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The Council of State, Atheists and Impaired Politicians


Michael D Higgins, our esteemed President, is about to convene a meeting of the Council of State to help him decide whether of not he should refer the Protection of Life During Pregnancy Act to the Supreme Court for a test of its constitutionality.  If the court judges that the Act is constitutional, it becomes bullet-proof and can never again be challenged on those grounds.  On the other hand, the court might strike the Act down in its entirety and then we’re all back on the same merry-go-round yet again – the government’s nightmare outcome, and mine too, if I must be honest.  Another six months of listening to the Iona Institute people would just about finish me off.

michael d higgins

The President isn’t obliged to take whatever advice the Council offers him, but he must consult them before he sends an Act to the Supreme Court, so I thought it might be useful to explain how this Council is made up. According to Article 31 of the constitution, it consists of the current Taoiseach and Tánaiste, or, for those unfamiliar with ludicrously pompous feudal Gaelic terms, the prime minister and deputy prime minister.  Likewise, the Chief Justice, the President of the High Court, the Chairmen of the Dáil and the Senate (soon to be abolished if Enda gets his way) and the Attorney General. All former prime ministers are automatically members, though they must be willing and able, which brings up a difficulty I’ll come back to in a minute. In addition, the President can appoint seven nominees at his absolute discretion. The current members are as follows.

Enda Kenny Taoiseach
Éamon Gilmore Deputy taoiseach
Sean Barrett Chairman of the Dail
Paddy Burke Chairman of the Senate
Susan Denham Chief Justice
Nicholas Kearns President of the High Court
Maire Whelan Attorney General
Mary Robinson Former President
Mary McAleese Former President
Liam Cosgrave Former Taoiseach
Albert Reynolds Former Taoiseach
John Bruton Former Taoiseach
Bertie Ahern Former Taoiseach
Brian Cowen Former Taoiseach
John Murray Former Chief Justice
Thomas Finlay Former Chief Justice
Ronan Keane Former Chief Justice
Michael Farrell, Presidential Nominee
Deirdre Heenan, Presidential Nominee
Catherine McGuinness, Presidential Nominee
Gearóid Ó Tuathaigh, Presidential Nominee
Ruairí McKiernan, Presidential Nominee
Sally Mulready, Presidential Nominee
Gerard Quinn Presidential Nominee

The first hurdle occurs with our beloved deputy Prime Minister, Éamon Gilmore.  Éamon, you see, describes himself as an agnostic, but because our constitution is so deeply mired in the confessional swamp that was the Ireland of 1937, every member of the Council must swear an oath, as follows:

In the presence of Almighty God I, Joe Soap, do solemnly and sincerely promise and declare that I will faithfully and conscientiously fulfil my duties as a member of the Council of State.

As a non-believer, Éamon found himself conflicted by this and took legal advice, but it seems he’s happy enough to swear in the presence of a deity he doesn’t believe in, and I suppose he’s right.  After all, the wording seems carefully constructed to give atheists a way out, since it doesn’t require him to swear to Almighty God, as happens in the courts, unless a witness chooses the option toaffirm.  It simply requires him to promise and declare in the presence of the non-existent deity.  Look, he’s a politician, well-used to believing two different things at the same time. Besides, the preamble to the Constitution is far worse.  How’s this for inclusivity?

In the Name of the Most Holy Trinity, from Whom is all authority and to Whom, as our final end, all actions both of men and States must be referred We, the people of Éire, Humbly acknowledging all our obligations to our Divine Lord, Jesus Christ, Who sustained our fathers through centuries of trial, Gratefully remembering their heroic and unremitting struggle to regain the rightful independence of our Nation, And seeking to promote the common good, with due observance of Prudence, Justice and Charity,  so that the dignity and freedom of the individual may be assured, true social order attained, the  unity of our country restored, and concord established with other nations,Do hereby adopt, enact, and give to ourselves this Constitution.

Nice.  How does that work with Jews, Muslims, Hindus and people of no religion who also happen to be Irish citizens?  The most holy trinity from whom all authority derives.  That’s a theocracy, last time I checked. How does our Justice Minister, Alan Shatter, who happens to be a Jew, feel about his constitution acknowledging his obligations to our divine lord, Jesus Christ?

That’s Ireland for you, and Britain too, where the Queen is the head of the established church, lest anyone be too quick to sneer, but let’s get on with the Council of State.

Besides the atheist who’s happy to swear in the presence of a god he doesn’t believe in, we have five former prime ministers, four of whom assiduously dodged the problem of the X Case judgement.  One of them, John Bruton, is already on record as opposing the current Act on religious grounds.  Two others —  Brian Cowen and the man in the cupboard, Bertie Ahern — are responsible for crashing our country into a gigantic brick wall while another, Albert Reynolds, declined to give evidence to a tribunal of inquiry into planning corruption on the grounds of cognitive impairment.  In other words, he couldn’t remember an Irish military helicopter ferrying him to a secret meeting with a property developer and he had no memory of the government Learjet diverting to an unscheduled rendezvous in Bermuda.  Poor man’s mind is gone, sadly.  And yet, here he is, sitting on the Council of State.

