Mayer Amschel Rothschild, founder of the Rothschild banking dynasty, is said to have declared: “Permit me to issue and control the money of a nation, and I care not who makes the laws”. The implication is that parliaments can talk about laws or indeed change them, but the real power in a country or a city lies with whoever controls the money. Everything flows from this.
The story of Rothschild’s ascent from the closed, embattled, ghetto – the Judengasse of Frankfurt – to the seats of power in London, Paris and Madrid is one of the most fantastic entrepreneurial odysseys imaginable. His ability, courage and daring were extraordinary and he took advantage of exceptional circumstances and world-shattering events.
His impulsiveness, added to luck and an appreciation of the tectonic shifts taking place in the global economy from 1780 together with an understanding of the power and autonomy of money, underpinned Rothschild’s success; he who controls the money, controls the game.
The corollary is also true: without control over money, it doesn’t matter how much you talk or dream of improvements, or how many grand designs you may imagine, because nothing will come of it when you don’t have financial sovereignty. Someone else will always make the final decision.
This iron law of money is the case for an individual, a country or indeed a city, which brings me to Dublin and its financial autonomy.
Dublin is by far the biggest source of revenue for the State. In total, €22 billion in tax was raised in Dublin in 2017. This represents 56 per cent of the State’s total tax take, despite having only an estimated 38 per cent of the country’s population.
No control
Dublin accounts for 61 per cent (€7 billion) of VAT receipts; 52 per cent (€8.5 billion) of PAYE/USC income tax; 45 per cent (€1.1 billion) of self-employed income tax; 62 per cent (€5 billion) of corporation tax receipts, and 43 per cent (€360 million) of capital gains tax receipts.
While Dublin generates €22 billion in revenue, only €16 billion of this is spent in Dublin. Despite generating all this tax revenue, Dublin can’t raise one cent for itself or its own initiatives. It has no control over its own finances and therefore Dublin local government needs to go cap-in-hand to central government and the Dáil, dominated by representatives from outside Dublin who raise their hackles at large, necessary infrastructure projects for the capital, arguing that money is being “diverted” to Dublin, when the opposite is the case.
As a consequence, Dublin is emasculated. It has no means to finance itself and all its ambitions are dependent on central government, which is loath to concede commercial power to the city over its finances. As a result, Dublin’s infrastructure is creaking, our housing problem persists and deteriorates and, most importantly, the buck stops with no one.
There is a way to solve this and it is through issuing a Dublin municipal bond or a DMB. The bond would be a long-term IOU issued by a revamped Dublin City Council under the auspices of a directly elected mayor with executive powers. This is a common way of financing a city.
The Nordic countries encourage their cities to raise green-bonds. These are issued to cover specific environmental initiatives such as cycling lanes, new transport investments or the roll-out of green buildings and homes.
In the US, local and city governments raise their own money through the issuing of municipal bonds backed by city taxes to finance city-specific infrastructure.
Breaking free
Once the city has a pot of its own money, raised from its own citizens, it becomes answerable to its own citizens, thereby strengthening local government enormously. The mayor of the city becomes a financially significant individual, and the process of breaking free from central power begins. The first way to decentralise is to decentralise the budget.
In the US, local government has issued $249 billion (€218 billion) worth of municipal bonds in the first nine months of the year. There are more than 50,000 different state and local government authorities’ issuers. An average of $442 billion (€388 billion) in new municipal securities was issued per annum over the past decade.
This money is used to pay for large-scale public investment such as roads, hospitals and schools.
The overall size of the US municipal bond market stands at roughly $3.85 trillion (€3.38 trillion) – that’s about nine times Irish gross domestic product. The biggest owner of municipal bonds in the US is average households, accounting for roughly $1.6 trillion (€1.4 trillion) or 42 per cent of outstanding municipal bonds.
We could do what the US does and give significant tax benefits to these bonds. Interest payments from municipal bonds are typically exempt from federal income taxes if you are resident within a given issuer’s jurisdiction.
So, if you live in New York City and hold a local municipal bond, you can enjoy a steady stream of tax-free interest payments. Imagine the take-up of a Dublin bond from the estimated €90 billion on deposit in Irish banks, yielding nothing.
Raise money
In the US, aside from the obvious appeal of muni bonds associated with their various tax exemptions for residents, they typically offer an attractive yield, comparable to high-grade corporate debt, but with a better credit rating.
A Dublin municipal bond could trade anywhere within the European monetary union. These would soon be liquid securities, attracting traders as well as investors.
In fact, given the tax base in Dublin vis-a-vis the rest of the country, a DMB would have a higher credit rating than an Irish government bond. This would give the city ample scope to raise money.
