January 16, 2014

Why does it feel as if you have less money in your pocket at the end of every month?

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There is a great offer from Dublin Bus called the Rambler. It is a 30-day, all-bus ticket including the likes of Aircoach. For regular bus users it constitutes great value, rather than paying for separate journeys each time you hop on and off a bus. However, something strange is going on in prices these days.

Last week, I was talking to an old mate who is a bus devotee and he was making the point that the rate of inflation is not accurate. He says he is listening to all sorts of experts telling him that we are living in a low-inflation environment, yet he doesn’t feel it. As evidence, he pulled out his Rambler card. In 2011, the Rambler cost €105 per month. Today, it costs €137.50. This is an enormous jump in the fare.

At a time when the rate of inflation is supposed to be low, the price of bus travel, which is hardly a luxury item, has jumped dramatically. The monthly Dublin Bus Rambler ticket is now €32.50 more expensive than it was in 2011. To put that in context, this is a 30pc increase in three years. Thirty percent in three years! This is Latin American 1980s-style price inflation.

But it is actually much worse because in Latin America in the 1980s (as was the case in Ireland in the 1970s) wages were going up in tandem with prices. Here, something much more egregious is going on. Wages are not keeping up with inflation and therefore, every month, ordinary people are getting poorer, not richer.

Do you feel that at the end of each week the amount of money left in your pocket is declining?

If the answer is yes, it is because, across the board, the price of basic items we all spend money on every day is rising much faster than our wages.

Alerted by my mate’s dilemma with his Rambler card, I decided to have a look at what has happened to everyday prices over the past three years, since the troika has been in town. Then I contrasted it with what is happening to wages.

Have a look at the chart. Since 2010, wages in this country have risen by 3pc in total. This is less than 1pc per year and as taxes have gone through the roof, the impact on disposable income is unambiguously negative.

Inflation and wages

Within the wage figure, the enormous disparity between the average weekly wage in the private and the public sector remains. The chart doesn’t capture it because it just looks at what has happened to wages in both sectors since 2010 — they have hardly budged. However, the public sector started with much higher wages. Even today, according to the CSO, people in the public sector on average are paid over €284.99 more per week than their neighbours in the private sector. This is totally unsustainable but is the topic for a later column.

Today, I don’t want to discuss what divides public and private sector workers. I want to focus on what binds us.

So in contrast to what is happening to wages, the costs of gas and electricity have risen three times faster than wages. Rents, particularly in Dublin, are now sky-rocketing and are rising eight times faster than wages, according to daft.ie. Health costs are also outstripping wages. Indeed, health costs are rising twice as quickly as wages. And the cost of education is now out of control. The cost of education is rising 12 times faster than people’s average wages.

Much of this rise in heating, power, education and health is hidden in the state budget or quasi-state budget so where the average person mightn’t be paying for their children’s education directly, you are paying for it in higher taxes, which go to pay the rising cost of the education service. The same argument goes for health costs. These are picked up in higher taxes or added to the health insurance premiums.

From the chart, we can see that the cost of transport has fallen a bit. This development is largely a drop in petrol prices. However, it’s not passing through to public transport and my friend’s experience with the Rambler card shows that public transport costs, in certain cases, are going through the roof. In general, over the past three years, transport costs have risen four times faster than wages.

Now do you see why people feel they have less money at the end of the week?

Why is this?

It is because the adjustment in Ireland has been overwhelmingly shouldered by the average person and, if you are lucky enough to have kept your job, your wages will have suffered. Remember the wages in the chart do not take into account what has happened to income and other taxes. The impact of wage freezes and tax hikes on take-home pay has been enormous.

Interestingly, and it’s not in the chart, the cost of clothing and shoes has collapsed. This is because retail sales have plummeted, so prices have had to fall. In addition, the retail market is highly competitive, so a fall in demand leads to falls in prices. So traders on the main streets on Ireland have seen their margins crushed.

Unfortunately, as landlords have only belatedly acknowledged, commercial rents are far too high, therefore many retailers have simply closed.

In the months and years ahead, it is not practical to think that wages can remain subdued when other costs are going up at such a rate. After all, the whole point of a successful economy is to have as high wages as possible for as many people, that’s what it’s all about.

If the Government doesn’t want to bring utility and state-sector costs under control, it can expect industrial relations fireworks ahead. The choice is the Government’s to make.

DAVID MCWILLIAMS’S DAILY FINANCIAL UPDATE IS OUT NOW ON GLOBALMACRO360.COM

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  1. hibernian56

    As I’ve said before the ONLY task of the Energy Regulator is to artificially inflate energy costs to ensure the viability of the ESB and Bord Gais.
    In a typically sneaky civil service way they have managed to keep the ludicrous semi-state wages high and at the same time give the appearance of breaking up state monopolies and opening up the markets.
    All at the expense of the citizen.
    Roll on Irish Water and transport.

  2. Kevin Lyda

    I worked in the private sector until 2012. I now work in the public sector.

    I get paid 50% of what I got paid in the private sector and get far worse benefits. About the only thing that’s comparable is my pension – and even that’s not as good as what I got in the private sector. I also have far, far, far worse job security in the public sector.

    My job move was primarily due to personal and family reasons so the pay wasn’t a huge factor in my decision process, but when I hear people say that public sector people get paid way more and get way better benefits, I just have to laugh. It’s not my experience.

    As per usual, using “average” pay is bogus. Compare median figures if you want to have even an inkling of how most of the country is faring. We all know income disparity has essentially made average wage figures utterly useless. And I suspect it has more of an effect in the public sector as the ability to compensate with more tax efficient shares is more limited.

    It would also be interesting to see a breakdown of pay in the public and private sectors. How do the bottom 20% of public sector workers compare to the bottom 20% of private sector workers for instance?

    • paddythepig

      What were your jobs in both cases, and where were they located?

      • Spare a Thought For old age Pensioners who are Trapped With Less Money Than anyone Else because for the First Time Since The State Was Founded OAPs are taxed In The Double also have To Pay for Each Prescription They also Lost phone Allowance Reduced Esb all Thanks To Labour’s False Promises Life ain’t worth Living when your afraid to turn On the heating and shiver all day With the cold Every Night I pray That I will Never Wake up Again,

        • whatamess

          Most here have loved ones who are pensioners cat951c,so we do empathise …it’s a horrid system devoid of compassion

          “we are all taken for a bunch of mugs” ,as i recall you said once before??…Spot on !but we are now learning the Truth and we can Change

        • Ryu Hayabusa

          Hang in there cat951c is the only counsel one can give. Dig deep… Take fortitude.

          The ‘system’ that currently holds sway is absolutely unsustainable and in its end game, it’s about to come apart at the seams.

          With every fresh revelation of corruption, etc is like another body shot to the solar plexes of Eireann.

          Concerted people power, if folk are backed into a corner and stripped of everything(including their very dignity), eventually they will react forcefully and lash out.
          The key is to channel this as constructively as possible.

          As a matter of priority this ‘government’ need to be jettisoned pronto.
          Good opening gambit that would make.

  3. michaelcoughlan

    Hi,

    When i read this article I was jubilant initially that a commentator of substance has identified what I suspected that we are looking at 10% pa inflation. Then it sobered me up. The rise in transport costs mirrors the UK David. My brother told the same story re transport costs in the UK when he was home at Christmas. I’m wondering why you didn’t use the word stagflation?

    So what do you think hulk Hogan, Mrs Edna and Eamonn Gimmiemore will have to say about this? Cash on deposit. What a joke. Manipulation in gold and silver too dangerous at the moment to go there? Where does the aver joe put his money if he has any left? It’s really serious.

  4. woodsey

    David, Low wages, low demand! (Though why that doesn’t seem to apply to 141-registered cars, always leaves me wondering?)

  5. joe hack

    Why does it feel as if you have less money in your pocket at the end of every month?

  6. Paul Divers

    What a lot of cobblers.

  7. bonbon

    DMcW: “After all, the whole point of a successful economy is to have as high wages as possible for as many people, that’s what it’s all about.”

    But no inkling given as to how that is to come about. Poking in the wallet for, shingles, euros or silver shekels and expecting the economy to spring spontaneously from spondulicks is pure alchemy.

    The productive power of labour, the essence of political economy is not to be found in a wallet or greasy till.
    Hamilton’s Productive Powers of Labor

    Michael Kirsch of LaRouchePAC presents the core of Alexander Hamilton’s Report on Manufactures, where Hamilton defines the meaning of value in a nation state economy. Hamilton’s unfolding of the dynamic process which occurs under the promotion of manufacturing, is put forward as the means to understand what differentiates an economy with and without credit, the key understanding for the emergency nation building plan of 2013.

  8. It would be political suicide for any government/regime to cut wages by x% immediately. Raising revenue from taxes whilst throttling wages & increasing the costs of essentials is like the frog in the pan coming to the boil: very few people notice it, or not enough to explode in anger. It just wears people down. So, soon people will be shivering in their homes with the latest i-Gadget which is now given priority in inflation indices above essential living costs. I also notice that some product sizes are shrinking in the supermarket whilst the price remains the same. And the few times I eat in restaurants, i notice the quality of ingredients is taking a hit. Not massively, but enough to show that you’re paying the same, or more, for less compared to 2008 or earlier.

    Another key element of this is folk need to be saving more for their pensions to avoid a lifestyle crash as pensions move in line with the doctored official inflation index of government, not the real world costs of goods or services. The only way to keep the same lifestlye is to spend more money. If it’s done cleverly enough over a decade or so, most people will just accept it. Until interest rates rise and the war for wage rises begins so people can stay in their mortgaged properties etc.

    • bonbon

      Just wait for the next crash due any moment. The way is paved for emergency rule. The first target then is wages.

      • bonbon

        And deposits by bail-in. All the evidence is there. Nothing has been done since 2008, except of course gouging. What’s left for them to gorge on?

    • Adelaide

      Andrew “I also notice that some product sizes are shrinking in the supermarket whilst the price remains the same.”

      Max Keiser discussing that very topic.
      “Inflation disguised as Shrinkflation”

      https://www.youtube.com/watch?v=XK31juzbw4w&list=SPPszygYHA9K2ZtV_1KphSugBB7iZqbFyz&index=149

      • CorkRob

        Spot on Again !
        Take a box of Weetabix (72s) – 2011 price in Dunnes was c €6.06 – now somewhere near €8.88 – THAT’S a Whopping 47% increase in 3 years or less. And the individual Weetabix are a lot Smaller – as with plenty of other items.
        The Multiples all have a huge part to play in this sneaky food inflation – for just providing a collection of shelves they cream off over 50% of most sales prices.
        In Jan 2013 I noticed that one of our British Multiples sneakily put up a mixed basket of some products by roughly 16% per item – all in one week…. I monitored a Tesco Ireland basket of over 30 products Vs Tesco UK basket of identical products in early 2013 and discovered all but 1 item were 20% – 68% DEARER in TESCO Ireland (Prices compared on TESCO Online Shopping in both countries on the same day, with foreign exchange rates applied).
        Honey is now being sold in 300g jars – no longer can you find the old 1 lb (454g) jars, but the prices have frozen at the old 1 lb level.
        We seriously need tighter control over the near monopoly that the multiples are exerting on our food supply.

        • bonbon

          And the restaurant prices numerically in Euro are more than the then DM prices in Germany, while wages have shrunk to less than that relatively happy epoch. A huge heist.