Old Liam Cosgrave meanwhile, still hale and hearty at 92 years of age, will go down in history as the Taoiseach who voted against his own government on contraception legislation due to his strong Catholic beliefs.

There isn’t any set procedure laid down for how the meeting will be conducted, however, and Michael D is a wily old guy, so perhaps it will be closely circumscribed.  He might decide simply to ask them a legal question: in your opinion, is this Act constitutional or not?

If we exclude Brian Cowen on the arbitrary grounds that he completed the crash started by Ahern, that he’s only a small-town solicitor who never practised much anyway and that I just don’t like him, we still have eight senior lawyers who should be able to advise Michael D dispassionately. What will the others advise him on?  Who knows? I suppose Da Bert could give him a tip on ahorse and Cowen could offer his opinions on nude portraiture.  Bruton could entertain everyone with his famous party laugh and Cosgrave could re-enact his world-renowned Crossing of the Floor, the original Riverdance but with added hypocrisy.

Let’s not forget the ferment of rage that must be taking place in this assembly of the great and the good.  How does the chairman of the Senate feel about the current prime minister who supports this act and yet who wants to abolish the very House he presides over?  I’m only speaking personally here, but I think I’d feel tempted to shaft Enda one last time before being abolished.  Clearly, Mr Burke is a far more professional individual than I am and would never dream of sinking so low, but still, human nature is what it is.  I’d knife him.

I’m fascinated by the process, since it’s not laid down anywhere that I can find.  Where will they hold the meeting?  What time will it happen?  Will Michael D supply the drink or will they all turn up with slabs?  Will they drive or come in taxis?  Will they have a barbecue?  Will someone make a CD mix? The weather is really great at the moment although you can’t be too careful.  Lately there’s been a lot of thunderstorms but that’s to be expected with all the heat, so maybe they should set up a gazebo and everyone could huddle inside it together if there’s a sudden downpour.  It would make for a cheerful atmosphere, and they’ll get along much better after getting to know each other. I’d say they’ll make burgers and maybe put out some nachos with a cheese dip.  What do you think?  Spare ribs?  Red stuff all over your face?  Send Bruton down to the off-licence for more ice. Michael D might even read them some of his poetry before leading them to the overwhelming question: what’ll we do? Ah, I don’t know.  That’s why I’m not the president, the chief justice or even a spiv in a yellow suit hiding in a cupboard.

Thankfully.

 

VIA

http://bocktherobber.com/2013/07/the-council-of-state-atheists-and-impaired-politicians/

The Psychology of an Irish Meltdown


By TANA FRENCH

28IRELAND-articleLarge

 

 

DUBLIN — FOR the past month, Ireland has been outraged by tapes of Anglo Irish Bank officials, back in 2008, discussing lying to the government about how big a loan they needed, and how they knew there was no chance that the loan would ever be repaid. That loan was the first domino in a sequence that ended with the whole Irish economy flat on its face.

It’s not the bankers’ actions that have outraged people — pretty much everyone had a fair idea that this was what had gone down. It’s the overpowering sense of amorality revealed on the recordings, which were released by the Irish Independent newspaper. The bankers have a great laugh about the situation. It genuinely never seems to mean anything to them that the taxpayer is going to be forced to pay their bills, to the tune of tens of billions. More than that: it never seems to occur to them that their actions might harm people.

I write psychological crime, so I spend a fair amount of time thinking about morality and amorality and what underlies them. And it seems to me that this amorality could be a symptom of something deeper: a total disconnect between action and consequence.

Ireland’s population is just over half that of New York City’s. Our ruling class — including many of the politicians, bankers and property developers who wrecked the economy — is a tiny community, interwoven by friendship, marriages, education, sports and financial transactions to a degree that would be unimaginable in a bigger country. That interweaving has created a safety net that won’t let any of the ruling elite fall. If you’re a banker and your golf buddy’s kid wants to be a banker, then it doesn’t matter if the kid is an idiot, or if he kills cats for kicks: you’ll take him on, and you’ll keep him on.

For many of these people, action and consequence don’t apply; their lives are mapped out from birth, and nothing they do will alter that map. It seems to me that that would be intensely disempowering, even terrifying. Instead of being a series of interlinked actions, life is made up of a scattering of events that have no discernible relationship to one another and that you don’t influence in any real way. In that climate, it would be difficult to develop the sense that your actions make any difference, that you have any responsibility for the consequences. Without cause and effect, there’s no foundation for morality.

I’m not saying this is an excuse. It isn’t. But, like everyone in Ireland, I want answers — for the taxes piled on taxes, for the enormous cuts to essential services, for the dole queues and the flood of emigration, for the desperation in the voices of people who are trapped in ghost estates and don’t have the money to buy their kids shoes. And I wonder if this could be one small facet of one of the answers.

Another question, maybe a more interesting one, is how people who weren’t part of that powerful elite got sucked into the property pyramid scheme that fueled the boom. Some commentators have implied that the answer is basically the same: people got deep into credit-card debt, or took out mortgages for 10 times their income, because they were temporarily sucked into the psychosis of the powerful and it didn’t occur to them that there might be consequences.

