Reading this article below one could be but forgiven in thinking that Ireland is now in the middle of some type of currency war afoot between the dollar / sterling / euro.
BY FT – ANGLO LIST OF BONDHOLDERS : FT Alphaville » AIBaiting
The British political blogger has unearthed a purported copy of Anglo Irish’s foreign bondholders as of October 15 — quite a feat given Ireland’s finance minister Brian Lenihan once said he was unable to do the same.
Appearing on the Fawkes list — SEB Asset Management, Pioneer Investments Kapitalanlagegesellschaft, WW Asset Management GmbH and — shock! — Goldman Sachs, along with BNP Paribas, AllianceBernstein, Credit Suisse and so on.
Along with the list, comes this question from Fawkes:
Between them they hold Anglo-Irish bonds with a face-value of €4,034,756,880. Shouldn’t they take the hit rather than future generations of Irish taxpayers? Capitalism is a system of profit and loss, they took the risk of investing in Anglo-Irish Bank. Is the Irish government under pressure from the European Central Bank in Frankfurt to protect German investors?
Meanwhile, Zero Hedge is frothing at the mouth that Goldman is included on the list. Outrage hinges on whether or not one considers Anglo Irish to be a systemically important institution — Guido and Zero Hedge think not, others of course, think yes.
We think a slightly better question is why Allied Irish Banks — that other beleaguered AIB acronym — was able to pass the CEBS-administered European banking stress tests.
These were conducted over the course of the spring, with results published in July showing Allied Irish passing with flying colours. That was just two months before the Irish government unveiled a new capital injection of €3bn.
Anyway, we bring it up because on Sunday, someone has asked it:
(Breakingnews.ie) A Labour MEP is to write to the EU Competition Commissioner to find out why the Commission gave Allied Irish Bank the all clear in July only for the bank to require billions earlier this month. Alan Kelly has said Europe’s failure to anticipate the development is very worrying. Mr Kelly said: “The fact that AIB passed the stress test raises many questions.”
CEBS, you got some ’splainin’ to do.
#You want growth put the rents down.
#Growth is been strangled by POnzi property prices.
#We are supporting the banks which are stopping property prices dropping to real market value which is killing growth.
#Banks are sucking the life out of the economy like giant vampire squid and killing growth stone dead.
#The markets…… growth…….. keeping the banks alive……. its fake capitalism.
#Hundreds of Leprechauns and one pot of gold.
#The scramble to secure the biggest slice of the pot of gold / pie
#Not if one returned A45 to the people and made money issuance sovereign.
#The private bankers unleashed credit into the pockets of property maniacs to blow up a POnzi property bubble to make a mint.
#The problem in the banks is the bankers can provide money out of thin air to their buddies and crony networks.
#there was no growth in ANGLO it was a pyramid scheme for Jaybus sakes.
#The insiders are not interested in *credit/money* circulation which threatens their power base.
#The insiders are irrigating the liquidity in the system to fit in with their vested interests going forward.
# Anon – In the end, ‘we’ (IRL) can’t pay 4 this. We are broke! So German taxpayers will have to pay if they want the € to survive
#Anon -There’s no point of keeping anything, inc low corpo tax, if our households are slaves to the banks debt, is there?
#Anon – As a free marketeer, I don’t care 1 way or the other what happens with bondholders or banks. Taxpayers must not be held liable.
#Anon – Have a bonfire of insolvent banks. Let bondholders chips land where they may: if they take over the banks – green light to them
#Anon – No bank can enter IRL right now, cause Gov is subsidizing with our money incumbent corpses! Market was destroyed by Brian&Brian
#Anon – € can only be strengthened if we have proper monetary policies & functional markets. € is becoming a sad joke absent these.
#Anon – Let bondholders take whatever residual value of banks remains after wind up! If that’s paper clips in office – happy returns.
#Anon – Basic, core building block of economy & society is a household – people – we are destroying lives & futures to serve the false deity of banking sector, bondholders, and a number of EU pet projects. Can any1 truly believe that this is going to lead us (EU) anywhere other than to the proverbial scrapheap of history? Well, Chinese, Russians, Americans, Brazilians, APEC – the ROW – don’t. They are writing Europe off as ‘going nowhere fast’ continent. It’s sad, but true. Our policies are destroying the future of Europe
BY ANON – COMMENT ON IRELAND:
Other countries with a more rudimentary, and directly obvious approach to the application of resources are moving forward. Ireland with it’s centralized, convulated, expensive, cronyism-riddled, everybody on the take, silly process of “big” planning is going into reverse.
BY WILLS – COMMENT ON DMcW’s SITE
The *emerging economies* and the developed economies are they working for each other across the spectrum of trade in a symbiotic way.
One can only but conclude that they are not.
The controlling interests of all countries converge at BASEL and a financial hegemony. And the allocation of wealth produced from countries rich in resources flows upwards into the insiders bank accounts, whether they hold an emerging economy passport or not.
