April 30, 2015

Sugar-coated storytelling dressed up as an economic forecast

Posted in Irish Independent · 78 comments ·
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Today, this column is going to be uncharacteristically blunt. This grumpiness is because much of yesterday was spent reading the 62-page economic document that the Government unveiled as part of its new ‘Spring Economic Bulletin.’

These are hours I will never get back, so you will forgive my tetchiness when I tell you that this document purports to forecast the economy’s growth path over the coming years without telling us how or why the economy is likely to achieve these growth rates. As a result, its more a work of creative fiction than economics.

What’s more, not only does it tell us nothing about the how or the why, it’s pretty ambiguous on the what.

By the “what”, I mean, what type of growth are we talking about?

There are two types of growth. Yesterday’s voluminous Government public relations document doesn’t distinguish between “good” and “bad” growth.

Good growth is growth that is shared among the citizens in the guise of higher wages. Bad growth is growth that is recorded by all of us working harder and spending longer hours at our desks or workstations or whatever, without any increase in wages. This implies that all the fruits of this type of growth don’t go to workers but to landlords and – to use that Marxist expression – to the owners of capital.

Typically, these are the already rich.

You will know that I am no Marxist, but I am concerned about who gets what.

So standing back, you will have heard lots of coverage and spin yesterday morning in the Dáil and elsewhere, but as far as I can tell, the what, why or how questions have not been answered.

They haven’t even been asked!

The Government claims that there is going to be growth for the next few years, which is great. But what does it mean for those of us trying to plan our lives in this economy?

In order to work out what its assumptions are and why they matter, let’s go back to first principles in economics.

Question: What do you think makes an economy rich, what makes wages rise and incomes rise?

Answer: The productivity of labour added to growth in the amount of time spent working makes us rich.

Growth with productivity is good; growth without productivity is bad.

In all these big public relations reports issued yesterday as part of the ‘Spring Forecast’, the devil is in the detail. Yesterday, the Government claimed the economy is going to grow at 4pc, but if we dig a little deeper, it doesn’t explain how. Where’s the devil?

The Government doesn’t explain if this is good or bad growth. Maybe it doesn’t care? But that doesn’t mean we shouldn’t care too.

Hidden deep in the entrails of the report are a few clues. On page 9 is a small table in which some detail begins to emerge. Table 5 shows us that labour productivity growth is going to fall from 3pc this year to 1.2pc by 2017 and remain at 1.2pc until 2020.

Look at the table. We have reproduced it for you here.

Table 5

This is very important because it tells us that the Government is talking about an economy that grows without productivity. Therefore, wages are to be paid without productivity. This means that wage rises either must remain low/unchanged or profits have to fall significantly.

A 4pc growth rate without large increases in productivity implies your wages may well be falling as the economy grows or, at best, your wages will be static. On the other hand, wages may rise, but if that happens then profits made by business and corporations have to fall.

Try to sell that inconsistency to IBEC!

Before we continue, let me explain this productivity conundrum.

Think about the difference between 10 men digging a ditch with spoons and one man digging the ditch with a JCB. The lads with the spoons have to toil away to dig a ditch. In contrast, the lad with the JCB just has to pull a lever or two and the job is done.

The cost of the job is €150. The lad with the JCB gets paid €100 a day and there is €50 profit for the guy who owns the JCB. The guy who owns the JCB has to pay €10 interest on the loan he took out to buy the JCB, so his profit is €40.

Now think about the lads with the spoons. They are paid €10 each a day. And the gaffer who is running the job gets €50 profit less the €10 it cost to buy the 10 spoons. If the lads want more wages but their productivity doesn’t go up, either the price of spoons has to fall or the gaffer’s profits have to fall.

For the workers, both are doing the same job, but in one case the worker earns a decent crust; in the other the workers earn subsistence wages.

The difference between the two sets of workers is capital; in this case, the JCB.

The JCB drives up the productivity of the lad who drives it. Without this productivity, he would get paid €10 a day but he doesn’t because he can do loads of jobs that day and make yet more profit for his employer.

So you see how productivity is the difference between good growth and bad growth.

If you forecast an economy to grow without productivity, then you must be implying that the growth of the economy comes from more people working at lower wages than before. Or maybe, more worryingly, the growth, if it comes without productivity, comes from more credit being injected into the economy to temporarily boost the growth rate.

This borrowing from tomorrow for today’s growth merely gives the bill for today’s good times to the taxpayers of tomorrow.

So growth without productivity – which is what the Government unveiled yesterday – means more immigration and/or more personal borrowing, taking money from your kids to finance your partying.

The Government’s shiny new ‘Spring Economic Bulletin’ looks great but reveals absolutely no thinking regarding the type of growth we want to have in this country, the way in which we might achieve this recipe and what has to be done in terms of investment and education today to attain these goals tomorrow.

The ‘Spring Economic Bulletin’ is sugar-coated storytelling, dressed up with the aid of pseudo-scientific charts and graphs as economic analysis. It is not economics. Rather, it belongs to the teenage fantasy genre of creative fiction.


  1. Didn’t take properly, sorry lads.

  2. Mike Lucey

    Thanks for the straight talk David. At least your time spent reading the BS report saves others some time.

    Now where Is my spoon so I can get on with the job? Ah! I remember, it broke and I’m awaiting a new one from China ;-)

  3. bluegalway

    And there you have it.
    Which is why Big Business is keen to turn Europe into Asia – many more people applying for too few jobs, with the aim of dragging down wages.
    In other words – double profits, halve costs.
    One murky figure in the background happily engineering a lot of this is Fine Gael associate Peter Sutherland.
    Sutherland is a colossal pimp for Big Business, a senior figure at the blood-sucking squid that is Goldman Sachs and head of the ‘Steering Committee’ at the Bilderberg Group. In his role of at all three, he is frequently in the ear of the bureaucrats in Brussels to allow mass immigration not just of skilled non-EU workers – but of unskilled.
    When British journo Peter Oborne put it to him that Sutherland’s plan would cause civil unrest, Sutherland simply smiled and said that “EU governments have the resources to deal with that”, meaning the police and the military.
    No wonder so-called fringe political parties, such as UKIP and Front National, are on the rise, and are only going to get stronger.
    Most economists, especially in the City, would say that immigration is good for the economy (low wages) and good for prosperity (more tax income), but that is not the same thing as saying that it’s beneficial for our quality of life or the stability of our communities.
    Some say that there’ll be no trouble.
    Yeah, right.
    Because Europe doesn’t have a history of sectarian civil war, does it.

    • Deco

      Everytime I see or hear of Suds, I am reminded of the Bourbon King of France who met the chop in 1792.

      Except, that the Bourbon was innocent of intentionally causing misery on the people.