          And no German voter was ever asked to dump the DM. Now just let the EU try to make Germany pay for all of the banks. An explosion is guaranteed.

        • Spot on yourself CorkRob. Good work.

          What a bunch of rip off merchants – billions of profits every year and they still screw the small man.

          They could reduce prices by 50% and still make billios. That will never happen though.

        • Ryu Hayabusa

          @CorkRob
          Good illustration with the Weetabix.

          Currently in Dunnes, Tesco a 48 pack now retails at $6.25, a wedge above what you highlight with the 72 pack.

          My own personal bugbear is the shrinking of the Yorkie from 63gm to 55gm, disgraceful!

          And what about Rolo’s, it’s only a matter pf time before they try to excommunicate the 10th one again. Motherf****rs!!!

          On a serious note Tesco, for example have been fleecing the country for years. They don’t call it ‘Treasure Ireland’ for nothing!

          There’s no regulation or enforcement. Simple as, NONE. these words don’t seem to exist in the Irish lexicon.

          • Ryu Hayabusa

            haha sorry wrong confetti currency there.. that’s €6.25 – 48pack in comparison with your €6.06 – 72pack (’11 price.)

      • Max is fun, but Eric Janszen was onto all this yonks ago:

        “Inflation in America – Part I: Five signs of inflation, from rising prices, to shrinking candy bars, to increased fees. How to avoid an inflation-induced household budget crisis that may be creeping up on you now”

        http://www.itulip.com/forums/showthread.php/3896-Inflation-in-America-Part-I-Five-signs-of-inflation

        • whatamess

          Eric Janszen’s “The post catastrophe economy” hopefully will be a worthwhile purchase Andrew, ‘G’ for ‘Gangsta’

          i will report back;)

  9. Gearoid O Dubhain

    Part of the reason for pressure on the retail prices on shoes and sports wear is that brand names can easily be purchased for value on the internet and are delivered within a few days. So why go to the trouble of going to stores into order to pay higher prices ?

    • bonbon

      The stores are entertainment – the glittering spectacle makes the economy look thriving – glass beads for the natives on the beach.

      Now ebay, google et al try to make their websites glitter – just wait for 3D adds shooting out at your nose. It’s the same.

      Maybe, just maybe, some Tigers are just a little bit disenchanted?

  10. Paul Divers

    Advance Pitstop Seeks to Save at Least €377,000 in Unpaid Wages Through JobBridge

    http://socialistparty.ie/2014/01/advance-pitstop-seeks-save-least-e377000-unpaid-wages-jobbridge/

    • bonbon

      That’s an example of why I posted modern slavery the other day. Any company cannot compete with slavery. That is why prison products are not allowed on the “free market”, at least were not. the Guam sweatshops etc are already doing this.

      As Lincoln, said ” our world cannot be half slave and half free “. Unless slavery is called slavery.

    • bonbon

      They have an article commemorating the murder of Rosa Luxemburg.
      In Gigantic Shadows of Futurity – Part I by Aaron Halevy, Rosa Luxemburg in defining her concept of the ‘mass strike’ process of social revolutionary change, in the essay, The Mass Strike, the Political Party and the Trade Unions, in 1906, Luxemburg points out that the cause of directionality in a mass movement is not given by momentary influences, but is governed by long arcs. The political uprising of a people for a great change, she says,

      … is not artificially “made,” not “decided” at random, not “propagated,” but … is a historical phenomenon which, at a given moment, results from social conditions with historical inevitability.

    • Trapped

      The councils now are renting huge numbers of houses and apartments from private landlords under the R.A.S scheme. They enter into an agreement to rent for a period of 4 or 5 years, guaranteeing the landlord the rent for this period. The council pays approximately the going rate for an area, probably determined by “professional auctioneers”, but then charges the tenant according to their income or welfare payment, usually significantly less.

      Clever way to keep rents high and get taxpayers money going into the banks to pay landlords mortgages. What level would rents be at and how many more mortgages would be arrears if the taxpayer wasn’t funding the whole scheme.

      • bonbon

        Again a bail out for the banks. It won’t work, the next, as DMcW well knows, landmine is about to go off. then they will try to steal not the tax but the deposits directly.
        And then?

        Time to apply FDR’s solution – not sure what that party thinks of that. The speaker at that Rosa Luxemburg Dublin vene is from the German Die Linke, which did for a while endorse Glass-Steagall, even its party founder Lafontaine. But now?

      • Paul Divers

        Thanks for that Trapped.

        The housing set up in Ireland is geared towards private ownership and profit where the rules are stacked in favour of landlords. It was not designed for tenants.

        It is considered moral in Ireland for landlords to give tenants notice when there is a surge in rents. The government has left tenants at the mercy of sharks who are bottom feeding on the state and it’s people. The same thing is happening in London.

        The fact people consider a property website (daft) to be a de facto authority on value and fairness in the housing sector is a problem. Especially when they are one of the many forces that act for those who have vested interests.

        This is why rich people can become slum landlords and milk the state. But the politicians are in on the game as many of them are milking us too. The are hailed as free wheeling capitalist champions in the media but in truth they are scroungers.

        • I have a question.
          If all people are banned from being a landlord and renting out property for people to live in; where would that 40% who are tenants actually live?

          • michaelcoughlan

            Spot on tony.

            The council dictate the rent THEY will pay! Can u fucking believe it . The proprry owner risks the capital but has to forfeit the right to negotiate terms. The ras sceme rents are approx 50% to 70% of the free market rents which even at current prices is unviable. The lack of a proper functioning market is making the supply of quality rented accommodation or the supply of quality affordable homes impossible. The ordinary people will be subjected to rents going through the roof for shitholes for years to come.

          • juniorjb

            That has nothing to do with the comment, the objection he is making is to the use of state agencies to channel tax money into the market and the emphasis on maintaining its profitability when a free market might dictate otherwise. I would have thought that was a tune you’d have an ear for, but I guess not.

          • juniorjb

            BTW Michael, these landlords enter the agreement of their own free will. They choose to do so, despite what you say. What rent would the market support when these schemes very devising illustrates the fact that potential tenants are unable to pay the rents asked?

          • juniorjb

            It’s amazing how quickly the free-market evangelism is forgotten when there is even a whiff of slightly lefty sentiment in a criticism of the asset owning class. Poseurs.

          • Paul Divers

            Who said anything about banning landlords?

          • michaelcoughlan

            hi Juniorjb,

            I was referring to Tony’s reply. There isn’t a properly functioning market because no one can increase supply. I know manny landlords who are leaving their properties idle rather than risk it being destroyed by some asshole tenant.

          • juniorjb

            Yes, Michael, those smelly peasants are awful, aren’t they.

            I did mention something about defending privilege behind a fig-leaf of market rationality, but I guess I don’t need to make that point myself anymore.

  11. whatamess

    “Currently under construction, NASA’s Space Launch System will be the world’s most powerful launch vehicle. Designed to enable human exploration missions to deep space destinations, including an asteroid and Mars, SLS is working toward a first launch in 2017 ”

    This Science is Real everybody !

    http://www.nasa.gov/exploration/systems/sls/sls-science-missions.html#.Utf25LLN-M8

    I’m sure NASA were told that this Science “evades the geo-physical realities” hana hana…To think that humanity can’t green desserts, is handcuffs of the mind department ,a construct of indoctrination, and need to be unlocked and throw away that key!

    The key to unlock our future,well we know, don’t we !

    “Money is indeed a proxy for Energy”

    Imagine a tiny % of the derivative debt mountain in sane hands…it will launch humanity from the depths of the engineered abyss we find ourselves

    [ The Apollo programme retruned 14 dollars for every 1 invested ( excuse the "jingoism Bonbon )]

    http://www.examiner.com/article/should-we-invest-nasa

    • bonbon

      But remember they were not the same Dollars. The investment made once, but the payback concepts last forever. Secondly 2 different economic platforms that happen to use “dollars”. That jump defies mere accountancy.

      • whatamess

        true,thanks

        My motivation for mentioning the return on investment aspect, is because some people ‘feel’,in a knee jerk reaction kinda way, that budgets for space missions could be easily better spent elsewhere,and they have a point,when the Actual Facts are foggy.

        Facts when expressed in $£ terms ,as has been our conditioning for decades Bonbon ( remember too that very close attention must b given to the indoctrination Factor…it had me blinded for decades! ) gets us to the meat on the bone.
        [ yes a rebuttal to that could be,well Whatamesss would you still support such HUGE budgets if the ratio was in reverse ??!!]

        But ,It’s not the reverse!!!

        even some casual reading tonite on the web shows up to 40:1 ratios and lows of 5:1 ,so 14 as a figure is not just more lipstick.It’s very Real.

        When you believe it to be real,your actions will mirror your mindset and then a jump,first in our minds to believe something that contradicts our preconceptions, then and only then,can the fusion flame be given it’s rightful place as an axiom to the logic of a physical economic lift off strategy.

    • michaelcoughlan

      And your point is?

  12. Pat Flannery

    FYI – I recently bought a 30-day travel pass here in San Diego for $18. It covers both buses and local trains that are well integrated at multiple “transit centers”.

    $18 works out as 43.8 cents Euro per day! Unlimited travel on two modes! The frequency of buses is at least as good as Dublin (I would say even better) and San Diego’s combined equivalent of Dublin’s LUAS and DART (called SDMTS) has definitely higher frequencies and covers a huge metropolitan area equivalent to all of Dublin County. All this in a Wild West American city like Phoenix and Las Vegas, all popularly believed worldwide to be public transport unfriendly.

    I tell you this not to boast about San Diego, my former home for 36 years, but to underline David’s point that the Irish people, particularly Dubliners, are getting shafted. I make these cost comparisons because I am committed to spending my remaining days in my native Ireland, not in the city I still love (but not as much as my native land) San Diego.

    BTW the unemployment rate here in San Diego County is under 7%. So before you buy into all that Irish media rubbish that Ireland is such a wonderful place compared to big bad America come here for a visit and check it out for yourselves. Ireland is being left behind in so many ways but you would never guess it listening to the Irish politicians and their complaint Dublin media.

    Every day I read about unbelievable scandals like the Irish Water “consultants” madness and CRC’s Mr. Kiely getting retirement packages of more than €740,000, that the Irish seem to accept as inevitable, like “the Will of God”. It is easy to see why David’s graph shows the ordinary people getting squeezed tighter and tighter every day ’till they are turning blue.

    The thing that Irish people have not yet mentally absorbed is that it is “Irish-on-Irish” rape. It is their own elites, not foreigners, who are raping them. Yet the Irish (elite) media, unfortunately including David, consistently blames the EU, the Euro, the Troika, big bad Germany, anybody, but the real perps.

    • Exactly Pat. I don’t know why you love the place so much when you have it so good in San Diego.

      In contrast to you I’m committed to spending my remaining days in somewhere other than here and I’ll never ever come back once I get past a certain age.

      Total rip off joint!

    • bonbon

      What stake do you have in the Euro? I’m afraid you do not know what the Troika even is. It is three of the worst diseases, rolled into one, three of the horsemen of the apocalypse. The fourth is stupidity for sure, and nowhere is there a monopoly on that – just look at CA electing the Governator, hand picked by Shultz, Buffett and Jake. Have a look at the photo here :
      Who Raped CA</A

  13. Inflation is to get worse not better

    Inflation correctly defined = the expansion, inflation of the money supply.

    That is there is no change, or little change in the underlying economy, and so more money chases the same volume of goods and services.

