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Time For Ireland To Default

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David McWilliams writes of Greece’s latest debt deal and how the smart option for Ireland now is to default. Of course when the country is run by school teachers and ex unionists there is no chance, as their only focus is securing funds to pay public sector wages as well as their own.

McWilliams has consistently argued against Irelands odious bank debt which lets face it is just being paid back for bondholders who gambled badly. Now is the time to push for a debt deal. Unfortunately the Presstitutes refuse to debate openly the merits of reneging on payments to bankers. Equally discussion of pulling out of the euro has been muted least it catch on.

ireland toxicbankGreece has defaulted again, and the financial markets have shrugged their shoulders. The euro remained unchanged versus the dollar. The Greek stock market even rallied. What does this tell us? It tells us that, as this column has argued again and again, the markets have no memory. Because it improves the overall position of a country, a debt restructuring will be welcomed since it adheres to the golden rule: a broken balance sheet is made better by less debt not more debt.

The media is reporting this as a “deal” in Greece. It is not, it is yet another default from a country where the economy is destroyed and needs to be nursed back to health rather than punished.

The big news for Greece and for us is that the troika has accepted that the country must be healthy in order to pay debt. This logic applies to Ireland too. Before we focus on the implications of the latest Greek default for us, let’s look at the broader picture. And before you think that I am advocating we follow the Greek route, I am not, I am simply pointing out the reality of the global economy and the realpolitik at the centre of Europe.

Effectively, the troika and the Europa group of Greece’s creditors have “agreed” (rather they have had their hands forced) to restructure their bailout loans. Interest rates will be lowered and even deferred to give Greece breathing room.

The crux of the agreement is that Greece’s debt-to-GDP ratio should reach 175pc in 2016 and 124pc in 2020. So 120pc has become the new sustainability.

It has also calculated that this is how capitalism works. In a crisis, the debtor and the creditor suffer, they both lose out and that’s how the system works. It is called co-responsibility.

The eurozone’s economy is in tatters, carrying too much debt, unable to grow. Italian consumer confidence has fallen to a record low this month. It is now at the lowest level since the series began in 1996. The only countries that seem to be keeping their necks above water in Europe are Bulgaria, Romania and Poland. This is hardly a reassuring picture, is it?

As the great deleveraging continues and unpayable debts can’t be paid, it would be surprising if Athens is the only government to choose to face down its creditors.

This all brings us here to Ireland as we continue to squeeze the economy dry, foisting austerity upon austerity and the local economy falters. Next week will be more of the same. We have been at this for five years now and there is no sign of recovery. It is increasingly clear that the Irish domestic economy will not recover as long as the crushing debt burden on the country’s young workers is not lifted.

And as we all buy and sell to each other in the local economy, your spending is actually my income and my spe- nding is your income. And if we all stop spending at the same time and the Government exacerbates this by slashing spending simultaneously, who is spending? And if no one is spending, who is earning? And if no one is earning, who can possibly be saving without earning?

So you see that what sounds good for the individual, such as “I am saving”, is only good for me if others continue to spend; if we all save at the same time, there is no income.

Now as these macro-economic targets that the Government and the troika set themselves are always debt expressed as a percentage of income, if our income is falling because no one is spending, then debt expressed as a percentage of income will be rising, not falling.

Now is the time to push for a debt deal, instead of the excuses pushed by the government for nearly two years as to why they haven’t.

This is why there has to be a debt deal for these hundreds of thousands of mortgages underwater. We already have 128,000 mortgages in arrears. This figure is rising consistently. There are 400,000 tracker mortgages which will only get more expensive as interest rates eventually rise over the course of the mortgage. These people will face default when this moment arrives and our banks will be bust again.

Now is the opportunity, when the EU is doing deals all over the place, to propose a big bank solution for Ireland’s mortgage debt. Such a deal would aid the Irish recovery, the EU would have the victory it so craves and ordinary Irish people would have the debt relief they so desperately need.

This would allow the economy to breathe again and it could be made the centrepiece of Ireland’s EU Presidency in the next six months. The EU President sets the EU agenda for the period when it has this role. Let’s not miss this chance.

Otherwise Ireland will become known as the country that never misses an opportunity to miss an opportunity. The Greek deal is an opportunity; let’s not throw it away.

Source: David McWilliams

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Ireland Are The Lab Rats

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An article on Max Keiser that I couldn’t agree more with from a reader Mick O’Kelly regarding how the elites use countries like Ireland for their experiments.

