MAIN ITEM: BREAKDOWN ON ANGLOS BONDHOLDERS ~ Golem XIV – Thoughts
The citizens of Ireland have been forced over the last two years to give the bond holders of Anglo Irish bank 20 billion euros. WHY? The Irish government recently told its people the 20 billion was not enough and they MUST give the same bond holders another 10 to 20 billion euros. WHO are these special people called Bond Holders that they must be so carefully protected even at the cost of despoiling a nation?
I tried to find out. I failed. 15th October the British Blogger Guido Fawkes published a list of the bond holders. I would like to thank Mr Fawkes, and thank Unclear for posting the link and bringing it to my attention.
So those are the names but WHO are they? I thought this was something I could help with, to add my contribution to Mr Fawkes’ break-through.
It is worth knowing who they are because the Irish government has said more than once that one of the reasons the bond holders had to be protected and could not, must not, be made to suffer any losses, even though it would be PERFECTLY legal to do so, is because the bond holders are pension funds for poor Irish widows and cooperative savings funds for orphans and ‘ordinary folk’. A little poetic exageration there, but only a little.
This reason, for why the Bond holders must not take any loss, was trotted out to bolster the first answer given, which was that if Ireland pissed off the bond holders then they would refuse to ever deal with Ireland ever again and Ireland would never be able to borrow ever again, ever, and everyone would die in penury, friendless and cold. That first reason started to look like it might not hold, when the Germans started to talk rather too openly about how it might be best for all, them especially, if Greece did ‘re-structure’ its debts (default – a teeny bit). When no one said it would be the end for Greece, Ireland’s ‘the sky will fall in’ reason for not asking its bond holders to share the pain started to look like what it was, a politically motivated lie. Thus the grannies and orphans had to be hurriedly wheeled out.
So, are the bond holders widow’s pension funds and orphans’ savings accounts? Well actually, NO. That too was just another lie from the morally degenerate and cringingly servile Irish government.
But don’t take my word for it. Lets look at exactly who the bond holders are.
But first be clear about my method. Over all I have decided to compare Ireland’s wealth with that of its bond holders.
I have looked at what the named companies do – according to their own literature. I have looked to see if they are in fact owned by someone else and if so who and where the companies are registered and based. And I have looked at the sort of wealth we are talking about. On this last point, I have looked not at their market value – because that, as we all know, is a matter of creative accountancy and is also often not something the companies like to list, but at their ‘assets under management’.
Assets under management gives us a view of the total amount of wealth these companies deal with so we can compare it to the total wealth of Ireland. Its GDP. Where a company is, in fact, owned by a larger one, I have used the parent company’s assets on the grounds that on the other side, Anglo Irish has been treated as a subsidiary of Ireland and the entire wealth of the nation is being deployed and called upon.
So, on one side we have Anglo Irish and its ‘parent company’/owner, Ireland and its ‘bond’ holders the people of Ireland. On the other, we have the companies listed as bond holders and the larger companies who own them and who are thus the ultimate beneficiaries and interested parties in those bonds.
On with the show!
Of the 80 listed companies only 7 listed pensions and being a cooperative savings institution. Of those only 4 listed churches and unions as their clients, the others could well have been big pension funds. The churches and unions in question were in Germany not Ireland. Those seven companies are amongst the smallest of Anglo Irish’s bond holders. I only have figures for four of the seven. The largest, Union Investments of Germany, has a mere €165 billion in assets under management.
The total assets under management which I was able to compile from publicly available figures is €20,871,150,000,000. That is an underestimate because the bond holders who turn out to be Private and Swiss banks don’t publish any figures. So Anglo Irish’s ‘bond holders’ hold and invest MORE than 20.8 trillion euros. Guido lists those bond holders as holding between them 4 Billion euros in Anglo Irish bonds.
Now, in my opinion both figures are likely to be wrong. Certainly my figure is a large underestimate. But taking them at face value Anglo Irish would account for an one 5000th of the total assets being managed by all the bond holders. So would even a total default by Anglo Irish cause that much, let alone systemic, pain and risk? Why are the ‘Bond holders’ and the Irish government so concerned that the Irish people be forced to take the loss and pay the debts for them?
Now lets look at the other side of the equation, at Ireland itself. Well Ireland’s GDP before the crash, in 2008, was … drum roll please… €207 billion. Or 0.207 trillion.
SO…. on one side we have Ireland whose bond holders, its people, have between them a total GDP wealth of 0.207 trillion euros. Who are being FORCED, against their will, to pay Anglo Irish bank’s debts to its bond holders, who between them hold 20.8 Trillion euros. The people of Ireland are paying to, and protecting the wealth and power of, people who have 100 times more wealth!
So where do these wealthy bond holders live and work?
Germany has the most with 15 of the bond holders. Who between them hold 5.3 trillion euros.