It is not hard to see how raising a Dublin bond would be good for the city and Irish investors. The annual interest on the bond could be paid by property taxes, rendering income generated from excessive Dublin property available to the rest of the city in infrastructural projects.
This economic logic slams into the political rock of Rothschild’s observation about money and power. Is Ireland’s hyper-centralised system of government ready to set Dublin free in a world where cities, not countries, are in competition with each other for companies, talent and capital?
I’m not sure the rest of the country is ready for this – more’s the shame.
Expert evaluation
Each of the proposals in this “Capital Ideas” series has been put to a group of three experts for an initial “back of an envelope” evaluation. They are: Frances Ruane, former director of the Economic and Social Research Institute; Caroline Spillane, director general of Engineers Ireland; and Cliff Taylor, Irish Times economics columnist.
Caroline Spillane, director general of Engineers Ireland
This idea has definite merit. There are very many examples of this model working in Europe and further afield. Dublin city competes with numerous cities overseas and it is important for Dublin to have investment so that it can compete on an international level.
If Dublin could raise its own finances, this might free up capital for investment from central government in other areas of the country.
However, there will always be an effective subvention from the capital to other areas, where providing services such as broadband requires more investment.
Cliff Taylor, Irish Times economics columnist
An interesting one. This requires a fundamental recasting of the role and powers of a local authority. Debt raising has been the preserve of national government. This again requires powers to devolve from the centre to local level.
The cost is hard to quantify. It is important to ensure that Dublin debt would not cost more to raise than national debt. And this requires a guaranteed income flow to make repayments. Local property tax would be one source, but more revenue raising powers would need to devolve to Dublin as well. The idea of local people investing in bonds from their local area is interesting.
Would the benefit outweigh the cost? It would all depend on the efficiency of raising the money and of spending it.
It is unlikely to fly politically in a country where Dublin is already seen as getting the bulk of the economic recovery dividend. But some way needs to be found to address the huge investment deficit in Dublin more quickly.
Frances Ruane, former director of the Economic and Social Research Institute
This idea focuses on new financial resources. Many cities issue bonds successfully, so there is good evidence on how this might work in Dublin and there is expertise nationally (in the National Treasury Management Agency, for example) that could be drawn on.
But the first step is to have the right projects for funding and Dublin City Council is starting from a very challenging place, given the boom/crash/boom sequence since 2000.
Assuming that the right projects were identified, the cost of implementing this proposal should not be significant.
Hi David,
I know you are just trying to stimulate debate, but, it is my personal view that the flaws of your argument are both numerous and potentially very costly. For instance, past performance, cost of appropriate human resources to govern, natural justice, and, hard logic.
Ed.
OK I’ll take the bait – someone should have told government the story of Rothschild before joining the Euro.
Raising a municipal bond is just another way of going into debt. It also transfers capital to a government use rather than private investment use, which is more efficient for the overall economy. Note also that the interest on the bonds and the eventually repayment of the bonds, if honoured, will fall upon the backs of the property owners, David’s latest taxing target. Talking of money and the observation of Rothschild that he who controls the money supply controls the nation………. You have never seemed to notice that all money is controlled by the likes of Rothschild and far from… Read more »
David
The idea is an excellent one and merits consideration. When
you see the standard of financial control exercised by the politicians
in this country, it would the same as. given them a hand granade to
mind. Great strategy but dangerous
Dublin generates more tax because there are more jobs there. An enormous number of people commute to work in Dublin every day because there are no jobs locally. There are far fewer jobs in rural Ireland now than there were 20 years ago. Consider the number of people who commute from rural areas (sometimes as far away as Cavan and Laois) to Dublin to work. Consider the contribution their taxes make to the 56%. Subtract that amount from the 56%. That is a more realistic estimate of what Dublin contributes and it is probably more in line with the tax… Read more »
Economic measurements are a very false method to try to measure the ‘good productivity’ of a society. Just because a city rates high on some economic measurements favourable to bankers, politicians, corporate media and other blood sucking parasites does not mean that the society is not being grossly misdirected into wasting resources and creating all types of anti social anti human products and services which give very poor return to society and community, or more likely are undermineing society and and community over time. Western developed cities have huge percentages of unhealthy physically sick and mentally sick people. Some sick… Read more »
The same logic could be used on a socio-economic basis.
Travellers produce how much of the power-state’s tax revenue. And Travellers get how much in return for welfare. Given that an unusually high proportion of Irish Travellers live in Midlands towns like Portlaosie, Navan, Athy, Tullamore, Atlone, Tuam, Ballinasloe, surely these towns and their respective counties should be cut off from the tax revenue collected east of Leixlip ?
A Municipal bond backed by Dublin’s politicians…..what could possibly go wrong ?