Over the course of my life I have become convinced that we Irish are lab rats in an island laboratory undergoing experimentation.  As a people we have been serially used and abused by oppressors ranging from monarchs,  church,  state and banksters.  After the 1840s famine experiment the Irish ‘bailout’ model of the time,  including parish structures etc., (related to religion of choice),  was tested first in Ireland and subsequently rolled out over the rest of the British Empire.
In the 1950′s Archbishop Mc Quaid with Fianna Fail collaborators, who at his wish refused to protect women and children (Noel Browne’s Mother and Child Bill),  simultaneously presided over numerous orphanages and  industrial schools which in reality were state funded concentration camps for poor children specialising in torture through rape and abuse.
What’s less well known is that the same asshole gave ethical approval to fluoridation of drinking water through the “Guild of Saints Luke,  Cosmas and Damian” . This led to the Health (Fluoridation of Water Supplies) Act 1960, which mandated compulsory fluoridation by local authorities.  Another experiment in saving on state dental bills.
Health concerns associated with adding fluoride to water has seen it’s use discontinued in many European and other countries. The Irish Medical Board now claims that fluoride in the water here is not a medicine but a cosmetic.

In the mid 1980′s Broadcom,  in a somewhat positive experiment,  was  developing European telecommunications infrastructure and put in place phone lines/exchanges that could cope with Internet data in Dublin,  Athens and Lisbon.  Internet was not rolled out for general use until the 90s as it’s social impact was unknown and feared.
Interestingly /coincidentally,  from the onset of the Financial War in 2008,  Athens, Dublin and Lisbon have again been the laboratory.  My octogenarian mother describes the true reason behind the experimental system of reckless lending during the housing and credit bubble like this:

Make people desperate for a home or whatever, give them loans they can never repay so they will pay interest in perpetuity. Thus they become debt slaves and then as the debt is sold on, this becomes the modern equivalent of the old buying and selling of slaves on the slave auction block.

A step on from this is the concept of asset stripping and buying and selling whole slave nations.

I don’t know whether Main Stream Media in Ireland are part of the overall experiment but it continues to fail the public and constantly preaches it’s litany of ‘we must keep our good name and repay the fraudulent bankster gambling debts because we are a good moral people who pay our way’.
We are told we must kiss the ring of the new Financial archbishops and ‘morally’ pay tithes to these self styled immoral bankster overlords.

The banksters and their parliamentary minions are no doubt currently writing the finance act to be announced at next week’s budget, while in the  media  Punch (Phil Hogan, Minister for Environment, Local Govt. and Housing) and Judy (Joan Burton,  Minister for Social Protection) fight it out over which of their coalition  parties will take the bad opinion poll hit after the next round of austerity measures, which will include bankster archbishop led ‘reforms’ aimed at making the citizenry more divided, suicidal, ill and hopeless than ever before.
The big pieces this year are the introduction of a controversial property tax which last year 50% of the population did not pay, and the moving of all responsibility for Social Housing (including 93,000 people who are currently temporarily housed) from the Dept of Social Protection to the Dept of the Environment which is hemorrhaging funding from all quarters due to domestic economic failure. The other big ‘reforms’ include kicking people people who having diligently paid their enormous universal social charge,  off  unemployment benefit after 9 months  and putting them onto a means tested allowance in a country that is ‘means test central’ of the EU. All in an environment of economic contraction and epidemic unemployment. Child and pension allowances are set to be cut with the new property tax to be taken directly from benefits. Bankster welfare and pensions are of course to remain untouched.
Meanwhile corporate and high paid earner tax loopholes are staying in place. Recently I came across a personal story of a highly paid Doctor who was so appalled by the fact that under the current regime their wealth was increasing, while their patients were presenting with all manner of austerity related ailments, that they paid an enormous chunk of their own earnings to a social charity in a self imposed tax measure.

Compared with the Icelandic approach you can see clearly that governments have a choice whether they protect the financial elites or the ordinary citizens of their country.

In an interview with Der Spiegel the Icelandic Minister for Finance Steingrimur Sigfusson explains how to quickly overcome a financial crisis and get back to growth.

‘We are not going to preach to Europe that we have found the cure all. But it was important that we didn’t wait, but that instead we reacted immediately to symptoms of the crisis. In order to remedy the deficit, an increase in taxes to raise revenue was unavoidable, but savings measures were also necessary. We needed a mix of both and the strong conviction in preserving our welfare system.

SPIEGEL: What can you recommend to countries in crisis like Greece?

Sigfusson: First security for society. Then the lower and middle income classes must be protected from austerity measures. Their purchasing power must be maintained so that their consumption can contribute to the revitalization of the economy. Internationally that is often overlooked.’

 

US Debt Per Person Higher Than Greece

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They always get us to focus on the wrong things……….all the talk this week has been deal on Greece but what about this for a chart.

Source: Bullion Management Group

China’s Demand For Gold To Soar

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Although the official figures for China’s Gold reserves are 1054 tonnes its clear that they have been buying up national production while at same time secretly buying physical on the dips. One thing for sure is Chinese gold consumption will continue unabated and soon surpass India.

Considering China’s is the world’s largest gold producer…and their consumption
will be twice their production level what do you think that means for the price
of Gold? Gold 10,000…here we come.

From Shanghai Daily…

CHINA’S gold consumption will more than double the production of bullion by 2015,
the Ministry of Industry and Information Technology said. But China, the second-
biggest consumer in the world after India, will continue to see a wider deficit
in gold supply in the country as consumption is set to surpass 1,000 tons in 2015,
the ministry said in a statement published on its website yesterday.