      • DB4545

        Deco

        I read the guff and spin from these gobshites. Do they actually believe that people will listen to this garbage again? Thanks David for the getting to the point fast. I had a look and read some of Mr. Sutherland’s comments from various sources. It’s hard to accept the fact that the man is obviously intelligent yet he wants to wilfully ignore centuries of European history. From Wat Tyler and the Peasants revolt to the Reformation to centuries of war including two world wars this man demands that Europeans accept a new order without the consent of the governed. People can’t be governed in a manner alien to their beliefs without consent for any length of time because the result is rebellion and then revolt. Kings couldn’t do it. Popes couldn’t do it. Communism couldn’t do it. Dictators couldn’t do it.That’s not my opinion that’s the lesson of history. Why does a fat guy in a suit and an expense account think he’s going to succeed? When will they stop believing their own hype? When will they ever learn?

        DB

        • michaelcoughlan

          “Why does a fat guy in a suit and an expense account think he’s going to succeed?”

          Because he is a madman;

          http://dictionary.cambridge.org/dictionary/british/madman

          They are all the same. Hitler, Polpot, Stalin, suds, whoever.

          Michael.

        • Deco

          Brussels is confident of it’s ability to change people’s beliefs. By buying up centralist politicians, and then telling everybody “there is no alternative”.

          Their greatest fear now is that Greece might get out of the EU imperial racket, and might succeed thereafter.

          • DB4545

            That’s the problem with ideologies and ideologues. They try to make reality conform to their particular “brand” whether it’s Religion,Communism,Fascism, Nazism or now Globalism. Unfortunately reality comes back and bites them in the arse and a lot of ordinary people usually suffer and die in the process. People are not buying it and will react to protect their interests. Usually these gobshites end up being dragged out of a bunker or dying in one. However judging by his well fed jowls his greatest risk is type 2 diabetes or a heart attack.

            DB

          • michaelcoughlan

            “However judging by his well fed jowls his greatest risk is type 2 diabetes or a heart attack.”

            Suds really is a scumbag isn’t he!

          • Deco

            We have not yet found a term to describe the current consensus that exists in Brussels, to suit the agenda of Brussels.

            Without it, we are like a fish who asks “what is water?”.

          • DB4545

            michaelcoughlan

            He comes across as arrogant. If these people have a grand plan democracy demands that they explain it to the rest of us. That’s the deal and to paraphrase coldplay unless they do the globalists will find that their castle stands on pillars of salt and pillars of sand.

            DB

  4. Deco

    Excellent commentary by David.

    We were given a PR stunt by Laurel and Hardy. In Gavan Reilly’s Twitter page, you can get the “word count”. The biggest word is “government”. Followed by “growth”. Nothing has changed since the days of Bertie and Biffo. Same policies. Same vested interests. Even the same words.

    Everything that Laurel and Hardy give us is a PR stunt.

    There has been NO reform of an overleveraged, overextended institutional state. And the state itself has stepped in to make sure that there was no reform of the private sector either.

    We are living in an era of flawed concepts of authority, resource management, pretence, morality, control, and power. We see this most clearly with regard to the current debacle in banking. Noonan making megaphone demands of the banks to give more back to consumers who are instructed by the state propaganda quango to spend money they have not got. In essence the message from Pravda is “everything would be great if we could all live in the same recklessness that caused this mess”.

    The greatest bullsh!t of all is in relation to the pension issue. A country with massive debts setting aside a few bob for overloaded pensions that affect a minority of the workforce. Has there been a precedent for this ? Of course there has. Just look at Detroit, or Stockton, California. While the city infrastructure was decaying and businesses where running away from failing neighbourhoods, unionized pensioners were spending half the year along the Gulf coast sunning themselves oblivious to it all. So, thank you Howlin for the Detroit model of pension reform. Noonan and Howlin are steering us along the same disastrous road that bankrupted Detroit. Complete with crony unions, crony business insiders, waste, unaccountability, and institutional failure.

    The government’s biggest current “hope” is to get Irish Water off the national debt statistics. They can then use this as a tool to borrow money at will, and “pump-prime” the economy to generate the election result they want. Even FF would not have the bollox to carry on like this.

    This government do not “get” productivity. You only have to look at the way they run the state. They have been no serious productivity improvements in the state system. Ireland is in the same situation as East Germany in the 1980s. A pretence that depends on a larger power structure to keep it going. With increased emphasis on using the police to serve the needs of the state, and not the people. Noonan’s response to young people leaving to get jobs in countries where productivity is taken more seriously amounted to “lifestyle choice”.

    Noonan and Howlin are a pair of imbeciles, with second rate spin doctors, that make them sound much smarter than they are.

    Crash 2.0 coming up.

    1) The UK is loaded with debt, and is about to elect a government that will mismanage it.
    2) The Nasdaq is beyond gravity, and cannot continue.
    3) Brussels still has not realised that EU/ECB policy blunders are the common element to the various EU crises.

    As usual when policy makers get found out, the people suffer immensely, while the gangsters that own the policy makers get bailouts.

    What baffles me the most is the lack of a serious discussion about our current predicament.

    • Well put Deco. Low wages commission Policed By high earners. Bank enquiry whitewash Its got to the stage where you can’t believe anything from these compulsive Liars. A snakes tail Is straighter . Why not have a commission Into why high earners pay themselves more than there worth? Would they accept a commission made up of zero hours workers. Keep her Lit Deco,

  5. Harve

    Good article David. We need more straight-talking like this instead of the spin and BS that comes from governmental bureaucrats and big business. In addition to cheap migrant labour, there is also a trend towards more salaried employees where the relation between time and output (and hence productivity) is no longer valid. Nowadays, most big businesses pay salaried employees a flat rate per year (and a minimal bonus if they’re lucky), claim that the contract is under 40 hours per week (just so that “legally” they’re doing things correctly) but then exert pressure on employees to put in 45, 50, or 60 hours per week but for no extra remuneration. Great system that,… for the employers and big business…

    I wonder what the leaders of 1916 would have made of it all?…

    • Deco

      If they wipe the 1916 Rising from the public and private consciousness, they will not have to deal with people asking questions that provoke a response that leads to insubordination.

      The left itself has been purchased, by the rich – and they do not even know it. Purchased in the sense, that they have become “useless”. Only useless options exist on the left, and are allowed to enter the public consciousness. Just look at the media hype behind Hillary Clinton – a proven liar.

  6. “The productivity of labour added to growth in the amount of time spent working makes us rich.”

    But the rise in productivity of labour leads directly to a fall in the amount of time spent working. How could it be otherwise?

    Even taking your JCB example: The guy operating the JCB is able to do the work of ten men simply by pulling a few levers and for the same price. So now the ten men with their spoons are out of a job. What do you think they are going to do? Here’s what. One of them will go to the guy who owns the JCB and tell him that he’ll do the job for €90. The fellow beside him gets wind and offers to do for €80. By the end, the job is probably been done for €10, which is fine for the guy doing the job because that is all that he was getting paid to begin with. Meanwhile the guy who owns the JCB has a handy profit of €130, that is €150 minus €10 wage bill and €10 interest he has to pay back on the loan. He could even have an extra tenner if he gets off his backside and does the job himself, since after all, it’s simply a matter of pulling a few levers.