    The extra money is created as a debt and so the level of debt in the economy increases at the same rate as the increase in the money supply.

    The extra money is not issued in a general layering over the whole economy so that all get a little extra but is issued to either the banking system or the government directly in exchange for bonds.

    Thus the government can spend whatever it wishes, whenever it wants and pay for it without regard to a proper market mechanism of control. That is government is inefficient in the disbursements of goods and services because it is not forced to be otherwise.

    Hence, perhaps, boondoggle waste projects and high wages.

    The banking sector receives the rest of the new money issued. It goes into commercial bank reserves where it can and will be multiplied by the reserve allowance and be loaned into the economy as credit.

    This leaks into the economy on a favoured son basis. Financial investments and mortgages may be the first to see this. Hence the growth in bonds, stocks and housing.

    The rest of the economy gets little or nothing. The last to see any is the wage earner.

    Governments manipulate all statistics in order to present a visual image that is better than reality. Lies, damned lies, and statistics.

    Bankers benefit from the constant stream of interest creamed off the economy. This interest charged on fictitious money created at the push of a computer key, and created without effort from nothing.

    The politicians benefit as they provide goods and services directly to the electorate without direct taxation. The result is we all consume more than is produced.

    The net result is that the beneficiaries of the inflation are the early recipients of the new money and the rest languish.

    All the commentary about this or that rising price, all the discussion about this or that sector of the economy versus that, is wayward discussion without tangible benefit.

    We must look to the root cause of the inflation. Inflation is the root cause of the discrepancies in the economy. Inflation is the root cause and explanation of why the rich get richer and the rest left behind and effectively poorer. Inflation consolidates the wealth in the hands of the few and causes destitution in the rest.

    There is only one way to stop inflation. It cannot be done with using the current money system. If it is attempted it will cause major depression.

    The only way to escape is to stop using the current money system and adopt a non debt money system.

    Initially that means the money must be issued by Treasury and the central bank money be returned to the central bank. Every last penny of it. Treasury money must replace the central money in an overnight swap.

    The central bank can then be closed as an agent of the country and sent packing to its owners and operators, the banking family cartel.

    The odious debt can be revoked. The balance of the national debt paid off with treasury money. The resulting government operating surplus can be used to reduce income taxes or eliminate them altogether.

    The people will be freed of the government debt yoke, disposable income radically increased, and inflation eradicated.

    Lets have a discussion on the one way to clean the books and start the road to prosperity.

    Together with this,
    The amount of currency in circulation must then be fixed and not expanded (no inflation),
    the legal tender laws must be repealed to allow people freedom of choice to use competing currency if they wish
    Precious metal coin must be monetized by weight and content and not be a denominated fiat currency value
    Gold and silver bullion must be accumulated as national savings and used to back the national currency.

    BUT FIRST CHANGE THE MONEY SYSTEM IMMEDIATELY OR SUFFER THE CONSEQUENCES.
    UNDER THE CURRENT MONEY REGIME THERE IS NO RECOVERY POSSIBLE IN THE LONG TERM.

    • bonbon

      A “discussion on the one way” ? The true way? Ye are starting to yell again.

      Life is in Threes, First Glass-Steagall, then Hamiltonian Credit, for massive Reconstruction. Get it? Then there is plenty to discuss, the physical economy, increasing the productive power of labor, and the future – three again.

      That Austrian School “one way” fools all some of the time, some all of the time (yerself), but not all all of the time. Three very wise words of advice from Lincoln.

      So cop on.

      • Have you any idea what causes inflation. Don’t think so it is never enunciated.
        Any idea why the rich get richer and the poor poorer. Nothing I’ve seen you explain

        your solution is for gigantic government enterprises to overrule national boundaries with humungous 5 year plans.

        sounds sort of like Russian or Chinese failures of old.

        Of course you will employ huge corporations to get the work done conferring hand in glove with government. A slightly fascist feel to that isn’t there.

        Why not just get government out of the way. Stop manipulating every last thing in sight. clean up the money system and let people get to work doing what they do best. Repeat the economic boom of the 1860′s to 1910′s

        There has not been a free enterprise capitalist system allowed for over a 100 years and look at the results.

        A rapidly declining standard of living and rapidly increasing inflation bemoaned without a solution by our bemused worthy host.

        • michaelcoughlan

          Don’t try and reason with a madman Tony.

          With reasonable men I will reason,
          With humane men I will plead,
          But to tyrants I shall give no quarter.

        • I am not talking to bb Michael but the rest of the world

        • bonbon

          We here all know all about the old straw dogs. Rather large ones but straw nonetheless.

          Populists like to talk “to the world” rather like Hitler did, or Obama. But we all know what Hayek dreamt of – massive population reduction, wink-wink, nudge-nudge “we will start small” after “the crash” he dreamt of. Much the same dream Buckingham has of rapid depopulation. Austrian Schooler’s do not realize Ireland had that already, and smell it a mile away.

          • whatamess

            @Michael

            “Don’t try and reason with a madman Tony” ….

            ffs!!:(

            …my lottery ticker anecdote was spot on then?! i sometimes wonder if you’re nuts?!”NVTS” ,nuts?!

            I’ve spent quite some time ,over 9 months now, reading bonbon’s contributions, and was worried sometimes that he had a ‘slant’ on history,but i’ve read enough to know,he speaks the truth,each and every time!

            So spare us the Baffelegab Michael ! Religion of money informs your way of life,it seems…certainly your thinking on economics is money centric !

            [yunno Radon is an odourless, tasteless, colourless and carcinogenic gas, but Science can easily test the Bq levels in any building…

            the carcinogenic readings for IRELAND’S economy are LITERALLY, off the bloody chart !!

            but yerrra shur,let’s just ignore Science,as verifiable set of solutions to extradite us from our present quicksand!

          • Whatamess
            Afraid I disagree with you on Bonbon.

            He is always aggressive.
            He insinuates as he did above that some how I am akin to Hitler and have genocidal inclinations.
            He is often insulting.
            He often jumps in to others conversations with off topic wisecracks.
            He is a disturbance and often disrupts the learning process between others.
            I generally do not reply to his postings but only when he jumps on my coattail and makes outrageous accusations.
            He seldom has a personal opinion and quotes inevitably from LaRouche , itself an organization with plenty of skeletons in its closet.
            bb never answers a question and almost always spills nonsensical rhetoric in reply.
            He lacks a sense of humour.
            Michael is 90% right. (Nobody’s perfect)

          • Mr. bonbon has one redeeming quality -

            He’s not as big a crackpot as Atlantean.

          • whatamess

            Bonbon doesn’t ‘insinuate’ that you are akin to Hitler and have genocidal inclinations,he pronounces it boldly!He of course knows only too well that you are a good guy ( and has said that to you,in fairness),but that’s unimportant to our dilemmas…He’s not here to make friends,as such,but to just give the facts…and i for one appreciate it hugely!

            I’d certainly never really read of Mont Pelerin,Fabian,Chicago School, Hayek/Mandeville/LSE,Fisher,Schachtian economics,Henry Kissinger’s NSSM 200, ,etc etc

            and i hadn’t even heard of A.Hamilton’s Credit System,Matthew and Henry Carey, Thomas Paine etc

            You support economic “bottom up” models Tony that result in entropy, everytime. Bonbon has demonstrated,for me anyway, the links between all the above in the upper list and he sees that ANYTHING or ANYONE who supports aspects of these models (that ONLY serve to suppress mankinds’ growth or put another way,genocide!) is quinessentially fascist….even tho these supporters might not even realise it due to indoctrination.

            Richard Dawkins often remarks, during or after a debate, of peoples “cowardly evasion of scientific responsibility”, when the Science he presents, are the facts and this evidence is NEVER affected by gut feelings and/or opinions.

            I know it appears i’m a Bonbon wannabe and that it seems that i’m a line backer protecting Bonbon the quarter back,but that’s not the case.I’m protecting the Truth, as he is!

            and just like Richard Dawkins when he feels frustrated after presenting the facts,and these facts are conveniently by passed/IGNORED,yea he gets annoyed,and me with him….no one is perfect,that’s True;)

          • cooldude

            Bonbon may not be a madman but he definitely is an ignorant pompous asshole. He constantly displays a total inability to enter into any sort of logical debate and turns everything back to his pet subjects of GS and Hamilton’s central banking system. He has constantly refused to acknowledge the fact that Hamilton was simply a lackey for the Rothschild’s and the other European bankers in their quest to create a central bank in the US which would pay them interest for creating money for the government. He constantly fails to understand that any sovereign government can and should issue their own currency debt free without borrowing it off the bankers. This issue is never addressed by the Lyndon La Rouche crowd who seem to be very one dimensional when it comes to the problems of central banking and it’s ugly twin sister fractional reserve banking.

            Instead of engaging in any sort of debate on any of these issues he constantly relies on his usual mixture of confused argument and personal attacks. He has no real knowledge of economics and constantly refers to the La Rouche party line demonstrating a complete lack of independent thought.

            Your idea that a top down type of economy is the only one that can work has been clearly shown to be total and utter crap every time it has been tried. The Soviet experiment was the ultimate form of a top down economy with every aspect of the market fixed from the top. That experiment ended in complete failure and a hyperinflationary depression. This will always happen when all aspects of the market are controlled from the top so you guys should simply check up on your facts before to make tour highfaluthing statements which are invariably wrong.

          • whatamess

            @Cooldude

            Thanks for your reply.Good to vent dude.You are a valued contributor here and ive read you for a year now.

            Bonbon has proposed a Plan, yes LaRouche’s plan, because he sees this as ‘ticking all the boxes’ for humanity’s growth ( our designed CREATIVE plan to extradite ourselves from serfdom – GS, Hamilton credit system ,physical economic recovery fuelled by the fusion torch,and of course dealing with Vladimir Vernadsky’s coined “Nooshere” )
            These are not his “pet subjects” with all due respect Cooldude,but creative solutions to our woes when faced with being wiped out!

            This is his formula for a future – Real Liberty and serving the Common Good.

            I don’t think he would care that much once we flatten financial oligarchy and focused maybe only on energy MEGA projects.He would say we could do more i expect !;)

            [btw i don't know who Bonbon is!That the Truth]

            Alot of Bonbon’s contributions go against the grain don’t they…they did with me anyway!!!…i was reading his contributions for 4 months ,before i began to contribute and yea his retorts can sometimes be rapier like,but time is ticking yunno (with the system crumbling as it Observable Fact!) and frustration gets the better of him,i imagine? I have been a horrible fucker too at times,mea culpa!

            As Andrew said recently,you’d expect we’d have made a fist of economic growth at this stage,but it just hasn’t happened!!!!So time for change SURELY?!People don’t deal well with small change right,not to mind MEGA change!

            As regards the fractional reserve banking issue dude,my feeling is that some idealistic people think they can outlaw gambling…never gonna happen! So allow the gambling ,but no bail outs/ins…if the banks of future are not ‘boring’ and choose to be reckless, they fall on their own sword and die!