But I wonder if, for these people, the truth might actually be the opposite.

Throughout the economic boom, the politicians and bankers and property developers, along with the news media, were telling all of us that cause and effect were perfectly, inextricably linked: “If you buy a vastly overpriced and shoddily built house in the middle of nowhere, the economy will keep growing, and in a few years your house’s value will have doubled, and you can sell it to some other sucker and buy something you actually want and live happily ever after and UTOPIA!!!” It was as simple and certain as sticking a coin into a vending machine: insert Action X, and the life machine will inevitably whir and beep and spit out Future Y.

THE Irish are notoriously cynical, but the Utopia myth hit at exactly the moment when we were most open to unquestioning belief. The majority of Irish people were so desperately poor, for most of the country’s history, that when suddenly we weren’t broke any longer, the cynicism was washed away by the flood of prosperity. We needed to believe that the Celtic Tiger hadn’t simply wandered in, because that would mean it could wander out again. We needed to believe that we had somehow made it happen, and that therefore there were things we could do, like buying overpriced houses, to make it keep happening. We needed, basically, to believe in that chain of action and consequence.

And so the Irish tendency to raise an eyebrow at anything that’s presented as certain paradise dissolved just at the moment when it was needed most.

A lot of my generation believed that chain was unbreakable. When it shattered, so did they — not just financially (although that too), but also psychologically. Their whole sense of a world governed by coherent cause and effect, of their ability to have any agency in their own lives, came under attack.

Those people, the ones who trusted too deeply in action and consequence, were the ones who got utterly, shamelessly destroyed by the people who had no such belief. I’m pretty sure the effects of that betrayal, for Ireland, will take decades to fully unfurl.

Tana French is the author, most recently, of the novel “Broken Harbor.”

via The Psychology of an Irish Meltdown – NYTimes.com.

Ombudsman Emily O’Reilly says current republic a ‘perversion’ of 1916 ideals


 

“The republic that was created from the ashes of the rising was a perversion of the human rights ideals of 1916,” the outgoing Ombudsman and Information Commissioner Emily O’Reilly has said.

Addressing the first evening of the MacGill Summer School in Co Donegal, she said people were not yet fully aware of what a real republic looked like. Delivering the 13th annual John Hume lecture, Ms O’Reilly said it was particularly appropriate that the lecture was named after the Nobel peace prize winner as he was a “pre-eminent human rights defender”.

She criticised the successors of the 1916 leaders, accusing them of franchising the State “to a private organisation called the Catholic Church, shedding in particular its responsibility for the education and health systems, and thereby allowing little actual space for the elected leaders of this republic to play their role in pursuing the happiness and prosperity of the nation”.

It was difficult for citizens to remind themselves that “we are actually the ones in charge”.

This was a difficulty, she added, that the executive and judiciary also struggled with. Referring to former attorney general Peter Sutherland, she said his core assertion made in a speech earlier this year, that the courts were “inappropriately forced to decide not alone what our values in this republic are or should be, but also to divine what the elected representatives of the people think about those values”.

She said that while the courts had too much unwanted power, parliament spent “much of its time ducking and diving and pretending it has no power whatsoever”. She accused the executive of “planting its boot far too firmly on the neck of the parliament and wielding power in a manner never envisaged by the Constitution.”

Quoting President Michael D Higgins, she said: “There is a deep-seated anti-intellectualism prevalent in Irish life,” and that our political and cultural life was marked by the false notion that one person’s ignorance was as good as another’s knowledge. She turned to the Constitution, quoting article 28.4.1 which states that the Government “shall be responsible to Dáil Éireann”.

“Quite clearly this is not the case. The nub of the problem is that parliament does not take itself seriously,” she said. “Our failures are essentially human rights failures and we should be particularly alive to the fact that, never more so than at a time of recession and austerity, are bodies such as a Human Rights Commission and an Equality Authority needed to make sure that in a decade’s time we won’t be weeping our way through another pitiful cataloguing of State-inflicted abuse, albeit with a modern twist.”

In his opening address, Taoiseach Enda Kenny said he looked to 2016 and the centenary of the Easter Rising. “To be a real republic, Ireland has to be a sovereign republic,” he said. “We will strive . . . and work even harder so that we will become the best small country in the world for business, to raise a family and to grow old with dignity and respect. This will be the republic of 2016.”

via Ombudsman Emily O’Reilly says current republic a ‘perversion’ of 1916 ideals – Social Affairs & News from Ireland & Abroad | The Irish Times – Mon, Jul 29, 2013.

Politics and Money Irish Style


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Lowry Tapes led to raid by Revenue

THE Revenue Commissioners‘ raid on the home of independent TD Michael Lowry was a “direct result” of his statement in the Lowry Tapes that he “never declared” a sum read full article

Note

 The number of complaints received by the ethics watchdog last year which related directly to Tipperary North TD Michael Lowry is 388

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Not a bad old life for skint Quinlan on the Riviera, n’est-ce pas?