    Is that what makes us rich? Depends on who ‘us’ is, I suppose. Easy to tell your not a Marxist, David. Good of you to acknowledge it though.

    • Grey Fox

      Or maybe the ten guys all go off to the Bank Manager and borrow the money to buy ten JCB’s and the bubble reinflates.

      • So now you have ten guys with ten JCBs all tendering for the same contract. They can’t all get it so they start to undercut each other. The first guy goes to the contractor and offers to do it for €140, where previously there was €150 on the table. However, when his bank manager discovers that he is cutting his margins, he decides that the guy is a bigger risk, so he wants €20 in interest payment, where previously it was €10. So it goes until eventually you have some guy doing the job for €80 out of which, the bank takes €70. It is a different shake up but the result is the same.

        Then one day, we wake up to discover that the country’s banks are insolvent and need a bailout at taxpayer’s expense. Great! we all say. We can use that leverage to give something back to all the hard working Joes out there. And that’s when we also discover that the banks are protected by a ring of gormless politicians, who consider it their job to protect their masters and rustle up a get out of jail free card.

      • Of the nine guys unemployed by the JCB, some will go and help make JCB’s at higher wages. Some will get a job mining the ore to make the JCB, some will go into IT and make a useless game and retire on a fortune and complain about all the tax he pays so welfare can be paid to the rest of the unemployed.

        One will take his spoon and return to the family farm and dig for himself and wonder why he can’t afford a JCB for himself. But he will eat and live better than the rest.

        • Regardless of how you look at it, the fact remains that you cannot increase labour productivity AND increase the amount of time spent working. You are talking here about two counter-currents. Talk about ‘increasing labour productivity’ is, more often than not, a euphemism for staff reductions, in the form of layoffs, voluntary redundancies, whatever. The net effect is a reduction in the overall number of man-hours (or should that be person-hours?) worked. So, far from what David is saying about ‘the productivity of labour added to growth in the amount of time spent working being what makes us rich,’ an argument could be made for the exact opposite: i.e. that less productivity is what is called for, not more, since any Marxist will be able to tell you that the crises of capitalism invariably boil down to crises of over-production. Are you going to solve that crisis by pouring more fuel on the fire? Obviously not.

          So what is the way out? Decreasing labour productivity, not necessarily by increasing wages however, but by decreasing the number of hours worked. Put everyone who currently has a job on a 20-hour week at the same pay as before. Now people are time-rich even if they are still cash poor. This opens up opportunities for growth in what might be considered the ‘leisure industries’, which offer a real prospect of picking up the slack in an employment market that is increasingly based on razor-thin profit margins that result in minimum-wage, zero-hour contracts that are NEVER going to stimulate a growth in the property market, which the Irish government is hoping and praying for, even though they probably should abandon that quest completely.

          If that proposal sounds too radical, an alternative would be to at least to draw a line under all of the personal debt that was accumulated during the previous period – a period of high productivity incidentally – and park it somewhere out of sight. That much at least might give people the incentive to ‘get the country working again.’

          • michaelcoughlan

            Hi Oscar,

            “Regardless of how you look at it, the fact remains that you cannot increase labour productivity AND increase the amount of time spent working”

            I beg to differ.

            The time saved can go into providing a higher quality product in the same time period. Normal competition will ensure this happens. When the citizen gets a higher quality product from the same amount of man hours spent to produce it his wealth has increased. This is good deflation a reduction in price per unit derived from increasing productivity.

            Don’t confuse capitalism with rape, plunder and feaudilism. They are different.

            Your analysis re reduction in man hours isn’t in my view far off the mark although I would think it’s reduction in manpower that the elite want.

            They will achieve this by reducing the number of people born through 1 child policies like China had done or as we now are getting through economic policies designed to make it very difficult for people to produce families such as;

            Individualisation of the income tax code meaning a spouse can’t transfer his her tax allowance to their partner if they stay at home to mind the family AND the recent introduction of the 20% requirement for a deposit on the second time a family buys a house which would be the case when a family grows in size.

            This will make it impossible to save for most people if paying a mortgage and with the cost of 1 child already for example.

            Therefore 2 people stay working protecting the income tax streams derived from them by government who simply transfer it to international banks in the form of coupon payments on bonds issued to bail us out in the first instance.

            best regards,

            Michael.

          • michaelcoughlan

            I meant to add that as well as the two people deciding to continue to work they obviously will decide not to increase the size of their family leaving it at 1 child.

            Michael.

          • Yes Michael, I take your point on board and, scary and all as it is to admit, I somewhat concur with you.

            I suppose what I should have said is that increased productivity leads to a reduction in NECESSARY labour time. Of course the time saved can and should be channelled into added value and service or even, product diversification. This is not always a given however. More often than not, ‘increased productivity’ is a euphemism for layoffs. It takes a definite form of intervention, be it from the state or some other agency, to ensure that this labour is redeployed – it cannot be left to chance.

            All sorts of absurdities exist in the current labour market and there are probably whole enterprises out there, where NOBODY is doing any NECESSARY work, even though they will swear blind that they are.

            So you have reports of public sector workers taking ‘voluntary redundancies’ yet finding themselves back working at the same desk in a different guise – self-employed consultants or something.

            Then there’s the likes of Joan Burton who tells young people not to get used to a culture of entitlement, claiming welfare as a ‘lifestyle choice’. This is the same Joan Burton whose solution to the problem of youth unemployment is the JobsBridge rip-off. The amount of money that she is sponging off the state could probably employ several people on comfortable salaries and several more on reasonable salaries. What does she need all of that money for and what makes her think that she is ‘entitled’? Does the woman not know how to delegate? Is there nobody there to teach her about job re-structuring? Of course we know that she herself is one of the ministers who has breached her own salary cap on the employment of ‘special advisors’. So we are back to the old BS about ‘not what you know but who you know’.

            In this environment, productivity is the first thing to suffer. There was a time when debates raged around ‘welfare vs workfare’ but today, many sectors of the economy are probably just elaborate systems of welfare. But rather than rage against this, maybe the solution lies in making the best out of it: levelling it out for one thing, so everyone gets a fair share.

            Reducing the working week is a possible step in this direction. It takes vision however. The current government strategy seems to be one of getting everyone ‘working’, doing anything at all in order to get them paying PAYE and PRSI, then getting them on the property ladder to buy up the surplus stock of housing that is never going to sell. In other words, they are trying to repeat Fianna Fáil’s strategy with even less prospect of success.

          • I wonder Michael, if the referendum on same-sex marriage is a reflection of what you are talking about here – government (vainly) trying to keep everyone working throughout their productive lives, for the purpose of protecting income streams they derive through taxation, which they duly pass on to those with whom they have entered into a Faustian pact.

