The Party and the Ballot Box Sun Jul 14, 2019 22:24 | Gavin Mendel-Gleason
On The Decline and Fall of The American Empire and Socialism Sat Jan 26, 2019 01:52 | S. Duncan
What is Dogmatism and Why Does It Matter? Wed Mar 21, 2018 08:10 | Sylvia Smith
The Case of Comrade Dallas Mon Mar 19, 2018 19:44 | Sylvia Smith
Review: Do Religions Evolve? Mon Aug 14, 2017 19:54 | Dara McHugh
Spirit of Contradiction >>
Interested in maladministration. Estd. 2005
Catholic Church: Dark influence still active
Tom Parlon launches new career in comedy Anthony
Presumption of innocence does not universally apply in Ireland Anthony
The poor standard of Irish political journalism Anthony
RTE bias: A failure of objective journalism Anthony
Public Inquiry >>
A bird's eye view of the vineyard
Moveable Feast Cafe 2019/07/16 ? Open Thread Tue Jul 16, 2019 18:00 | Herb Swanson
2019/07/16 17:00:01Welcome to the ‘Moveable Feast Cafe’. The ‘Moveable Feast’ is an open thread where readers can post wide ranging observations, articles, rants, off topic and have animate discussions of
?Rock ?n roll is dead!? ?Yellow Vests are dead!? ? uncool Western reporting Tue Jul 16, 2019 03:03 | The Saker
by Ramin Mazaheri for The Saker Blog I?m not a huge Pink Floyd fan, but everyone else in the West apparently is ? the album The Dark Side of the
Reza Pahlavi sells himself at a 98% discount to MBS? propaganda channel Tue Jul 16, 2019 02:59 | The Saker
by Ramin Mazaheri for The Saker Blog (cross-posted with PressTV by permission) (Ramin Mazaheri is the chief correspondent in Paris for PressTV and has lived in France since 2009. He
We need a moderator, please help! Mon Jul 15, 2019 12:12 | admin-herb
Dear friends, Our moderator Michael has recently left us. We need someone to help us cover his hours. M-F (5days) 3:00pm-6:00pm (GMT) ( 11am – 2:00pm eastern NY time daylight
Turkey Will Get a Chunk of Syria: An Advantage of Being in NATO Sun Jul 14, 2019 06:30 | The Saker
by Eric Zuesse for The Saker Blog The success of Turkey?s takeover of Syria?s most pro-jihadist province, Idlib, is making less and less likely that Syria will be able to
The Saker >>
A Blog About Human Rights
China?s LGBT Community Mon Apr 15, 2019 19:19 | Human Rights
Declaration of Human Rights at Sea Mon Apr 08, 2019 07:31 | Human Rights
NZ Watchdog On Limits Of Free Speech Thu Mar 28, 2019 11:44 | Human Rights
US Abortion Restrictions Violating The Human Rights Of Women Thu Mar 14, 2019 15:33 | Human Rights
Human Rights Watch Urges the Human Rights Council to Renew and Strengthen Mandate of UN Commission Tue Mar 12, 2019 21:51 | Human Rights
Human Rights in Ireland >>
Morgan Kelly tells it like it is AGAIN. Essential reading.
Sunday May 08, 2011 11:02 by V for vendetta
Morgan Kelly has done it again. He has cut through the Nonsense coming from our government and the media and got to the core of the matter. This article is the best summary of our current state of affairs in regard to the banking debt and our future that I have seen to date. I hope those idiots in Lenister house and the great sir Patrick Honahan are reading their sunday times today. Because its the only real sense I've seen on the matter lately, buried deep on the comments page as it was
here we go.......
Morgan Kelly has done it again. He has cut through the Nonsense coming from our government and the media and got to the core of the matter. This article is the best summary of our current state of affairs in regard to the banking debt and our future that I have seen to date. I hope those idiots in Lenister house and the great sir Patrick Honahan are reading their sunday times today. Because its the only real sense I've seen on the matter lately, buried deep on the comments page as it was. But they couldn't really refuse the article. And they couldn't hide it much more than this either. This article is a political bombshell. I hope everyone in the country reads it.
And I hope professor Morgan doesn't mind me quoting a decent bit of it here in the national interests. Thanks for taking the time Professor. I'm putting this up here so as many as possible of the Irish people will have an opportunity to become aware of and read your piece.
