November 3, 2016

The State must become the Ryanair of house builders

Posted in Irish Independent · 128 comments ·

The main reason the public-sector unions are on strike is the price of housing. Sort out housing and we begin to sort out lots of things that are problematic in the economy. Unless the State gets to grips with the fact that middle-ranking workers can’t find a place to live in this country, there will be higher and higher wage demands.

If the State could — either itself or via collaboration with the private developers — accelerate cheap house/apartment-building, much of the upward pressure on costs in this country would dissipate. The huge and rising cost of accommodation for people in their twenties and thirties is driving wage demands.

Once wage demands are acquiesced to in one area, then they will spread throughout the public sector like a virus in a crèche.

Gardaí and the teachers will be followed by a series of ‘me too’ strikes and the entire public-sector wage negotiations will unravel.

This might be no bad thing, particularly if the State decides that certain public servants are more valuable to the citizenry than others. It may elevate the status and pay of what it calls ‘front-line’ workers.

Such a demarcation is entirely possible and is up to the Government. However, any country that presides over a significant increase in the price of its public service will ultimately pay for this via higher taxes and a fall in global competitiveness. Ultimately, high public-sector costs are impoverishing for all.

In a trading economy, the price of goods that are traded on the world market is determined more or less by international competition. So if for the sake of an example, a piece of software produced in Ireland is much more expensive than a similar piece of software produced in France, over time the French tech company will become more competitive and will prevail. In time, the price of the Irish software product will have to fall or the product itself will have to become much better through more sophisticated innovation.

Therefore, the ‘signals’ emanating from the market either via price sensitivity or customer feedback mean that Irish productivity in the traded sector is policed and rewarded by the norms of the international market.

However, this is not the case in the public service.

If an Irish bureaucrat is more expensive than a French one, there is no mechanism to assess whether the Irish citizen is getting value for money. Is the French bureaucrat more productive or more relevant or providing a better service? It is very hard to tell. We can’t measure this but we do know most Irish public servants are paid much more than their French counterparts.

However, this disparity of pay may only reflect the cost of living here and this brings me back to the main costs associated with living in this Republic compared with other countries.

In Ireland, we can see the difference in the cost of living between our jurisdiction and another one very easily. All you have to do is to drive to the North. If the Irish State is not controlling costs in the Republic, the difference will be seen very evidently in the differing costs of living between the Republic and the North.

Here we have two jurisdictions, one country. The Border provides almost a perfect economic laboratory, so we can evaluate competitiveness immediately.

I have relations in the North and head up to Belfast regularly. The difference in prices is extraordinary.

Even before the 17pc fall in Sterling after the Brexit vote, shoppers from the Republic have always found great value in Newry, Derry and Belfast. The cost of living in Northern Ireland is a fraction of that in the Republic. We are not just talking about the price of slabs of Harp at Sainsbury’s in Newry. We are talking about tradesmen from the North, we are talking about the ridiculous notion that German-made white goods and cars sourced from within the Eurozone are cheaper in the North — despite Sterling’s fall, which should make them more expensive. Housing is much cheaper, not only rents, but also the actual cost of buying a house is about half of prices in the Republic. Building materials, private medicine, the legal system, car insurance, as well as groceries, are all much cheaper. Even mortgage rates are lower in the North than in the Republic despite the fact that British central bank rates are actually higher than Eurozone rates.

How could this be?

If costs in the Irish traded sector are kept in check by international competition, then the Irish price rises can come only from those areas that are not traded. Therefore the main culprit must be the State’s inability to find value for money for the citizen because the State is the biggest buyer of services in Ireland.

As it gets less value for your money, the higher costs go.

This is why lots of people love to have a contract with the State. It is a boon. We saw an example of this so starkly in the Tribunals, where the legal bills were eye-watering for what was a bit of a whitewash in the end.

The same gouging of taxpayers’ money is going on all the time, otherwise prices couldn’t be rising, which drives up the cost of everything relative to the North.

Of course, the biggest rip-off is property and land. We have the least densely populated country in Western Europe, with the highest property prices.

A small number of very rich landowners are benefiting, while the rest of the country suffers.

It is time for the State to simply go back to building social housing, co-operative schemes and old-fashioned council houses. This is the way forward. The State must become the Ryanair of house builders.

Unless the cost of accommodation falls significantly, wage demands will continue.

But accommodation is only the start of it.

In the past 20 years, the cost of living in our country has become prohibitive. Lots of people have decent wages, but have nothing left at the end of the month because costs have skyrocketed. Local businesses trying to export are put to the pin of their collar because our internal costs are so high. The culprit is the vast State apparatus.

The State apparatus is the biggest buyer of goods and services in the country and it is the source of cost inflation. The higher its costs, the higher taxes have to be to balance the budget. As taxes go up, take-home pay goes down and the percentage left to pay rents/mortgages also diminishes. This is why the cops are on strike.

Control basic costs and you control basic pay.

Let basic costs go out of control and you get anarchy. It really is that simple.


  1. Colm MacDonncha

    I think you nailed it with your mention of the wealthy landowners. How many of our fat cat TDs are landlords? Be very interesting to find out. If the sheeple of Ireland keep voting for gombeen men this is what’s going to happen.

    • Deco

      The Primary Question : Who now owned the zoned development land on the edge of the M50 ? [ and why is it not being developed]. There is a particularly obvious example on the M50, between the N2 and N3 junctions.

      The Secondary Question : Why are there so few apartment development complexes bieng built in Dublin city, relative to demand ? Dublin has a greater footprint than Berlin, yet it has one third of the population. And Berlin has wider streets, and more public parks. Usage of existing residential space is NOT efficient.

      • Pat Flannery

        “Usage of existing residential space is NOT efficient.” That is exactly right Deco.

        During my 38 years in the San Diego area its population grew by over 2 million while its footprint remained exactly the same!

        San Diego is hemmed in on all sides: Mexico to the south, the Pacific Ocean to the west, mountains and desert to the east and Camp Pendelton (the largest United States Marine facility in the world) to the north.

        Redevelopment was the word. We passed a 30-foot height limit in the coastal zone while designating a very specific area for high-rise development in “downtown”.

        In the ‘burbs we designated “transport corridors” along freeways and newly-built trolley lines for higher density multi-family development while preserving pockets of well-developed existing neighborhoods as lower density single-family only.

        Yes there were lots of turf fights along the way but overall it worked. Land use became a science and I am proud to say that I was one of its practitioners. Dublin is a free-for-all where developers do what they please. It will take a long time to discipline them.

    • Orbie

      Generally I agree with David. This time I think the problem goes back much further, back to benchmarking.
      Yes I agree with Benchmarking, if and when we decide benchmarking is the best way to decide how much people in the public service get paid, they cannot take just one point in time and use that advantageous point in time for as long as it is beneficial to public servants. If benchmarking is the way public servants wish to evaluate their worth, then when private section earnings fall, public service pay should fall pro rata.
      In accessing public service pay by the benchmarking system, we must also include many other factors such as:
      Hours worked.
      Security of tenure.
      Retirement age.
      Years of service etc.
      In other words; the value of income over a lifetime.
      However I believe there is a far better way of Benchmarking our public servants.
      As Ireland is an open economy we have to compete with our neighbouring countries and be at least as efficient as them. Ireland should be run as an efficient business. To do this we have to look at the costs of doing things as efficiently or better than the countries we compete with. Because we are an island nation we need to be more competitive than mainland Europe.
      We should benchmark income for all public servants to the average income of public servants in all western European Countries in the Euro zone; Germany, France, Italy, Spain, Portugal etc. We should also benchmark with standards of efficiency in those countries, hours worked in their working life, pensions, the number of people running any department on a pro rata scale, etc.
      If there are 10% less people per. Capita, running any department, than there are running the same department in those European countries, this should be reflected in the incomes of the staff in that department. Likewise if there are 10% more, that department has to become more efficient or have their incomes adjusted accordingly.
      Example; let’s start at the top. Spain has a population of app. 45 million app. 10 times the population of Ireland. Spain has 350 members of Parliament, Ireland has over 140 TD’s we are way over represented pro rata. Give them a choice; Reduce representation to the average for Western Europe or let the number of TD’s we have remain and take the necessary reduction in remuneration. The same rules should apply to all public sectors. Being over represented in Government means we have to many civil servants providing backup for our TD’s
      It is wrong to expect the wealth producing private sector to shoulder this burden of injustices, while working longer hours, earning far less per. hour and having far inferior pensions.
      When I hear a public servants saying they need an increase in income as things are dearer in Ireland than in some other country. Why do they not ask themselves; why things are dearer in Ireland?

  2. Deco

    Well, I suspect actually the principle reason for the strikes is the reappearance of Bertonomics. And what is Bertonimics – it is a combination, of pointless euphoria, greed, materialsm, and immoral selfishness.

    Irish socialism is all about rigging the system for your own benefit. A form of equality that is inspired by the oligopolistic nature of the Irish economy, and the fact that certain powerful players can have a near oligopolistic market rigging power – and the society is barely able to figure out what is going on.

    And so it transpires, that the institutional left, with trade union politicians, promise a slice of the same pie, to their members.

    It is a result of a deeply problematic incidence of “something for nothing”, a higher cost of living than is required, high indirect taxation, state institutional power, media access for grabbers, and union power.

    This is the unions promising the same thing to their members as certain businesses can give their shareholders.