            People like Eamon Gilmore regard this as the ‘defining issue of our generation’. Personally, when I heard that, I thought it was just another example of Labour Party ‘children of the revolution’ type piffle politics that they always come out with. One could question however, whether there might be more to this than the civil rights issues involved. I am quite in favour of same-sex couples being allowed to marry by the way – in the sense that I have no desire to dictate to people over issues that do not concern me. But this could be a reflection of what passes for forward-looking economic planning in this country. Same-sex marriage is effectively a recipe for a no-child policy, is it not?

            It’s hard to say but you might be on to something. Maybe someone should put that question to the politicians before the whole affair gets swamped in a torrid debate about morality and sex.

            Anyone looking at Irish demographics and economic statistics will notice one very glaring fact – there are less people living on the island of Ireland today than there was prior to the Great Famine of 1845-48. We still have not recovered! In the last census that was conducted prior to that (I think it was 1841) there were 8.5 million people living here – about half the population of England, as it then was. If the Irish population had continued to grow at the same rate as England’s, there would be today a population of 20-30 million people living and working in this country – a population which we could easily sustain incidentally. 20-30 million people gives you a buoyant domestic market that industry and enterprise can supply, before you even start to look overseas. Ireland today is a highly export-oriented economy and, while we have been largely successful in that endeavour (we even export our population!), it is largely because we have had to be.

            Of course, the problem with trying to stimulate population growth is that it takes several generations to do that using natural methods. Artificial methods of boosting a population (open immigration policies) risk a lot of social upheaval. Politicians, whom we look to for guidance on these matters, tend not to be able to see beyond the next election – that is just the nature of the beast.

          • michaelcoughlan

            Thanks oscar for your response.

            I am intrigued and delighted because your insight has caused me to consider 1 child policies from a perspective of same sex couples.

            Could you better explain what you mean by;

            “Same-sex marriage is effectively a recipe for a no-child policy, is it not?

            because same sex couples will cohabitate whatever the legal circumstances I presume?

            Also will the new legislation make it more or less difficult to adopt children or found families etc?

            Thanks in advance,

            Michael.

          • To be honest Michael, I have no special insight into the forthcoming marriage referendum, or what the legislation entails. I got a leaflet in the door the other day and, although I made every serious effort to read it, I chucked it in the bin after the first attempt, simply on account that it was so tedious and boring. I went to go fish it out a few minutes ago, which is when I remembered that the green bin was collected this week. But think about it for a minute: do you really think we would be asked to vote on an issue if it was purely a question of morals and ethics?

            Same-sex couples would fit the profile of ‘double income no kids’ households that those charged with cleaning up after the property crash are trying to court, in the hope that they will re-inject liquidity into the market for residential property mortgages. Much like their one-child counterparts, they represent a safer bet. So, maybe what you have here is a combined one-child/no-child policy.

            Same-sex couples are generally less likely to do something crazy and irresponsible like starting a family in order to raise the children who will take part in the workforce of the future, earning the revenue that will pay for our pensions when we reach old age. In fact, John Bruton hinted not so long ago that governments throughout the western world may be preparing for a massive default on their social obligations. The present day priority is, as you suggest: to find people who will work hard all of their productive lives, pay their taxes and mortgages as a matter of priority, rear the next generation as a secondary consideration and only if time and money allow.

            While it is true that some same-sex couples will adopt, or employ surrogate pregnancy techniques, I am kind of guessing that the majority of them won’t. (Don’t be surprised, incidentally, if we are voting on these issues at a referendum in the not too distant future). If they do decide to have children however, you can be fairly sure that the decision will only be made once they are satisfied that their ‘offspring’ or ‘next-of-kin’ can be adequately provided for. In a sense, it is a model of planned parenthood and a policy maker’s dream. Let’s be honest – that is not the way that the vast majority of us came to be born! What is the name of that Bruce Springsteen song where he talks about ‘getting Mary pregnant and man, that was all she wrote’?

            I do know from my own personal contacts that young couples with children, looking to set up home, are being shut out of the property market. The government is crying crocodile tears on their behalf but they have no intention of doing anything. Maybe they feel it is in their best interests.

            For same-sex couples, they have gone from being pariahs and social outcasts, to being quite in demand in less than a generation. I’m sure they must be feeling fabulous! Still, my advice to them would be to keep the proverbial back firmly against the wall: someone could be setting you up for a fall. They only love you for the power of the pink pound.

            The trend towards private ownership of residential property was actively encouraged throughout the 1980s and ’90s, as a matter of policy. After the decade of industrial unrest that was the ’70s, it was considered that workers with families and mortgages to support would be less likely to go on strike and so forth. It largely worked but the people who framed that social contract forgot to keep up their end of the bargain – namely, to ensure that incomes kept pace with the cost of living.

            I don’t want to draw any extreme conclusions because these are mere observations. I think, however, that people would be right to be concerned – or to at least ask questions.

          • michaelcoughlan

            “I think, however, that people would be right to be concerned – or to at least ask questions.”

            Very good advice Oscar.

            Thanks and regards.

            Michael.

  7. Grey Fox

    David, you need to be uncharacteristically blunt more often. The degradation of job quality in Ireland and the emergence of the zero hour contracts on minimum wages has been a very successful exercise since the crash, I myself find that, at 50 years old I must now go and find a second job to survive. The rosy picture painted by Howlin and Noonan is just that, a picture, an aspiration, no substance, but it will trick a certain segment of the population into believing it because they want to desperately believe it, they want something better and the debt cycle begins again. I had a friend transfer 5 shares in BOI to me so I could attend the AGM yesterday and I was astounded by the crap I heard, both from the rostrum and the audience. One point which is completely missing from the media reports is the quiet acceptance by the Board that the BOI Pension deficit is now at a staggering 1.6 Billion. Yet everything is also rosy in their garden. I thought for a moment I had travelled to an alternative parallel universe when one shareholder proceeded to congratulation the Bank and particularly Mr Boucher, thanking him profoundly, while in the same sentence referencing that regardless of the share price having gone from €18 to .35c, thank you, thank you was in order! Absolutely astonishing!
    So the story is the same from Government and the Banks, the future is bright, so pay attention, recite the mantra continuously, even while you disappear down the plughole.

    • Deco

      I did an interview for BoI, for IT, in Cabinteely, after college. One of the interviewers was a “rugger bugger” who decided before I opened my mouth that he wanted me to not work there. I was not from the insider background. I would not “fit in”. The other interviewer was very logical, respectful, and wanted me to join them. The professional was annoyed with the rugger bugger. The two of them were on a completely different wavelength, and were contradicting each other. The rugger bugger laughed in my face when reading my CV. The other person was shaking his head when this happened.

      Imagine doing an interview and watching a drama take place between the two people the other side of the table.

      Anyway, in the midst of this it suddenly came to me that BoI was not such a good place to work, and I could not motivate myself to go harder.

      I never had anything to do with BoI. No business dealings. No matter how much they would spend on advertising. I was particularly furious over Lenihan bailing them out, when they needed a hiding to sort out their deep cultural issues.

      They are schitzophrenic.