            “He has constantly refused to acknowledge the fact that Hamilton was simply a lackey for the Rothschild’s and the other European bankers in their quest to create a central bank in the US which would pay them interest for creating money for the government”

            maybe he will address that?i certainly don’t have the facts there…but can i say if all the economic cogs were working harmoniously and purposefully i don’t imagine,with my very limited insights, the central bank issue would be oh so important.Tony will devour me for that!lol

            The Soviets got it wrong,so let’s call it a day, is it Cooldude?I know that’s not your way!! Why don’t we learn from the past and use our creativity and devise a top down scientific approach that will work?!

            time is ticking

            My favourite Bonbon post:”There is little point being “debt free” in darkness with no food or power,and then liberty is just not possible. So dump serfdom.”

            cheers

          • whatamess

            sorry,the fractional reserve issue ought to be risky banking,right…i blame the Scotch;)lol

            issueing a debt free/sound money is important,but of our list of issues to remedy immediately,its just not a priority …we have other much more weighty issues to attend to

          • whatamess

            and we all know that ‘the prophecy full of fantasy” that economic growth will come from even the soundest of money is delusional,in fairness

          • cooldude

            Interesting points whatamess. Perhaps you could explain to me in simple English how GS will prevent the now legal bail in legislation from being enacted when the next inevitable bank crisis occurs. According to yesterdays Irish Independent european banks are under capitalized to the tune of 700 billion euro. The ECB have 50 billion set aside to cover this so the rest will presumably come from the bail in resolution. How can Glass Steagall prevent this occurring?

          • Whatamess, you have the priorities ass backwards

            The fundamental problem with the system is the money system.
            This observation after having read about and studied money for many years.

            If you understood money there would be no further discussion.
            Define
            what is money
            what makes good money
            Why are were using bad money
            who decided we use bad money.
            who benefits from this
            how do they benefit
            what about the rest of the people.
            why do politicians let bad money function
            how can we swap bad money for good money
            will the use of good money change anything
            what will change
            what effects will these changes have
            If we continue with the current system can we fix the economy

            What point is there on spending millions on renovating a house if you first do not fix the foundation’s problems

    • Paul Divers

      Is Bonbon correct below in asserting you are a proponent of the so called Austrian School Tony?

      If so then it presumably follow that you admire Milton Friedman.

      Answers on a postcard please.

      • Paul, I am not a proponent of any school. I read as much as I can and evaluate. Ten years of following my nose lead me to conclusions about money which I enunciate. I can not name who proposed what but I know what I have learned. If it subscribes to one school or another that school is irrelevant to me. I know what seems correct to me. Independent thinking here.

        Other people assign the labels. They appear to not be free thinkers.

      • paddythepig

        What makes you think Friedman is Austrian school?

        Have you done your research?

  14. Dorothy Jones

    Tomorrow 17 Jan 2014, Stillorgan Park Hotel.
    *7:30pm : Lets talk about debt..scrap fear NOW*
    by Barry

  15. joe hack

    It’s the end of the month and I am feeling the pinch so does anyone know where I can get my hands on 1.1 trillion just to keep myself going till the end . . .

  16. The WEST is being bailed in by the EAST

    http://truthingold.blogspot.ca/2014/01/shortage-of-gold-bars-develops-in-london.html

    Western Central bank printing has allowed governments to function with a budget deficit. Also Orientals have been buying western government bonds for 20 years. Latterly China has started to voraciously accumulate gold. Running out of available supply I speculate a deal has been made.

    China says make all gold stored in western banks available or we dump all our treasuries on the market and destroy your economy.

    The west can not redeem the bonds so are bailed in by the Chinese et al.

    Now we all work for the Chinese. Hilarious.

    GOLD WARS is the right name for this. I pray it will not result in a shooting war.

    To survive yourself do what the Chinese are doing. Monkey see, Monkey do!!

    • Ryu Hayabusa

      On the balance of probability Tony, it will result in the same outcome.
      Insane policy decisions (or exceedingly calculating ones depending on your perspective!) turn an Economic Recession into an Economic Depression… Ergo Currency War precedes Trade War precedes Real Actual War/Conflict.

      Same old dramas play out in a seemingly preordained doom loop.

    • whatamess

      @Tony,

      Gold aside( i too hope it skyrockets!!!),just have a glance at the Chinese MEGA cargo ships, the size of aircraft carrrrriers, going 24/7 with payloads of bauxite,sheet mica,sponge iron,titanium,coal,iron ore etc etc,and they have PLENTY of indigenous mineral resources, ,that they ship from India evvvery day !! – a country of comparable size,right? No flies on the Chinese,and if there are,they are paying rent!!

      The Chinese don’t need to visit Specsavers, that’s for sure!..their vision is 20/20…Oughtn’t Ireland not open it’s eyes ,and minds, and align ourselves with them somehow??especially with Europest throes in the la

      Yes the UK is eeeeasily our biggest trading partner,but that dynamic is slave and master too,don’t you think?… just imagine you were running ANY business and had only one customer essentially “giving you life !!!”….. Now, imagine if your only customer wanted to ‘stick it to you’, i tell yoy, you’d soon realise the shnaffle was in place !! …

      And maybe we ought to remember too if ‘that’ single customer gets into difficulty ( e.g. Mark Carney’s Qe, or is it like the Japanese “QQE?” ),wellll, that’s light out for your business,right?!!! be fu**kin sure of it!! Angre G’s observation of us in a slip stream of UK credit,was obvious,but insightful!!

      New Silk Road,that’s a part of “where it’s really at”

      http://thediplomat.com/2014/01/chinas-westward-strategy/

      [ if I had a young child, I would encourage him/her to learn Mandarin/Cantonese...what a Real world gift that would be !! ]

      • whatamess

        “and they have PLENTY of indigenous mineral resources”- OF THEIR OWN ,i meant to write,ooops

        Thank Crunchie it’s Friday (even the 40g bar !!)

      • Yes whatamess, the Chinese are buying up the world. natural resources as well as highrises and industrial estates.

        They are buying up all the gold they can get at an unprecedented rate. They recognize it as money, wealth, and the west is fixated on a barbarous relic.

        The Irishstate or any other state is not going to move to do any of the things suggested. We cannot even get DMW to discuss any of the issues.

        So we must look after ourselves as best we can. Self sufficiency as best as one is able and remember Mr Macawber.
        Income 20 shillings
        Expenses 19s 6d =happiness
        expenses 20s 6d =misery

        Take care, I know you are a good hearted person and generally one cannot be much better than that.

  17. Max Keiser on Irish corruption(first 10 minutes)
    Lenehan in fraud deal with banks
    Judicial system compromised
    Anglo Irish bail out
    Criminal corruption endemic
    Old fashioned graft not excluded
    Banksters make off with the loot
    country selling off assets to pay

    http://www.youtube.com/watch?v=XK31juzbw4w

    • Max hitting the nail on the head as usual.

      The Keiser Report is a brilliant show.

      http://rt.com/shows/keiser-report/

      • joe hack

        Yes it is a etertaiment show

        • bonbon

          The shock jock, MK.

          • Ryu Hayabusa

            He’s the Howard Stern of the Econosphere bb.

          • bonbon

            He has all the inside gory details, that’s for sure. He knows that crowd well.

          • whatamess

            When I watched the M.K link and saw the two so called experts discuss inflation/deflation yada yada and neither of them ,yes neither, can agree on the status quo and answer the WHY’s. Imagine that!

            Did you notice how many times she uses the word “think” ,like she was reading tea leaves or felt it in her toes! That very CHAOS in their inept minds speaks volumes, to me anyway. No clarity..does that not worry the sh*t outta you all? ..it does me!!

            “Order from chaos” in unbridled, so called free markets, is irrational ! C’mon ! It’s make believe Science , spontaneous economics and seems to be roooted in outrageous, absurd assumptions that an economy can and will grow from nothing? (Let’s just conveniently forget our creativity and science?)

            [The gazelle dying of thirst and hunger next to the empty water pool is praying for a miracle. Us humans can CHANGE the axioms, decide purposefully to walk over the hill ,explore, and find another well ,but full of water, crucial to survive firstly and then with creativity,to thrive ! ]

          • Ryu Hayabusa

            …Ja and he loves top use the ol’ Props to ram home his point!

            Bet he’s got a prop for Mickster Nooonan too.

    • cooldude

      Excellent report on “sink estate” Ireland. It would be good if our host would watch this and comment on it instead of rabbiting on about his buddy’s rambler ticket.
      Or maybe he is afraid to go there like the rest of the useless media in this country. This charity guy’s pension is just the tip of the iceberg. Fraud and deception everywhere. I have a feeling NAMA is going to make the charity frauds look like small change.

    • michaelcoughlan

      Just for you David.

      Listen to Keiser at 2:35 in the video. When Enron blew up with its 90bn in off the balance sheet debt its accounts were audited by Arthur Anderson and their Jamie Oliver qualified accountants. (Only Jamie could cook the books better).

      JP Moran Chase has 90 TRILLION off the balance sheet cockamamie shenanagens. 90 TRILLION DAVID!

      • michaelcoughlan

        At 3;40 in the video Stacy talks about how the banks steal people’s pensions. These are real women like my aunt. Built up a fund to 30k. Advised to roll over and would get 50k. The pension collapsed to €300. Three hundred euro.

        I bet you the cunt in charge of the fund like Brendan Drum subsequently got a massive job and salary because he can be trusted to pursue such policies of fucking the customers up the ass.

      • Ryu Hayabusa

        It’s almost funny now. When it first broke the Enron scandal, there was such a hullabaloo.

        Now it’s mere chop change. Remember when Anderson Consulting was emblazoned across F1 cars.

        Imagine it’s almost akin to having Libor rigging, Stock Market rigging, Currency rigging, Interest rate rigging, etc,etc.. festooned across the equivalent F1 cars of today.

        As Fr. Dougal Maguire would put it “Well It’s all a bit mad!”

        • whatamess

          Will our future look like Silicon Valley
          or the Rigged Vegas Casino ?

          níl an dara rogha againn

          “Though much is taken, much abides; and though
          We are not now that strength which in old days
          Moved earth and heaven; that which we are, we are;
          One equal temper of heroic hearts,Made weak by time and fate, but strong in will
          To strive, to seek, to find, and not to yield”

          Alfred Lord Tennyson

        • bonbon

          Well, Arnie Schwarzenegger went pumpin’ Enron to get elected after Skilling ok’d it and Buffett brought him to Jake Rotschild in Devon. The Anderson crowd went all to PWC and guess who is doing the “rigging”, sorry “good accounting” now?

          • whatamess

            Did anyone notice that some people here on DMW’s site,just can NOT bring themselves to say that ‘durrty’ wuurd “Derivative” !! Financial Oligarch’s chosen weapon of r-r-r-rapid devastation!!

            Derivatives,a Modern day, fire breathing Chimera !

            The derivatives mountain will certainly collapse under its own weight, as is observable fact right now, and if physics informs your mind ,then that reality ought to be frightening !

            The $90Trillllion heist mentioned earlier,is visible ,now anyway, above the water ,but like all icebergs, it’s the opaque 80% beneath the surface,that is UNKOWN… guesstimates are abound, but True figures are unknown….of empire’s many dirty little secrets,certainly not on MSM, and even when one whispers this secret,or ANNOUNCES it with gusto,some people choose not to acknowledge it ??( “mind-brain paradox”)

            In striving for a higher understanding, standing on the shoulders of Giants remember,let’s leave Science give us our “bearings” to the next economic platform !?!

            Science,a fundamental bedrock of a logical mind in determining the Real world and key to our strategic planning, but some will even DENY Science ! “To build an economy, an intention for the future decides the path to take”
            .
            Science doesn’t have all the answers !!!! Science never makes that claim !!! But it is, unquestionably, the very best tool that humanity has, to arrive at real solutions, to real world problems.