    It is opposite of public civic responsibility. It is borne out of incapacity to rectify matters, and a leadership on the left that will not more readily fight the general public than the very wealthy, or the political party machines.

    In other words this is pie-sharing amongst those who operate the consensus that is official Ireland.

    And Brendan Ogle, and his emulators want more pie.

    Now this is madness.

    Because the overall picture is a society with a deep competitiveness problem, that has artificially high GDP statistics (centred on low margin social media sector mnc operations on a grand scale, that are liable to turn sour if interest rates getting edgy), institutional stagnation, infrastructural chaos, and a MASSIVE RPODUCTIVITY PROBLEM – masked by Intel, Pfizer, Ammergen, etc..).

    And in addition, an awful lot of debt.

    And in the midst of this is an arrangement to take every last cent from the productive workforce, to fund an overcommitted state system – run by politicians that cannot stop committing themselves to what is not needed. With a key element being the ongoing semi-state white elephants that are the “Two Pillar Banks”.

    And the Irish media simply refuses to believe that the state needs to stop expanding.

    Statism is the new doctrine, decreed upon all of us.

    And a key element of that statism is the obsession with trying to regenerate another credit boom, whilst propping up the two “pillar” banks.

    It has reached the level of absurdity.

    The whole thing is crazy. And the centre of it all is denial.

    Denial that there can be such a thing as too much credit.
    Denial that there can be such a thing as a bad debts, and a write-off for domestic customers.
    Denial that the ECB is WRONG with respect to the bondholders.
    Denial that sovereignty is essential to preserve a society from being gouged by hedge funds and loyybists in Brussels.
    Denial about the costs of persistent state mismanagement.
    Denial about the dangers of having the main business city as the main city for everything, including state administration. And the resulting inflation, and deflation mix.

    Denial about the absurdity of the hospital system being overlocated and badly located. The new childrens hospital location, in the middle of a traffic mess being a prime example. There are two many hsopitals in Dublin, and also in the Midlands. Dublin needs a max of 4 hospitals. With at least one of them being on the M50. Hospitals need to be closed down and consolidated, into large facilities, located beside motorways. The motorway system can reduce the cost and improve the quality of services provided by the HSE.

    Denial about the absurdity of having millionaires supported by a TV tax that has put people in jail who could not afford to feed themselves.

    Denial about the pensions mess.

    Denial about public transport, and the wagon-wheel model of transport in Dublin.

    Denial about the fact that Dublin is a “VERTICALLY CHALLENGED” city. No wonder there is a shortage. The (possibly corrupt) clowns in the local authorites will not do anything to ensure an efficient usage of space as occurs in other cities. They are too keen on having people on housing lists, so that they can “rescue” them with local authority housing lists, and the mandatory process of chasing a local authority councillor to get on the list.

    The whole thing is mismanagement.

    So we need a very honest conversation, at a grown up level.

    The BS that occurs on the farcically inept national broadcaster is not working. In fact that would be a suitable place to start. Sell off the land that is the location of the state propaganda organ, and make it available for modern, urban, well designed apartments like are found in Downtown Vancouver or Toronto. And start another state broadcaster from scratch in Kildare or Athlone.

    The public conversation, is a place of intellectual stifflement. It is failing.

    Thank you David, for trying to make some effort to make the discussion more practical, than would otehrwise be the case.

  3. davybunyip

    Have To say that some of those surveys comparing pay are not very useful.regarding teachers pay they don’t take into account tax levels, etc. All this against a backdrop some of the highest cost living in the euro zone.
    Have to agree about cost of living being so high it is driving up costs but government refuse to tackle cost of housing.we now have record numbers of families homeless.wonder how many of them are young garda, nurses, firemen or teachers?

  4. Deco

    It is very hard reform public policy in regard to this area, when state policy has to consider a back seat driver. And that back seat driver has still not explained to the people, how the developers money ended up resting in his wife’s bank account.

    The entire fringe left wants as many people on local authority housing lists as possible, so that they can rescue them. So that they can build their political base. The loose left needs desperate people, prepared to voted for free stuff provider pliticians, to construct their political ambitions.

    Then there is the ECB, which operates policies that encourage Ponzi-economics.

    How many actually want to see the market function effectively ?

  5. Deco

    The state cannot take unemployed people, and provide them with a training course that makes them more employable. Despite spending a fortune.

    This will be another state run mess.

    And this time, it will have politicians deciding who gets the houses.

    There is difference between the state and Ryanair.

    That difference is crucial.

    Ryanair is run efficiently, and well. The state is not.

    In fact state policy is what created the mess. The state being given the option to get further involved will only have one predictable outcome. The incompetence level will increase, and the disaster will get worse.

    Asking the state to work as efficiently as Ryanair, is asking the impossible. It cannot be done with the pervasive culture of mediocrity, waste, nepotism, politicians on the make, and mismanagement.

  6. michaelcoughlan

    a pure joy to read this article.

    Considering the quality of this article and the last one I am considering buying the SBP again.

    Here is a simple idea which I mentioned before. Facilitate a rent to buy scheme where a portion of the tenant’s rent is used to build up equity in the property which can used as a deposit when the tenant exercises the right to buy the property available in a rent to own development. It would really really help.


    • michaelcoughlan

      Lowering the costs would also begin to help to turn the tide of emigration which would be no bad thing would it?

      • redriversix

        Our Government [ the permanent Civil Service ]

        They have a poor opinion of themselves and their Country.

        As a people, since our Independence , have we had the self confidence to believe in our Country.?

        Our default positon is compromise, The Nation was founded on compromise , is this our default position ? not to begin negations from a position of self belief & strength ? but always to be glad to be at the Table and immediately have a subservient attitude ?

        Was it Dev who instilled this genetic blip ? was it the Church ? Did the State continue this blip with a lack of education ? to make confident children subservient and have our default position one of meekness ? these Children became servile adults….

        Confidence was deemed rude and arrogant …asking questions was impertinent

        The point I am trying to make is that if we did a audit or a stocktake of our Position in the World and our record of international negations over the last 50 years , it seems to me we have always been selling ourselves short .

        We have high FDI , but they don’t pay their Corporation taxes… Why ?

        We have Natural resources , not just Oil & Gas but agriculture and opportunities to harvest Wind & wave energy , a climate that 70 % of the world would love to have… a reputation as being nice people and no military or Colonial past which would haunt us .

        All the above , to me anyway, seems to be a burden to those who make decisions. Is it that those who make these decisions protect their own interests first due to low self esteem , greed , fear ? Is it because they tip their cap first ? Is it because we always seem to be so grateful when some head of State , some CEO or anyone who shows a interest in Ireland , that we immediately bow and lead them to the good room..Why are we so subservient ?

        The Ryanair you speak of David, is it the polite and respectful one you speak of , The reinvented , reformed Ryanair ?

        Or the one who is cheap and brash and rude and paid poorly ?

        Granted , a profitable airline , etc etc. etc.. But I do believe our Country is A Emirates Airline. But again we sell ourselves short…

        Why ?

        Ryanair builders , cheap brash, ” you live where we build”

        We need self confidence , we need education , we need a hones media ,

        What if the media was fined every time it was found to have reported a lie ? or promoted a untrue position ?

        If we had the confidence to collect taxes from International Companies, taxes at 12.5% and collect it..we could have a better health system , properly paid nurses , Garda and Teachers, not a two tier system,

        We could do a lot to make our society better…but we would rather turn public and private workers against each other…we would rather have a media which promotes opposite sides rather than promoting the truth. We need more confidence, we need to know what we have and how to develop it , nurture it and realise our potential in a FAIR AND DECENT WAY for Society.

        Until then ?

        same old , same old blah blah


        • Truthist


          Agree with the vast bulk of what u wrote ;
          Especially the sentiment.
          However, we as a Nation now are not such nice people.
          And, apropos of Guards & Nurses & Teachers ;
          A fair wage versus their typical comparitors working other sectors of Private Sector & also versus the cost of living, it should be the case that their present lucrative wages be reduced.
          There are other strata of society though that should be given extra monies ;
          Especially the jobless & those on minimum wage.

    • so who pays the subsidy Michael.
      The tenant gets a write off.
      Part of the rent goes toward a downpayment?
      Therefore the rent is actually reduced.
      This is a non starter in a real market.
      in Canada developers tried rent to own but the federal mortgage insurance company CMHC Said that the tenant must pay a market value rent and only a surplus amount constituted as a saving toward a down payment. The builder had elevated the asking price. Offered a rent to buy scheme and losses on the rental allocated to a downpayment were covered by the extra value artificially assigned to the housing unit.

      Rightfully, CMHC saw it as a fraudulent contract. Artificially elevated prices attempted to be financed by a mortgage that was higher than could be covered by the real market value of the property.

      Your scheme results in people having underwater mortgages and unable to sell the property to liquidate the value of the mortgage.

      • michaelcoughlan

        Ok Tony.

        Thanks for the insight. I have accepted the point and changed my view.

        Thanks again.


      • michaelcoughlan

        You may not be aware Tony here in Ireland the 20% rule has killed the mobility of the second time purchaser leaving the govt the only game in town so while I agree the govt has no business in the market in normal circumstances we in Ireland don’t have normal circumstance and somebody somewhere will have to increase supply however it is achieved.


