Upcoming Events

National | EU

no events match your query!

New Events

National

no events posted in last week

Blog Feeds

Anti-Empire

Anti-Empire

offsite link Sanctioned by PayPal Thu Aug 04, 2022 21:31 | Anti-Empire

offsite link Spain Limits Heating to 19ºC, Cooling t... Tue Aug 02, 2022 11:39 | Associated Press

offsite link WHO Declares Monkeypox a “Global Healt... Sat Jul 23, 2022 21:01 | Apoorva Mandavilli

offsite link Zelensky Says Ukrainian KIA Down From Pe... Sat Jul 23, 2022 18:13 | Anti-Empire

offsite link German Health Ministry: 1 Severe Adverse... Sat Jul 23, 2022 11:25 | Matthew Roscoe

Anti-Empire >>

Human Rights in Ireland
A Blog About Human Rights

offsite link UN human rights chief calls for priority action ahead of climate summit Sat Oct 30, 2021 17:18 | Human Rights

offsite link 5 Year Anniversary Of Kem Ley?s Death Sun Jul 11, 2021 12:34 | Human Rights

offsite link Poor Living Conditions for Migrants in Southern Italy Mon Jan 18, 2021 10:14 | Human Rights

offsite link Right to Water Mon Aug 03, 2020 19:13 | Human Rights

offsite link Human Rights Fri Mar 20, 2020 16:33 | Human Rights

Human Rights in Ireland >>

Lockdown Skeptics

The Daily Sceptic

offsite link California is Now a Woke Basket Case Whose Rich and Poor Are Fleeing Alike Sun Aug 07, 2022 14:32 | Will Jones
Woke, authoritarian California has become a basket case state where no one (except illegal immigrants, who get showered with freebies) wants to live.
The post California is Now a Woke Basket Case Whose Rich and Poor Are Fleeing Alike appeared first on The Daily Sceptic.

offsite link The NATO Bombing of Helmand Province Was Not ?Defensive? Sun Aug 07, 2022 10:12 | Noah Carl
It has been claimed that NATO's operation in Afghanistan was "defensive". However, it is unclear how the 2007 bombing of Helmand province, which killed at least 45 Afghan civilians, was in any way "defensive".
The post The NATO Bombing of Helmand Province Was Not ?Defensive? appeared first on The Daily Sceptic.

offsite link The BBC?s ?Big Oil vs The World? Documentary Failed to Provide a Shred of Evidence to Support its Al... Sun Aug 07, 2022 09:00 | Anonymous
The BBC recently broadcast the series "Big Oil vs The World" alleging that the oil and gas industry deliberately disseminated climate misinformation. But in three hours not a shred of evidence was presented.
The post The BBC’s “Big Oil vs The World” Documentary Failed to Provide a Shred of Evidence to Support its Alarmist Claims appeared first on The Daily Sceptic.

offsite link Covid Vaccination Offers No Protection Against Hospitalisation, Official U.K. Data Suggest Sun Aug 07, 2022 07:00 | Amanuensis
The latest official UK data from the UKHSA show Covid hospitalisation rates among the vaccinated the same or higher than among the unvaccinated, suggesting no protection is being provided.
The post Covid Vaccination Offers No Protection Against Hospitalisation, Official U.K. Data Suggest appeared first on The Daily Sceptic.

offsite link News Round-Up Sun Aug 07, 2022 00:40 | Will Jones
A summary of all the most interesting stories that have appeared about politicians? efforts to control the virus ? and other acts of hubris and folly ? not just in Britain, but around the world.
The post News Round-Up appeared first on The Daily Sceptic.

Lockdown Skeptics >>

Voltaire Network
Voltaire, international edition

offsite link Voltairenet.org is taking a hiatus Thu Jul 14, 2022 20:47 | en

offsite link Paradoxes of Russophobia Thu Jul 14, 2022 12:46 | en

offsite link EU-Russia agreement on supplying Kaliningrad Thu Jul 14, 2022 12:26 | en

offsite link Political destabilization plagues the West Thu Jul 14, 2022 05:40 | en

offsite link Ukraine destroys its Nova Kakhovka factory Wed Jul 13, 2022 07:53 | en

Voltaire Network >>

The Recession, Bank Bailout or our Deficit?

category national | eu | opinion/analysis author Tuesday May 01, 2012 09:27author by Sonya Oldham - The People's Association Watchdogauthor email irelandpaw at gmail dot com Report this post to the editors

Does the Fiscal Compact Treaty Deal with the Cause of the Crisis?