      AIB are even worse. We are heading for a banking duopoly.

      My advice to you all is to do whatever is necessary to avoid being in debt, as much as possible. In fact only have a mortgage. And keep that under control. Have savings so that you will never need a car loan, a home improvement loan etc…

      • michaelcoughlan

        Hi Deco,

        Despite everything written on the blog re gold, bitcoin, insiders, cb’s, glass seagulls and my own rant on citizen owned currency your advice;

        “My advice to you all is to do whatever is necessary to avoid being in debt, as much as possible. In fact only have a mortgage. And keep that under control. Have savings so that you will never need a car loan, a home improvement loan etc”

        is the best on the blog for a long number of years.

        Michael.

      • DB4545

        Deco.

        I returned from Australia in the mid 1980′s and lodged an Australian Government cheque (about 6k punts tax rebate) with BOI. I had an account with BOI in good standing for about 5 years at the time. Having lodged the cheque they told me it would take 6 weeks to clear and declined to advance me any loan on the strength of it. Unable to retrieve the cheque I was badly stuck until it cleared and they stung me on the exchange rate to boot. As soon as the cheque cleared I emptied the account with the exception of one punt (to irritate them with the administration cost of maintaining it). I’ve never banked with them since and never will. The market must be wide open for a new entrant to the Irish market given the contempt the main banks have shown to their customers and Irish Citizens and the contempt in which they are held in Ireland.

        DB

  8. michaelcoughlan

    Even if I do say so myself probably my best post ever.

    “Today, this column is going to be uncharacteristically blunt.”

    Thank god. More of this type of commentary is required.

    “This grumpiness is because much of yesterday was spent reading the 62-page economic document that the Government unveiled as part of its new ‘Spring Economic Bulletin.’These are hours I will never get back, so you will forgive my tetchiness”

    The grumpiness and tetchiness is because the Guburenmnt’s pile of shite document is conflicting with your conscience. Do you think the fat baldy cu%t of a finance minister we have is losing any sleep? Remember when he was minister for health and tried to terrorise women who were infected by hepatitis c etc. out of their just entitlements and compensation? No chance.

    The tone of the article would lead one to believe you are shocked. This is despite the consistency and accuracy of your insights regarding insiders, debt servicing agencies, labour being raped etc. What I find shocking is that you are shocked. The document merely proves your hypothesis David.

    “why or how questions have not been answered”

    That’s because the real journalistic talent like everyone else is voting with their feet. Tubridy and Miriam aren’t going to risk the 700k between them per annum doing their jobs properly are they? Or are you so naive you think they will?

    “The productivity of labour added to growth in the amount of time spent working makes us rich”

    No it doesn’t. What make us (the citizens) rich is acquiring an increasing amount of the wealth being created either in higher wages, or profit share, or better quality goods and services for the same money over time etc.

    “This means that wage rises either must remain low/unchanged or profits have to fall significantly”

    No it doesn’t. Wages and profits can rise measured in fiat terms as wealth is being destroyed impoverishing the populace. For example; hedge funds are making increasing profits and paying increasing bonuses and no wealth at all is being created in fact it is being destroyed. I will say it again. Hedge funds are making increasing profits and paying increasing bonuses and no wealth at all is being created in fact it is being destroyed.

    In other words; if the operation is focused on acquiring capital through asset stripping then wages and profits can rise until the population either starves to death as during the famine or exits Ireland altogether as in the former socialist countries where the army had to shoot their own people to stop them leaving the country.

    The document is PROOF that the government’s economic policy is a gigantic ASSET STRIPPING exercise to facilitate a capital extractive process stripping the population of their wealth and handing it over to international bankers.

    “A 4pc growth rate” Do you mean in profits or in the economy? Profits can rise with no growth as described above. An economy can grow 4% by adding to it an endless supply of dirt cheap European labour to stop wages from ever rising can’t it?

    “The ‘Spring Economic Bulletin’ is sugar-coated storytelling, dressed up with the aid of pseudo-scientific charts and graphs as economic analysis. It is not economics”

    The document is in fact a treatise for the wholesale rape of a nation and most unforgivably our children and the future generations yet unborn. Ireland is coming up to the centenary of the rising and here are a couple of lines from the proclamation;

    “We pray that no one who serves the cause of the Irish Republic will dishonour it with cowardice inhumanity or rapine”

    The scum bag cunts in Fail Eireann stand indicted of failure on all three counts.

    “The republic guarantees to cherish all of the children of the nation equally”

    Adherence to that principle, most perversely, is an abject failure in the thousands of unborn Irish citizens being flushed own the toilet in one abortion clinic after another in the UK. Moreover, all the young fellas and girls only now being born will be fucked in the ass metaphorically speaking when middle aged still paying back the promissory note bonds or whatever else will replace them if those same kids survive the real deal in a state sponsored school or religious order.

    So David; What do we do next? Stay whinging like a bonbon about Glass Steegel or Tony Brogan about legislative change etc. because it ain’t ever gonna happen.

    The solution.

    Establish a citizen owned complimentary currency that will allow the outsiders (Irish Citizens) to flourish in spite of it all OR stay whinging about Irish Gubernment policy documents designed to facilitate international bankers in their efforts to stop their OWN derivatives bets from unwinding?

    You know where this is going David. Extend the marble currency to the whole nation and asset back it giving every citizen an opportunity to exchange his increasingly worthless fiat Euro for the new interest free currency and citizen control of the currency independent of the rapists in Fail Eireann.

    Finally David, The reason Professor hone-a-scam put a 20% requirement on the buyer of a home on their second time out was to STOP them buying a second home. Know why? He knew that the reason for the new house was because the family would be growing and the purchase would be to accommodate a second child.

    He knew of course with the cost of childcare this would mean that one parent would be giving up their job to take care of the family and the government knew that would mean a loss of taxation revenue from that person. Less tax from the population means less money to give bankers to stop their derivatives bubbles from unwinding.

    The 20% rule David is Ireland’s ONE CHILD POLICY. As a Keynesian economist it must be obvious to you that if the rich are to preserve their portion of the wealth or increase it in a shrinking and deflating economy then the onus is on the rulers to shrink the size of the population with one child policies to reduce the need for capital to be spent on human citizens who aren’t insiders.

    It might be a good idea to allow the bonbon’s to start posting again because as mad as they are they were the only ones talking about massive population reduction policies.

    Even if I do say so myself I am on fire today Dathi.

    Michael.

  9. “This implies that all the fruits of this type of growth don’t go to workers but to landlords and – to use that Marxist expression – to the owners of capital.”

    This is a working class rant with no validity.

    If the potential buyers of goods and services have no money or more likely, today, too much debt then they are unable to buy anything except low grade necessarys.

    So those in business find sales down but costs still fixed. Sooner or later cuts in costs must take place. People are fired, laid off or put on temp. Wage levels stagnate. If this does not work then the enterprise fails.

