Friday 10 October 2014

IRELAND TO BE BURNED IN ANOTHER MINSKY MOMENT




In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the next Minsky moment in the global financial ponzi scheme. They also discuss the Conservative Party in the UK pushing young people into the debt pyramid by offering a 20% ‘discount’ on property and penalizing young people who don’t go into debt in order to go to university but who choose to work instead. In the second half, Max interviews Susanne Tarkowski Tempelhof, founder and CEO of BitNation (where the motto is ‘Blockchains, Not Borders)’ about sovereignty, love and divorce on the blockchain.

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Ireland, Iceland, a contrasting tale of two countries. Iceland, has a population of 320,000 people, while the Republic of Ireland has a population of 4.6 million. In the years before the financial crash of 2008, both countries had unsustainable real estate and consumer booms. Both countries had slack regulated financial sectors that got out of control. Iceland's big three banks, Glitnir, Kaupthing and Landsbanki had lent more than US $200 billion, eleven times the country's GDP. Ireland's Anglo Irish banks, were holding assets, seven times thier GDP on their books,  while much of the money was lent overseas.

"People in Iceland recognized that something had gone badly wrong with the country's political system."

When the crisis hit in the 2008 the two countries reacted very differently. Iceland's former prime minister, Davio Oddsson, explained that the privatized banks had been 'a little heedless' and the state wasn't going to bail them out. Icelandic deposits were protected and the government refused point blank, to take responsibility for most of the losses. In Ireland, however the government not caring much about its own naive people, turned the banking crisis into a sovereign debt crisis, under the cover of declaring the banks were too big to fail and decided the Irish taxpayer would foot the bill.

The People of Iceland, recognized there was something badly wrong with their political system and responded, by drafting a new constitution and they legally tried and convicted a former prime minister, Geir Haarde, for negligence. In Ireland however it is far easier for politicians to deceive the country people and there was no serious price to pay by any of the political and economic establishment. The traditional fascist party of Fine Gael, along with political careerists waving the Labour flag, replaced a corrupt Fianna Fail government. They simply moved around the personnel but not the underlying policies of deceit and corruption.

The Irish decided in a referendum to ratify the European Fiscal Compact, an EU treaty to lock Ireland's fiscal sovereignty and national government, into a programme of public sector austerity. Even the British government, with its Thatcherite Tory culture of public spending cuts refused to sign up but the Irish sheep, were once again led down the garden path by their gombeen politicians. 

Once morehe Irish government, borrowed more than 10 per cent of the money it spent from the banksters, with the country going into recession, it will never be able to genuinely balance its budget and will always be the debt slaves of the hidden City of London banksters. The acceptance of the European compact, marked a further step away from the path chosen by Iceland, where the needs of the people, come before the global financial sector and the City of London..

The political class of Europe shifted the costs of the banking collapse, onto national balance sheets. The bankster's losses are paid off through cuts in public spending and more privatization. It does not make economic commonsense except from the self interests of Irish politicians, what the bankers want and is a nice cosy pay off. The Irish state sold off assets like water and God know there is more than enough of it in Ireland, to private companies, who then charge fees for what were the original natural birthright of Irish people. The banksters, particularly of disguised, City of London origin, are makinge fortunes from the expansion of now further credit in Ireland, and are now making even more money, from turning Irish public property, into City of London corporate revenue streams. It is like the formercolonial rent seeking of the most blatant and abusive kind.

Now there's yet another burst in another credit bubble coming in places like Ireland as explained in the above video. Iceland at least had an honest serious debate about what happened and realized as a result it's its politicians allowed it to happen in the run-up to the banking collapse. Those responsible were held to account and the country's economy is recovering, restoring the living standards of the Icelandic people in a sustainable way but in the Ireland of Catholic culture and media censorship or superficial corporate media debate, where people follow leaders, rather than analyzing or  questioning their doctrine, like sheep are being led to the slaughter once again. European governments like Ireland are following policies, that sacrifice the many for the self interests of the few, repeating its fascist history. Five hundred million citizens of the European Union will have to learn some very hard lessons, from the 320,000 inhabitants of Iceland,if not they will learn what boom and bust, real recession and depression really feels like instead.






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