IF one were to liken the boom and the bust that followed to a game of musical chairs, former King Midas to Ireland’s great and good Derek Quinlan didn’t just grab a chair when the music read full article

independent.ie

22

Varadkar bid to prevent TDs abusing travel privileges fails

AN oIreachtas committee chaired by the Ceann Com-hairle Sean Barrett has rebuffed attempts by Transport Minister Leo Varadkar to draw up guidelines to prevent TDs from abusing their tra read full article

independent.ie

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With €2.5m debts plus tax arrears, what’s keeping Minister Perry?

PRESSURE mounted on junior minister John Perry to resign last night after it emerged that he will be highly unlikely to be able to pay off his €2.5m debts – even if he sold all of his a read full article

independent.ie

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Jailings for not paying tiny fines up 25 per cent

THE number of people being sent to jail for failing to pay paltry court fines has soared by 25 per cent in just two years. read full article

2

Budget will be tough, Gilmore warns householders

HARD-pressed householders have been warned not to expect any respite from the forthcoming Budget.read full article

independent.ie

16

Court clears way for people to sue individual bankers

A HIGH Court judge has cleared the way for aggrieved customers to initiate private criminal prosecutions against bank staff. read full article

independent.ie

4

Childers: Labour figures bullied me

INDEPENDENT MEP Nessa Childers, who resigned from the Labour Party last week, has sensationally claimed that she was subjected to a campaign of “overt bullying” by senior part read full article

independent.ie

 

 

Meetings of the council take place behind closed doors and no detailed record kept read full article

irishtimes.com

‘NO COMMENT’ SPOKESMAN REFUSES TO ANSWER QUESTIONS ON EVERYONE’S LIPS


The Sunday Independent posed the following questions to Minister of State for Small Business John Perry but he refused to comment. A spokesman said: “As this matter currently remains before the courts, Minister Perry will be making no comment.”

In relation to the loan Mr Perry agreed with Bank of Ireland to help pay his outstanding tax bill of approximately €100,000, what security – if any – was provided to the Bank of Ireland?

• Why did Mr Perry tell Danske Bank officials that he was friends with Bank of Ireland chief executive Richie Boucher? What would this have to do with any decision the bank would make on extending credit to him? Did he expect it to make a difference?

• Why did Mr Perry meet Danske officials in his Dail office? Did he not consider this to be an inappropriate use of that office? Did he think a meeting held in a minister’s office would in any way influence Danske Bank officials in their treatment of him?

• Can Mr Perry explain his remark to Danske Bank officials on January 31 last, where he accused them of being engaged in a form of bullying? Why did he go on to ask the bank’s officials if they treated all their customers in the same way? Does he consider it appropriate to have referred to the bank’s relations with other customers given his position as a government minister?

via ‘NO COMMENT’ SPOKESMAN REFUSES TO ANSWER QUESTIONS ON EVERYONE’S LIPS – Independent.ie.

Me Must Defend Our Democratic Right!


The following statement was issued to the media in Cork this morning, on behalf of Cork’s ‘for DEMOCRACY!’ group.

A serious issue arises from the weekend’s events in Cork that should concern everyone.  A concerted effort was made by officials claiming to represent Cork City Council to stop the activities of the ‘for DEMOCRACY!’ group.  The group have organised an Anti-Austerity / Pro-Democracy stall in Patrick’s Street every Saturday for nearly a year, distributing leaflets and speaking with the public.

On Saturday, in successive incidents, up to six individuals approached the group’s information table to demand that the leaflet distribution stop, also demanding that the group stop speaking with the public.  Diarmaid Ó Cadhla, spokesperson for the group, said that “despite being advised that we were entitled to be on the street the officials demanded that we ‘move on’, they claimed authority from Cork City Council for doing so.”

At one stage the speaker at the stall was man-handled while addressing the public, at other stages the officials lined up in front of the stall, face to face with members of the group – invading personal space in a threatening manner.

Ó Cadhla said, “Thankfully the Gardaí came to the scene and after some discussion they advised the officials that we were acting within our rights and our work continued uninterrupted.”

Mr. Ó Cadhla says that the ‘for DEMOCRACY!’ group will be lodging an official complaint and is already in contact with City Hall in this regard.

Ó Cadhla said “apparently City Council decided that last Saturday was a ‘festive day’ and for ‘fun’, our likes were not wanted … street performance was organised for entertainment and public money spent on it.”

Diarmaid Ó Cadhla noted that “the incidents on Saturday follow a number of earlier attacks on our work against Austerity made by Councillors and Management at City Hall”.  He continued, “whether these incidents are related or just some officials ‘going maverick’, it remains a most serious matter – either way we want clarification and an apology from City Council”.

Mr. Ó Cadhla asked “Why does City Council feel it should stop citizens discussing the lack of democracy in our country/city and the unjust imposition of policy on the people?”

He also asked “Why does City Council feel that the people of Cork need more ‘festive’ and ‘fun’ days while so many thousands of families are facing destitution?”