            [ "The shits chess, it ain’t checkers!"]

          • Ryu Hayabusa

            Derivative Derivative DERIVATIVE…. Big Fat Furkin’ Hairy Derivative…. Smelly, clammy cellulose jacks roll encased pile of steaming cack, essence de Mervyn King turd a le weapon of Financial Mass Destruction.

            Happy?

            Got no problem with it,, just trips off the tongue.. with the viscosity of frozen treacle! :)

  18. The precious metals have bottomed out in this 30 month reset.

    There is precious little left in physical bullion and manipulation compressed the price to a fraction of its worth.

    good time to get back in ladies and gentlemen. downside risk is 10% Upside potential next two years gold double and silver 4 times

    That is $3000 gold and $80 silver.

    Some gold and silver mining stocks will be 10-40 baggers. Well run companies with proven assets in the ground.

    The move has started. Fait vos jeu.

    • michaelcoughlan

      Hi Tony,

      I noticed the gold miners charts Are starting to turn also. Might be a better bet than the metal on it’s own because you get dividends.

      • Dividends are the small change. Interestingly I decided to move some silver bullion back into a silver miner. I chose PAA pan American silver. Good management, good resources dividend paying and a beaten down stock just turning upward.
        dividend was 4%. BUT in two weeks stock is already up 13% on my purchase which I did at market and paid above the odds on the day.
        For a stock that will likely double this year the dividend is irrelevant. however I liked the idea of a dividend as it indicated the company has the investor in mind.

        At the same time to be noted the company has a negative cash flow but with the increase in the value of silver to far outpace increase in production costs that negative cash flow will turn positive in a hurry.

        BTW Michael, if you act on this account, you owe me 50 although it is to be stated that in no way is this to be counted as investment advice and I disclaim any liability for anything I may say etc etc etc,

        Enjoy you day :)

  19. ld2014

    I have to say I was slightly relieved when I saw this headline as myself and my partner have been asking ourselves this every month for the last 2 years.

    We have both held our jobs and our salary levels since 2008 (and in fact they have both increased slightly) but I am genuinely shocked at how difficult we are finding things in the last few years. And when I hear of such low rates of inflation it was leaving me baffled as to what we are doing wrong. I would consider that we have 2 decent salaries coming into our home and we literally do not have a single penny of disposable income and I can see our debts creeping up. Every day expenses (car costs, utility bills) are becoming a bigger source of stress with every passing month.

    My partner also travels to work by bus and we just automatically factor in an annual increase of about 7-10% each year for his travel expenses (and we have always done so by the way – since 2000 when I was travelling by bus). Rising health insurance, car tax, fuel and electricity are big issues for us and while I am prepared to suck up a property tax and water charges, these are costs we are covering by reducing our spend elsewhere. I had my car NCT’d last week and it cost me €55 – am I imaging it or did the NCT not start out about €27-€35??? Without exception the costs that are increasing in our monthly budget are government related.

    I am not an economist… David / anyone – can you explain how the official inflation rate is calculated and by whom? I really hate conspiracy theories, but it seems that as long as the government can say inflation is extremely low, they can justify the introduction of any charges…

    Meanwhile, families like ours (who are lucky to still be working and earning) are struggling on and contributing pretty much nothing to our local economy – our family does no shopping other than groceries (and that is now with foreign owned multiples), we don’t eat out, we’ve swtiched from a local child minder to a foreign au pair…. Inch by inch we are moving from being a family who function and contribute to the economy in an average way, to one that just works all the time to pay government related charges and spend our money with the cheapest foreign provider we can find -this does not sound like progress to me…?

    • Welcome 1d2014

      I think your dilemma is one faced by loads of people. I know the problem is the weights the CPI uses to calculate inflation are outdated. Maybe more article like this might get them to chnage.

      All the best

      David

      • This trend has been evident since 1970.
        Look at all the stats for money production
        Stats for debts
        Stats for standard of living.

        They all correlate

        The singular event in 1971 was the abandonment of the final vestige of the gold standard allowing the production of unlimited credit. (otherwise known as the fiat paper/electronic debt based Ponzi scheme we call money)

      • michaelcoughlan

        “Maybe more article like this might get them to chanage”

        Yes. spot on. Keep plugging it bonbon like and don’t let up until the powers that be take notice.

    • Bamboo

      Hello ld2014,
      Many of us I am sure can relate to your post as I feel I have gone through the same experience in the 80’s and 90’s. Having a decent double income, commuting to work by public transport and trying to raise the kids at the same time. I am sorry to say that it only feels worse as the children reaches their teenage years and go into third level education.
      Like you – all we could afford are groceries, pay insurance and utility bills and it became a real struggle to pay extra unforeseen expenses as we simply couldn’t factor in any such expenses in our budgeting. A birthday party was not something we could look forward to.
      We consider ourselves extremely lucky to be healthy and had no medical bills whatsoever. All our loans we took from the bank are purely for the bare necessities like a mortgage and a second hand car.
      Among our circle of family and friends it seems to be quite the norm to struggle, as it is the signs of the times.
      It is only when the children have finished their studies, moved out the family home and are independent we felt that we could afford some luxuries. I was let go from my job four years ago and as you can imagine at my age there is no scope for new employment or career. There was no golden handshake or anything like that. I received 4000 euros from the company and that was it.

      Looking back at it we could see that as time passes by it is getting better all the time as your mindset and expectations changes.
      However, we felt that we could do more than just sitting at home. Now we are at a stage that we truly enjoy every single day. We haven’t won the lotto or inherited some money; enjoy our retirement fund, our savings or our dole money. No, we have none of that but we are now living abroad and can make ourselves useful again but that is a different story altogether.

      In other words things will get better for you and your family. The government and the system will not make it better. As time passes you will feel your situation will get better. Reading these articles and listening to the media can be relieving as you find out you’re not alone. However, do it sparingly as it is too depressing and too negative. All this negativity can be so addictive – it won’t help you in any way.

      Best wishes.

  20. joe hack

    “Alerted by my mate’s dilemma with his Rambler card, I decided to have a look at what has happened to everyday prices over the past three years, since the troika has been in town.”

    So that’s how economist carry out research I have always believed that it was more sophisticated than having a chat with an mate!

    Now I know why we are where we are …

  21. SLICKMICK

    http://www.independent.ie carries a story today about pharma companies wanting to recruit phd’s in chemistry to work @ no cost to the employer. A nice reward after 7 years in college! “Live with your parents , work for free , you don’t need money ” is a favourite mantra of employers. Pushing a brush round Quinnsworth 30 yrs ago paid more. LOL.

    • Haha outrageous!

      The very same pharma companies that are making BILLIONS in profits every year.

      Something has to give.

      By their continuing actions the multinationals are sealing their own medium term fate.

    • And that’s how the D4 crew will create their Bloodline Privilege society, alongside house price enclaves. If your only chance in life depends on whether Mom & Dad can fund your pharma studies and also fund you whilst you do a year’s Internship after 7 years study: it excludes most of the working class competition fto have a go at becoming “middle class”.

      So, you end up with a mediocre society based on who you know, who your parents were and what money they can give to you. Like the British Royals and Aristocrats, but with green post boxes.

      Or you choose the ‘voluntary lifestyle’ emmigration choice as so many previous generations of irish people did…so the ever-narrowing clique can re-inforce and perpetuate their Privilege.

      Or, y’know..Uprising! 1916-2016..Michael Collins rises from grave, etc.

  22. McGoo

    David, in your previous article you wrote “the threat of deflation is very real all over Europe”, now you are writing about how prices for many everyday essentials are soaring. Can you please explain this apparent contradiction?

    • michaelcoughlan

      Hi,

      I doubt if he’ll answer but I’d say the penny dropped with. The last article I’d say was based on evidence he gathered based on his classical training. The current article is based on field evidence. The people compiling the stats keep changing the criteria they measure to get the result they want.

    • McGoo

      The threat of deflation in other EU countries is every real. Inflation rates are plummeting there, I think we have the strange situation where our State-run outfits keep prices rising here to prevent them make cuts to their own fat!

      Best

      D

      • David
        Have you taken a look at http://www.shawdowstats.com by John Williams

        It logs the “real ” inflation rate without all the manipulation and hedonic adjustment of recent governments to make the figures less than they are.

        Corruption is everywhere. No government statistics can be relied upon, the common man knows they are being lied to at every turn

      • Mild deflation is beneficial for the economy whereas mild inflation is not

        Mild deflation is the result of improved efficiencies and productivity in the economy. We all agree we like lowering prices.

        Mild inflation robs the saver and prudent and the government imposes a tax on it as well!! Inflation of any degree is the road to poverty as is now amply demonstrated if not adequately explained

      • McGoo

        David, If you’re right, this divergence between Ireland and the rest of the Eurozone needs to be the subject of an article soon! It will be a disaster for the Irish economy, making us internationally uncompetitive while driving down our standard of living and driving up emigration.

        I’m typing this in a hotel room in Hong Kong, from which vantage point I can tell you that the international business community already views Ireland as an expensive place with a low standard of living. It was educational to learn that every single one of my Chinese and Indian colleagues has a live-in maid (even the office receptionist!), and they were really shocked that I don’t.

        • bonbon

          You mean having a “live in” maid is a high standard? Sounds like a colonial hangover to me. One China, Two Systems, surely does not mean that.

          • McGoo

            You could be right about the colonial hang-over. Overall, I think the cost of living in Hong Kong is about the same as Ireland, provided you are happy living in an apartment hundreds of feet in the air.
            The maid thing is just an example of a shift in perception – in the past, we might have had a preconceived notion that Asian countries were a bit underdeveloped and backward – now they have that same preconceived notion about Ireland!

          • bonbon

            Of course – the entire transatlantic region is in collapse and china wants to survive. Now Obama’s ring around china (and russia), and Japan’s Abe trying to change the constitution are for sure not unnoticed in Beijing.
            Dempsey, In Tandem with Gates, Continues His War-Avoidance Drive
            Military know a thermonuclear war cannot even be crawled into, by some on all fours.

  23. This is my year. The year of the horse.
    Being a Sagittarian as well I get to ride two horses like the celtic charioteer of old.
    In adversity is opportunity.
    2014 is shaping up to be a good year.

    (No moon wobble here :) )

  24. “Finally, anyone who thinks the gold and silver markets are not manipulated should stop the denial. It looks like not every regulator in the world is a spineless crook. One of Germany’s top financial regulators, Elke Koenig, said manipulation of precious metals “is worse than the Libor-rigging scandal.” Let’s see, we have credit ratings rigging, stock market rigging, interest rate rigging, energy market rigging, and we can now add precious metals to market rigging going on. We live in a world of criminal activity perpetrated by big banks and sanctioned by big government.” … Greg Hunter

  25. Tull McAdoo

    It’s all going to end in anarchy!

    Ireland is being looted from the inside as well as being looted from outside.

    These latest revelations from the Central Remedial Clininc where some of Berties Drumcondra Dell Boys are helping themselves to hard earned donations is just another example of the rottenness that passes itself off as management and oversight in Ireland.

    Earlier in the week Gombeen Hogan lectured us on omellette making with an 85 Million Euro consultancy price tag attached!

    It just seems to be a constant stream of looting dating back to who knows when!

    Even Happy Gilmore for all his prnouncements during the Bull Donoghue looting phase (5 grand for a taxi between terminals at Heathrow) was happy to take the Foreign Affairs junket job, swanning off to Africa like General Gordon heading for Khartoum, when he should have been at the coal face above in Kildare Street lifting our austerity seige.

