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Do we Need the IRA to Fight the War Damage of Austerity?


We don’t have a leader to fight the war against austerity and given that we have no alternative should we ask the IRA to take up the cause on behalf of the citizens

I have no doubt that Kenny and Noonan have good intentions but can you see these men throwing down the gauntlet to force radical change to IMF/ECB policy… no these guys will not rock the boat for the are bonded to their masters

We are a country blitzed by the imposition of austerity…no credit, mounting household debt, high unemployment, plummeting standards right across the broad spectrum of education/social services  and finally the Government selling off the what remains of the family silver. Light at the end of the tunnel I don’t think so all I see is devastation and more ruin. Given the level of mounting Government debt at some stage we are going to reach the point of no return and what then. Do we have to wait until the bitter end to face face reality.

Public Sector

Cutting public sector jobs means higher unemployment and fewer people in work paying taxes

Freezing public sector pay and higher unemployment means less disposable income to be spent in the private sector, with a knock-on effect on private sector jobs
Cutting business taxes means less revenue to close the deficit and pay off our debt.

The government is presenting its plans as simply ‘dealing with the deficit’, but that is a smokescreen for another agenda. The government wants to cut and privatise public services because it believes in a market for even essential goods and services; that business should be free to extract profit from any public service, even schools, hospitals, welfare ETC.

The government’s policies are failing because the public sector is not the real problem.

Instead of solving the crisis, these policies are making it worse.

Austerity is not working
It’s not just in the Ireland that austerity isn’t t working. Just look at Greece,Italy, Portugal, UK and Spain

In Spain the unemployment rate is now 25%, while youth unemployment is over 50%.

Why inequality has to be addressed

We are the 99% – and as an end game harassing the 99%  cannot not work.

Wages have disportionately . Inflation has been higher than the annual increase in pay. This fall in real wages means we are able to buy less with our money than before, as we have less disposable income.
. . . .
Redistribution: to the 1%
Why is this happening and where is the money going? At the same time that wages and other income has been squeezed for the majority of people, a few people at the top are doing better than ever A few at the top are getting very rich by cutting pay and pensions for the rest.

Freedom of information

The very fundamentals of democracy are build on freedom of information and yet on a worldwide basis it appears to be politicians want to squeeze the information been fed to its citizens. Why will the Irish/EU not release the full details of the bailout agreement to its people.

Education

Cutbacks In in education will mean will mean we revert to being a nation of unskilled factory workers.

What next immigration to Bangladesh?

Education is one of the few remaining life lines open to the country

No sell off of public utilities

Everywhere this has happened it has been an unmitigated disaster

  
A banking system that works for people not profit

Some of the banks that were bailed out by the government are still using loopholes to advise their corporate and wealthy clients how to avoid paying tax.

They have also laid-off thousands of their own staff to maintain the greed at the top. It feels like we have nationalised the debts while the profits are privatised.

The banking collapse, which caused such economic damage , means the finance sector has lost the right to carry on as before. It must now act in the public interest; publicly owned and controlled.

The money, real money, that is held by the finance sector is ours anyway: our pension funds, our savings, and the cash in our current accounts. The rest of it is credit – electronic money (as over 90% now is) created out of thin air by the banks to lend. The banks are given the right to create credit by governments.

We therefore need the government to ensure that when banks create credit, or lend or invest with our savings or pension funds, they are doing so in our collective interest.

That means investing in infrastructure like new council housing  not lending recklessly and creating a housing bubble (and inevitable crash). It means investing to create new jobs in renewable energy rather than speculating on food prices to profit from starvation. And it means investing in new businesses and ideas, not getting windfall dividends and bonuses for merging existing businesses and laying-off staff.
Conclusion

Essential public services are being cut back and privatised, and people’s living standards have been falling , both for those in work and even more so for those unemployed.

There are social consequences too, which have clear financial costs.

Research from previous recessions shows that the increased financial pressures push more people into depression and substance abuse, means couples are more likely to separate, and suicide rates increase.

Politics is about choices – and there is always a choice and always an alternative. Because there always is an alternative but yet we are continually fed the mantra there is no alternative to austerity.

There is an economic crisis – one of rising unemployment, inequality and economic stagnation. Austerity isn’t working, and is not producing the economic growth that the government promised it would. But it is not just growth that matters. If we value people’s lives as more important than simply making more transactions, then the relevant tests for judging an economic recovery are:

Is unemployment falling?

Are people’s living standards rising

Is inequality reducing

Is the tax gap closing?

These are the tests against which we should measure the government’s economic strategy and proposals.

Also the government we have appear to be incapable of showing any leadership whatsoever. They sheep like continue to follow the dictate of their masters…Ollie Rehn.  “the eurozone has shown a degree of resilience and problem-solving capacity that many observers and policymakers would not have predicted even a year ago”…Commission chief Jose Barroso  insisted that the policy(austerity) is “fundamentally right” and working in Ireland, a risible statement if ever.

We need a leadership that knows how to play rough and this was familiar territory for the IRA. The lesson learnt was once the financial heart of London was bombed peace was in the making.

