Joined up thinking for the Irish Left
We Make Our Own History: Discussion and Book Launch Mon Nov 16, 2015 13:59 | Laurence Cox
Reflections on Water Movement and Right2Change Development Tue Nov 10, 2015 14:31 | Jimmy Dignam
November Socialist Voice is Now Available Online Mon Nov 09, 2015 21:49 | Communist Party of Ireland
Championing the Self-Employed Thu Nov 05, 2015 22:51 | Michael Taft
Begruding the Recovery Tue Nov 03, 2015 15:36 | Michael Taft
Irish Left Review >>
Kautsky â€“ The crisis of capitalism and the shortening of working time Mon Nov 09, 2015 22:34 | James O'Brien
How to do better things with words Fri Oct 23, 2015 07:38 | modulus
Syriza and Israel: Syrizaâ€™s response Thu Aug 20, 2015 18:10 | yeksmesh
What does a Corbyn victory mean? Tue Aug 18, 2015 00:32 | Sami El-Sayed
SYRIZA: Was capitulation inevitable? Fri Jul 17, 2015 14:14 | Sami El-Sayed
Spirit of Contradiction >>
Interested in maladministration. Estd. 2005
Tom Lyons: A journalist unlikely to ask the tough questions
Breaking news: Sinn Fein responsible for IBRC farce Anthony
Atheist Ireland banned while Iona Institute enjoys full access to schools Anthony
Political lies cause suffering and death. Enda Kenny is a political liar Anthony
Why the State is targetting Sinn Fein Anthony
Public Inquiry >>
A bird's eye view of the vineyard
Putin, Hollande speak after Moscow talks LIVE Thu Nov 26, 2015 19:43 | Scott
Putin and Hollande give a joint press conference following their meeting – English Audio Video starts at 0:33 seconds
Military Review ? Syria, Nov. 26, 2015 Thu Nov 26, 2015 18:18 | Scott
Help produce more actual and interesting content, join our struggle by donating via PayPal: email@example.com or via: http://southfront.org/donate/ On November 25 Russian Aerospace Forces destroyed Turkish convoy arrived in border
The air navigator of the SU-24: ?I have a debt to repay for the Commander? Thu Nov 26, 2015 16:26 | Scott
INTERVIEW: The air navigator of the SU-24: ?I have a debt to repay for the Commander? Today at the Latakia air base Konstantin Murakhtin, an air navigator of the Russian
Life in Crimea 20 months after reunification with Russia ? by Auslander Thu Nov 26, 2015 14:28 | Saker-Admin
Auslander provided thesaker.is with the very well received USA SITREP . He was subsequently asked if he could provide a reciprocal glimpse into life in Sevastopol. He kindly agreed and
The Saker Community Announcement on the Essential Saker Book and the Call for Networking Help Wed Nov 25, 2015 17:40 | Scott
Dear friends, I just want to give you a brief update on the Saker?s book sales. As you know, it had launched on November 17th and to our pleasant surprise
The Saker >>
The Crisis Legislation on the Promissory Notes
Promissory Notes to Government Bonds
The recent bonds-for-notes overnight legislation
Austerity is a sham. Debt is economics for the ‘little people’. If the people produce the wealth then why are they always poor and/or paying back debts? Because the national and international wealthy lend us back the money (with interest) they have taken out of society in the form of profits to fill in the gap they created in the first place. Thus we are triply exploited: We are taxed on wages, alienated from wealth created (profits) and we pay interest on the money borrowed from the wealthy to pay for the capital and current expenditure needed for the maintenance of society.
When there is an economic crisis caused by this constant draining of the wealth from the economy, the ‘experts’ then debate the best way to impose cutbacks to get us back on to ‘the road to recovery’. This would be funny if so many people were not caught up in the sea of unemployment and subsistence living. Furthermore, any rejection of these ‘debts’ will not be countenanced by the elites who oversee the ‘debt repayments’ by the ‘little people’.