Maybe CIE (Continual Incompetence, and Excuse-making) should issue their own bonds ? That would make far more sense. Even the CIE management have standards of crediblity. The politicians dominating local politics in the 4 Dublin local authorities are amateurs even on their better days.
Hi David, The argument does not stack up. Much of the taxes , income tax , vat etc collected in Dublin, are from people who live outside Dublin and are forced to spend and work in Dublin. Also, does your tax percentage include things like – all the fleet taxes collected on D reg vehicles for national service for example? What about other revenues collected by Dublin based business from the rest of the country yet “collected in Dublin” ? Dublin is very dependant on revenues from other parts of Ireland in many ways. And it gets its share plus… Read more »
Its never good when the first line of an article is a fallacy. The internet is awash with erroneous quotes, misattributed to various persons throughout history. One of the most famous ones is the so-called Einstein Quote “The definition of insanity is doing the same thing over and over while expecting different results.” There is actual no evidence that Rothschild ever utter “Permit me to issue and control the money of a nation, and I care not who makes the laws” and was never contained in any of his writings. This lazy approach to research sets the tone for the… Read more »
I know I joked about it before with you, but due to the extent of the housing crisis, traffic problems and crime in Dublin, I think it’s time we consider a devolved government for Dublin possibly in a federal Ireland, I’m not sure anymore if a Directly Elected Mayor will cut it!
You did not mention the home tax which was supposed to finance municipal services. If Dublin had the use of its home tax it would not need bonds.
So after 25 years (or 30 even) of slaving to pay off the crippling debt to a bank to own a crappy house you then get hit up by a new extortionist -the state. Property tax is an abomination. It means you never own your own home. If you don’t pay they will ultimately take your home by force and sell it out for under you to extract their cut that they demanded with menaces in the first place.
So much for private property and the free market.
Hi, Here is my off the cuff ill thought out response. (I miss grezgorge). The hecklers are in fail Eireann to remind people who live in Dalky that Dublin is Ireland, not west Britland or greater England but Ireland. Money raised through bonds is borrowing money already borrowed into existence. If they issued there own currency then maybe you might be onto something. “The corollary is also true: without control over money, it doesn’t matter how much you talk or dream of improvements, or how many grand designs you may imagine, because nothing will come of it when you don’t… Read more »
A Municipal bond backed by Dublin’s politicians…..what could possibly go wrong ?
Deco gets it spot on.
A directly elected mayor, in the Irish context, is just jobs for the boys and their cronies.
Cities issuing bonds successfully is the easy bit, it’s like politicians making promises.
How many cities went bankrupt in the states, presumably because they didn’t fulfil their obligations regarding the bonds, a bit like not keeping promises.
No More Debt.
DUSTY SPRINGS ETERNAL YEARNING TO FIELD A MAYOR WHO WOULD WOE BETIDE COMMUNISM-ROTHSCHILDIZM. NOTE ; Re ; HOUSING CRISIS > HOMELSESSNESS CRISIS > HOMELESSNESS + ROOFLESSNESS CRISIS DISTRIBUTION AS “LIFE-TIME” MOBILE PRIVATE PROPERTY OPTIMAL HOUSING MODULE SPACES FROM PUBLIC PROPERTY TO EACH HOMESTEAD-DEPARTED CITIZEN IS THE SOLUTION TO DUB-LAND’S, & REMAINDER OF IRE-LAND’S, HOUSING SECURITY NOT “PUBLIC HOUSING” PER SAY ! BUT, YES, THAT SPACE CAN BE POSSIBLY LOCATED INTO A SHELL OF PUBLIC-HOUSING IF NECESSARY. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> “Currently-Ever-So-Talentless-AND-Crude” Dub-Land, & the remainder of Ire-Land too, are incapable of producing an essentially benign character such as this “Son of a Preacher-Man”… Read more »
ATTENTION MIKE FLANELLY ! Yes, Mike, I should have qualified my recent praise of Tony Brogan as distinctively meritorious on this Blog for highlighting the ongoing Mother of Syndicate Crimes & proffering various workable improvements, if not solutions, for it as worth long overdue honest discussion by our Bourgeois Very-Talented Word-Smithery Journalisto Pseudo-Economistos ; Ur own continual investigations & revelations thereon of our Civil Serve-Piss is also distinctively meritorious ; And, very local to the shore. Ditto Deco’s questioning of the Institutional State of the Irish State. And, there being others too worth mentioning for their great work here e.g.s… Read more »
Tony Brogan will like this quote ;
So applicable for Philosophers > Moral Philosophers > Economists > Philosphists_Moral Philosophists_Pseudo Economists
8-)
“It is difficult to get a man to understand something when his Salary is dependent upon his not understanding it.”