      • Truthist

        No subsidy ;
        Tenant is renting-to-buy from own funds ;
        Or at least from “seemingly” own funds.
        Developer is never to know for sure from government sources that Renting-to-buyer is getting “any income support to ensure that after they pay their reasonable & justified housing shelter costs that they have at least a standard minimum income”,
        Housing Subsidy
        Government with in “Army-mode” is to build 20 storey, or so, blocks of superb — empty shells of 2 to 4 bedroomed, condominiums for Irish citizens with nearby block[s] of automated storage for 4 wheel vehicles & similar for motorcycles & nearby blocks of storage + workshop facility for extra payment by condo dweller & blocks of Aquaponic facility for extra payment by condo dweller.
        Blocks are altogether part of “Village” project.

        No persistent bad behavior tolerated.
        Persistent bad behavior ==> dweller[s] enter into departure process ;
        But, retain claim to same portion of completed ownership they achieved thus far.

        Management is top class & low key but strict & fair.
        Dwellers must agree to culture of civility during occupancy.

        Alternatively or Separately ;
        Private body — e.g. Michael O’Leary — can construct & manage same concept.

        No architecture & materials & construction techniques & social models & work models required for to achieve succcess with this proposition.

        • Truthist

          NEW architecture & materials & construction techniques & social models & work models [ for dwellers ] required for to achieve succcess with this proposition

  7. Lunacy is masquerading as rationality.

    “The culprit is the vast State apparatus.”
    This is expressed as the problem.

    A government paid for enterprise is deemed to be the solution.
    Typical socialist stupidity masquerading as economic policy.

    If you want a Ryanair solution to the housing problem give Ryanair the project to run at a profit. No restrictions, no regulations except safety in building standards.

    You would find the government apparatus dissolved. Government wages cut to the bone, zoning restrictions removed, decisions made and quickly acted upon.
    Half the government employees would be out of a job.

    There is no solution to a state run economy except to remove the state. The proposed solution to the housing crisis is more government involvement. All you have proposed is a subsidized project paid for by the remaining taxpayers. Lunacy.

  8. CorkRob

    There is more to it than just an outrageous sense of entitlement by our Public Servants. All sectors of our economy have greedy business owners and cartels who manipulate the supply and costs for consumers.
    The government has been crucifying the motor industry for years with internationally huge taxes (VRT, Road Tax, VAT) when compared to the UK and mainland Europe – why ? Because they can and it’s not challengeable by the consumer.
    When these taxes were challenged by the EU, they just changed the name and extended the deadline for their removal. WHY are WE subject to these punitive taxes when no other European countries citizens are?
    The supermarket chains here are another culprit of gouging – just pick any 20 items from your weekly shopping basket and compare prices online for and – HUGE differences (including when the exchange rate is taken into account).
    Aspiring for social equality in housing is hopeless while the government is still refusing ti impose penalties on developers for speculative hoarding of land.
    As soon as the recent 1st time buyers package was announced, developers added up to €30,000 to house prices in Dublin – the government needs to tackle gouging like this head on , with highly punitive taxes and fines for greedy developers and agents.
    Our Insurance industry is another behemoth running madly out of control, with unsubstantiated stories of increased payouts, coupled with exponential tariff increases annually.
    The government needs to get tough with all these sectors, remove competitive tariffs and blocks for new overseas entrants and structure the regulatory environment to allow the consumer to enjoy the same standard of living as our other EC counterparts.

    • Tull McAdoo

      Now that’s what I call a quality post from CorkRob. More needed on this blog.+++

    • Deco

      The high taxes on motor transport, which is accentuated on freight, drives up the cost of essentials in the grocery business. It also acts as a barrier to entry. Keep entry investments high per unit sold. Which results in contained competition.

      The insurance industry has one LIDL type provider. And that provider lost a lot of money last year. As a result it lost it’s ability to be the price floor. It pushed up it’s prices. The others joined in.

      Irish compensation and legal costs, from injuries must also be investigated. There is something fishy going on there.

  9. Deco

    Let’s be honest here.

    The state will not be the Ryanair of residential contruction.

    The state will be the FAS of residential construction. [ FAS was renamed Solas, and everything else was left as before. The problem was that FAS gave statism, a bad name. Therefore, Ruairi Quinn, a committed statist, ordered a rebranding. And that is all statists ever do. They rebrand the same institutional morass, and tell the people that there is no need to be complaining ].

    • Deco

      There is a massive problem with the way the state operates.

      If you want a state that is responsible for everything, then run it like the Danes run it. But not the way in the manner that the Irish state is run currently, with a quango directorship for everybody who is frequently in the gaze of the government ministers, or who deserves a return on a favour given to the party political machine.

      The nonsense has to stop.

  10. Truthist

    Just goes to prove that Bernie Sanders is “just all huff AND no puff” ;
    He does not ask good enough questions.
    And, it is because he is shill.
    A shill for communism.
    He wants more of the Nomenklatura cosy shop that we suffer herding us onward to the Cliffs of Moher, for USA citizenry.
    Note how he is equivocating the issue & thus helping his supposed arch foe to escape justice for at that juncture is feared that Hillary Bonham Clinton had betrayed USA secrets to Israel ;
    And, this is still a prime issue regarding her emails.
    Makes me think more that Israel is deliberately sabotaging Hillary because Trump for a multitude of reasons :
    Even though Kill-ary is the only proven psychopath for their causes.
    Ref. Iraq, Serbia [ Ref. Russia ],”West Bank” & “Gaza” Palestinian territories, Sudan, Libya, Ukraine, Iran, Syria, & Yemen.
    Wikileaks may only have intended to “leak” relatively tame stuff or even “fake” or “doctored” stuff ; Analogous to Currency which is neither Precious Metal nor Promissory Notes for Precious Metal to bearer.
    But, Weiner was in possession of the the real stuff ; Analogous to actual Precious Metal, vis. Gold.
    Either way, Hillary Clinton is finished as President contender.
    In August 2015, when asked by a reporter whether she had “wiped” her server, Mrs Clinton attempted to laugh it off.

    “What ?
    Like with a cloth or something ?”
    she joked.
    “I don’t know how it works digitally at all.”

    But the questions refused to go away – leading Bernie Sanders, then Mrs Clinton’s rival for the Democratic nomination, to declare in a debate that month:
    “The American people are sick and tired of hearing about your damn emails.”

  11. Truthist

    Interesting background info on Huma here ;
    But, as ever with MSM source as British when in heat of events, one must be skeptical until one knows for sure much later.

  12. Truthist

    Most detailed report I found thus far on the Kill-ary Emails & photos found on Weiner’s laptop ;
    Although, this report does not venture to describe certain photos of Kill-ary & Huma as have other reports.
    Interesting technicalities discussed.

  13. Below explains, what I have enunciated before, how central banks create money from nothinf and use it to buy government debt and , now, shares of major corporation and thus become the principal shareholder and controller of the corporation. By owning government debt the central banks also control the governments. We are being bought and sold with aladin Lamp money. How stupid are we all.

    Mike Savage

    Weekly Article November 2, 2016

    I have written many times in the past about how the QE “printing money” game is really theft from all of us. Of course, many like it and would like to see more of it. Why? Because they are profiting from it. Hedge funds, large banks, central banks, and various billionaires are not only adding to their asset bases but they are also artificially inflating the price of securities (mainly stocks, bonds and real estate) by creating artificial demand for those assets.

    Central bank balance sheets crossed $21 trillion for the first time last month. This is a staggering number that is being used to replace demand that does not currently exist. While the central banks are busy “creating” demand out of nothing the global economy continues to slow making all that additional debt harder to carry- let alone pay any of it off.

    Of course, at the end of the day it appears that we, the citizens of these countries, will be left holding the bag.

    As I was reading an article by Rodney Johnson of Dent Research it became crystal clear to me just how dangerous this is not only to regular people but to EVERYONE once it goes too far. A quote referring to Japan:

    “” Even though the central bank prints more yen than the government issues in bonds each year and buys equities, the country’s currency is strengthening, not weakening”.

    This alone points out that when you go too far the rules of the game may change in unexpected ways and short circuit your well thought out plans. Actually, even though the Japanese Central Bank has been a major buyer of the Nikkei 225 it is still DOWN from when they started buying. That’s a sign!

    Because they are buying equities (stocks) and virtually all newly issued government bonds they are creating artificial demand and driving prices up and yields down. Anyone who owns these assets like it so far.

    Here is where it gets interesting. The Japanese economy has been stuck in a deflationary downdraft since at least the year 1990. Numerous infrastructure plans, jobs plans, QE to infinity have all done nothing but kick the can down the road. The regular people are suffering and the government needs to do something about making wages higher (nothing has worked so far) and their stunning debt easier to pay off with growth. (Good luck with growth when Japan is turning into an old-folks home).

    The government and central bank have gone further with their monetary experiments than anywhere at any time in history that I am aware of. After 26 years of thinking “if we only go bigger this time it might work” it appears the writing may finally be on the wall. This could lead to the government, central bank, or both to take drastic actions to keep their power.

    So after all of that what could they actually do? Again, a quote from Rodney Johnson:

    “ Now that they invest in equities, they could become activists, taking seats on boards and forcing higher wages. They could also demand higher dividend payments. Both moves would try to put more cash in the hands of consumers”

    Remember when I wrote that they were buying REAL assets with virtually nothing- creating “money” with no effort, no sweat and no risk? This explains it!