Although consumption in India remained above China’s in the first three quarters
of the year, the World Gold Council predicts China to become the biggest market
this year, according to its quarterly report unveiled this month.
Since 2007, China has been the world’s biggest gold producer. It aims to produce
between 420 tons and 450 tons of gold in 2015. The country is also the biggest
old jewelry producer, taking up about 60 percent of the global production, according
to the ministry.

According to Jim Willie massive amounts of physical gold has gone East already as faith in allocated accounts have taken a hit due to recent scandals.

Since March 2012, a whopping 6000 metric tons of gold bullion has been shipped from London to the East, primarily China. The circumstances behind the shipments are murky, but they indicate private off-market transactions that are intended to avoid publicity. My suspicion is that old wealthy Chinese families had their Allocated Gold Accounts improperly used in leasing practices by London bankers, associated with posted margin on a gaggle of leveraged contracts spanning from sovereign debt to currencies. The trades went sour. Margin calls were enforced with lost gold in a grand forfeit, the London bankers feet put to the fire reportedly. Publicity was avoided, but in the process a tremendous amount of gold was forfeited. With the gold went a transfer of power, to the East. They will dictate terms of the new trade settlement system. They will become the world’s more prominent lenders. They will control the next geopolitical chapter.

On thing is for sure, the Chinese are well aware of the impending Global financial collapse and are preparing themselves and so should we.

 

Source: The China Money ReportSilverDoctors

US Further Sanctions To Prevent Trading With Iran With Gold

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Now that Obama has gotten the election out of the way, he is free to concentrate his efforts on forcing Iran into a war. Turkey is now in the sights of the US as it has recently gotten around sanctions against Iran by purchasing oil using gold. Now the US Senate is considering more sanctions to prevent Iran from trading.

 

Currency wars are set to intensify as the US Senate is considering new sanctions against Iran that would prevent Iran getting paid for its natural resource exports in gold bullion.

The new sanctions aimed at reducing global trade with Iran in the energy, shipping and precious metals sectors may soon be considered by the U.S. Senate as part of an annual defense policy bill, senators and aides said on Tuesday, according to Reuters.

The sanctions would end “Turkey’s game of gold for natural gas,” Reuters reported a senior Senate aide as saying, referring to reports that Turkey has been paying for natural gas with gold due to sanctions rules.

The legislation “would bring economic sanctions on Iran near de facto trade embargo levels with the hope of speeding up the date by which Iran’s economy will collapse,” the aide said.

Last week Turkish Deputy Prime Minister Ali Babacan has revealed a critical detail about a widely discussed Turkey-Iran gold trade boom, disclosing that the Islamic republic was exporting gas to Turkey in exchange for payment in gold bullion. 

It is also reported that Iranians are buying Turkish gold with the Turkish Lira, which is deposited into their bank accounts in exchange for Turkey’s natural gas purchases, the deputy prime minister said at midnight Nov. 22 during a parliamentary session. 

Iran cannot transfer monetary payments to Iran in U.S. dollars due to U.S sanctions against the country’s alleged nuclear weapons program.

Iran has been forced to shun the international financial system and the petrodollar as means of payment and turn to the international gold market to ensure it gets paid for its natural resources in order to prevent absolute economic collapse.

The law of unintended consequences may apply here and should the Iranian currency and economy collapse there is likely to be a war with Israel and turbulence in the Middle East akin to, if not worse, than that seen in the 1970’s.

 

Source: ZeroHedge

Marc Faber: Reset of Global Financial System Will Happen

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Marc Faber on CNBC

  • We have too much debt in the West that needs to be paid down or no growth.
  • We lived beyond our means since the 80s now its payback period.
  • There will be an eventual “reset” of the Global Financial System.
  • The Governments will avoid instigating he “reset” and will happen because of either currency collapsing or markets imploding.
  • When it does we will be lucky to have 50% of the asset values that we have today.

Goldman Sachs Takeover of Bank Of England

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Finally the successor to Mervyn King is announced. In one corner was Goldman Sachs Jim O’Neil and in the other was Goldman Sachs Mark Carney who was the lucky winner.  Carney is not due to takeover from King until next June but ZeroHedge put forward a theory of Carney being picked for damage limitations purposes.

“Why not get a head that’s global? Bankers aren’t very popular, and a Canadian sounds like a good choice,” said Kent Matthews, a professor at Cardiff University and former Bank of England researcher. “It may well be that to restore credibility they have to look outside.”

 

So that’s the strategy: play Carney off as a Canadian, instead of as Goldman. We wonder how many minutes the general public will be fooled by that particular strawman.

Click here for map of Goldman Sach’s European domination so far.

Remember the trader Alessio Rastani on the BBC declare

“The governments don’t rule the world, Goldman Sachs rules the world.”

Check out the clip at 2:38

source: ZeroHedge, Guardian, Huffington Post

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