    Now the Landlord has a vacant premise and there are fire sales of plant and equipment as took place this week in Alberta. Several vacant premises in the same location lead to decay. This destroys capital (defined as goods, plant and equipment, not money). Cities and towns rot. The spiral is down. Then human capital is also wasted and people unemployed, or under employed.

    Without capital to reinvest there is no enterprise and no employment. Higher wages are largely dependent on the employment of capital in a solid, successful endeavour that makes a profit.

    Your statement above is, despite your denial, of the sort that an agent provocateur makes to stir the masses to riot and self destruction. It is divisive and offers no solution.

    Capital and labour must combine forces to have both be successful. They must not be adversarial or both will be destroyed. The one needs the other. Each on their own can do nothing.

    • Of course the primary cause of the “rot” is the excess debt accrued throughout the economy. As iterated many times without discussion or rebuttal, the cause of the debt is the insistence of using our current money system.

      All money except coin is issued as a loan. It is a fact that all fiat currency today is issued by a central bank. All the issued money is issued as debt at interest. This means all money additions to the supply increase the existing debt in the economy.

      As interest is charged on the debt, the payment of the interest must be paid from the production of of the combination of the capital and labour. In this regard it sucks a little effort and wealth from the economy with every payment. This goes to the banks ans ultimately to the central bankers not government coffers. As the money to pay the interest is not created at all (just the principal of the original loan) the money to pay the interest reduces the money supply. Eventually as debt is repaid there is not enough money in circulation to pay off the debt.

      Yes the outstanding debt is larger than the money supply and so is physically unpayable.

      The bankers solution is to issue more loans into the economy to make enough money available to pay the debt currently due. Thus there must be a larger and larger amount of money put into circulation just to stop the monetary system from collapsing.

      We are at the time and place where this has accelerated to the exponential increase in the money supply. Welcome to QE 1 and 2 and 3 etc to infinity. Any student of graphs will know that if whatever is represented is increasing exponentially that it will quickly set itself back to the mean or medium.

      We are about to have a debt reduction event and a reset of the money system. Maybe China and Russia will reset it for us?

      This is what has to be fixed to settle the problems of the strife between labour and capital. We have to fix the banking system. That means closing the central banks, and having an honest money system to replace the Ponzi scheme we use at present. If we do not fix it , it will fix us. We will all be digging ditches with spoons, or at soup kitchens with soup spoons.

    • Deco

      Tony, thanks for your comments.

      Capital is being squandered. And the squandering is deemed to be good by the politicians, the stock market, and the media – because they benefit. They don’t care about the wider benefits.

      In the political system, a mechanism exists to ensure that capital is squandered. And a moral righteousness pretence exists to ensure that the squandering continues.

      The parasitic state has accumulated so much debt that it is it beyond the point of “symbiosis”. That means the ability of the host to feed the parasite is gone. That is why there is so much panic about Greece. It is an alarm bell. US Student debt is greater than Greek debt. UK private sector debt is more vulnerable that Greek debt. The Greeks have an income problem and a debt problem.

      The solution to Greece is to default. But the losers in such a scenario are in control of the political system. They have declared that we must not follow down this road as it will lead to terrible consequences. Greek Democracy is dead, because of Brussels.

      Wake up people – Brussels is killing democracy. Iceland defaulted, and Iceland is in far better shape than Greece. But then the EU has gotten nothing out of it.

  10. Grey Fox

    I am not a Marxist either David but,
    “The bourgeois has an insurmountable tendency to create a world of fancy which
    enslaves man, and causes the disintegration of the world of true realities. The bourgeois’most fantastic creation, the most unreal, the most uncanny and horrible in its unreality— is the kingdom of money. And this kingdom of money in which all real substance disappears, possesses a terrible power, holds a terrible sway over human life, sets up governments and overthrows them, makes wars, enslaves the labouring masses, gives rise to unemployment and destitution, renders the life of people who are successful in this kingdom more and more fantastic. Leon Bloy was right. Money is a mystery, there is something mystic in the power of money. The kingdom of money, the extreme of impersonality makes even property itself fictitious. Marx was right in saying that capitalism destroys personal property.”
    From Nicolas Berdyaev’s Slavery and Freedom.

  11. 10 out of the 10 spoonies were laid off.

    Five were sent to do a mandatory 16 weeks-2 days per week unemployment course, learning to write a CV.

    One shot himself in the face with a 12 gauge.

    Number seven sits on Grafton street and plays the tin whistle cursing the one who stole the 12 gauge from him.

    The next one was seen in Lampedusa, apparently trying to get onto a boat to Africa. He must have lost his bearings.

    Number nine was rumored to have joined Islamic State and number 10… well, he took the JCB and tried to dig out an ATM machine from Bank of Ireland.

    End of story? Nope… a few years later, the kids of No 1-10 picked up guns and explosives and went to the streets… It was the year were Suds was paled in Dublin, 2021.

  12. Adelaide

    TV TORTURE: As if sitting for three hours on a cold metal pew in a crowded public hospital waiting room with an ill friend waiting for her first consultation after a six month wait and whilst there not being able to leave the horrid room for fear we missed her name being ‘called’ by an unseen voice at the back of an adjoining corridor, again typical Irish disregard for fellow Irish where using a simple ticket-number system and something remotely comfortable to sit is too much to expect, we had to endure the loudest tv set on full volume throughout and so we had the pleasure of sitting through the entire ‘RTE’s LIVE coverage from the Dail, and analysis of the Spring Bulletin’. The irony and contrast between the defeated desperation of the public patients still silently waiting for their names to be called hours after their appointed time in a grim green painted room not fit for cattle and the rosy self-congratulating FG-promotional guff was really the summation of the failed Republic. It felt more like a scene from Orwell’s 1984 with the droning telescreen blasting propaganda over the heads of the dispossessed defeated masses.

    Ps my friend now has a six month wait till her first scan.

  13. Adelaide

    Oh, one nugget I did pick up on is that there are presently 85,000 unemployed people engaged in ‘employment activation programs’ who are not officially included in the unemployment figures.
    Brilliant – Now that is a useful economic policy.

    • Deco

      Potemkin village.

      Ireland is the Potemkin Village of the current (absurd) policy framework from Brussels. Greece and Spain are the reality. They have not had Facebook temporary economic booms.

      Enda Kenny is the village idiot, dancing to the tune of the amateurs in Brussels.

  14. Deco

    On second thoughts, very good article.

    Productivity has not been grasped by any of the local authority councillors on Kildare Street. D2 neither.

    And IBEC are far too lazy to even bother with it.

    Ireland, is in a productivity trap.

  15. [...] Sugar-Coated Storytelling Dressed Up As An Economic Forecast – David McWilliams [...]

  16. Deco

    Concerning productivity and efficiency wy are they building a new children’s hospital in an area that is impossible to drive through because of traffic ?

    Surely it should make more sense to have it between Naas and Baldonnel. Or as an add on to Blanchardstown ?

    • c.eire

      My thoughts exactly.