France is next with 10 bond holders. Who have about 4 trillion to keep them warm.
Britain is third with 9 who have around 3 trillion.
The Swiss have 6 but who have about 8.5 trillion.
America has only three and hold only a trillion.
Other nations include, Spain, Belgium, Portugal, Holland Finland, Norway, Sweden, Poland, South Africa and Italy.
All these figures are very rough. The figure for Switzerland is certainly under because Private Swiss banks just don’t publish figures. What we can say for sure, figures or no figures, is these are not banks investing widow’s pensions or orphan’s pennies.
So who are they? Well many of the bond holders are privately held banks, which list their activities as asset management for off-shore, non-resident and high value individuals. To give you an example, one of the private banks is EFG Bank of Luxembourg. EFG stands for European Financial Group which is the third largest private bank group in Switzerland. It manages over €7.5 trillion in assets. It is ‘mostly’, 40%, owned by Mr Spiro Latsis, son of a Greek shipping magnate. He also owns 30% of Hellenic Petroleum. His personal fortune is estimated to be about $9 Billion.
Now there is absolutely no suggestion that Mr Latsis has ever done anything wrong or illegal. And his holdings are, I am quite sure, perfectly legal and above board. But when we talk of Anglo Irish’s bond holders it is Mr Latsis and those with his sort of wealth who we are talking about NOT widows and orphans or you and me. It is therefore worth remembering, the next time an Irish politician, or any of our politicians for that matter, say that some welfare payment can no longer be afforded, it is because the money that could have paid for it has been given to the bond holders, people not unlike Mr Latsis, instead. The Irish people are paying and protecting the interests of people like Mr Latsis over the interests of their own children. And it is their own politicians who are doing this.
Other bond holders call themselves ‘asset management’ firms. The fifth largest asset management firm in the world is one of the bond holders. Others are insurance companies. The 6th and 9th largest in the world, to be specific. Others are the largest banks, Deutsche, Soc Gen, Barclay’s, PNB Paribas, Unicredit (who don’t appear on the list but own Pioneer Investments),and Wells Fargo (also not on the list but who own European Credit Management). Then there is Goldman. No show without the squid.
Kleinwort Benson Investors is a bond holder. But Kleinwort is owned by a Belgian holding company, RHJ which is part owned by Mr Timothy Collins. Mr Collins also sits on the board of Citigroup. So he too is one of the bond holders the Irish people are ‘helping’.
Finally, a very large number of the banks who are Anglo Irish’s bond holders, are members of something called the Euro Banking Association. All the large European, most of the large US banks, Swiss, Japanese, Nordic and some Chinese are members. The chairperson is Mr Hansjorg Nymphius of Deutsche Bank. Other board members are from JP Morgan Chase, RBS, Bank of Ireland, West LB(bankrupt), BNP Paribas, ABN Ambro, Dexia and Banco Santander.
Its a list which could double as the list of Anglo Irish’s bond holders. The EBA was set up in Paris in 1985, since when it has been and is, central to promoting European Union financial integration and the area’s banking interests. The EBA has close ties to the ECB.
I will leave you to digest this disgusting bolus of self serving wealth protection.
The only thing left to say is this. The bond holders of Anglo Irish are a very good guide to the identity of the bond holders of ALL OUR BANKS. The bond holders being protected, in every nation, on the advice of the banks and financial class, are THE BANKS AND THE WEALTHIEST OF THE FINANCIAL CLASS.
EXPLODING FIAT PAPER MONEY MYTH ~ Golem XIV – Thoughts
“I promise to pay the bearer” is what it says on all paper money printed up by the Central banks for our governments.
But it is not the government nor even the Central Banks making that promise. They print the notes and decide on the number of notes in circulation, but the promise is ours. That promise, which gives the notes their value, only has substance because of you and me – the people. Without us there is no promise. There can be no currency. We, the people, are the only real guarantee that the paper has the value that is printed on it. The entire value of our money is based upon one thing only. That we allow our governments to tax us.
Paper money is based upon taxes. Without taxes and the labour upon which tax itself is based there is no government, no government power, no military power. There is NOTHING at all without the consent of the people to be taxed.
I think our governments have forgotten this.
I think they have forgotten that they do not actually have any power, do not own anything and have no wealth or credit except what they derive from being our representatives. And what does it mean to be our representatives? It means they represent our desires and our will. The power they wield is ours not theirs. They are required to do OUR will not theirs or their friend’s.
I think it is time all our governments were reminded of this fact. Because it seems to me they have begun to act as if they had power and wealth of their own. They have become so used to passing laws that we must obey that they have begun to mistake themselves for ‘rulers’ when they are in fact servants – public servants.
It is time they were reminded.