Given that the Constitutional role of Local Government is to provide a “forum for the democratic representation of local communities” why isn’t City Council providing such a forum for the people? rather than distract them with trivia and try to silence anyone who speaks out?

Further information:

Diarmaid Ó Cadhla 086-3805005

Cork for DEMOCRACY! c/o Ionad an Phobail, 99 Sráid na Dúghlaise, Corcaigh.

Note: It is understood that the event organising was undertaken by a Dublin based company, Emergent Events, who were sponsored and assisted by Cork City Council

via Me Must Defend Our Democratic Right!.

Debt, Austerity, Devastation: It’s Europe’s Turn


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Like plague in the 14th century, the scourge of debt has gradually migrated from South to North. Our 21st-century Yersinia pestis isn’t spread by flea-infested rats but by deadly, ideology-infested neoliberal fundamentalists. Once they had names like Thatcher or Reagan; now they sound more like Merkel or Barroso; but the message, the mentality and the medicine are basically the same. The devastation caused by the two plagues is also similar – no doubt fewer debt-related deaths in Europe today than in Africa three decades ago, but probably more permanent harm done to once-thriving European economies.

Faithful – and older – New Internationalist readers will recall the dread phrase ‘structural adjustment’. ‘Adjustment’ was the innocent-sounding term for the package of economic nostrums imposed by wealthy Northern creditor countries on the less-developed ones in what we then called the ‘Third World’. A great many of these countries had borrowed too much for too many unproductive purposes. Sometimes the leadership simply placed the loans in their private accounts (think Mobutu or Marcos) and put their countries in hock. Paying back in pesos, reals, cedis or other funny money was unacceptable: the creditors wanted dollars, pounds, deutschmarks…

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Anti-austerity protests in Spain

 

Furthermore, the Southerners had contracted their loans at variable interest rates, initially low but astronomical from 1981 when the Federal Reserve declared an end to the era of cheap money. When countries such as Mexico threatened default, panicked creditor-country treasury ministers, top bankers and international bureaucrats spent some sleepless weekends eating take-out and cobbling together emergency plans.

Plus ça change, plus c’est la même chose.* Decades later, serial crisis meetings still take place, this time in Brussels and, with minor variations, the response is identical: you only get a bailout in exchange for committing to a set of stringent requirements. These once echoed the neoliberal ‘Washington Consensus’; now they are more truthfully labelled ‘austerity packages’ but demand the same measures. Sign here, please, in blood.

For the South, the contracts said: ‘Cut back food production and grow cash-earning crops. Privatize your State enterprises and open up profit-making activities to foreign transnational corporations, especially in raw materials and extractive industries, forestry and fisheries. Drastically limit credit, cancel subsidies and social benefits. Make health and education paying propositions. Economize and earn hard currency through trade. Your prime responsibility is to your creditors, not your people.’

Now it’s Europe’s turn. The countries of southern Europe, plus Ireland, are relentlessly told: ‘You have been living beyond your means. Now pay.’ Governments meekly accept orders and their people often assume that their debt must be paid instantly because the debt of a sovereign State is just like the debt of a family. It’s not – a government accumulates debt by issuing bonds on financial markets. These bonds are bought mostly by institutional investors such as banks which receive an annual interest payment, low when the risk of default is low, higher when it isn’t. It’s absolutely normal, desirable and even necessary for a country to have a debt which will pose zero problems and generate many benefits if the money is prudently invested for the longer term in productive activities such as education, health, social benefits, solid infrastructure and the like.

Indeed, the higher the proportion of public spending in a government budget, the higher the standard of living and the more jobs are created – including private-sector jobs. This rule has been verified time and again since the correlation between public investment and national well-being was first noted in the late 19th century.

Obviously, borrowed money can also be wasted and spent stupidly and benefits can be distributed unfairly. The big family-State budget difference is that States don’t disappear like bankrupt companies. Productive, well-managed investment financed by government borrowing should be seen on the whole as A Good Thing.

The magic numbers

In 1992, European countries narrowly voted Yes to the Maastricht Treaty, which at the insistence of Germany contained two magic numbers, 3 and 60. Never allow a budget deficit greater than three per cent; never contract public debt greater than 60 per cent of your Gross Domestic Product (GDP).** Why not two or four per cent, 55 or 65 per cent? Nobody knows, except perhaps some ancient bureaucrats who were there, but these numbers have become the Law and the Prophets.

In 2010, two famous economists announced that beyond 90 per cent of GDP, debt would plunge a country into trouble and its GDP would contract. That sounds logical because interest payments would take a bigger chunk out of the budget. But in April 2013, a North American PhD candidate tried to replicate their results and found he couldn’t. Using their figures, he got a positive result for GDP which would still rise by more than two per cent per annum. The famous, if red-faced, twosome had to admit they were Excel victims and had misplaced a comma.

Even the International Monetary Fund has confessed to similar mistakes, this time on the austerity cuts issue. We now know, because the Fund was honest enough to tell us, that cuts would hurt the GDP by two to three times more than it initially foresaw. Europe should go easy, says the IMF, and not ‘drive the economy with the brakes on’. The magic 60 per cent of GDP debt limit is no more sacred than the three per cent deficit limit; yet policies remain the same, because the neoliberal hawks seize upon every scrap of dubious evidence that seems to promote their cause.