    By making dividend payments higher they can enrich themselves some more. By raising wages they can divert money from shareholders to employees and increase wage inflation. If you think they couldn’t be big enough I reported MONTHS ago that the Japanese Central Bank was a top 10% holder in 90% of the Nikkei 225 index and were INCREASING purchases. It is like a move from facism (big government and big business colluding with each other) to communism- the state calls all of the shots.

    By buying these shares they could take control of businesses that a person or group put their financial, and possibly their very lives on the line to create. They put in the blood sweat and tears to build a world class business and others are now basically stealing it with pretend wealth created out of nothing and that benefits NO ONE but those lucky enough to own the assets they buy before they buy them. Everyone else pays the price.

    Look out- anything is possible in Central Bank Land!

    Just a few newsworthy items that show all is not well in debt land.

    · It appears that the Auto Loan bubble of 2012-2016 is starting its implosion. In an SEC filing Ford has announced it allowed $449 million for credit losses for January to June (34% higher than in the same timeframe in 2015).

    · GM reported that $864 million was set aside for the first 6 months of 2016- a 14% increase from the same period in 2015.

    · 3 month Libor rates have tripled this year to 0.88% While this may not sound significant the BIS (Bank of International Settlements) warns that the rising cost of LIBOR is reflected almost instantly in the cost of $5,000,000,000,000.00 (that’s 5 trillion) in US dollar bank loans. This makes it even more difficult to pay outstanding debts. A ½% rate increase in LIBOR equates to $25 Billion in extra interest on that 5 Trillion. In my opinion this alone may make the Fed think twice about raising rates and making the dollar stronger at this time.

    · Caterpillar announced an 18% decline in global retail sales and has reiterated its stance that there appears to be no end to this in the immediate future.

    · YRC Worldwide, a leading provider of transportation services announced a 9.5% drop from 2015 earnings citing a “soft industrial backdrop”.

    In the precious metals sector it appears that the metals have regained their footing and it appears that the rest of the year should be interesting. While equity markets hate uncertainty gold in particular thrives on uncertainty. If one thing is for sure – it appears that plenty of uncertainty is certain in the near future. Our elections, the Italian referendum, and many other geopolitical unknowns will make for an interesting end of the year.

    In addition, China is busy cementing their dominance in the metals markets. They have already opened the Shanghai exchange where you have to settle with physical metal- not paper like the COMEX and they are opening outlets throughout the Middle East in places like Dubai.

    This may be because it has been reported (I got it from Stewart Thompson of Graceland Updates) that top Islamic financial organizations have teamed up with the World Gold Council to launch the new Shari ah Standard. It will be launched two days after the Italian referendum on December 6th. This new “standard” will allow Muslims to invest in gold in accordance with Sharia law and the World Gold Council predicts the Standard will add 500 tons to global demand in the next four years.

    It appears to me to be time to buy unloved and underappreciated assets at this time. The train may be leaving the station as I write this. Be Prepared!

    Mike Savage, ChFC Financial Advisor
    2642 Route 940 Pocono Summit, Pa 18346
    (570) 730-4880
    Raymond James Financial Services, Inc. Member FINRA/SIPC

  14. mike flannelly

    ” They rebrand the same institutional morass, and tell the people that there is no need to be complaining. ” – DECO

    The IBF ( Irish Bankers Federation) was rebranded to the BPFI ( Banking and Payments Federation Ireland). They were responsible for sustainable banking strategy for Irish Banks and their customers(citizens) from 2004 to 2012. Their CEO during this period is now the Bank of Ireland government relations officer. Advising Michael Noonan and Enda Kenny on Irish banking affairs.

    The Competition and Consumer Protection Commission was established on the 31 October 2014. Fg/Lab appointed an engineer take charge of this new body. Whenever there is a consumer complaint we are told that more competition is the answer.
    My own personal view is that Fg/Lab and the 31st dail downgraded the consumer rights of Irish citizens.
    In Ireland you have variable mortgage contracts that have vague and unclear contract costs. These vague and unclear contracts are also completely bias because the stronger party to the contract can just name their own profits.

    I also personally believe that Fg/ Lab attempted to downgrade our constitutionsl rights by ignoring international reports on Irelands non transparent public service pensions. Nothing has changed as we still dont know the costs of the pay as you go superannuation portion of public service pensions and lump sums.

    We must know the complete costs of our public services.

    • Deco

      Mike, I am just reading your comment now.

      And I have to say, I am really annoyed.

      I agree with ou, concerning competition policy, consumer protection, and a definite policy move by FG/LP to undermine the rights of the individual.

      There is no transparency in respect of costs of public sector expenditure.

      The UK can do this. Denmark can do it. France can do it. Singapore can do it.

      In Ireland the people are told that it is in their own interests that they are never told.


      And it seems that right across the spectrum, from safe TDs in the political machine owned by an oligarch, to the gangster party to the champage socialists, all the way to Ruth “seize Starbucks” Coppinger, they all agree on having opaque state authorities.

      The ideology of the lot of them is “gombeenonomics” with a different paint plastered on top.

  15. I saw a TV BBC documentary on the lead filled water supply of Flint Michigan. Much of the infrastructure of the water supply is lead pipe with residues that constantly scale into the water. Obama was there spouting platitudes, last year, but the 100,000 person city is a 3rd world edifice in the decayed industrial heartland of the US. It is appalling. By comparison, Dublin is divine.


  16. McCawber

    Wrong wrong wrong.
    How can you possibly consider any state involvement in any project.
    All you get is another quango whose total focus is to add cost.
    The state say/see it is all about formalised/regulated job creation.
    It just adds cost.
    Adds cost adds cost adds cost….
    Adds cost.

  17. If the potable water problems are not fixed the costs to the economy will run to hundreds of billions. As usual the cost of deteriorating health is not included.

    Bring home the troops and use the corp of engineers to fix the infrastructure.

  18. “Lingering over Elliott’s portfolio management is a persistent fear that central bankers — by collectively cutting interest rates 673 times since the financial crisis — have so upended the natural price levels of stocks, bonds and many other assets, “that the economy and markets are operating in denial of reality.”"

  19. “”Rickards is right – we are in a depression and yet the media and the political parties aren’t talking about it.’”

    • “”Let me just say flat out, that at this point, unless you are living in an alternative universe, with your head buried in the sand, it’s impossible to NOT see that in fact, Bix Weir is right in claiming there are grand conspiracies in play to destroy the 99% – in all ways, shapes, and forms – for the benefit of a sociopathic 1%; or, more appropriately, 0.1%. Not that it’s genesis, definitive aims, or composition are “known,” mind you. However, at this point, it’s quite clear that the Bush’s and Clintons are “allied” with vicious, sociopathic oligarchs and power brokers, in an effort to control the masses with socialism, draconian government decree, financial servitude, free market suppression, and Goebbels-esque propaganda. To that end, as I have passionately pled for the past month, this war on truth will be lost – or won – on November 8th.
      Andy Hoffman

  20. michaelcoughlan

    @David McWilliams,

    Hi David,

    I would like to post the most respectful post I can about something which is now in the face of all of us and no one at all has covered the topic. I first became aware of it last year when Max Keiser was waxing lyrical about it and that of course is the failure of the insurance industry leading to the complete halting of capitalism.

    Let me explain. Last year it cost me 520 euro to insure my car this year 700 euro. Almost everyone I know has ad a hike this year of between 20 to 30% in all insurances not just car insurance and this of course is because of little or no yields in stocks and bonds.

    Surely all other aspects for consideration will pale into insignificance if risk become unaffordable as a result of the bubbles in equities?

    I swear to god it’s like living in a pressure cooker the way one thing after another is going.


    • Michael,
      You are paying for the floods, fires and earthquakes around the world plus the lack of return on investment the insurance companies make on their cash as the central banks reduce the interest rates to zero or less.

      Write your insurance company and suggest they invest in established and junior producers of silver and gold minors. They will double their money within 2 years and your insurance rates will not go up.

      Of course you can insure yourself and do a similar thing for your own direct benefit.

      • michaelcoughlan

        “Of course you can insure yourself and do a similar thing for your own direct benefit.”

        Hi Tony.

        Assuming the funds are available. But you missed the point. If insurance becomes so expensive for whatever reason that it can’t be afforded then one small business after another will close and more and more people will go without insurance. Further more the larger operators will pass the extra costs onto their customers or write policies that don’r pay out.

        I personally feel this is where the head gasket will blow. The ponzification of the stock markets will kill the insurance industry causing industry and commerce to grind to a halt. Then the government will intervene and you will be looking at your Orwellian nightmare straight in the face.

    • michaelcoughlan

      “I swear to god it’s like living in a pressure cooker the way one thing after another is going.”


      We just got news this morning that our Shannon doc call out doctor out of hours service is closing in our twin town of approx 6000. We now have a half hour commute to Nenagh or Limerick who were recently refering overspill to us. Our Garda station has been on part time opening hours to the public for the last few years now.

      One thing after another.

  21. “”The motor for every one of the ills Mr. Obama sees is the same – the feds themselves. Their fake money – along with the multitude of rules and regulations they’ve imposed on the American people – have done their mischief. And now, with the Fed’s key lending rate near zero for the last eight years, the economy has been misled… distorted… and enfeebled. U.S. corporations alone have increased their debt load by 100% since the crisis began.” Bill Bonner

  22. Haney notes that the Clinton-promoted U.N. Resolution 1618 would be used to effectively make the criticism of Islam a criminal act.

    “[The resolution] marks a step forward in creating a safe, global environment for practicing and expressing one’s beliefs,” Clinton declared in a speech she gave in December 2011.