If the politicians do not heed the wishes of the electorate what then, protest marches …if they still do not listen…civil disobedience… if they still remain deaf well the options narrow. Revolution,guns , violence bombes I hope not.

May common sense prevail

 

IT’S PRIVATE DEBT, NOT PUBLIC DEBT, THAT GOT US INTO THIS MESS


The Following scenario can also be applied on a world wide basis 

The arguments that the American Government caused this crisis through overspending on entitlements — serving the so-called losers of society — this is the standard line of the Far Right — doesn’t show up in this chart.

Government debt vis-a-vis Gross Domestic Product is not astronomical, according to this chart. It was not high in 1929 either, the last time the global economy had a heart attack and died. Public Debt is, in fact, at the time of this chart at least, lower than in 1945, when the public financed American involvement in World War II.

The Far Right illusion is that if government just ‘gets out of the way’ of private enterprise, the world will fix itself. But this chart gives a different picture of reality.

This chart says it is PRIVATE DEBT that is at astronomical levels vis-a-vis GDP. Private Debt in America was at 240% of GDP in 1929, before the global economy crashed then; and Private Debt in America was at 300% of GDP in 2009 — and is still at 260% of GDP now, higher still than in 1929.

Of course, there was a real estate bubble and subsequent banking crisis in the 1920’s. In fact, the asset bubble that began in 1921 caused the massive growth in private debt that destroyed the global economy then also. The web site below examines the housing bubble of 1921-1926.

http://www.library.hbs.edu/hc/crises/forgotten.html

The famous stock market bubble of 1925-1929 has been closely analyzed. Less well known, and far less well documented, is the nationwide real estate bubble that began around 1921 and deflated around 1926. In the midst of our current subprime mortgage collapse, economists and historians interested in the role of real estate markets in past financial crises are reexamining the relationship of the first asset-price bubble of the 1920s with the later stock market bubble and the Great Depression that followed. Limited data on 1920s home prices and foreclosures means that many questions remain unanswered.22 Historical trade publications like the weekly New York Real Estate Record and Builder’s Guide, of which Baker Library holds a sixty-year run, allow researchers to fill in the blanks. The implications of early findings may challenge conventional wisdom about the factors that caused and prolonged the Great Depression.

What this all suggests is that Big Business is refusing to take the blame for the Global Collapse it helped to create through the same mechanism it used in the 1920s pursuing recklessly their own economic empires — asset price inflation fueled by lower and lower interest rates – and has attempted to shift the blame on to the governments of the world (Big Government being the boogeyman of the Far Right).

The debt that must be destroyed before the global economy can reach a state of organic growth again is, primarily, private debt — private enterprise debt and private consumer debt. In fact, the very force that the Far Right says will save us from our current disaster is what caused and is still causing the current disaster.

Of course, Big Business has now found a convenient method for unloading toxic debt: by selling it at face value or even at future inflated value to the governments of the world. The governments are willing to buy worthless private debt in the hope of keeping themselves in power, of keeping their societies from unraveling into civil war and revolution. Why would Big Business ever concern itself with risk if there will always be a buyer of last resort willing to absorb the crimes and failures of the Free Market in pursuing the demon of Unlimited Wealth?

Then, of course, this forced ingestion of toxic (criminal?) debt by the governments in question — in hopes of avoiding civil war — has been followed by the political gambit of Big Business and the political supporters of Big Business screaming and shaking of fists at the government for taking on too much debt. Well, the ‘too much debt’ the public was taking on was the disaster debt of unregulated Big Business which made careless business decisions without care to risk or even to crime in many cases (organized crime almost certainly, organized crimes in white shirts on Wall Street).

Comstock Partners issued a report this year in which they found almost exactly the same evidence I am presenting — that it is PRIVATE DEBT that is the villain, and the cause of our collapse. And Public Debt is now growing as it takes on the burden of absorbing the Private Toxic Debt accrued from 2001-2008, mainly caused by the Housing Bubble (again).

articles.businessinsider.com/2011-08-26/…

From the Comstock Report:

In fact, the eight years between 2000 and 2008 the debt grew from $26.5 trillion (265% of $10 tn GDP) to $54.5 trillion (or $28 trillion from 2000 to 2008).

The private sector debt that grew the most was the household debt, mostly because of the massive purchases of homes and goods imported largely from emerging economies. This sector of debt was historically about 50% of GDP and 65% of Disposable Personal Income, but by the mid 1980s it starting growing exponentially until it was in a full blown debt bubble. This sector debt rose from $6.5 trillion in 2000 to almost $15 trillion in 2008. This sector is presently de-leveraging and is down to about $13 trillion on its way to below $10 trillion (in our opinion) as the de-leveraging continues to take a toll on the U.S. (as well as the global economy, since the rest of the world needs U.S. consumption). This is very similar to what took place in Japan starting at the end of 1989 (except that the bubble in Japanese debt resided in the non-financial corporate sector).