For obvious reasons you'll need to go to the irish times online site to read the rest. Its up there free to read for now. Link at end of article.
"While most people would trace our ruin to to the bank guarantee of September 2008, the real error was in sticking with the guarantee long after it had become clear that the bank losses were insupportable. Brian Lenihan’s original decision to guarantee most of the bonds of Irish banks was a mistake, but a mistake so obvious and so ridiculous that it could easily have been reversed. The ideal time to have reversed the bank guarantee was a few months later when Patrick Honohan was appointed governor of the Central Bank and assumed de facto control of Irish economic policy.
As a respected academic expert on banking crises, Honohan commanded the international authority to have announced that the guarantee had been made in haste and with poor information, and would be replaced by a restructuring where bonds in the banks would be swapped for shares.
Instead, Honohan seemed unperturbed by the possible scale of bank losses, repeatedly insisting that they were “manageable”. Like most Irish economists of his generation, he appeared to believe that Ireland was still the export-driven powerhouse of the 1990s, rather than the credit-fuelled Ponzi scheme it had become since 2000; and the banking crisis no worse than the, largely manufactured, government budget crisis of the late 1980s.
Rising dismay at Honohan’s judgment crystallised into outright scepticism after an extraordinary interview with Bloomberg business news on May 28th last year. Having overseen the Central Bank’s “quite aggressive” stress tests of the Irish banks, he assured them that he would have “the two big banks, fixed by the end of the year. I think it’s quite good news The banks are floating away from dependence on the State and will be free standing”.
Honohan’s miscalculation of the bank losses has turned out to be the costliest mistake ever made by an Irish person. Armed with Honohan’s assurances that the bank losses were manageable, the Irish government confidently rode into the Little Bighorn and repaid the bank bondholders, even those who had not been guaranteed under the original scheme. This suicidal policy culminated in the repayment of most of the outstanding bonds last September.
Disaster followed within weeks. Nobody would lend to Irish banks, so that the maturing bonds were repaid largely by emergency borrowing from the European Central Bank: by November the Irish banks already owed more than €60 billion. Despite aggressive cuts in government spending, the certainty that bank losses would far exceed Honohan’s estimates led financial markets to stop lending to Ireland.
On November 16th, European finance ministers urged Lenihan to accept a bailout to stop the panic spreading to Spain and Portugal, but he refused, arguing that the Irish government was funded until the following summer. Although attacked by the Irish media for this seemingly delusional behaviour, Lenihan, for once, was doing precisely the right thing. Behind Lenihan’s refusal lay the thinly veiled threat that, unless given suitably generous terms, Ireland could hold happily its breath for long enough that Spain and Portugal, who needed to borrow every month, would drown.
At this stage, with Lenihan looking set to exploit his strong negotiating position to seek a bailout of the banks only, Honohan intervened. As well as being Ireland’s chief economic adviser, he also plays for the opposing team as a member of the council of the European Central Bank, whose decisions he is bound to carry out. In Frankfurt for the monthly meeting of the ECB on November 18th, Honohan announced on RTÉ Radio 1’s Morning Ireland that Ireland would need a bailout of “tens of billions”.
Rarely has a finance minister been so deftly sliced off at the ankles by his central bank governor. And so the Honohan Doctrine that bank losses could and should be repaid by Irish taxpayers ran its predictable course with the financial collapse and international bailout of the Irish State.
Ireland’s Last Stand began less shambolically than you might expect. The IMF, which believes that lenders should pay for their stupidity before it has to reach into its pocket, presented the Irish with a plan to haircut €30 billion of unguaranteed bonds by two-thirds on average. Lenihan was overjoyed, according to a source who was there, telling the IMF team: “You are Ireland’s salvation.”
The deal was torpedoed from an unexpected direction. At a conference call with the G7 finance ministers, the haircut was vetoed by US treasury secretary Timothy Geithner who, as his payment of $13 billion from government-owned AIG to Goldman Sachs showed, believes that bankers take priority over taxpayers. The only one to speak up for the Irish was UK chancellor George Osborne, but Geithner, as always, got his way. An instructive, if painful, lesson in the extent of US soft power, and in who our friends really are."
[The article gets better and better and eventually offers the only real solution to our current crisis from our current position that I can see]
You can currently read the rest of the article here:
*Many thanks to BC for bringing this article to my attention*