    Haney argues that Clinton’s promotion of the document makes her culpable of undermining the national security of the United States.

    “By endorsing U.N. Resolution 1618, by default, Hillary Clinton is aiding and abetting the Muslim Brotherhood, on a macro, global level,” Haney contends in the documentary. “As a sworn law enforcement officer who took a vow to protect our country from threats both foreign and domestic, Hillary Clinton is a domestic threat.”

    It is further warned in the documentary that the dynamic between Clinton and Abedin is extremely dangerous.

  23. Truthist

    Part 6 of ;
    The remainder of this section explains how each of these
    mechanisms work in practice.
    (i) Limits on how much banks can lend
    Market forces facing individual banks
    Figure 1 showed how, for the aggregate banking sector, loans
    are initially created with matching deposits. But that does not
    mean that any given individual bank can freely lend and create
    money without limit. That is because banks have to be able to
    lend profitably in a competitive market, and ensure that they
    adequately manage the risks associated with making loans.
    Banks receive interest payments on their assets, such as loans,
    but they also generally have to pay interest on their liabilities,
    such as savings accounts. A bank’s business model relies on
    receiving a higher interest rate on the loans (or other assets)
    than the rate it pays out on its deposits (or other liabilities).
    Interest rates on both banks’ assets and liabilities depend on
    the policy rate set by the Bank of England, which acts as the
    ultimate constraint on money creation. The commercial bank
    uses the difference, or spread, between the expected return on
    their assets and liabilities to cover its operating costs and to
    make profits.(1) In order to make extra loans, an individual
    bank will typically have to lower its loan rates relative to its
    competitors to induce households and companies to borrow
    more. And once it has made the loan it may well ‘lose’ the
    deposits it has created to those competing banks. Both of
    these factors affect the profitability of making a loan for an
    individual bank and influence how much borrowing takes
    For example, suppose an individual bank lowers the rate it
    charges on its loans, and that attracts a household to take out
    a mortgage to buy a house. The moment the mortgage loan is
    made, the household’s account is credited with new deposits.
    And once they purchase the house, they pass their new
    deposits on to the house seller. This situation is shown in the
    first row of Figure 2. The buyer is left with a new asset in the
    form of a house and a new liability in the form of a new loan.
    The seller is left with money in the form of bank deposits
    instead of a house. It is more likely than not that the seller’s
    account will be with a different bank to the buyer’s. So when
    the transaction takes place, the new deposits will be
    transferred to the seller’s bank, as shown in the second row of
    Figure 2. The buyer’s bank would then have fewer deposits
    than assets. In the first instance, the buyer’s bank settles with
    the seller’s bank by transferring reserves. But that would leave
    the buyer’s bank with fewer reserves and more loans relative
    to its deposits than before. This is likely to be problematic for
    the bank since it would increase the risk that it would not be
    able to meet all of its likely outflows. And, in practice, banks
    make many such loans every day. So if a given bank financed
    all of its new loans in this way, it would soon run out of
    Banks therefore try to attract or retain additional liabilities to
    accompany their new loans. In practice other banks would
    also be making new loans and creating new deposits, so one
    way they can do this is to try and attract some of those newly
    created deposits. In a competitive banking sector, that may
    involve increasing the rate they offer to households on their
    savings accounts. By attracting new deposits, the bank can
    increase its lending without running down its reserves, as
    shown in the third row of Figure 2. Alternatively, a bank can
    borrow from other banks or attract other forms of liabilities, at
    least temporarily. But whether through deposits or other
    liabilities, the bank would need to make sure it was
    attracting and retaining some kind of funds in order to keep
    expanding lending. And the cost of that needs to be
    measured against the interest the bank expects to earn on the
    loans it is making, which in turn depends on the level of Bank
    Rate set by the Bank of England. For example, if a bank
    continued to attract new borrowers and increase lending by
    reducing mortgage rates, and sought to attract new deposits
    by increasing the rates it was paying on its customers’
    deposits, it might soon find it unprofitable to keep expanding
    its lending. Competition for loans and deposits, and the desire
    to make a profit, therefore limit money creation by banks.
    Managing the risks associated with making loans
    Banks also need to manage the risks associated with making
    new loans. One way in which they do this is by making sure
    that they attract relatively stable deposits to match their new
    loans, that is, deposits that are unlikely or unable to be
    withdrawn in large amounts. This can act as an additional
    limit to how much banks can lend. For example, if all of the
    deposits that a bank held were in the form of instant access
    accounts, such as current accounts, then the bank might run
    the risk of lots of these deposits being withdrawn in a short
    period of time. Because banks tend to lend for periods of
    many months or years, the bank may not be able to repay all
    of those deposits — it would face a great deal of liquidity risk.
    In order to reduce liquidity risk, banks try to make sure that
    some of their deposits are fixed for a certain period of time, or
    term.(2) Consumers are likely to require compensation for the
    inconvenience of holding longer-term deposits, however, so
    these are likely to be more costly for banks, limiting the
    amount of lending banks wish to do. And as discussed earlier,
    if banks guard against liquidity risk by issuing long-term
    liabilities, this may destroy money directly when companies
    pay for them using deposits.
    18 Quarterly Bulletin 2014 Q1
    (1) See Button, Pezzini and Rossiter (2010) for an explanation of how banks price new
    (2) Banks also guard against liquidity risk by holding liquid assets (including reserves and
    currency), which either can be used directly to cover outflows, or if not can quickly
    and cheaply be converted into assets that can. Although if banks purchase liquid
    assets such as government bonds from non-banks, this could create further deposits.
    Topical articles Money creation in the modern economy

    • BS baffles brains.
      Nowhere does it mention fractional reserve lending which is practiced by all banks.
      It is practiced by the bankers that run the COMEX. There used to be one ounce of gold for every ten paper ounces they sold. Now it is close to one ounce of actual bullion for every 275 paper ounces sold.
      commenrcial banks always need some reserve deposits to issue currency on demand. They used to be satisfied with a 10-1 ration . Because most money is now electronic digits the demand for cash has dropped. They have upped the anti I am told to 30 dollars of loans for every dollar on reserve. OR reserves are now 3%.

      When cash is banned and all currency electronic the banks will need no reserves at all as the interest rate will be zero for deposits and they will lend as much as they want at an interest rate that is effectively a tax for being able to use their currency.

      By then you will be reduced to an indentured serf earning just enough to keep you alive. That is if they still need you to be alive.

      • Truthist

        Well, I did not get to read it yet.
        But, u wanted to read it.
        The link did not open up for u.
        So, I have been copying & pasting it onto here for u.
        Will I desist ?
        Granted, the visual userfriendliness of the article is not possible in the pasted in version herein.
        But, from what u read already, is it truly BS from the Masters of the Bankster Scam [ BS ] Bundle, & thus not worthy of continued insertion into blog ?

        • It is misleading according to all the other accounts of how the banking system works. I did not necessarily want to read it but thought to give you the courtesy as you posted it. It is disturbing you had not vetted your own posting.
          Thanks for your efforts of cutting and pasting. I did not realize it was specifically for me.

          • Truthist

            I mentioned it by way that it was 1 of 2 links supplied as evidence in previous discussion, whilst present discussion up & running, by poster in their tentative assertion that commercial banks do not necessarily give loans based on “Fractional” Reserve “Banking / Lending” ;
            Rather, the suspicion by poster is that some / all banks are allowed to lend with NO reserves.
            In my post it was understood that I did not read it yet.
            Overwhelmed with other stuff presently.
            Not disturbing that I posted this without vetting because u were interested personally in ur reply to open it up.

            Did u uncover any evidence thus fare that lending is permissible when Bank has NO reserves ?

            Anyway, this document is valuable even it ultimately is as BS as u say ;
            Then, it would be extra concrete evidence to use against them for to show that they are even duplicitous in their “educative” material.

          • “Did u uncover any evidence thus fare that lending is permissible when Bank has NO reserves ?”

            As far as I understand, to have no reserves means to have no money on hand. Banks still take deposits and thus have them as a basis for reserves. It is thought that the banks lend out 90% of the reserves to a borrower. This is on the basis of their business model that they require some cash on hand as someone may come in and ask for their money back. If the bank could not give them the money as contracted people would worry that their money was at risk and a whole raft of people would demand their cash be given back to them.
            Famously this is called a bank run. A bank that has such a run is insolvent and soon out of business.

            Reducing the reserves to 3% or so leaves little margin of error.

            however if a commercial bank can call on the central bank to lend them any amount of cash at any time then the commercial bank has little chance of going bust because of a bank run. Effectively there are little reserves need for a commercial bank in that situation. The central banks job it to back the commercial banks so they do not go broke. The commercial banks are in some cases shareholders of the central bank.

            If cash is banned as now being explored in many countries then all money becomes digital and there can never be a bank run. Nobody can make a run on the bank. Reserves will be unnecessary.

            but at the same time the bank is in total control of your savings . You will no longer be able to put some cash under the mattress just in case you need it for a rainy day.

            When money become nothing but electronic digits a bank can credit your account with a loan and you can spend the money. The loan will be created out of thin air and you will pay a fee and or interest for the loan. Essentially the bank will be reduced to being just a large computer program. No tellers or loans officers required.

            The banks will create all money as a debt at interest and everyone in the real economy will be paying the annual interest accrued , to the bank. The banks effectively creaming off 2-4% of the worlds GDP for their own use.