    • Grey Fox

      I cannot believe that any Central Banker who fully grasped the significance of his professional actions could or would continue to play a consciously sinister part. He would have no choice but to resign.
      Has Mr Honohan finally secumbed to his conscience?
      From my pal RedRiverSix8:
      Shaving sure takes a long time if you don’t like the face your lookin at…….

      • michaelcoughlan

        Hi grey fox,

        Would you please get rr6 to start posting again. I miss his posts terribly. I would love to know what he thinks about my 1 child policy hypothesis.

        Michael.

        • Grey Fox

          Michael,
          I have passed your request on, he is somewhere around Cannes today, yesterday he was in the UK and tomorrow who knows?
          Very busy little lad….
          Cheers
          Oop’s a text response as I write, here goes…
          “Rodger that….I am being missed!!! Alleluja..!! I’m coming baby…I’m coming..”
          Now you heard it from the horse’s mouth.

          • michaelcoughlan

            great news re rr6 thanks. Please get him to review my 1 child policy hypothesis and let me know what he thinks.

            Michael.

  17. In the article there is a mention of capital as being the JCB. Also a statement that the added capital allows the operator to be more efficient and profitable for all.

    No mention is made of the human capital. The gaffer could buy a JCB (with what remains a mystery as so far he has no savings although it is implied he borrowed money to buy it as he paid $10 interest in the narrative) and use one of the 10 spooners to run it. There is a problem. None of the spooners can operate a JCB even though it is alleged to be nothing but pulling a few levers.

    Now the gaffer has to train an operator or hire an 11th person and fire all (or not hire) the 10 spooners. The operator must know how to maintain the JCB or a mechanic must be hired. He/she must know what fuel is used, must take time to learn what the levers do, practice and become a safe operator. Thus anyone who can operate a JCB with the background training and experience is of more value to the gaffer. Thus the operator may be offered a higher wage than the spooner.

    We see that properly trained personnel will earn higher wages if employed in the capacity for which they are trained. Training by the gaffer of one of the spooners is an investment in human capital. It is just as important as the capital of the JCB to the gaffer. One of the secrets to a higher standard of living for us all is the proper deployment of capital, both human and machine, to the area of greatest efficiency.

    In an efficient economy the 10 laid off spooners will have to get training in a more advanced skill if they too wish to be a part of the growth of the economy.

    An inefficient economy provides infrastructure make work projects for the 10 spooners. Better to train them with a wanted skill. That is, invest in the human capital even if a number of them are under employed for a time.

    • Of course the gaffer could hire a JCB operator from abroad who works for the same wage as a spooner and all 10 spooners are on the dole. The foreign worker pays taxes to his/her home country and the local government pays the bill for 10 welfare cheques.

  18. http://usawatchdog.com/wnw-188-us-naval-tensions-mount-no-growth-economy-baltimore-spreading-jade-helm-joke/

    “The first quarter GDP numbers are in, and they were dismal. As I have said, many times, there is no recovery. The first quarter so-called growth came in at a paltry .2% growth. This is not growth. If you factor in any sort of inflation, then you really have a contracting economy, not a growing one.”

    American economy is recovering according to David

    “Do you think Baltimore and Ferguson are really about police brutality or a stinking economy especially for the lower ranks in this country. I said this is why the President sent Al Sharpton to Ferguson, Missouri, and I think this is at the core of the problems in Baltimore. The unemployment rate in the African American community is at least double of that in the white community, and black youth unemployment is staggering. The Obama Administration knows this and does not want to address the real issue, and that is falling wages and massive offshoring of American Jobs.”

    • DB4545

      Tony Brogan

      We can doom and gloom forever but here’s some good news in my view. Thank you for the link above which took me eventually to the Tesla Powerwall announcement yesterday. I’ve read many of your comments about gold but this could be the real game changer Tony. Elon Musk (Tesla Motors & Paypal) announced a technology which may remove our need for fossil fuels. Here’s the deal, Tesla announced a product which eliminates our requirement to be connected to the electricity grid. The paradigm shift is on a similar scale to the movement from dependence on landlines to mobile technology. Someone thoughtfully provided a fusion generator in the sky which can provide all our energy requirements. We just needed a combination of technologies to harness it efficiently just as Henry Ford needed John Dunlop.

      In essence a combination of solar PV (solar electricity) and a Tesla battery system (he’s allowing open source to roll out production) can generate and store enough energy for domestic and commercial power requirements. The real value in Tesla is the battery technology. The estimated cost to change your house into a self contained power station would be approximately 12,000 Euro (Solar PV 8700 Euro and Tesla Powerwall 10Kva 3300 Euro). It’s less than the price of a second hand car (but one that pays for itself in approximately 10 years without any tax incentives). That’s correct people no more electricity bills or dependence on those nice people in Moneypoint or Poolbeg.

      They say that Momma Musk didn’t raise no realist but Paypal and Tesla prove otherwise. If you told all those nice people who used to send begging letters to the Department of Post & Telegraphs for a phoneline that 30 years later every child in the Country would have a smartphone with broadband costing a tenner a month they would have laughed in your face. But this is really disruptive technology. Maybe those windfarms blighting the land will look as quaint as Dutch windmills.

      DB

      • StephenKenny

        There is a little bit of Elon Musk doing what he’s particularly good at. The trouble with it is that it’s, at heart, still a lithium ion battery, and you can’t really get away from weaknesses of that.
        We’ve heard things about aluminium ion (about twice as good as lithium ion, it seems), and then of course the eternally almost here ‘carbon nanotube’ power storage. But still it’s lithium ion.

        Still, it’s another step forward. Someone will come up with a quantum step in power storage, and it will all change.

      • Thanks DB for the Tesla outline. We have a fella here at the sailing club who owns two Tesla cars. Plus he equipped his sail boat with solar power and an electric motor. The weight of the battery is less than a diesel engine. His range is somewhat restricted but it works in practice.

        I wait with interest to see if I can escape the BC Hydro charges.
        The power requirements of the province have them looking at the Site C dam on the Peace River. It would be good if that could be avoided.

        At this point most nations are going nuclear for their electric requirements.

      • Hi DB
        Yes, I just viewed the link. Very exciting!! :)

        • DB4545

          Hi Tony

          I do recognise the hype and the limitations of Lithium ion that Stephen Kenny mentioned but I think it’s a move in the right direction. The move to nuclear has huge hidden costs such as decommissioning but also security. In the UK the annual budget for the Civil Nuclear Constabulary is £57 million sterling. If we can disrupt the food chain for people skimming off wealth through our forced addiction to fossil fuels and use those resources more effectively it has to be a good thing. My current energy bills are about 130 Euro a week cars/heating oil/electricity. I have to earn 260 Euro in pretax income to fund that cost. I estimate approx 200 Euro is removed in the total tax take and I know I can put that money to better use.

          I think your link to the Laffer curve and the 35-38% should make people sit up and take notice. If Governments try to over tax Citizens those Citizens become very skilled at avoidance and evasion at all income levels. In this part of the world a whole industry has grown up around exploiting the pre and post tax price differentials on road diesel/heating oil/cigarettes.