Currently, most observers are much more focused on GOVERNMENT DEBT where the debt ceiling was $6 trillion in mid 2002 and just recently President Obama signed a bill lifting the debt ceiling by $2.1 trillion to $16.4 trillion. If you count the unfunded liabilities (or the promises we made to retirees) this debt could be higher than $100 trillion. We believe this debt will have to be addressed thru either inflation (printing our way out at the expense of the U.S. Dollar), or deflating our way out through de-leveraging or defaulting on the enormous debt (we believe the deflationary solution to be the highest probability, at least initially). It is very difficult to inflate out of our present situation since banks will only lend to the best credits and the best credits don’t want to take on more debt-this is called a “liquidity trap” and stifles the “velocity of money.”

The problem with all of the above solutions is that they will not be easy to resolve since the government sector debt will have to grow to replace the private debt declines, in order to curtail the collapse of the economy. This is exactly what happened in Japan as their government debt grew to 225% of their GDP as the private debt declined in the deflation. We expect the solution that will evolve in this country will start with deflation. We will show exactly how we view deflation by displaying the chart “Cycle of Deflation” (see attachment) which we have used in many prior reports.

I am not suggesting that government debt is not a problem. I’m reminding the reader where this crisis began: with the DEREGULATION of Big Business. The proper role of Big Business is to pursue profits; and the proper role for Big Government is to regulate (provide laws and police powers to enforce these laws) Big Business. Where there are no laws — DEREGULATION — there will be only criminals, at least until we all pass into the Spiritual Kingdom in which selfishness and greed are no longer human problems.

We are heading down a long slow path of debt deflation that will peak in the year 2019. Don’t listen to those who claim that only American Ingenuity and Free Unregulated Business can get America back on its feet again — because those are the very same people who just threw America on its back, while pursuing their own economic empires — the world be damned. There will be a time for the ideology of empire and ingenuity and entrepreneurialism again — but not until after 2019.

We are not saints yet. Until we are all saints we need laws and police to protect decent people from the sharks who believe the world should and must be a world of shark-eat-shark only.

I will save my suggestion that American Bank reform should use the American public power utilities as a model for what banking should become in the future — I will save this for a future article. Bankers should be technicians and functionaries who serve the public and provide guaranteed stability, not entrepreneurs, not gamblers, who can always count on public bail-outs if their gambles turn to dust. Let the capital gamblers and entrepreneurs work in non-financial industries, such as technology and weapons-production.

home.mindspring.com/~mclark7/CGTS09.htm

via IT’S PRIVATE DEBT, NOT PUBLIC DEBT, THAT GOT US INTO THIS MESS – Michael Clark – Seeking Alpha.

via IT’S PRIVATE DEBT, NOT PUBLIC DEBT, THAT GOT US INTO THIS MESS – Michael Clark – Seeking Alpha.

How Vulnerable is Sterling?


Fitch warns UK could lose is AAA rating.
This could mean further bad news for Ireland. If sterling weakens, our exports become more expensive, which will lead to additional job losses in Ireland.

Britain is edging closer to losing its gold-plated sovereign credit rating due to weak growth and increased government borrowing, rating’s agency Fitch has warned. It reconfirmed Britain’s “negative outlook”, slashed its forecast growth from 0.8per cent to a 0.3per cent for this year. It warned that international debt would hit almost 100pc of GDP. Bear in mind the UK has yet to factor in pensions and bank liabilities into Government figures. Once these numbers become part of the accounts, its level of debt is similar to our own.

Moreover, for some unknown reason nobody appears to care that the UK or the US governments’ debts are unlikely to be repaid. However, if they ever do start caring, we will observe interesting but catastrophic times.

In the case of Italy, for example, the debt was there and had been there for years, but nobody had ever bothered. Then suddenly, the markets decided to care, and we all know what happened.
Maybe the chickens are coming home to roost in the UK for their financially and economically illiterate Government. For the subjects of her Majesties Government one hopes not

The sad part is that the people must suffer and the only beneficiaries of these difficulties are the International banking system. You will see and observe that in each country their aim is to dismantle the welfare state leaving the citizens at the mercy of international business

State will face €324bn shortfall over pensions – The Irish Times – Wed, Sep 12, 2012


THE GAP between the State’s future pension and social welfare liabilities and revenues to fund them stands at €324 billion, according to an unpublished report commissioned by the Government, which has been seen by The Irish Times. That figure is almost twice the size of the national debt as it currently stands.

The review of the Social Insurance Fund – the pot into which about €8 billion in pay-related social insurance contributions (PRSI) go to fund a range of benefits – was commissioned by the Department of Social Protection. Last year the fund’s annual shortfall stood at €1.5 billion, or 1.1 per cent of gross national product.

via State will face €324bn shortfall over pensions – The Irish Times – Wed, Sep 12, 2012.

via State will face €324bn shortfall over pensions – The Irish Times – Wed, Sep 12, 2012.

Unemployment and public debt predicted to remain high


Public debt and unemployment will remain very high for the foreseeable future stated Stefan Gerlach, deputy governor of the Central Bank.

The consequences of this are more business failures, high unemployment,emigration and social deprivation.

This is the price the citizens of Ireland must pay for its failed banking system.

Ask yourself, how right, just and fair is this?

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