            That is as I see it. It would be nice if David as an economist and as a banker would make the case pro or con on this type of discussion. It is the best education he could impart. The understanding of how the money system functions is fundemental.

          • Truthist

            Maybe David could be so kind also to talk about why so many of his colleague bankers — David having been a Central Banker himself for the aul Rothschild’s Central Bank of Ireland building in Jervis Street, Dublin — have been getting assassinated over the years.
            Chairman of Deutsche Bank that u referred to recently now RIP

          • Truthist

            Edit ;
            David having been a Central Banker himself for the aul Rothschild’s syndicate at Central Bank of Ireland building in Dame Street, Dublin

          • Truthist

            Tony Brogan,
            That post u have above where bulk is copy of article by Mr. Savage is grippingly good.
            However, I have a bit of a “mind-block” Re; the following passage.
            Please be so kind as to explain elegantly.
            “… the Japanese Central Bank has been … :

            driving up prices
            driving down yields.
            Anyone who owns these assets like it so far.
            Above extract slightly redacted by Truthist.

          • fearmcduda


            just search “Bank of england quartely report Q1 2014″
            What it seems to say is much worse(?) than fractional reserve banking.
            “Whenever a bank makes a loan, it
            simultaneously creates a matching deposit in the
            borrower’s bank account, thereby creating new money.”

            It is still my contention that, if money is not defined in terms of physics and philosophy then it will always be inadequate.
            I challenge anyone to define money in there own terms without reference to numbers.
            I have a feeling that you are all to a greater or lesser extent talking…..

      • michaelcoughlan

        “That is if they still need you to be alive.”

        Yes but it is better for them for you to be dead so your wealth can be transferred to their balance sheet. In Japan from the link below;

        “In 2010, the country’s population was 128 million. By 2082, that number is projected to drop to 64 million.”

        It isn’t an accident!

        • Strange thing is that in the UK Victorian age with the abysmal working conditions people had large families.

          With declining population why is the cost of housing not declining with reduced demand.

          Could it be that the Japanese central bank is increasing the money supply faster than anywhere. Is this the rampant inflation while the economy declines. Is it classic stagflation. All asset prices shyrocket while the economy shrinks. It has to be an artificial construct as the central bank is directly buying the stock and the bond market.

          “”BOJ set to become top owner of 55 firms in the Nikkei 225
          Japan’s central bank boosted its ETF buying program last month
          Share on Facebook
          Share on Twitter
          The Bank of Japan’s controversial march to the top of shareholder rankings in the world’s third-largest equity market is picking up pace.”"

          “”Japan’s government bond market offers a guide to the risks of further intervention in stocks, said Akihiro Murakami, the chief quantitative strategist for Japan at Nomura in Tokyo. JGB volatility soared to the highest level since 1999 in April, while trading volume has slumped as the central bank’s holdings swelled to about a third of the market. It’s still buying at an annual rate of 80 trillion yen.
          “If the BOJ does not sell stocks, then liquidity will disappear,” Murakami said. “As liquidity falls, the number of shares you can buy starts to decline — the same thing that’s happening in the JGB market.”

          The eventual crash cannot be avoided, only postponed.

          Ditto NORTH America and Europe.ETC.

          • michaelcoughlan

            “Strange thing is that in the UK Victorian age with the abysmal working conditions people had large families.”

            It’s not strange at all it’s what happens in poverty situations. The parents know they will lose kids in child mortality and they need a few to live to be adults to take care of them when they are old since no old age pensions apply.

  24. Truthist

    I gave yee a youtube video link recently of Steve Pieczenik
    Pierczenik is a very important “public” player now in what is going to happen with USA President Election, & what unfolds personally for :
    Hillary Clinton
    Bill Clinton
    Huma Abedin
    & others

    Here is his feature ;
    And, here is his website ;
    I do not trust Steve Piecrenik.
    He is obviously a spook.
    And, as a USA Seal veteran was at pains to remind me :
    “Have nothing to do with spies ;
    They are evil people.”
    Wikileaks is a Mshd operation.
    Games are going on here.
    Israel wants Trump to be President.
    It suits their purposes.
    The “relevant” people who donated in big sums to Hillary will recover those sums.
    Have no fear that they won’t.
    Probably, a fresh secret supply from the Federal Bank of USA

  25. Truthist

    Further mention to Steve Pieczenik here on
    If u looking for quick return on “token” currency [ not "money" currency ( Bookies not accepting Gold or Silver ) ] — i.e. Euro per Irish State — put bet on Trump to be the next President.

  26. EugeneN

    The quality of commentary here has declined. David could do with a moderated forum instead of this free for all.

    As for the article. It’s clearly contradictory. The State is inefficient so the State needs to build housing.

    I agree with the latter as it happens. Not so sure about the former.

    • McCawber

      Just for clarity.
      Are you talking about efficiency or effectiveness.
      The state very efficiently tax incentised construction in the noughties which effectively wrecked our economy.

    • Truthist

      Actually, dearest EugenN, the quality of commentary here has improved vastly.
      Ur post reeks of Big-Brother Peeler hubris.
      U are a Civil SERPERNT for sure.

  27. mcsean2163

    Living in Cambridge and looking back at Ireland, it is like a land of insanity.

    The gardai are going on strike to get more money even though they are the highest paid public sector group.

    The starting salary for police constables in England, Wales and Northern Ireland is between £19,383 and £22,962

    The above is about the same as Ireland. It is an extremely good starting wage for a job for which university education is not required and has a defined career ladder with pension benefits.

    Ireland is the second most indebted nation per capita after Japan and the public sector are demanding higher wages. It’s just insane.

    • michaelcoughlan

      “it is like a land of insanity”

      Yes. But the guards going on strike reflects the higher cost of living here. For example taxing a 2 litre diesel car here it is just under 800 euro to tax for 12 months whilst in the uk its about 250gbp. Price of a daily thrash in the uk around 50p id say over here over 1 euro and on and on and on………

      • McCawber

        No it represents greed.
        And public services have been hugely inflationary over the last few years. The cost of pretty much everything the state provides has increased in cost, while inflation (according to them – they can’t have it both ways) has remained almost static.

        • McCawber

          The state has been very efficient at gobling up all the competitive gains the economy has made.

        • Truthist

          I — champion of the underclasses of Irish State — agree with u McCawber.

          • michaelcoughlan


            If everyone on the outside as mcwilliams describes them allows their income to stagnate or fall then everyone will be in the “underclass”.

          • Truthist

            I disagree Michael.
            The relative differences would still reign.
            How about describing ur income or any other sum of monies in terms of “typical Laborer’s Net Salary” ?
            Typical new car costs ? = x typical Laborer Net Salary
            Social Welfare yearly payments = ? x typical Laborer Net Salary
            Typical Garda-Landlord / Landlord-Garda Net Salary = ? typical Laborer Net Salary
            Typical Nurse Net Salary = ? x typical Laborer Net Salary

            “The Laborer deserves his wages.”
            Luke 10:7

        • michaelcoughlan


          Thanks for this. I agree completely with you and truthist that the cost of things the state provides has increased which has to be borne by higher taxes like taxing my 2 litres car at nearly 800 euro which is what is driving pay claims. That’s where I differ with you the motive.

    • Lower value of the currency uses more currency to buy the product. Prices did not go up the currency went down. all imported goods will be the same. (In the UK, at present)

      • michaelcoughlan

        Its inflation one way or the other. Brexit has allowed the market to discover the real value of gbp which is a lot lower than it is even now.

        The article said prices are rising. I am trying to import a small item from the uk and have been told the price will be review upwards.

  28. Truthist

    Ref ;
    The 2nd* most major source of high costs squeezing small to medium manufacturing-producing exporters from Irish State jurisdiction

    CIVIL SERVICE [ consisting of minority Civil SERVANTS, & majority Civil SERPENTS in the opinion of the underclasses ]
    *1st most major source of high costs are those imposed by the Bankster Scam [ B.S. / Bull S..t ] Bundle ; Private Central Banking, & [ Fractional ? ] Reserve Banking & Sovereignizing of the Private Debt of Private Borrowers & Quango Borrowers
    Facts about how much gardaí are really paid must be central in talks
    Dan O’Brien
    03 November 2016
    Extract [ Re; these Crooks (Statement by Truthist) ]
    On an weekly basis, gardaí are the best paid public sector workers by a distance.
    They earned on average €1,304 per week in the second quarter of this year (or €67,808 on an annual, 52-week basis).
    That compares with an average of €906 across the entire public sector and €645 across the private sector.
    It is worth underscoring the point: average Garda weekly pay is currently almost 50 % higher than across the rest of the public sector.
    It is 102 % higher than the average in the private sector.

    And, I add :
    They save many costs with “freebies”.
    And, they coerce many publicans to serve them free-drinks after hours.
    And, they earn much extra monies from a variety of sideline [ legal or illegal ] niches traditionally associated with the Irish State’s Peelers.

  29. Truthist

    Weiner Laptop Reveals Massive Illuminati Pedophile Ring

    November 4, 2016

    Pedophile network includes
    NYC politicians,
    social workers
    social agencies.
    They work under the aegis of the Clinton Foundation.

    See more at:

  30. Truthist

    The Mounting Evidence That Team Clinton Are Pedophiles
    Posted on November 4, 2016

  31. Truthist

    This must be the most active website for investigating & collecting & analysing & presenting info. from all the best sources that can be found on presently breaking combination of scandals involving Hillary Clinton-Bill Clinton-Huma & Weiner & increasingly other suspects.
    I retire for the evening now ;
    No time to peruse the above website.