    Frank Daly of the infamous NAMA telling us that the news is good, property prices are on the rise. What Francis doesn’t tell us is that some of his ex-colleagues in NAMA have taken up lucrative posts with vulture funds that are cherry picking the NAMA assets.

    Now I am sure that these people feel safe and secure hiding behind their carefully crafted contacts and their security gates in D4 and places like Infirmary Road out in Killiney but I am also sure that the misplaced youth that has developed its own subculture might come to “walk with the dogs” some night…..so on that note Goodnight Ireland, Sleep Well, and take it away to Suburbia with the Pet Shop Boys….

    http://www.youtube.com/watch?v=dLV45erwETQ

  26. Here is a letter I wrote to Prime Minister Harper nearly 3 years ago. Things made be a little better over here but not a lot different. I sent a copy to the Canadian taxpayers federation who took notice. On topic I hope.

    From: “Tony@tonybrogan.com”

    Date: March 19, 2011 12:10:53 AM CST

    To: “Canadian Taxpayers Federation”

    Subject: Re: Politicians getting the message: we’re broke!

    I am afraid I sent a rather long letter to the prime minister which I copy below.
    I could do with a job in my retirement . How about I come to work for you to effect real change.
    regards
    Tony Brogan

    Dear Prime Minister Harper

    Congratulations on not funding the sports centre in Quebec or anywhere else. Now it is time to stand up for your original principals.
    Governments have grown far too big and intrusive
    It is time you lived up to your Reformist originations and cut the cost of government. Your Government has spent in 3 years all the savings in debt reduction of the previous 11 years.
    What a waste
    All nations are in a dance to see who can devalue their currency against the others to gain trade advantage.
    Please stop printing Canadian dollars and adding to the national debt. Let the Canadian dollar find its own value and we will have little or no inflation to worry about. The world will still buy our commodities at the higher prices and our standard of living will start to rise again.Our imports will be cheaper.
    I estimate that an hour of my labour in the same job ,after taxes, buys half of the goods it used to in 1970. This means that our standard of living is half what it was then. Inflation is the culprit. government is the cause, It insists on spending more than is earned and so prints more and more money to fund the debt. The more you have of something the less it is worth and currency is no exception.
    A proper definition of inflation is the devaluation of the purchasing power of the currency. Inflation is a stealth tax that robs the frugal and savers and rewards the profligate and spendthrift. That includes government.Then government taxes the illusory so called capital gains and gives tax breaks on the interest costs of borrowed money. It is all backward. Inflation corrupts the morels of society. The corruption becomes endemic. It is nearly too late to prevent a world financial implosion of the huge defaults on the unpayable debt. Your government bought 10% of General motors to save them at taxpayers expense. you should let them fail. Government should not interfere and prop up the mistakes and errors.
    These companies now go into subsidized competition with those who have no government handout.
    Air Canada is a prime example. Is it one or two billion now owed to the public to destroy Canadian Pacific among others.

    Unless I see a radical change in attitude toward a proper conservative nature I will not vote for you. BC and Alberta voted for a changed government attitude when the Reform party took 65% of the vote. Since the amalgamation with the progressives in the Red Tory Party we have been betrayed and taken for granted and our wishes ignored. Where is the elected senate. Where is the equity on a population basis in our representation. Where is the proper calculation of increases in cost of living. Why the adjustment in the CPI for food, energy and hedonics. government tries to delude the people with obfuscation and half truths.

    your government has agreed to allow the US to send troops on to Canadian soil in the event of civil unrest. Just who the hell are you afraid of. What are you afraid of. what do you know that you do not share with the people.

    Still pissed off and see no reason to change my vote unless you change.

    I’ll be surprised if you actually read this. I expect to get a form letter response from a bureaucrat.

    Regards
    Tony Brogan
    Victoria BC

  27. Austerity to Abundance

    http://ellenbrown.com/2014/01/15/from-austerity-to-abundance-why-i-am-running-for-california-treasurer/

    Ellen Brown is attempting to run for California Treasury.
    She quotes the use of debt free money.
    The use od a peoples bank owned by the people where all tax receipts are deposited.
    Where this money is used as reserve to fund infrastructure projects and items of public good

    A very interesting read with great application to turn the economy from ruin to prosperity.

    • bonbon

      Just search that site for Glass-Steagall – lots of articles.
      Finance Writer Ellen Brown Demands Passage of HR 129

      Restore Class-Steagall

      There are now two bills in each house calling for the restoration of President Roosevelt’s 1933 Glass-Steagall law. H. R. 129 & its Senate companion bill S. 985, introduced by Rep. Marcy Kaptur and Senator Tom Harkin respectively, and most recently, S. 1282, known as the “21st Century Glass-Steagall Act,” championed by Senator Elizabeth Warren, whose companion House bill, H.R. 3711 was recently introduced on December 11, 2013.

        • Yes it is where we are now alright Stephen
          People are so used to taking direction they are incapable of standing on their own two feet without the crutches of state support.

          Meanwhile the favoured, connected, rip off the productivity of the masses scooping the cream into their own bank accounts.

          It will get worse before it gets better but I do not like what I can see coming.

          Protect yourself, nobody else will.

        • bonbon

          Hayek, Friedmann and Keynes all praised Hitler’s economics. That I can document, early and often. Which is why libertarians get skittish. Schacht was the B.I.S founder before taking the job for Hitler- this makes Austerians more than skittish, but foaming.
          Zerohedge somehow avoids this – I wonder why?

        • bonbon

          The Legacy Of Friedrich Von Hayek: Fascism Didn’t Die With Hitler

          “We shall not rebuild civilization on the large scale,” he wrote in The Road to Serfdom. “It is no accident that on the whole there was more beauty and decency to be found in the life of the small peoples, and that among the large ones there was more happiness and content in proportion as they had avoided the deadly blight of centralization.” Population reduction, genocide, is the Hitlerian agenda, which just happens to be the outspoken aim of some very well known figures.

      • Typical bb insertion to remove debate of the subject matter.
        Do not be sidetracted by him.

        Make sure you read the Ellen Brown posting above. It have valuable application for Ireland as a country and what can be done.

        bb is a fucking menace to rational discussion on the blog

        • bonbon

          Cop on you silly coot.

          The Ellen Brown website is full of Glass-Steagall and that is in the best direction. Austrian Schooler’s need to to back to kindergarten and adult supervision.

          • Get on your own thread. your are not accosted by others on your own but you stick your nose into everyone else’s business and con not refrain from name calling
            You never , ever stick to the subject matter. Never answer a question, never entertain a discussion, cannot explain your position and all you can do is give endless reams of quoted LaRouche pack
            IIf other subject were not introduce by others there would be none,
            Then you jump in and block, divert , rational thought processes.

            There is much about alternative money systems and banking in Ellen Brown and just one essay on GS.

            So just explain for me in kindergarten just how GS will be a benefit. So far as I can see it will leave the current central banking system intact. The debt based money system intact, the same people in control, It will leave the people in debt and subject to bailout/in or robbery from the corporate state. It leaves in place the current fascist model of business.

            so lets have the real deal out of the mouth of bb.

            My bet is you will not, can not deliver.
            Why would anyone do what you cannot explain?

          • bonbon

            Stop acting the idiot back-seat schooler, cop on.
            That game fools no-one and makes you look like a very bad student at any school.

            So cop on – the Austrian School is bankrupt – od ideas, and you cannot be more bankrupt than that.

            You certainly do not decide any subject matter here or elsewhere, except at the back of the class. No go back there and write out 100 times, “I will think”.

          • You may have any subject matter you wish. Your constant interruption of others conversations is the height of bad manners.
            Billy Bunter is still at school.

        • michaelcoughlan

          Hi Tony,

          He has you hook line and sinker. Sailing is necessary and you will come back refreshed and refocused.

          At the moment your excellent and focused energy is dissapated which is excactly what he wants.

          • Thanks Michael you are a great help

          • Paul Divers

            It shows. I think Tony needs a holiday and you could do with a wee break too.
            ————————————–
            From a smelly tenant :-)

          • building a compost box or three of them today. Just the place to bury a smelly tenant. They would come out dewormed and smelling like a rose.

            Sailing tomorrow and sampling the fresh air. After that I’ll be able to smell a tenant approaching from up wind.

            Downwind approaches still give a problem

          • Paul Divers

            I propose the motion that Bonbon be rendered silent while grown up are talking.

    • Stick to this search for Ellen Brown. Do not be diverted by bb trickery. He will push you down his path every time a real troll

    • McGoo

      Thanks for posting that, Paul.
      Maybe the crash is over, but I can’t see how. Price/Wages ration is still above historical norms. So is Price/Rental Returns (particularly when new taxes on landlords are factored in), 60% of the market is cash purchasers, and the banks are hardly lending at all. How the hell can it be over? Where is the money coming from??

      • Paul Divers

        Just back from the Mace shop. I paid 2.50 for a small loaf containing 10 slices. That just about covers one days lunch and a couple of slices for breakfast. It’s a good job I can bake bread.

        The crisis is not over and we are back to normal Irish capitalism according to the excellent link below which explains how capitalism has never worked in Ireland

        The rise & fall of the Celtic Tiger (part 1)

        http://socialistparty.ie/2013/10/the-rise-a-fall-of-the-celtic-tiger/

      • Paul Divers

        Where is the money coming from. Exactly.

        There are 111,000 on local authority waiting lists and the list is growing. People are opting out of private health care and private schools are having to waive fees.

        The system is not working for the majority and the media speaks for the few. It is time for Ireland to re-assess it’s experiment with neoliberal capitalism before the lid pops. Our priorities are all wrong and need corrective action fast

  28. Paul Divers

    Bebunking the myth that a small number of people pull all the strings. Rather it is the capitalist system and the dominant economic ideology of the day that causes all the problems.

    The problems with conspiracy theories.
    http://socialistparty.ie/2012/07/the-problems-with-conspiracy-theories/

    The Protocols of the Learned Elders of Zion was a hoax but Hitler believed it. So much so that he wanted it taught in schools.

    http://rationalwiki.org/wiki/The_Protocols_of_the_Learned_Elders_of_Zion

    • In what way a hoax. It was written and exists. does it reflect someone’s policy in any way. Who wrote it? Published as a series of essays in Dearborn Michigan by a Henry Ford owned publication.
      Perhaps it is the observations of events. does it have any accuracy. do current events have any resemblance to predictions written 90 years ago.
      People can read and make up their own minds. Is it racist or does it describe an organization. Are you anti Irish for condemning IRA atrocities, are you racist by accusing the British od being Brutish.

      I’ll be accused for asking questions. Exposure to debate by a free people will reveal the truth. No books should be banned. Where is the line drawn. Remember history is written by the victor not the vanquished.

      As a child I was called a liar for talking about the Irish famine. Such was the attitude in England in the 1950′s. Few English knew about the atrocities of the famine. The authorities covered it up.

      I do not readily believe what I am told to believe. Show me and let me decide. Having an open mind gets one into trouble but so be it.

      Oh and BTW we do not live under a capitalist system. It was long ago subverted and as Zero Hedge says in these pages we now have fascist governance and business models as the dominant economic systems of the day.

      • Paul Divers

        Let the people read.

