being “fooled” by finance, but this cannot be brushed aside. And Tigers should realize what 1846 really was. We have it again with IPCC genocide. Trevelyan then did not bloody his hands, either.

          • michaelcoughlan

            Hi bonbon,

            Fly yourself to iceland and then to Greece where the crash has happened and see how far you get windbagging about glass stegal.

            If Tony brogan is there and cajoles everyone to grow an acre of potatoes who do you think they will take serious?

            As for hoping for genocide? If that’s true why would I be cajoling everyone to grow spuds?

            Keep posting you madman.

            Love cuddles and kisses.


          • Whatamess

            Out sailing this morning. Wet, 12C, 15 knot wind and we do it for the fun!!
            Not many boats out. Too many fair weather sailors these days.
            Applies to many in the economy. Not willing to do the hard work their forebears did.

            I am no fan of the IPCC. Show me a graph that correlates CO2 and temperature and I’ll take a look at the rest. There is no such correlation. I have been looking for one for 35 years!!
            Last Month a release from NASA said they were concluding that CO2 may cool temperature. Horticulturalists are upping the amount of CO2 in greenhouses to significantly add to plant growth and crop yields. CO2 is an answer for increased food production.
            I also read that the long term chairman of the IPCC resigned as the predictions of the 1970′s never even got close or were non events.
            The computer modeling was way off. Garbage in, garbage out.

            Hayek knew that a credit induced boom ends inevitably in a bust. He knew the bigger the boom and the longer it is maintained the bigger the bust.

            In other word Hayek wished for a bust sooner rather than later. A bust now while still alive, rather than a bigger bust after he was dead. He wished for a small bust, a resettlement of the economy, not a catastrophe.

            The only connection to Hayek and the IPCC is in bonbon’s head. That is why it is bizarre.

            Hayek was correct and the IPCC is not when it comes variations or causes of temperature change.

  34. whatamess

    “The Dog and the frisbee”

    i’m still getting through this myself and it’s tough going !but worthwhile,i’m hoping :)

  35. Paul Divers

    Gene Kerrigan on Enda’s ‘Pain’ and Other Myths

    “From the comfortable surroundings of their annual “think-in”, in Portlaoise, fresh-faced young Fine Gael TDs earnestly told the TV cameras they want to inflict “a little more pain” (this is a genuine quote) on the citizens, in order to create long term gain for the country.”

    “Some of the thicker elements amongst us regard social welfare as a form of charity. They see themselves as martyrs, paying exorbitant taxes, money that’s then sprinkled into the laps of layabouts who thrive on “handouts”.”


    • Paul Divers

      In the same paper we have this headline and opening paragraph:

      €50m welfare payouts, from cradle to grave

      “TAXPAYERS will fork out almost €50m this year to provide buggies, prams, furniture, funerals, floor coverings and kitchen appliances for welfare claimants.”


      I was expecting politicians to be the subject of the headline but thankfully most of the comments below the article show that the people are not buying this vile propaganda. Conclusion:

      DANIEL McCONNELL of the Independent is a shit stirring gobshite!

      There that’ll pop up when anyone Googles the fucker

      As Mr Kerrigan clearly explains REAL welfare fraud is not a drop in the bucket. Yet they come out with this crap.

      This is fanning the flames for no reason other than that this scum reporter is impotent and dare not go after REAL WELFARE SCROUNGERS like banks, politicians and quanogos.

      We are not buying it.

        • Paul Divers

          “You are building a rat ship here. A vessel for sea going snitches”

          It gets even more ridiculous. The reporter is spewing official government statistics and using a quote from some Fine Gael politician called Eoghan Murphy who is feeding the journalist ‘anecdotal evidence’. My my we have a right pair of Charlies here

          This sham of an article stinks to the heavens. The right are so desperate they are resorting to anecdotal evidence because their traditional arguments no longer stand up to scrituny.

          (Or scrotiny if you are in need of some light relief).

          Mr Murphy’s web site is telling and looks amaterish, cheapskate and completely uninspiring. In fact it is so amaterurish he would be better closing it down immediately because it makes him look clueless.

          A man with no obvious talents on his CV and another cardboard cutout media friendly face with whom who hang from a lamp post with a catchy slogan under the face.

          Welcome to Gombeen Ireland folks. Look at weep:


          Aye right. I am laughing my bollockas off here.

  36. redriversix

    Morning All

    in relation to climate change or global warming…

    As you are quite aware the last Ice Age was caused by Polar Bears driving Range Rovers..shame on them….

    The Planet is fine is we who are fucked..A rash which this Planet will find a way to scratch if we don’t find it ourselves…

    Happy Monday


    • michaelcoughlan

      Superb Barry. Superb. Superb again. Mother nature is laughing her fucking hole off at us. I just finished reading an article about the lost Mayan civilisation.

      Scary stuff to see the size of the metropolis now hidden in the jungle.
      Mother nature really wiped that diseased rash out of the jungle.

      Mother nature rules!

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