    Take care everyone.

    Return to yee tomorrow.

  32. mike flannelly


    You live in Cambridge.

    In Ireland teachers are paid 35euros an hour while they stay at home for five months every year. Teachers in Ireland earn 50,000e per year for seven months work. They are flying home on Sunday and swapping the duty free bags for their crucifixes. More money for less hours.

    In Ireland we have 50% more nurses than the uk but refuse to service more beds for a&e relief. They earn 50,000e per year.
    In Ireland terminally ill local regular cancer patients are dragged through a&e instead of being red carpeted straight to oncology in emergencies.

    How do Irish teachers salaries, annual working hours and pensions compare with the uk?

    Having 50% more nurses than the uk with unfunded pensions is a cost that impacts services for sick children and old people.

    Ireland is the second most indebted nation per capita in the world thanks to public sector unions.

    The public sector union objectives no longer meet the needs and objectives of the greater public good. Overpaying and overrating public services is unconstitutional.
    Public sector unions have become unconstitutional.

    Countries have constitutions to protect them from select citizens such as bankers and self serving public sector unions.

    Bill Black tells us that ” Irish Bankers” ( with real names) overvalued debt on apartments by 200% plus land banks by 900% and “NOT” banks.

    We cannot blame the Irish State for actions of Enda Kenny and Michael Noonan.

    Banking Crisis response.
    Overvaluing public service salaries and pensions.

    We must never again apologise for the Irish State, as a substitute for unconstitutional politicians (with real names).

    There is NO such thing as a legal loophole for bankers, politicians or civil servants (overrated salaries /pensions) that can override the constitution or greater public good of any country.

    • Truthist

      Some questions to u Mike :

      They [ Irish teachers ] are flying home on Sunday and swapping the duty free bags for their crucifixes.

      What do u mean here ?

      In Ireland, we have 50 % more nurses than the uk but refuse to service more beds for A & E relief.

      50 % extra per capita of general population ?

      Having 50% more nurses than the uk with unfunded pensions is a cost that impacts services for sick children and old people.

      Implication of “unfunded” pensions ?

      over-rating of public services

      U mean the regular hyping of supposedly how good the Irish State’s public services are ?
      If “Yes”, how is this “unconstitutional” ?
      How is the telling of lies that Irish State public service is rated much better than they really are [ appalling ] actually an “unconstitutional” practise ?
      I empathise with ur sense of grievance Mike ;
      But, I wish to know how u justify this exact part.

      Countries have constitutions to protect them from select citizens such as
      self serving public sector unions.

      Which countries have such constitutions & / or statutes etc ?

      Does E.U. ?



    • michaelcoughlan

      “Ireland is the second most indebted nation per capita in the world thanks to public sector unions”

      That’s the most ridiculous thing I have read on here for a long time. The banks had nothing to do with it had they not? As for for nurses on 50k PA no they fucking well aren’t.

      • Truthist

        Many are getting Euro 50,000 & more, Michael.
        The wool is being pulled over our eyes about what really is the situation in Civil Service.
        The Civil Service in many quarters is a “racket”.

  33. Truthist

    Interesting ? … Portentious ? … Alarming ?

    Former Treasury Secretary Summers Calls For End Of Fed Independence

    by Tyler Durden
    Nov 4, 2016 3:00 PM


    At an event in Davos, Switzerland earlier today, Former U.S. Treasury Secretary, Larry Summers, argued that Central Bank independence from national governments should be scrapped in favor of a coordinated effort between politicians, central bankers and treasury to engineer inflation. Seems reasonable, right?…what could possibly go wrong?

    According to Market Watch, Summers argued that Central Bank independence came from “an understanding of the macroeconomic policy problem that is not relevant to current times.” Ironically, he argued that Central Bank “insulation” was required in the 70s/80s when the “White House” and “Congress” could not be trusted to fight inflation.

    So does this indicate that Summers’ baseline assumption is that politicians today are more trustworthy than in the 70s/80s? Perhaps Summers is the one that is “insulated” from reality? Is it possible that he’s completely missed the fact that one of our presidential candidates is currently under multiple investigations by the FBI for various allegations of corruption and fraud? Meanwhile, both presidential candidates are polling at among the lowest rates ever experienced for “trustworthiness” while the job approval rating of Congress has never been lower…but sure, we should grant them even more power to wreak havoc on the U.S. economy for political gain…why not?
    Central bank independence “comes from an understanding of the macroeconomic policy problem that is not relevant to current times,” Summers said in a speech at the International Monetary Fund.

    Central bank insulation was needed in the 1970s and 1980s to combat inflation, Summers said. That’s because the White House and Congress sometimes saw the short-run benefits of unexpected inflation, while the Fed kept its eyes on the long-run costs, he said.

    But that was yesterday’s problem, Summers said. The economy now faces secular stagnation, or a chronic lack of demand.

    To fight this, the Treasury should be issuing bonds with long maturities taking advantage of current ultra-low interest rates, Summers said. And the Fed should try not get in the way.

    In the immediate aftermath of the financial crisis, the Treasury and the Fed often worked at cross purposes. he said. While government spending was rising and the Treasury was selling debt, the Fed was moving in the opposite direction, buying bonds though quantitative easing program for the purpose of shortening the maturity structure to provide stimulus.

    In the future, Summers said the two agencies should cooperate to make sure the full benefits of the stimulus reach the economy.

    Summers said he was aware that market experts would be leery of such cooperation between the fiscal authority and the central bank out of a concern that inflation may jump.

    “I regard that as a virtue, rather than a vice, of the suggestion that I am making in our current environment,” the former Treasury secretary said.


      Larry summers was known as the architect of forcing low prices gold in order to lower the interest rates of money. As such he proposed to surreptitiously do whatever it took to keep the price of gold down. Interest rates were connected and low interest rates appear to denote a low inflation rate.

      • Truthist

        Keeping the price of Gold “stable for extended time” or “decreasing” versus “unofficial” rate of consumer prices’ inflation rising ;
        –> helps lower the Interest rate for “token” currency [ plain old paper & plain old coin ; And, likely also that they not backed by Gold & / or Silver ] ?
        In other words, the above question is ;

        How does “prolonged” or “decreasing” price of Gold result in decreased Interest rate for Bank Loans & Deposits ?

      • Truthist

        Also, for ur convenience, I put the following post again to u for ur helpful answer at ur ease ;
        November 4, 2016 at 4:10 pm

        Tony Brogan,
        That post u have above where bulk is copy of article by Mr. Savage is grippingly good.
        However, I have a bit of a “mind-block” Re; the following passage.
        Please be so kind as to explain elegantly.
        “… the Japanese Central Bank has been … :

        driving up prices
        driving down yields.
        Anyone who owns these assets like it so far.*

        How does the Japanese Central Bank — through buying massive amounts of Shares / Stocks in private companies & thus driving up prices — result in yields being driven down ?
        Above extract slightly redacted by Truthist.

  34. Truthist

    Wonder how Michael O’Leary [ CEO of Ryan Air ] views this “mountie-ing” worldwide problem ;
    Trudeau using majority to ‘ram through’ trans bathroom bill without public input

    Bill C-16 , House Of Commons , Liberal Party , Transgenderism

    OTTAWA, November 3, 2016 (LifeSiteNews) –

    The Liberal transgender “rights” bill is flushing easily through the committee stage in the House of Commons without :
    expert witnesses,
    evidence of any hate crimes or discrimination against so-called transgender individuals,
    a clear definition of what “gender identity” and “gender expression” …

  35. Truthist

    Podesta Caught Throwing Hot Tub Parties With Children:

  36. Truthist

    Huma’s Lawyer Makes First Public Statement, Blames Weiner
    by Tyler Durden
    Nov 1, 2016 8:28 AM
    Meanwhile, as Hillary Clinton continues her last week campaign rounds across America, Huma is keeping a low profile.
    A campaign source told the Post Abedin has been seen at Clinton’s Brooklyn headquarters since the news broke, working as usual.

  37. mike flannelly


    1. Overstated hardships can be balanced with overstated benfits.

    2. Yes. 12 nurses per 1,000 pop as to 8 nurses per 1000 pop. A lot of the 8 in the uk are brilliant irish nurses that work in a better can do envoirnment.

    3. 50% extra nurses with funded or unfunded pensions are a cost. The public sector pension has two portions. The pay as you go contributory portion that ALL irish retired workers have and the pay as you go superannuation portion plus lump sum payments that are not transparent.

    If the Irish workers income tax plus social contributions come to 15bn and the contributory pension portion of the pay as you go system is 5bn then => using 30% as an average tax that 10% of workers salaries(33% of income tax) is for the contributory pension. These might not be the correct figures but it is transparent.

    Superannuation contributions v lump sums/ pension payouts are not transparent. They might balance out with median private pension payouts or they might not. “You cant have unclear costs with public money.”

    4/5 .Time and health are my currency. If I think the right questions need to be asked then i will ask them. Very simple stuff.

    It is a duty of care for our schoolteacher politicians to measure our ALL our public service costs with that of other competitor countries. Ref- Excellent post from Orbie above.

    Overstating the value and costs of select groups is a dereliction of a constitutional duty of care. It is not constitutional for politicians to over-represent select groups, be they be the 64bn Irish failed bankers or the 140bn over borrowed public services.