If one form of debt repayment (promissory notes) is seen to be dodgy and possibly unsustainable (due to legalities or public repugnance) then legislation is rushed in overnight to convert the ‘debt’ in to a more acceptable form – the government bond. That was the situation this week in Dublin. How did this come about?
“In 2010 the banks that were then Anglo Irish Bank and Irish Nationwide (now Irish Bank Resolution Corporation or IBRC) required around €30.06 billion in additional cash from the State because of their perilous state in the aftermath of the collapse of the property market.
Finance minister Brian Lenihan wrote a promissory note to the IBRC – basically saying “We owe you €31 billion” – which the bank used as collateral to borrow from the Cental Bank of Ireland’s emergency liquidity assistance (ELA) fund. Under the agreement, the State agreed to pay €3.06 billion every year to the IBRC until 2023 and smaller payments after that to satisfy the principal and the interest.
But creating cash or monetary financing is a no-no as far as the European Central Bank (ECB) is concerned. Its founding principles – the Maastricht Treaty – dictate that EU member states cannot finance their public deficits by printing money.
As Stephen Donnelly, who has been vehemently opposed to the promissory notes, points out: “[It] would certainly have run afoul of Europe’s two directives: That no European bank would fail and that the potential losses and lost profits of senior investors would be paid in full by the public.”
One of the options put on the table by Ireland has been to swap the notes for a long-term government bond – possibly sourced from the ESM – with the repayments spread over 40 years. What’s all this about? Well our dear Taoiseach Enda Kenny probably describes it best when he recently said it would be like switching “from a serious overdraft to a long-term, low-interest mortgage”.” 
You see, the appalling vista for the ECB would be the loss of control over the supply of money and the knock-on effect this would have on the markets if every government in the EU were to do the same. Therefore, bonds-for-notes legislation was brought in overnight in Dublin to wind up the IBRC and put the repayments on a more stable, ‘normalised’ footing. The Taoiseach Enda Kenny told the Dáil:
“The first principal payment on these bonds will be made in 25 years time, 2038, with the final payment being made in 2053. The average maturity of these bonds will be over 34 years rather than the 7 – 8 years on a promissory note.” 
It was also noted that "the average interest rate on these bonds will be 3 per cent, compared to 8 per cent on the promissory notes.” 
Sure the children and the grandchildren of the ‘little people’ can pay the ‘debt’ instead! This was confirmed by the Minister for Finance Michael Noonan who said that the deal on bank debt secured by the Government "eases the burden on everybody" (except their unsuspecting children). 
The Anglo: Not Our Debt campaign spokesperson, Andy Storey, described the debt as “illegitimate – it was accrued to pay off the speculators who gambled their money on a dodgy bank now under criminal investigation, it is not the debt of ordinary people and should under no circumstances be reclassified as ‘sovereign’”. He also stated that rushing “emergency legislation through the Dáil and Seanad this evening on this basis, this would be “devious and undemocratic – instead of having a proper, informed debate about this hugely serious issue the government would be railroading through legislation that would see people living in Ireland take formal responsibility for debts that are not theirs to pay”.” 
As if that wasn’t bad enough, Eurostat, the EU Commission’s data agency, has calculated the cost of the banking crisis in each EU country and according to Michael Taft, Ireland just edges “out Germany for the dubious title of spending the most on the banking crisis. €41 billion to date according to the Eurostat accounting data (this doesn’t count the billions ploughed into the covered banks from our National Pension Reserve Fund as this was not counted as a ‘cost’ to the General Government budget). […]The European banking crisis to date has cost every individual in Ireland nearly €9,000 each. The average throughout the EU is €192 per capita. […] The Irish people have paid 42 percent of the total cost of the European banking crisis.” 
It’s no wonder Angela Merkel declared that Ireland was a "special case" for a bank debt deal. To revise Churchill’s famous words – ‘Never was so much owed by so few to so many’.