We are faced with two basic questions. The first is why did the debts of European countries rise so steeply after the crisis struck in 2007? In just four years, between 2006 and 2010, debts escalated by more than 75 per cent in Britain and Greece, by 59 per cent in Spain and by fully 276 per cent in all-time champion Ireland, where the government simply announced it would assume responsibility for all the debts of all the private Irish banks. The Irish people would henceforward be held responsible for the irresponsibility of Irish bankers. Britain did the same, though in lesser measure. Just as profits are privatized, losses are socialized.

So citizens pay through austerity, whereas bankers and other investors who bought the country’s bonds or toxic financial products contribute nothing. After the 2007 crisis, the GDP of European countries dropped by an average five per cent and governments had to compensate. Escalating business failures and mass unemployment also meant more expenditures for governments just when they were taking in less income from taxes.

The New Morality

Economic stagnation is expensive – higher expenditure and lower revenue add up to a single answer: borrow more. Saving the banks and taking the consequences of the crisis they created are the fundamental reason for the debt crisis – and consequently for harsh austerity today. People were not ‘living beyond their means’ but the New Morality is clearly ‘Punish the Innocent, Reward the Guilty’.

This is no defence of stupid or corrupt policies such as allowing the Spanish housing bubble to inflate or Greek politicians to hire masses of new civil servants after each election. The Greeks have a bloated military budget and inexcusably refuse to tax the great shipping magnates and the Church – the biggest property owner in the country. But if your bathtub leaks and the dining room paint is peeling, do you burn down your house? Or do you fix the plumbing and repaint?

The human consequences of austerity are inescapable and well known: pensioners search through rubbish bins at mid-month hoping to find a meal; talented, well-educated Italians, Portuguese and Spaniards flee their countries as unemployment for their age group approaches 50 per cent; unbearable stress is laid on families; violence against women increases as poverty and distress rise; hospitals lack essential medicines and personnel, schools decline, public services deteriorate or disappear. Nature takes the brunt as well: nothing is invested in reversing the climate crisis or halting environmental destruction – it’s too expensive. Like everything else, we can’t do it now.

We know these outcomes, the results of what Angela Merkel calls ‘expansionary austerity’ policies. This neoliberal theory claims that markets will be ‘reassured’ by tough policies and reinvest in the newly disciplined countries concerned. This hasn’t happened. Pictures of Merkel adorned with swastikas are appearing throughout southern Europe.

Many Germans think they are helping Greece – and they don’t want to anymore. In fact, virtually all the bailout money has taken a circuitous route: EU government contributions made through the European Stability Mechanism have been channelled via the Greek Central Banks and private banks right back to British, German and French banks that had bought up Greek Eurobonds to get a higher yield. It would be simpler to give European taxpayers’ money directly to the banks, except that said taxpayers might notice. Why make an ongoing psycho-drama over two per cent (Greece) or 0.4 per cent (Cyprus) of the European economy? A cynic might say: ‘Easy. To ensure Ms Merkel’s re-election in September.’

The second basic question is: why do we continue to apply policies that are harmful and don’t work? One can look at this self-created disaster in two ways. Eminent prize-winning economists like Paul Krugman or Joseph Stiglitz believe that the European leadership is brain-dead, ignorant of economics and needlessly committing economic suicide. Others note that the cuts conform exactly to the desires of such entities as the European Roundtable of Industrialists or BusinessEurope: cut wages and benefits, weaken unions, privatize everything in sight and so on. As inequalities have soared, those at the top have done nicely. There are now more ‘High Net Worth Individuals’ with a much greater collective fortune than in 2008 at the height of the crisis. Five years ago there were 8.6 million HNWIs worldwide with a pile of liquid assets of $39 trillion. Today, they are 11 million strong with assets of $42 trillion. Small businesses are failing in droves, but the largest companies are sitting on huge piles of cash and taking full advantage of tax havens. They see no reason to stop there.

This is not a crisis for everyone and the European leadership is no more stupid than its counterparts elsewhere. It is, however, entirely subservient to the desires of finance and the largest corporations. Certainly, neoliberal ideology plays a key role in its programme but serves especially to emit thick smokescreens and pseudo-explanations and justifications so that people will believe There Is No Alternative. Wrong: the banks could have been socialized and turned into public utilities, like other utilities that run on public money; tax havens closed down, taxes levied on financial transactions and many other remedies applied. But such thoughts are heretical to neoliberalism (although 11 Eurozone countries will start taxing financial transactions in 2014).

I am a fervent European and want Europe to thrive, but not this Europe. Against our will we have been plunged into class warfare. The only answer for citizens is knowledge and unity. What the one per cent has imposed, the 99 per cent can reverse. But we’d better be quick about it: time is running out.

Susan George is Board President of the Transnational Institute and author of 16 books, most recently Whose Crisis, Whose Future? and How to Win the Class War, on her website in June for electronic download and print on demand along with six ‘Susan George Classics’.