Does the Fiscal Compact Treaty Deal with the Cause of the Crisis? What Caused the Crisis? The collapse of the Irish banking system was principally caused by a failure of regulation and the reckless lending practices of the Irish and European banking system.

According to the Banking Enquiry: Financial integration in the euro area allowed banks in Ireland unprecedented access to cross-border funding. As in many smaller EU economies the entry of foreign banks intensified competition in lending. The banks’ ability to borrow cheaply in international wholesale markets created a ‘capital flow bonanza’ which has been observed to markedly increase the likelihood of a banking crisis within the receiving country. This clearly happened in Ireland.

According to the Assistant Director General,  Financial Institutions Supervision, Central Bank of Ireland:

In the 2000s, it is clear that the low ECB policy rate facilitated the growth of property prices in Ireland.

There was also no direct regulation of credit limits, for example through restrictions on LTV ratios.  This meant that Irish households were able to accumulate liabilities more easily than consumers in countries where there was stricter regulation. A contributing cause of the crisis was that bank governance and risk management were weak – in some cases disastrously so.

It appears that internal procedures were overridden, sometimes systematically. There is a need to probe more widely the scope of governance failings in banks and whether auditors were sufficiently vigilant in some episodes.

According to the Banking Enquiry: These supervisory problems must be seen in conjunction with the absence of forceful warnings from the central bank. However, the IMF’s major Financial System Stability Assessment of 2006 also did not sound the alarm.

According to the Assistant Director General,  Financial Institutions Supervision, Central Bank of Ireland: A striking lesson of the global banking crisis is the danger of allowing banks to operate to free market principles within free market economies.

Did Ireland overspend?

According to Paul Murphy MEP: This is simply not the case. In 2007, Ireland’s debt to GDP ratio was 24.8% (Eurostat) - far less than the 60% dictated in the Fiscal Treaty; our general budget was in surplus of 0.1% compared to a target of a deficit of 3%; and our structural balance was estimated by the EU Commission in spring 2008 to be in surplus of 0.2% compared to a target of a maximum deficit of 0.5%. Later on, the structural balance was revised downwards, with the Commission in 2011 saying that Ireland had a structural deficit of 1.4%. So having the strictures of the Fiscal Treaty in place would not have meant we avoided the economic crisis. In fact, the government would have been congratulated on having met the targets so effectively and with such high growth rates! The same is largely the case for Spain and Portugal, which had relatively low levels of public debt in advance of the economic crisis.

How Much is the Bailout Costing?
Bond payments September 2008 to April 2012 were €103.7bn
Bond payments from April 2012 onwards: €40.6bn

TOTAL BOND PAYMENTS (according to Michael Noonan): €144.3bn

THE COST: So far, according to Mr Noonan, the bank recapitalisation is €62.8bn (Anglo/INBS €34.7bn; AIB/EBS €20.7bn; BoI €4.7bn; IL&P €2.7bn). Given that according to Mr Noonan these banks still have over €40bn to pay, there is a good possibility we may have to recapitalise again. Also, this figure does NOT include interest lost on the money taken from the National Pension Reserve Fund, nor the interest we’ll have to pay on the borrowings needed to fund all that recapitalisation.
 
So we can see it was the bank and bondholder payouts that caused our deficit to take a downward spiral so will the Fiscal Compact Treaty be effective?
How can it when it does not deal with the cause of the collapse. The fiscal treaty, if it had been in place, would have been ineffective in preventing this recession as our country was within limits. This is not a crisis caused by government overspending, this is a crisis caused by the lack of financial regulation within Ireland and the EU. Todate we are still living with the moral hazard of the fiscal sector.

According to many leading economists this treaty will in fact make matters worse:

Roubini Global Economics: “In our view, the terms of the fiscal compact require a fiscal adjustment by most Eurozone countries that will significantly undermine their short-term growth prospects. If the treaty is not enforced, it will be positive for Eurozone growth prospects and therefore for fiscal sustainability.”

Vote No to the Fiscal Compact and Demand real solutions to this crisis!

The People's Association Watchdog; www.paw.ie; irelandpaw@gmail.com

Related Link: https://www.facebook.com/groups/133930466736433/
author by defaulterpublication date Wed May 02, 2012 15:59author address author phone Report this post to the editors

Sonya is providing a great information service on this nefarious treaty. Surely Sonya the best option is for the Irish people to follow the example of the people of Iceland and not pay. Basically we need to default. It is not the Irish people's debt so why should we pay the debts of bankers, builders and bondholders.

 
© 2001-2022 Independent Media Centre Ireland. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by Independent Media Centre Ireland. Disclaimer | Privacy