Serfdom class of emerging economies remain in a type of bondage which hides the tyranny they live under.
South American countries in the final analysis their economies slave under a rigged market place on the global scene which is dominated and controlled by Imperial power with its roots going back into the midsts of time.
BY ANON – A RIGGED SYSTEM IN ACTION
While Chile is hailed as a economic success story, it has to be highlighted that income distribution shows rather high inequalities.
Bolivia has the highest inequality in the region, followed by Haiti, Brazil, Ecuador, and Chile, which is tied in fifth place with Colombia, Guatemala, Honduras, Panama and Paraguay.
So I would like to add something to David’s article from a different angle. – My personal perspective is that the entire system is inherently flawed, hence any copy and paste job implements the very same systemic errors on foreign soils. This is deliberate, and is how the system is kept alive. –
In Chile’s 17 million population, 39% of national income goes to 10% or people. If you look at the other end of the spectrum, the poorest 10% receive about 1.5% of national income.
Of course, income inequality is only one aspect, others such as education, health care, culture and ethnic and gender inequalities do matter in that context.
Take education for example, on average, Chilean families contribute 83.9 percent of the cost of their children’s higher education, with the state paying for the rest. The proportion paid by parents is the highest among the 36 countries studied. In Finland, families contribute only 4.5 percent of the cost of tertiary education.
Chile’s society is fragmented by inequality and as such is doomed to continue spending significant amounts on police force and gated communities.
It is striking to see what Chile and Ireland have in common in two areas.
1. Low Income sectors have next to zero bargaining power
2. The people became depoliticized
Precisely these factor s legitimize status quo and prevent structural change.
Chile as well as ireland are elitist driven societies.
In contrast to Ireland however, in Chile this dimension is being addressed by the campaign ‘Bicentennial Citizenship: Creating More Democracy’ which was kick started this September by ACCIÓN.
Inequality is a hydra with many faces, but certainly structure of work is the main force that promotes severe inequalities in societies, legitimizing elitist power and policies.
The trend in our society is calling for a second labour market, a slave labour market where the unemployed will work for a token, to receive state assistance because work is not there. Of course, this concept has no roots in Irish genius, but is nothing but a cheap copy and paste of German 1-Euro Jobs and Hartz 4 policies, creating such slave labour markets since years. Once people are trapped in this, most of them will never again make it to the first labour market.
Chile’s society shows another phenomenon that I would compare with Ireland’s situation, the society is imploding as anger is turned inwards, the outcome is impossible to predict, as fragmented and depoliticized their citizens are.
In July 2010, The catholic bishops conference proposed all crimes against humanity, inflicted by the Pinochet regime from 1973-1990 to be pardoned for prisoners over 70, women inmates with dependent children, and prisoners who are terminally ill, as long as they have shown good behavior.
During Pinochet’s terror regime, approx 30,000 people were tortured. 65 people of the regime are imprisoned in circumstances that offer special privileges.
The former head of the Joint Command, retired general Enrique Ruiz Bunge, faced four sentences for murder, but has been released, and retired general Sergio Arellano Stark, sentenced for leading the ‘caravan of death’ — a special army mission that summarily executed leftist political leaders arrested around the country after the 1973 coup is at home, being cared for by his son.
Unsurprisingly, victims disproportionately bear the cost of reconciliation. Equally unsurprising is that Piñera is amongst the richest people in Chile.
While the mainstream media showed the rescue operations of miners, what has been kept entirely off the radar, was the hunger strike of indigenous Mapuche people, demonstrating against new laws that allow the regime to treat them as terrorist, laws that Piñera will rectify.
Chile was americas laboratory for free market policies under Pinochet.
Harvard economist Ricardo Hausmann: “Chile is like California without Silicon Valley and without Hollywood The reason for that he see’s in the limitations of Chile’s business class, which tends to be a closed, conservative circle.
BY IRISH TIMES – JAMES ELLROY INTERVIEW : Between a tragedy and a thriller – The Irish Times – Wed, Oct 20, 2010
‘So I know that whatever I can conceive, I can execute. That was was my biggest revelation, and the expression of my enormous ambition: the desire to create large-scale art. Finally, to create richer, deeper, emotionally resonant fiction, I need periods of rest and contemplation.’ – ELLROY
“That is distracting. I like solitude. I like to be alone. I like to be with God, and I like to pray. I contemplate meaning. If I let my thoughts scattergun out in odd directions, ideas will come to me.” Ellroy is on a continual quest to “become more conscious”, to take risks, to cut across genres: “I have looked deeper and deeper within myself. I try to write more profound books, to view the world more consciously.” The fact that Ellroy is a Christian – a Lutheran, who attends church regularly – may come as a surprise to those familiar with his raunchy slang, but it’s not a topic he likes to dwell on. “I am a Christian and my faith is key to my view of the the world. It is the sustaining fire that gets me through.” Beyond that, the subject is off limits.