* ‘The more things change, the more they stay the same.’

** Public debt is money owed by a government in the form of loans obtained on the financial markets rather than other forms of lending.

via Debt, Austerity, Devastation: It’s Europe’s Turn.

Beleaguered Perry owed more than €100,000 to taxman


Junior  minister John Perry’s position has become increasingly tenuous after it emerged he had tax arrears of €100,000 with the Revenue Commissioners.

Taoiseach Enda Kenny yesterday gave a less than ringing endorsement to the minister and speculation has already begun about his successor as Small Business Minister.

Court documents also reveal Mr Perry told Danske Bank, to whom he owes €2.5m, that he “knew Richie Boucher of Bank of Ireland” during negotiations on his loans.

The documents also show Mr Perry accusing the bank of “a form of bullying” and alluded to the personal consequences of actions by the bank “with his job”.

Mr Kenny said he has spoken with Mr Perry about his financial difficulties this week.

And the Taoiseach has also discussed the matter with Tanaiste Eamon Gilmore as concern within the Coalition over Mr Perry’s position mounts.

However, it is not clear if the Taoiseach or Tanaiste were aware of Mr Perry’s tax arrears – as neither Government leader is commenting.

But Mr Perry told Danske Bank in January 2012 that Bank of Ireland had agreed to give him a 10-year loan to help him address tax arrears of about €100,000, according to Commercial Court documents.

But it is not clear if the minister has since cleared the arrears with Revenue.

Last night, opposition parties called on Mr Perry (pictured) to make a statement on his finances as the reference to tax arrears piled the pressure on the minister.

Mr Perry has six weeks to repay €2.5m after he and and his wife Marie consented to a judgment for that amount against them at the Commercial Court over unpaid loans on Monday.

Mr Kenny said Mr Perry’s case was “indicative” of a number of business people across the country who have got into financial difficulty. I don’t really want to say anymore about John Perry’s particular problem.

“I spoke to him on Sunday and obviously they are working on that for the future,” he said.

Speaking on Mid-West Radio in Mayo, Mr Kenny said Mr Perry was committed to continuing his work as Small Business Minister.

“Obviously he has worked exceptionally hard in terms of his ministry. He’s got a court judgment to deal with here now in respect of the next five or six weeks,” he said.

Mr Gilmore’s spokesman said the Tanaiste reiterated that Mr Perry and his wife should be given the “time and space” to deal with the issues.

He also confirmed the Taoiseach and the Tanaiste had a “brief conversation” on the matter.

Mr Kenny’s spokesman also would not comment on the tax arrears question.

“The Taoiseach is not going to comment on the details of the case as the court proceedings progress,” the spokesman said.

But Fianna Fail finance spokesman Michael McGrath said it would not be acceptable for Mr Perry, as Minister of State for Small Business, to preside over businesses that were not meeting their taxation obligations to the State.

“In my view, on that issue alone, his position is very much called into question,” he said.

Mr Perry also told Danske Bank that AIB had agreed to give him an 11-year loan to pay €125,000 to other creditors and his other lenders had agreed to continue facilities on an interest only basis, minutes of meetings state.

The minutes relate to some of a number of meetings held between Danske and Mr Perry about delays in making repayments on a loan of €2.4m made to him and his wife in October 2011.

It also emerged that when the bank indicated last january that it would seek judgment or appoint a receiver if satisfactory proposals were not provided, Mr Perry expressed shock at the bank’s “aggressive approach”.

Irish Independent

via Beleaguered Perry owed more than €100,000 to taxman – Independent.ie.

College asks its ex-president to repay expenses


Waterford Institute of Technology has asked its former president Kieran Byrne to repay some expenses incurred during his time in office that it claims were of personal benefit to him.

He was not reappointed to a second term in 2011 after details emerged of spending by his office that peaked at €630,000 in 2008 and included serious breaches of spending controls in areas such as hospitality and taxis. In total, €3.7m was spent by the college’s office of president from 2004-11.

The WIT governing body’s decision not to reappoint him is understood to be the subject of a legal challenge by Mr Byrne against the college, where he was director and later president since 2001.

WIT has now reviewed spending by his office from 2007-11 to identify any spending that could be deemed of personal benefit to him.

In a letter to the Higher Education Authority (HEA), his successor as president, Ruaidhrí Neavyn, and WIT governing body chairman Donal Ormonde, say the college has sent Mr Byrne a claim for reimbursement.

The Irish Examiner sent WIT a number of questions on the nature and scale of the expenses it claims were of personal benefit to Mr Byrne. A spokesperson said the college could not comment for legal reasons.

The WIT letter of Jun 27 to the HEA was forwarded by the Department of Education to the Dáil’s Public Accounts Committee (PAC), which has published it on the Oireachtas website.

via College asks its ex-president to repay expenses | Irish Examiner.

MEP Childers resigns from Labour


Labour MEP Nessa Childers has written to Tánaiste Eamon Gilmore confirming her resignation from the party.

She says Labour is allowing Fine Gael to pursue endless austerity policies which go against the party’s core values.