        • cooldude

          Is this the failed system you seem to think can solve our problems. They also tried it in Russia and it led to the murder of over 60 million people. Anyway never mind as Hulk Hogan says you can’t make an omelate without breaking a few eggs.

          http://www.zerohedge.com/news/2014-01-18/maduro-reassures-venezuelans-im-socialist-and-i-know-what-i-am-doing

          • bonbon

            The only socialism around is for the banks. It could be why “ex-communist” Barroso is so concerned for them. What else do you call bail-out and now bail-in?
            So much for Hayek’s straw dog.
            Hayek was really after modern civilization itself, which he labelled “centralization” and wanted a much reduced population, to start small with a Hapsburg feudal backwardness. See post above.

          • Ryu Hayabusa

            Hogan, He’s even more socially inept than Inda, no mean feat! Should be horse-whipped about the scrotum with a cat-o-nine tails!

            He’d probably enjoy it though.

      • bonbon

        J’accuse – Monsieur. The Austrian School you preach does intend massive population reduction – far worse than the Irish Famine. And it is not alone, just more nodding and winking.
        And the “capitalist” system of Adam Smith was NEVER anything other than coporatist, i.e. Mussolini’s fasces, fascist.

        Now back to humanism, and FDR’s genius. Hamiltonina productive power of labor and Credit Systems for insustry and the General Welfare.

  29. Clare Leonard

    As long as we continue to pay for Oil and Wheat in US dollars we will have high inflation.
    Look at the growth in the US money supply.
    Weimar Germany and Zimbabwe comes to mind.
    Someone has to pay for the wars.
    The US dollar is the invisible hand in your pocket.
    You think Ireland is bad, try buying bread and oil in the third world.
    What a scam, export your inflation and everyone pays for the wars,
    even the poverty stricken in Africa.
    Too late to turn back now, the die is cast.
    My prediction for 2014.
    A 30% to 50% devaluation of the dollar.
    Get your walking shoes on.
    As for loaf of bread, enjoy the privilege while you can.
    Central Bankers who participate in this scam should
    be prosecuted for genocide.
    I saw the consequences of US dollar inflation first hand in Africa.
    Inflation is only 2% for those who never eat and never use oil.
    Roll out the Guillotine for Central Bankers.

    • bonbon

      You sound like a Sans-Coulotte – not a very nice way to dress in public, Mme Citoyenne.

      Much better to apply the Glass-Steagall splitting of the entire banking system in tandem with the US. Let Wall Street and the City of London do a St Vitus’ dance – it will be fun to watch.

    • bonbon

      France still has not recovered from Britain’s Robespierre and his Mme Guillotine, trained as he was in London to inflame the sans-coulottes, to subvert Lafayette’s and Bailly’s revolution on the ideas of the successful US.

      I hope we do not have the spectacle of a mob freeing a Marquis de Sade from the Bastille and calling it a revolution. I wonder who would play the part of Philippe d’Orleans?

    • Ryu Hayabusa

      Guillotines à vendre, Guillotines à vendre… Guillotines à vendre.

      Allant bon marché!

    • bonbon

      Hilarious ! LOL !

    • bonbon

      That’s where that genius economics rubbish “stagflation” came from.

      • Paul Divers

        Lol. Hilarious nonsense that fries brains and reassures delicate egos living in a vacuum. People will swallow anything that sounds intelligent and far out of their experience. Curiosity always kills the cat. Hence they will sign up for anything including McWilliams ‘daily pearl of wisdom’.

        Such people deserve to be relieved of the contents of their wallets and this is why they are being stripped as we speak.

        There is one born every minute.

  30. bonbon

    Ireland’s rebound is European blarney
    Good one from O’Toole, as far as it goes.

  31. bonbon

    Guardian interviews Karl Habsburg-Lothringen, son of Otto von Habsburg.

    “I am happy that Europe has developed in the way in which he had envisioned. The EU was the continuation of the old idea of a super national empire by other means. That’s what Otto von Habsburg saw in Europe and what he wanted. The circumstances have changed, that’s right, but we are working on the idea of a super-national legal structure and a subsidiarity principle.”

    http://www.theguardian.com/world/2014/jan/15/archduke-franz-ferdinand-first-world-war

    What that fails to mention is Austrian School icon Friedrich von Hayek’s nostalgia for exactly that Pan Europe of his Mont Pelerin sandbox which everyone can read here in a 1983 interview.
    http://www.larouchepub.com/eiw/public/1983/eirv10n02-19830118/eirv10n02-19830118_016-friedrich_von_hayek.pdf

    And of course everyone knows by now of Churchill’s and Sir Oswald Mosley’s U.S.E.

    • bonbon

      So Eire, stuck in a “Great Game” of a “Pan Europe” v. “U.S.E” imperialists again.

      These cannibals, Jack Sprat and Wife, will lick the plate clean if allowed to. Nation States are soup to nuts for these beasties.

      • Paul Divers

        Some people appear to hate you with a passion. It’s none of my business and I am not interested in personal duels but it’s nice to have you around because I am sure this blog would be hellish if there was no-one to keep some of the massive egos in check. Keep up the good work.

  32. to bon bon

    No answer yet

    So just explain for me in kindergarten just how GS will be a benefit. So far as I can see it will leave the current central banking system intact. The debt based money system intact, the same people in control, It will leave the people in debt and subject to bailout/in or robbery from the corporate state. It leaves in place the current fascist model of business.

    so lets have the real deal out of the mouth of bb.

    My bet is you will not, can not deliver.
    Why would anyone do what you cannot explain?

    • Paul Divers

      How will you feed 7 billion people with bits of metal?

    • Paul Divers

      Oh my. Very nasty.

    • bonbon

      Back to school. Ask JPMC what it thinks about Glass-Steagall to get a flavor of that Wall Street thinks, or Dimon for instance. The “central banks” Hayek pawed about, is misunderstood by his acolytes. Look at Hayek’s point of view :
      The Legacy Of Friedrich Von Hayek: Fascism Didn’t Die With Hitler
      “We shall not rebuild civilization on the large scale,” he wrote in The Road to Serfdom. “It is no accident that on the whole there was more beauty and decency to be found in the life of the small peoples, and that among the large ones there was more happiness and content in proportion as they had avoided the deadly blight of centralization.”

      Hayek attacks “centralization”, which goons always linked to the Soviet, but he really attacks the nation-state, the USA being the first and most important. Then Hayek wants to go small, and swoons all over the Hapsburg in that 1983 interview.
      See above for the Guardian interview this week to grasp what Hayek is all about.

      We can truthfully say the EU is an Austrian School tantrum.

      • bonbon

        And the EU has a central bureaucracy that would make the Soviet blush. But as the Hapsburg says the super-national legal structure and a subsidiarity principle is almost in place. How the feudalist fools most some of the time.

      • bonbon

        Here is the reference to Hapsburg from Austrian School icon Hayek in 1983 :

        “I’d like to see a crash before I die”

        • Simply because he knew that a crash was inevitable as it is today.
          A credit fueled boom always without exception results in a bust.
          Thus Hayek knew that the longer a boom extended the bigger bust would be.
          He preferred a smaller bust now to a larger one later.

          BB is a master of the propaganda lie. Tell is often enough and it becomes a truth. It was used extensively as a tool to lie to the people by Goebbels and Hitler and still used by government today. Big Corporations call it advertising.

      • Hayek was simply against centralized government. Either nation state or empire.
        Something foreign to your thinking as you pine for grandiose schemes that override national boundaries financed by national credit (read central bank style financing like the Rothschild agent Hamilton).

  33. bonbon

    The behavior of FF and FG/LP can best be understood after reading that Guardian report where the son of Otto von Hapsburg lets the cat out of the EU bag.

    We hear of FF and FG/LP pandering to the EU to escape the clutches of Britain, a plausible argument that even DMcW just cannot fathom, as he repeatedly, perplexedly, tries to understand with the numbers, trade statistics etc. Just to show the game cannot be understood by tea-leaves, nor Uni textbook recipes, look at the Guardian article.

    FF and FG have adopted the Hapsburg Pan-Europe, 100 years after WWI. It seems FF, FG are stuck in a WWI mode ! And that Tweedle-Dum, Tweedle-Dee game of Hapsburg v. British Empire act holds both parties still in thrall! Looks like Europe still has feudal nostalgia, which the British Empire can still jolly well jerk around.

    Is’nt it time for Eire to cop on to the “Great Game”? Russia has.

    • bonbon

      The FG/FF carry-on could be plausibly attributed to the fact that 250,000 Irishmen signed up for WWI, a jolly British escapade. At the same time FF set up the IFSC likely under British, Thatcher, pressure on the border question, which led to their downfall. But is there a feudal nostalgia lurking in the Party Halls that renders them catatonic in the face of reality now?

      It is high time to look at modern agro-industrial economics, the productive power of labor, and the necessary national credit system for progress. Notice this is exactly what Arthur Griffith published. We now have a much broader and deeper access to this because of excellent tireless research :

      For a New Credit System

    • whatamess

      Russia and China

  34. bonbon

    DMcW seems to expect industrial relations “fireworks”. A timely reminder I think is crucial :

    “I deny that Capital and Labour are in their nature antagonistic–I assert that they are essential and complementary to each other. The incentive and right of both is the profit of production, and the security of one and the efficiency of the other are essential to national prosperity…. It is the duty of the organized nation to protect Labour, and to secure for it the profits of production, not a mere competitive wage…. The free nation I desire to see rise again on the soil of Ireland is no offspring of despair–no neo-feudalism with Marx and Lassalle and Proudhon its prophets.” – Griffith in The United Irishmen during the 1913 ITGWU strike/lockout.

    • bonbon

      As was posted last blog, no mention there of Keynes’, Friedman and Hayek, who all 3 praised Hitler’s nazi economics. This is very well known, and here you can read in detail :
      The Legacy Of Friedrich Von Hayek: Fascism Didn’t Die With Hitler

      But the extremely revealing picture at the Austrian School von Mises link you posted, shows the true target – the US itself, no more Hayek’s nod and wink. Fascism did not die with Hitler. But to try, as the von Mises links does, to imply libertarians are against fascism is beyond a joke – everyone knows of Chicago School Pinochet. The target is indeed the US and its nation-state economics and finance. The same target as Wall Street and London have. And they have almost succeeded .

      Which is why we need Glass-Steagall now, the key to defeating fascism then, and the key now. FDR’s use of American political economics is the crucial lesson for all today.

  35. whatamess

    The “dirt-to-prosperity”, spontaneous ergo unknowable mantra, is not modern and grossly unscientific and is the epitome of the “bottom up” Darwinian reductionist model ( yes Cooldude, always subtraction, never addition ;)In a bottom up darwininan model,,

    Economic Abiogeneseis ! – what a sham!!

    We can however choose a “top down” scientifically principled approach, rooted in fact,but regrettably, that concept alone, “might cajole us out of our comfort zone”, right?

    “Peeking down the rabbit hole, with the right standards and directionality”, we could achieve so much more, but that contradicts most preconceptions, so mental shutters come down and empty pacifiers, are many!!

    [ I was the King of pacifiers !!!! * deep sigh* ]

  36. whatamess

    We are being thrown overboard everybody, but some are not interested in Truth, but merely the skim on it’s teeth.

    Humanity ,now forcibly in sub-zero, mid Atlantic waters, is bobbing up and down uncontrollably, gasssping for breath, in the middle of a force four squall and the sharks, who NEVER stop swimming looking for their next meal, are circling us and they MUST be fed !!!!