          There’s 70 cent per litre price difference between road diesel and agricultural diesel. The results can be seen in the beautiful homes of the “Oil Barons” of South Armagh. An area which in which the British military could only operate by helicopter is now littered with homes that wouldn’t look out of place in the Hamptons.

          In many poorer parts of the Country people buy their cigarettes for 6 Euro a packet from people selling door to door. Some are sourced in the Canary Islands (20 Euro for a 200 pack) by minor players subsidising their annual holidays. Most are shipped in by the container load by seasoned smugglers again from the magic kingdom of South Armagh.This undercuts the legal fully taxed rate of 10 Euro a packet at most retailers. This 10 Euro price is made up mostly of tax applied as a “deterrent” to smoking and used to fund public healthcare. This “good” policy intention designed by people who don’t live in the real world is neutralised by people acting in their own selfish interest as people always do.

          As the Laffer curve demonstrates people are adept and creative in acting in their own self interest and not in the perceived public interest. Communists found this out the hard way and globalists will eventually.

          DB

  19. The elite have always tried to subjugate the masses!!!

    These days the elites are the central bankers and their controllers. however in the days of the internet we will break free of that bondage.

    http://www.thedailybell.com/editorials/36270/Paul-Rosenberg-Production-Versus-Plunder–Part-5/?uuid=6F800609-5056-9627-3C5071902B060BF2

  20. https://hindesightletters.com/blog/letter-uk-electorate-mark-mahaffey/?utm_source=HindeSight+Blog+Subscribers&utm_campaign=80552eaa20-New_Blog_Letter_UK_electorate&utm_medium=email&utm_term=0_a70c6e658d-80552eaa20-299801525

    This link incorporates several themes of recent articles.
    First off it is an economic report that is definitely not sugar coated
    It is written by a very successful founder of a fund who also has an Irish name. An example of the thriving diaspora!!
    It graphs that over 50% of the population are net beneficiaries of the state largess
    It graphs that the largest expenses to the government budget are welfare and the interest paid on the national debt.
    It graphs that the fastest growing government expense is that same interest cost even while the interest rates are below 1%
    It graphs that government rarely has a positive budget balance.
    It graphs the Laffer curve that shows the maximum tax take occurs at a rate between 35-38% above or below this rate and the tax revenue decreases.

    It shows most people still have their head in the sand ignoring reality.

    How about you? Is it worth the effort to click the link and read the report?

  21. Eugene Sheehy lied his ass off last week at the banking inquiry creating a new version of history and now they want to do the same for the family of Comical Lenny – the proles will believe it though.

    http://www.independent.ie/business/irish/banking-inquiry/lenihans-go-to-war-over-trichet-slur-31191176.html

  22. And I see Hone a Scam the little weasel has quit too. Nice pension I’m sure for being fuck all use and a bare faced liar.

    • DB4545

      Hi Adam

      A pension in the region of Euro 120,000 to 150,000 for being asleep at the wheel for the biggest financial crash in our history. Nice coin for keeping your mouth shut and doing as your told and his replacement will take note and fall in line no doubt. For a job that’s already being done in Germany by our new financial overlords.It’ll be interesting to see who makes him offers for non-executive directorships. You’d have to have someone with that vision and talent on your team. The cynics among us might feel those sort of offers just buy silence but what would we know.

      DB

  23. redriversix

    In 1973 Alexander Z wrote a open letter to his Government. …..

    “Throw away the dead ideology that threatens to ruin us..when you open your newspaper or turn on your television do you yourselves really believe all those speeches you find there…?

    You all stopped believing in them long ago..if you have not..THEN YOU ARE TOTALLY CUT OFF FROM THE PEOPLE , AND THE REAL LIVES OF THIS COUNTRY”….!!!!

    I cannot spell the writers second name , but it was written as a open letter to the Soviet Authority’s in 1973.

    Leon Breschnev the Soviet General Secretary. .had him arrested and banished to the West.

    That same open letter could be written today to our Government or indeed the Spanish , French or American Governments….

    A Economic War began in Earnest in 2008 , prior to the open outbreak of open hostilities their were some “Police actions”

    Deceit , Lies & fraud are in Charge across Europe.

    Governments are a front for large scale financial attacks on people and the social system they have contributed too.

    I said it before and ill say it again..dont debate propaganda

    Put your self & your family first.

    Treat every euro as a prisoner

    Stay in your homes

    Today can be the start of the rest of your life

    Spring statement ????

    Not worth 2 drops of sweat on a tired camels scrotum.

    Have a great day

    RR6

    • Goodday RR6

      It is a beautiful day here in the southern Gulf Islands. Warm spring weather, sunny with a gentle breeze.

      We recently bought a cheap home in a lovely setting. A modular home on a rented lot. An interesting concept. For a 950 sq ft smaller 2 bedroom home we paid $105,000 plus legal and taxes or 108,000. The “pad rental” is 600 a month which seems high. But when considered that it covers, road maintenance, snow removal, water, and there is a large club house free of charge, The property taxes on the land and management irt compares well with strata fees for a condominium. The taxes on the house itself are minimal. There is an age restriction. One (The principal) must be over 55 years. Any other occupant can be any age.

      We have our own garden and the whole is well landscaped and attractively presented. They are not easy to finance requiring a solid down payment and a short amortization but compared to the regular pricing of housing around here they are a gift.

      There is nothing below 250,000 available and something like this, a house on a plot, will start well into the 300,000′s.

      Manufactured homes on rented lots may be a housing solution for anywhere pricing of regular houses is out of line.

      I’ll be on the water today at the annual open day for the sailing club. I’ll be thinking of you, RR6, as we salute the Commodore before heading in for a celebratory lunch.

      Living the good life is counting your blessings one day at a time!! :)

      • Ooops, was that sugar coated story telling?

        • redriversix

          Hey Tony…

          Congratulations !!

          Don’t worry , it’s good that I am not the only one who has sugar coated stories around here…!!!

          RR6
          Truck Stop
          South of Lyon
          16 degrees & it’s finally stopped raining….!!

  24. DB4545

    RR6

    That about sums it up. Nobody who values their future or prosperity could possibly believe the garbage that comes out of their collective mouths. It has the same value as assigned to the vice presidency of the United States. It ain’t worth a bucket of warm spit.

    DB

  25. redriversix

    Well said.. D.B

    That’s very good….!!

    RR6

    • DB4545

      RR6

      I’m not claiming the credit. It was said by John Nance “Cactus Jack” Garner 32nd VP of the United States. The original was “It ain’t worth a pitcher of warm spit”.

      DB

    • michaelcoughlan

      Welcome back rr6!

      Delighted to read your prose quality posts!

      I wrote a post tongue in cheek above and also responded to oscar about what I feel is a de facto one child policy in Ireland.

      Any chance you might review them and let me know what you thoughts are?

      Michael.

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