“The policy of austerity is discredited in Europe and, increasingly, at home,” she wrote, saying those policies are a “profoundly immoral way to run our country”.

Ms Childers said she had increasingly found herself discouraged and prevented from advocating a distinctive social democratic position within the Labour party.

“While I have remained constant in my views, the Labour leadership has drifted away from a progressive policy approach,” she wrote.

“My attitude is vilified as disloyal or opportunistic when, in fact, I am defending and promoting the party’s core values.”

She said a “low point” for her was feeling abandoned by the party leadership for opposing the appointment of Kevin Cardiff to the EU Court of Auditors.

Ms Childers says she’ll run in next year’s European elections as an independent candidate within the European Socialists and Democrats Group.

The MEP for Leinster resigned from the Labour Parliamentary Party in April.

via MEP Childers resigns from Labour | Irish Examiner.

It (fraud) will continue until you no longer give your consent


The following very strong, very revealing letter was published in the Irish Examiner last Saturday.

Beware third party rules on mortgage transfers

“In our view, the code could potentially slow the increase in mortgage arrears in Ireland, and may allow lenders to start repossession proceedings sooner.

“We view this as a credit positive for the senior notes in outstanding residential mortgage backed securities.”

Let’s translate this quote from the Standard & Poor’s ratings agency as they commented on the new Central Bank code on mortgage arrears.

The important line is the second one. Your mortgage was sold to third parties by your bank. These third parties are hedge funds, insurance companies, etc.

These are the senior note holders. Your bank was paid in full for your mortgage by these institutions. Your bank now acts as a debt collector for these third parties. Basically, they bought your promise to pay from the banks.

The Irish Central Bank rules clearly state that a debt cannot be sold on to third party investors without your consent. If it was then the debt is null and void.

The next question to ask yourself is was your mortgage sold on to investors? The answer to this question is the same as the one about the bear, the woods and toilet facilities he used.

So unless you received a letter stating your mortgage was no longer owned by your bank then your mortgage is null and void.

This is just another example of the multi-layered fraud that continues daily in this country, all perpetrated by the suited and booted ones.

It will continue until you no longer give your consent.

Barry Fitzgerald

Lissarda

Cork

via Public Inquiry · It (fraud) will continue until you no longer give your consent.

Expunge corruption with ethics reform


Transparency International, a non-governmental organization, conducted a poll of 114,000 people in 107 countries on the problem of corruption.

More than 50 percent of the respondents said they believe that global corruption has gotten worse over the past two years.

According to the survey, a lack of ethics – dishonesty – is on the rise almost everywhere. Not surprisingly, “politics” was declared the most corrupt institution in 51 of the countries surveyed, but it has serious competition.

Banking is a major industry infected by corruption. Banks in Ireland, Greece, Spain, Portugal and some other countries, were caught up in the crisis of 2008.

The Irish bank bailouts were the first to hit a European country. Leaked audio tapes and phone conversations of top officials at Anglo Irish Bank revealed that they lied to the government about their bank’s financial condition as the real estate bubble was about to burst. This made it more difficult for the government to respond effectively. The Irish bank bailout has cost Irish taxpayers and the European Union tens of billions of dollars, and Ireland is still in the throes of a severe recession. A similar crisis occurred in the United States, only on a much larger scale.

Without fully understanding the scope and nature of the problem, the U.S. government felt compelled to bailout Wall Street banks, which were deemed too big to fail. The bank bailout probably prevented the U.S. economy, and possibly the world economy, from collapsing into a second Great Depression. Our economy remains weak, and unemployment is too high.

It appears that a culture of greed and a lack of ethics are still alive on Wall Street. Recently, a prominent New York law firm took a survey of 250 Wall Street professionals from dozens of financial companies. The survey revealed that 23 percent of responders “had observed or had firsthand knowledge of wrongdoing in the workplace.” Nearly 25 percent said that they would “engage in (unethical) insider trading to make $10 million if they could get away with it.” One-fourth of respondents also said that pay and bonus structures encourage employees to compromise ethical standards or break the law.

More worrisome, 17 percent of those surveyed expected “their leaders were likely to look the other way if they suspected a top performer engaged in (illegal) insider trading,” and “15 percent doubted that their leadership, upon learning of a top performer’s crime, would report it to authorities.” Overall, “28 percent of respondents felt that the financial services industry does not put the interests of clients first.” Despite these faults, Wall Street banks are getting bigger, and their profits are increasing.

The New York financial industry is operating the same way it did before the crisis of 2008. This shows that reform still is needed.

In order to avoid another bank crisis, Congress should pass a new Glass-Steagall Act, which separates traditional commercial banking from high-risk investment banking.

Most importantly, high moral values and accountability must be restored throughout our society; all of us should examine our conscience and rededicate ourselves to being honest in our dealings with others – especially those of us who are the leaders in politics and finance.

Anthony J. DiStefano spent 29 years in state and federal government, including working with the Ohio General Assembly, the U.S. House of Representatives and two executive agencies of the federal government.

via Column: Expunge corruption with ethics reform | Aiken Standard.

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