Our rulers have begun to forget that they are neither above the law nor us, the people. They have begun to think, however, that by declaring states of emergency, political, military and financial that they can set themselves and their actions above the laws and us. This must be stopped.
Democratic governments who set aside the rule of law, even in the name of some emergency, imperil the democracy they claim to serve. Our democracies are in mortal peril. Not from the enemies without but from within. Our own governments have become the enemies of democracy.
Nowhere has this been more dangerously evident than in the actions our governments have taken in this debt crisis.
By bailing out the banks, our governments have used the power they have on loan from us, to further the wealth and position of themselves and their friends and have done so at our expense. This is, to my mind, treason. Treason is not against ‘the state’ which is too easily confused with the government of the day, but against the people.
The fact of the last two years is that without the cast iron promise written in our name on our bank notes there would be no banks and no banking system. All the promises of the ‘smartest men in the room’, that they knew best, that the market knew best, that a ‘light touch regulation’ was best and that the promises to pay written on their securities were reliable – all those promises were shown to be less than smoke. They were lies and fraud.
The last two years have been about replacing those broken private bankers’ promises with money inscribed with our promise. Our governments have used the promise of our future labour and their ability to tax it, to bail out the worthless paper promises of the bankers. And they have pushed our promise to the point of debasing it. Exactly as the bankers already debased the promises of their debt-backed currency.
Our leaders have colluded with the bankers to push our promise to labour and pay taxes out for decades into the future. All just in order to pay back the money borrowed to bail out the venal, corrupt and worthless bankers.
And yet, at the same time that our promise to labour and pay taxes has been used to save the personal fortunes of the bankers, those same people, have sounded a chorus of calls for us to ALSO face cut backs and hardship. It is not enough that our promise has been used to save those who use, impoverish and despise us. Those people are concerned that we be held to this promise that was made for us by our leaders without a word of debate or consultation.
For taxes, like the labour they are based on, do not run out. And that is what the financial class covet. The financial class want to use our promise for themselves. The ONLY reason our governments can issue thirty year debts and pay so little interest is because everyone believes we will keep working and paying our taxes for them to spend with out murmur or question. The bankers now have use of that promise, that you and I will keep working, keep paying. And will now do so to pay their debts, the debts of the super rich. Our government’s job is now to hold us to that promise.
The bankers have been quick to claim that the financial world, specifically the bond holders, who it turns out are very often the bankers themselves – they must be given priority when it comes to being protected from losses.
We, the people whose promise is all that stands between them and deserved self inflicted ruin, we are being told we are bottom of the heap. We are lowly share holders in UK plc or America plc or Ireland plc or even lower, just the people who work here – just the employees. We are seen as workers who have no more claim to our country than an employee has upon the capital of the company he works for.
Our labour is what makes money work. NOTHING, precisely NOTHING else does or can do this job.
AND yet, such is the arrogance of our leaders and the financial class to whom they grovel and fawn, that they have forgotten from where their power comes. They think they are a the masters. And we have no one to blame but ourselves.
We have let the scions of the wealthy live such lives of uncontested privilege and wealth, that they have come to think it is theirs by right and birth. The verminous little lions of Westminster preen and condescend and think themselves noble and caring that they take any care at all to let a crumb or two drop from their table to the common ground.
This must end. There is no other power save that which is stolen from us. The police may be turned against us as may the army. But without our labour and our tax they will go as hungry as us. The politicians power is ours by right, it becomes theirs only by limited and temporary sufferance. While the bankers have NO CLAIM AT ALL, to our labour or our taxes.
Thomas Hobbes recognized that a people who become aware of themselves as a collective entity become something new, something hugely powerful eclipsing all other power. Hobbes and others more radical saw our power was greater and more incontestable even than that of the King and God.ITEM 1 :
COMMENT BY ANON ON BACKGROUND STORY TO IRELANDS ECONOMIC QUAGMIRE. INTERESTING SOCIOLOGICAL ANGLE ON THINGS ~
BY ANON :
‘The economic problem is that everyone’s standard of living is simply unaffordable. The political problem is how to get those standard’s of living down to an affordable level.
One symptom of this has been the incredibly unwise vast increase in income disparities, and wealth accumulation, which in the US & UK have reached levels not seen since the days that Jane Austin wrote about.
It is absolutely, 100%, inevitable, that this will sort itself out. It can either be done with an eye to the future (I favour the Sputnik model – I’ve seen nothing yet that promises a better result, but am open to suggestions), or we can pretend that fiddling with financial levers can fix it.
There are things we can do that will ameliorate it at a national level, and there are things that we can do that will make it a very great deal worse for everyone.
But this is not like anything any of us have seen before, so just dismissing it as ‘Casino Capitalism .. 20 years boom and bust…, blah blah’ is misleading, and now is a time to bring as much clarity as we can – we all know where false hopes can lead.’