Ukraine Buys Huge Amounts of Russian Fue... Fri Jan 20, 2023 08:34 | Antonia Kotseva
Turkey Has Sent Ukraine Cluster Munition... Thu Jan 12, 2023 00:26 | Jack Detsch
New Israeli Government Promises to Talk ... Tue Jan 10, 2023 21:13 | Al Majadeen
Russia Training Iranian Pilots Ahead of ... Tue Jan 10, 2023 15:19 | The Times of Israel
Lukashenko Abolishes Copyright Protectio... Tue Jan 10, 2023 15:05 | Nikki Main
A Blog About Human Rights
UN human rights chief calls for priority action ahead of climate summit Sat Oct 30, 2021 17:18 | Human Rights
5 Year Anniversary Of Kem Ley?s Death Sun Jul 11, 2021 12:34 | Human Rights
Poor Living Conditions for Migrants in Southern Italy Mon Jan 18, 2021 10:14 | Human Rights
Right to Water Mon Aug 03, 2020 19:13 | Human Rights
Human Rights Fri Mar 20, 2020 16:33 | Human Rights
Human Rights in Ireland >>
News Round-Up Sun Dec 10, 2023 00:31 | Will Jones
A summary of the most interesting stories in the past 24 hours that challenge the prevailing orthodoxy about the virus and the vaccines, the ?climate emergency? and the supposed moral defects of Western civilisation.
The post News Round-Up appeared first on The Daily Sceptic.
Academic Who Suggested ?Blowing up? Jewish Labour Conference Venue Stripped of Honorary Titles Sat Dec 09, 2023 15:00 | Will Jones
A retired sociology professor has been stripped of her honorary titles by two universities after suggesting on social media that someone should "blow up the venue" of a Jewish Labour conference.
The post Academic Who Suggested ?Blowing up? Jewish Labour Conference Venue Stripped of Honorary Titles appeared first on The Daily Sceptic.
The Ukrainian War Can Only End in a Peace Deal Sat Dec 09, 2023 13:00 | Will Jones
Should Volodymyr Zelensky continue to fight endlessly in pursuit of a comprehensive defeat of Russia which may be unattainable ? or should he consider cutting his losses and reaching a compromise?
The post The Ukrainian War Can Only End in a Peace Deal appeared first on The Daily Sceptic.
IPCC Scientists Demand Power to Dictate Global Climate Policy Sat Dec 09, 2023 11:00 | Will Jones
Scientists at the UN's Intergovernmental Panel on Climate Change have demanded the power to set global climate policy as they despair at the slow pace of climate action.
The post IPCC Scientists Demand Power to Dictate Global Climate Policy appeared first on The Daily Sceptic.
Last Chance to Get Tickets to the Weekly Sceptic Live Sat Dec 09, 2023 09:00 | Toby Young
Only eight £25 tickets remain for the Weekly Sceptic Live at the Hippodrome on Monday. Doors open at 6.30pm, the show goes up at 7pm and comes down at 9pm. £25 for a two hour West End show is an absolute steal.
The post Last Chance to Get Tickets to the Weekly Sceptic Live appeared first on The Daily Sceptic.
Lockdown Skeptics >>
Voltaire, international edition
Qatar, the Muslim Brotherhood, Hamas and Israel, by Thierry Meyssan Fri Dec 08, 2023 05:39 | en
Samantha Power in Gaza Thu Dec 07, 2023 06:51 | en
On October 2, insiders bet on decline of Israeli economy Wed Dec 06, 2023 11:32 | en
The New York Times seeks to demonstrate that Netanyahu and Hamas are not complic... Fri Dec 01, 2023 02:40 | en
What lies behind Benjamin Netanyahu's lies and Hamas's evasions, by Thierry Meys... Tue Nov 28, 2023 06:58 | en
Voltaire Network >>
The Recession, Bank Bailout or our Deficit?
Tuesday May 01, 2012 09:27 by Sonya Oldham - The People's Association Watchdog irelandpaw at gmail dot com
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; firstname.lastname@example.org