    All constitutions put the needs and objectives of the greater public good at their core. Politicians cannot go into a room with x colleagues and sign golden contracts with perks that are not transparent and not for the best measurable value to the greater public.

    The constitution of every country overrides any contract that is in conflict of the greater good. Insider deals for public services would be null and void .


    In an Irish court of law, “advice” or “management instructions” are not a defence if you break the law. Politicians cannnot hide behind advice if it is quiet obvious that they ignored basic financial logic.

    Appointing insiders for pay deals would fall into this category.

    The irish citizens want a Ryanair Health service that does the job and can be paid for from current spend and not borrowings/future costs for our children.

    I really believe that the EU can put a real value on national debts and use the current “0%” zone to do a
    ” Financial Reset.”

    “Thats their fucking job “. Fix it if its broke.

    Strict metrics for public service costs.
    Strict metrics for shelter needs.

    Site costs not to be more than 15% of house price.

    Build social housing with 0 % money for families at and below the median wage.

    Have a good weekend.

    • Truthist

      Thanks Mike.

      I do not understand some of it upon quick 1st read ;
      Otherwise, what I understood — & this the bulk of it — is an excellent read.
      Another seminal piece from u Mike that is worth refining until the dullards such as myself understand with gusto even with a hangover which thankfully I do not have because I have forsaken booze.

      The parts I do not understand are the following :
      But, please do not attend to answer in this discussion ;
      Instead, wait for early discussion of next article or a further one if I absent from the discourse, & explain upon my prompt.
      We are truly helping the Irish nation in this pursuit of the truth Mike.

      Enjoy ur weekend too.
      If the Irish workers income tax plus social contributions come to 15bn and the contributory pension portion of the pay as you go system is 5bn
      then => using 30% as an average tax that 10% of workers salaries(33% of income tax) is for the contributory pension.

      Superannuation contributions v lump sums/ pension payouts are not transparent.
      They might balance out with median private pension payouts or they might not.

      4/5 … ?
      Appointing insiders for pay deals would fall into this category.
      I really believe that the EU can put a real value on national debts and use the current “0%” zone to do a
      ” Financial Reset.”
      Build social housing with 0 % money …

  38. mike flannelly

    A Financial Reset by Eu and World govnts would set the interest rate on national debts to zero. Countries to reset core living metrics.

  39. McCawber

    And then having had the great reset.
    We start all over again.
    you better believe it.

  40. We have a similar problem with the fire department here on salt spring Island that has just come to my attention.

    Wages by negotiated union contract are so high that together with pensions amount to nearly 200,000 a year. If there were no fire protection here at all the insurance costs on property would rise. The rise would be small enough that it would only be a half of the current taxes raised for the payment of the fires department.

    local trustees cannot renegotiate the fire dept. contracts because the contract is set in perpetuity. That is the inept government or trustees dealing with the shrewd union.

    The only way to get relief is to dissolve the fire dept. and be rid of it. All residents will be financially better off without the fire dept. than with it.

    Self help health care may be the same. Perhaps the financial situation is better to disband the health care service and go to private service situations.????

    • Truthist


      Marcus Licinius Crassus

      The first Roman fire brigade of which we have any substantial history was created by Marcus Licinius Crassus. Marcus Licinius Crassus was born into a wealthy Roman family around the year 115 BC, and acquired an enormous fortune through (in the words of Plutarch) “fire and rapine.” One of his most lucrative schemes took advantage of the fact that Rome had no fire department. Crassus filled this void by creating his own brigade—500 men strong—which rushed to burning buildings at the first cry of alarm. Upon arriving at the scene, however, the fire fighters did nothing while their employer bargained over the price of their services with the distressed property owner. If Crassus could not negotiate a satisfactory price, his men simply let the structure burn to the ground, after which he offered to purchase it for a fraction of its value. Emperor Nero took the basic idea from Crassus and then built on it to form the Vigiles in AD 60 to combat fires using bucket brigades and pumps, as well as poles, hooks and even ballistae to tear down buildings in advance of the flames. The Vigiles patrolled the streets of Rome to watch for fires and served as a police force. The later brigades consisted of hundreds of men, all ready for action. When there was a fire, the men would line up to the nearest water source and pass buckets hand in hand to the fire.
      Rome suffered a number of serious fires, most notably the fire on 19 July AD 64 which eventually destroyed two thirds of Rome.
      “Boss” Tweed of New York is also worth mentioning

  41. Rigged vote-counting is the Holy Grail of collectivism

    The mantra of collectivism is: “The greater good for the greater number.” The idea is that anything can be justified as proper and moral, even deception, theft, denial of rights, and killing innocent people, if it is claimed that these things are done for the good of society or the nation.

    That is the moral code that allows national leaders to lie about anything and commit horrendous crimes against their own countrymen under the excuse of ‘national security’.

    This week’s news is loaded with evidence that the outcome of next week’s US election will be determined, not by popular vote, but by rigged vote-counting machines. The technology for this dates back to at least 2002 when I produced the documentary, Invisible Ballots. The technology was crude but functional then. Now it is sophisticated and ready for prime time.

    The thing about institutionalized vote fraud that causes many people to think it could never happen is that it requires a large cadre of designers, engineers, manufacturers, and programmers, and it seems unlikely that so many people would conspire to carry out such an irreprehensible task as rigging elections.

    In truth, however, most people in the vote-rigging industry endorse the concept of the greater good for the greater number. They see themselves as social engineers entrusted with the grave responsibility of protecting ignorant voters from electing the ‘wrong’ candidate. They see vote rigging as a duty to the nation. They are proud of themselves and their high-minded task.

    Whether or not these ‘social engineers’ dare to override the true vote on Monday may depend on how one-sided it is and on how successful alternative media is in bypassing mainstream media. If the margin is huge and the exposure is great, even collectivists may have to sound the retreat.

    G. Edward Griffin
    2016 November 4

  42. Truthist

    Hillary Clinton email to Donna Brazille on 17 October 2016,
    “If that fucking bastard wins, we are all going to hang from nooses.
    Youbetter fix this shit.”


    Here’s the 20 things that need to happen if Trump sticks to his word and the SILVER SWAMP is REALLY drained:

    1) The removal of the gigantic concentrated short position on the COMEX Silver market as reported in the CFTC Commitment of Traders and Bank Participation Reports.

    2) The announcement of charges filed by both the CFTC and the FBI against these banks for Silver market manipulation.

    3) The shut down of the iShares Silver ETF (SLV) and the subsequent attempt by SLV investors to transfer their money into physical silver in their own possession.

    4) The implementation of REALISTIC COMEX Position Limits in Silver of no more than 1,500 contracts and the enforcement of the Disruptive Trading Practices law.

    5) The winding down of the outrageous and manipulative Silver derivative positions held by JP Morgan and Citibank as reported by the US Office of the Comptroller of the Currency.

    6) The mass redemption of paper Silver currently held in Pooled Silver Accounts and Silver Certificate Programs into physical silver held in the possession of the owner.

    7) The Silver to Gold Price Ratio reflects the true physical relationship between above ground gold and above ground silver that is available for sale on a free and open market.

    8) The realization by industrial users of silver that the supply of physical silver is rapidly depleting and with the future of producing their products in jeopardy they begin stockpiling physical silver.

    9) The reversal of Silver’s ever increasing use in industrial applications due to either high prices or the discovery of a viable substitute with similar physical properties and attributes.

    10) The realization by the remaining 99.9% of the investing public that does not currently own any physical that Silver is extremely undervalued and should be held by all investors interested in portfolio safety and value appreciation.

    11) Acknowledgment by the Bullion Banks and US Government that they have been involved in the price suppression of Silver for over 50 years in order to support and extend the global confidence in un-backed fiat US Dollar.

    12) All Silver statistical reporting companies have completely revised their historical numbers to reflect the true supply/demand realities of the past and admit to the massive annual physical silver deficit going forward.

    13) The USGS alerts the world to the reality that at the REAL current Silver consumption rates there is less than 15 years of known below ground Silver reserves remaining in the world.

    14) The realization by investors that significant increases in the price of Silver would not curtail industrial demand as silver is mostly used in very small amounts in each product produced.

    15) The mainstream media highlights that the investment drivers for Silver far out weight the investment drivers for Gold.

    16) The US Mint starts to produce US Silver Eagle coins “in quantities sufficient to meet demand” and no longer illegally rations their dwindling supply.

    17) When investors stop saying that silver is “too hard to store” and start worrying that silver is “too valuable to leave in a bank’s safe deposit box”.

    18) When Central Bankers around the world stop printing money every time there is a “bump in the road” on their never ending quest to foster perpetual growth and end the extraordinary transfer of wealth from “the many” to “the few”.

    19) The US Government and the Citizens of the United States recognize and acknowledge that Article I, Sec. 10 of the US Constitution specifies that only gold and silver coin can be legally used as money and the Coinage Act of 1792 defined the US Dollar as “three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver.”

    and finally…

    20) The price of silver has risen so high that it has fulfilled all my hopes and aspirations as an investor and I can now sit back and enjoy those other pleasures of life that I had put off in pursuit of FREEING THE SILVER MARKET FROM THE CLUTCHES OF MANIPULATION! Mr. TRUMP…Drain the Silver Swamp! by Bix Weir Come on Mr. Trump…follow up your words with ACTION and remove the silver price manipulators!

    May the Road you choose be the Right Road.

    Bix Weir

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