Ref.
Upton SInclair
ALL PART OF THE MOTHER OF SYNDICATE-CRIMES [ PRIVATE CENTRAL BANKING ; i.e. ROTHSCHILDIZATION ]
.
The scene discussed below in the youtube video has always existed in Irish State ;
Even from very beginning of the State.
.
Note ;
I disagree with some of what the interviewee says.
.
https://twitter.com/jamesperloff/status/1058879936826691584?ref_src=twsrc%5Etfw%7Ctwcamp%5Eembeddedtimeline%7Ctwterm%5Eprofile%3AHenryMakow%7Ctwcon%5Etimelinechrome&ref_url=https%3A%2F%2Fwww.henrymakow.com%2F
DAS KAPITAL IDEAS
Give all Irish Aborigine Emigrants a Mastercard with generous Kallergi-Agenda Balances loaded onto them ;
https://twitter.com/jamesperloff/status/1058879936826691584?ref_src=twsrc%5Etfw%7Ctwcamp%5Eembeddedtimeline%7Ctwterm%5Eprofile%3AHenryMakow%7Ctwcon%5Etimelinechrome&ref_url=https%3A%2F%2Fwww.henrymakow.com%2F
On the website Slugger O’Toole comes an interesting little post:
“The end of Catholic Ireland”
https://sluggerotoole.com/2018/11/08/the-end-of-catholic-ireland-esrcfestivalni/
Well – if we can survive the Borgia’s, Napoleon and Hitler then Pope Leo V.2 should not be a problem.
AH YES
=> THE BANKERS MOTTO
.
.
-> “I care not who makes the laws”
HOW TRUE DAVID
-> BUT DO WE NEED MORE OF THAT?
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MONEY IS DEBT
DEBT => CONTROL
MASS CONTROL => POWER
.
.
TO QUOTE TONY BLAIR
-> “WHAT TO DO IN A POST WESTPHALIAN WORLD?”
-> UN AGENDA 21?
http://www.un.org/esa/population/publications/migration/migration.htm
-> NEED HELP?
.
.
=> FOLLOW THE MONEY
https://www.youtube.com/watch?v=_2_-21bdGe4
1_ CHESS MASTER OF KINGS = ROTHSCHILDS _ _ 2_ KINGS = The following Hierarchy ; _ 2_1_ FREEMASON CONCEPT FOR EUROPE / EU > 2_2_ IRISH STATE_FREEMASONRY IN IRELAND_ _ 2_2_1_ SURFACE _ e.g.s _ FREEMASONRY LODGES THEMSELVES + LEGISLATURE – EXECUTIVE – JUDICIARY viz. LEGISLATURE DAIL + certain Members of European Parliament [ MEPs ] + SENATE + LOCAL COUNCILS _ EXECUTIVE i.e. DRINKS CABINET / ….. 8-) CLOSET Ministers + Civil SERPENTS + JUDICIARY ; ” And, heck, do we have very corrupt Judiciary !” _ + GOLF FRATERNITY _ + RUGBY FRATERNITY _ + _ now… Read more »
What is evident to me is that over the last year there is scarcely an economic opinion or position offered by DMW that has any support from the regular bloggers here. Why is that do you suppose.? Are we so radical or are we mainstream ? Is DMW so correct and we so wrong. I put my bet on the thinking rational beings who critic and analyze the world they see and arrive at logical conclusions. It is time to spread these conclusions wider and go on the attack rather than the defense. So thanks to GOLDBUG for the video… Read more »
https://www.davidicke.com/article/504334/state-weaponizes-education-create-ignorance-2
The State weaponizes education to create ignorance
JON RAPPOPORT 3 days ago
Mind Control World News Guest Content
Have you lost your logical, critical thought process? it ever developed? Have you lost your children to the beehive minded matrix?
PC = Political CONTROL
What entity can be fined 35,billion, yes billion yet still make so much money that it the 35 billion is merely a cost of doing business. They are involved with the total manipulation of the financial markets. Totally corrupt but at the governments behest. ——————————————- The Bottom Line All in all, JP Morgan was fined $35,241,500,000 in a three-and-a-half year period. Nearly all of the penalties were tied to the financial crisis and the company’s promotion and use of mortgage-backed securities. The issues go beyond what we have outlined above, as the company still has a fair amount of ongoing… Read more »
http://www.gata.org/node/18608
The oldest money is still good money.
The Golden inflation stimulation
https://dailyreckoning.com/the-united-states-is-going-broke/
New business for Dublin.
Gold Core plans new PM vault for Dublin
http://www.gata.org/node/18610
Your article helped me a lot, is there any more related content? Thanks! https://www.binance.com/pl/register?ref=GJY4VW8W