    [ The sick,poor,old and weak and are now just too darn expensive to support,so make them walk the plank, is certainly his mindset!!Humanity is some kinda sacrifice at the financial elite's "pagan ritual",all in order to support dead, bankrupt banks!!!!- what a sham! ]]

    Only 4mins and a magnificent performance!

    http://www.youtube.com/watch?v=u9S41Kplsbs

    • cooldude

      OK whatamess lets have a look at a bottom up phenomena without any central control which was developed by free individuals acting independently combining sharing information and trade with likewise self interested individuals across the planet without any “top down ” interference. I refer to the phenomenon called the internet which has sprung up ” miracluasly” just like you ridicule. This phenomenan has developed trade, payment systems such as paypal, internet shopping which is extremely competitive, internet media which the control governments hate and are trying to ban, health information which bypasses the flawed big pharmaceutical model and all other sorts of areas which are of benefit to individual people. So people don’t need all your top down nonsense from control freaks like you and bonbon what they need is to be allowed to develop their own ideas and to keep the fruits of this labour from being swallowed up by the banksters and their puppet politicians. If we got rid of this ridiculous system of debt based money and wrote off all existing government debt as odious it would be possible to change to a system of zero income tax quite quickly with just consumption and land taxes to fund a much smaller central control system. The banking system doesn’t need to be regulated it needs to be completely restructured to act for the people and not completely in it’s own self interest.

      • bonbon

        Dimon talking.

        In fact the self-styled “smasher of Glass-Steagall” Sandy Weil of Citi, called for its re-reinstatement- obviously you have no clue what you are talking about whatsoever.

        The next landmine is about to go off because of loophole “regulation” and the global casino hopes to be rescued yet again on the cost of millions who are to be discarded.

        The global casino will be regulated. But that is not the problem really, merely an extremely urgent technicality.

        Hamiltonian Credit Systems are key, to reconstruct the smashed physical economy, for the common good. Then banking will have a constructive role.

      • bonbon

        The incredible wild-eyed Hayek mantra that an economy will spring forth spontaneously, unknowable from “sound money” is at first glance nutty. Hayek himsely thanked Mandeville for the “Grumbling Hive”, Private Vice, Public Virtue”. Now we know Mandeville in Ireland as the founder of the Hellfire Clubs which dotted the countryside a while back.

        So why promote utter nonsense?

      • whatamess

        @Cooldude

        I’m not talking about top down banking,rather a growth strategy led my Mega projects,which is top down.

        You are certainly anti-central banks,and you are right to be of course,but if that was as you would like it tomorrow morning,would that come eeeeven close to extraditing us from the sewer we are in ?? Not on your nelly !! and the same financial oligarchy would remain, determined,naturally, to suppress future progress ! THEY/THE SYSTEM are the control freaks Cooldude !!!

        I suggest we ought to allow commercial banking serve a National credit system for long term,non propriety, MEGA scale and fusion centric projects,to address ENERGY which is central to real growth .That’s just one suggestion Cooldude and i happen to agree that it ticks all/most of the boxes. No one has said or is saying that it’s the ONLY way to go….that’s where our creativity together can shape what we All agree is the best plan for our future.

        You have the impression,i’m beginning to think,that like how Bonbon has been falsely accused of being a “central bank shill” and Whatamess is the same ??–Well that’s way wrong dude!

        “A National Bank issuing credit along constitutional lines is the basis for science-driven political economy as opposed to unaccountable opaque private central banking printing money for a casino” – Bonbon’s words not long ago and i agree, Ok?

        and another:

        “National physical economy v. imperial finance represented by concentrated “independent” central bank monetarism” …Bonbon the Warlock again!

        I would have no issue WHATSOEVER with closing down the FED !!! I would encourage it !

        BUT THEN WHAT ???? magic beans and beanstalks ?

        You are convinced,it seems to me,that eliminating central Banking will,how did you put it earlier,hmmm ” you seem to think you can solve our problems” with YOUR single strategy of closing down central banking…

        I say you are WRONG in that assertion!

        There needs to be a cultural shift in thinking FIRST and then together ,we can affect REAL change.

        PS
        “miracluasly” just like you ridicule?? i don’t remember evvver using the word miraculous, but i could be wrong?? I will continue to ridicule ideas and romantic notions that will COST LIVES!!!

        “and wrote off all existing government debt as odious”…

        HOW EXACTLY ?? by what MECHANISM?? Magic wand ??Begging bowl or like our host ” digging in our heels” is it ??? You are not being one bit real world about this ! I too came out with that very same NONSENSE 6 months ago !! Now I know better !!

        The banking system doesn’t need to be regulated,( an already very worrying statement!!) it needs to be completely restructured to act for the people and not completely in it’s own self interest ( i couldnt agree more !!!HOW ??? What’s YOUR methodology ? I’ve stated mine 100 times already!

        “What we need is national banking. Defined by Hamilton, refined by two Irish economists, Matthew and Henry Carey. Start there, let kids read the Carey report.” –

        a few kids here need to do some SERIOUS reading!!!

        • You have not a clue what you are saying.
          Pure fascism is your proposal.
          Big government, welded to corporate oligarchs.
          Big government money paid to mega corps.
          Eliminate the entrepreneur, the small business, the local store. Walk over the private landowner. Next thing is you will be telling me how to run my business, via big government.
          You have no idea what money is or the conception of good money or bad money.
          You will do everything except remove the banksters cartel who are the root cause of the problems.
          I agree 100% with cooldude. Few state the case as well as he does.
          Why not engage him in conversation and discuss why he believes what he does and learn something from somewhere other than LaRouche

          • whatamess

            Au contraire Tony !

            I do not promote fascism in any shape or form.Fact!The crushing of the fascism we have right NOW is what needs to change. Liberal finance in pseudo free markets landed us firmly in this quagmire of Debt,never before accumulated before in peace time.And Ireland is no.1 !!!Yes,numero uno!

            I’m all for entrepreneurship and local stores and small businesses and all will be fed up stream/down stream,from Mega projects,filtered in a top down manner ,as opposed to a bottom up approach which has not worked,unsurprisingly! Instead let’s choose a future oriented policy framework of scientific progress,not more casino centric economics, suffocating us,enslaving us in a game of Russian Roulette!["Lame heads want to be tacticians, not strategists"]

            Again jump to your knee jerk conclusions when the word centralisation is whispered and mental shutters come down with a Bang!It’s like you have a rigid stencil/template in your mind of what the future will look like.My whole point is that ,by design, we can creatively craft a bespoke future of hope,minus financial tyranny,yes minus fascism!We can agree on the mission protocols later of dealing with the physical economy.(I hope for nuclear fusion,but infrastructural hi tech projects can take many forms! But the labour force back to work is the Focus and a then truly stimulated STABLE economy can emerge! You feeeel that closing private central banks will be equally as prolific and regrettably you couldn’t be more wrong,i say!I wish it could be that easy!I imagine that you are so heavily invested in your conditioned monetary mindset,that now you’ll be damned if you’re gonna change your viewpoint, regardless of the facts presented to you.

            “Big government, welded to corporate oligarchs” is most certainly NOT how i want to replace the current supranational corporatist bureaucracy that rules over all the relatively powerless regions,outflanking us! And at present we are weak and powerless!! Treading water is what we are!!!

            “White Cargo” …a book on The Irish slave Trade,the forgotten white slaves

            http://www.globalresearch.ca/the-irish-slave-trade-the-forgotten-white-slaves/31076

            I never read this in my history lessons at school, that’s for sure!!Anybody else here read this? ( the history books are written by the victors as you said recently Tony! )

            a brief excerpt:

            “But, are we talking about African slavery,right? King James II and
            Charles I also led a continued effort to enslave the Irish. Britain’s famed Oliver Cromwell furthered this practice of dehumanizing one’s next door neighbour.The Irish slave trade began when James II sold 30,000 Irish prisoners as slaves to the New World.

            His Proclamation of 1625 required Irish political prisoners be sent overseas and sold to English settlers in the West Indies. By the mid 1600s, the Irish were the main slaves sold to Antigua and Montserrat. At that time, 70% of the total population of Montserrat were Irish slaves!!

            Ireland quickly became the biggest source of human livestock for English merchants. The majority of the early slaves to the New World were actually white!!

            From 1641 to 1652, over 500,000 Irish were killed by the English and another 300,000 were sold as slaves. Ireland’s population fell from about 1,500,000 to 600,000 in one single decade. Families were ripped apart as the British did not allow Irish dads to take their wives and children with them across the Atlantic. This led to a helpless population of homeless women and children. Britain’s solution was to auction them off as well.

            “Irish slavery is a subject worth remembering, not erasing from our memories.”

            I do fully appreciate that when we observe the systemic corruption of some parts of society today,and TREASON in others,that Trust has almost eviscerated and no one was to be ‘sold a pup’,to the point where telling the Truth is now a revolutionary act,it seems…

            i gotta go to work !

            catch up tonight!

        • cooldude

          On the subject of how can debt be simply written off the answer is really quite simple. All of this debt is just digits on a computer screen which is being used by the banksters to get what they are really after the hard assets/natural resources of every country. Read Perkins description of how all of this is set up and executed first hand as he took part in this IMF robbery scheme when they were targeting third world countries. Now they are at our door and are busy enacting their plan to turn all of us into their feudal debt slaves. And doing a pretty good job by the looks of all the new taxes they are introducing.

          These digits on the computer screen were invented by the banksters at no cost to themselves with the specific purpose of enslaving our society into debt slavery. It is my contention, and many more like me, that this system is totally unjust and needs to be dismantled completely and then to simply delete these digits off the screen and start with a new system which is for the benefit of the people and not the banksters. You have to realize that this so called debt is really just a fictional form of money used to rob the natural resources by the banksters and their crony corporations. If all this debt was written off tomorrow would anyone go hungry or suffer in any real way? No not a bit it is just a fictional form of money which they are using to rob and eventually totally control our society. The biggest prison they are using to do this is the prison of our minds in believing that these guys should be given the franchise to produce the medium of exchange for our society. Once we overcome this and insist on different forms of money with freedom of choice only then can we break up this criminal overtaking of our society.

          Simply tinkering with this current totally corrupt system isn’t worth a shit. We have to take away these guys franchise over what we use as money off them for good and call a jubilee on their illegal debts they have inflicted on all sovereign nations. Anything else is just pissing in the wind.

          • I fully agree with you cooldude and have held this opinion myself for years.

            The whole thing is a total charade but people just go with the flow.

            And as Roy Keane once said, only dead fish do that.

            Personally I stay far from banks and don’t owe them a penny, never had a loan, never will. That’s all I can do.

            The problem is, trying to explain this to most people is also pissing in the wind.

            All that debt should be cancelled for real but I can’t see it ever happening.

  37. Alexander Hamilton.[2][3] The Report, submitted on December 14, 1790,[2][3] called for the establishment of a central bank, its primary purpose to expand the flow of legal tender by monetizing the national debt[4][5] through the issuance of federal bank notes.[6] Modeled on the Bank of England,[6] this privately held, but publicly funded institution would also serve to process revenue fees and perform fiscal duties for the federal government.[5

    Where have we come across this before. monetization of the the national debt. Exactly what the Federal Reserve and the ECU are doing to pump money into the banks to get them rich and keep you poor.
    Bonbon favorite for sure.

    http://en.wikipedia.org/wiki/Second_Report_on_Public_Credit

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