Category: Government

Ireland and Iceland? – a big difference

There is a long running joke that tells us the only difference between Ireland and Iceland is one letter and six months.

Well, judging from two headlines in last Saturday’s Irish Times there is now a significant difference between the two countries.

Here are the headlines with some quotes from each article.

Banks’ dependence on ECB funding continues to fall

At the end of May, the banks’ total borrowings from the Central Bank in Ireland and the ECB stood at €156 billion, down from €160 billion in April.

The gradual loss of deposits at the Irish banks over the past year has led to a surge in borrowing from the ECB which reached a peak last November, when banks here were in receipt of €136.4 billion in funding.

The dramatic rise in Irish financial institutions’ dependence on ECB funding, at a time when other countries were reducing their reliance, is believed to have been one of the key triggers behind the IMF-EU bailout.

Iceland makes successful return to bond markets

Iceland returned to international debt markets for the first time since its banking meltdown more than two years ago as investors offered to buy twice the amount the government offered in dollar-denominated bonds.

Iceland, which averted a sovereign default by refusing to bail out bondholders when its banks failed in October 2008, will enjoy economic growth of 2.2 per cent this year and 2.9 per cent in 2012 as its budget deficit narrows to 1.4 per cent of gross domestic product, according to the Organisation for Economic Co-operation and Development.

The island’s approach to resurrecting itself from financial ruin has won the praise of Nobel laureate Paul Krugman, who says Iceland is now better off than euro member Ireland.

George Lee: Advising the Greeks

Dr. Labros Chatziz, president of the Hellenic Community (In Ireland) and co-owner of the River Medical Group was on The Business this morning discussing the growing financial crisis in Greece and the Irish government’s negotiations in Europe.

The presenter, George Lee, put it to Dr. Chatzis, that tax evasion was rampant in Greece.

Yes, tax evasion is a national sport. Unfortunately, the only people who are paying tax in Greece are people on salaries; all the professions are tax evaders.

George didn’t intervene here to say that the situation is the same in Ireland, he allowed the doctor to continue.

I’m ashamed to say you have doctors, like me, who have been declaring €10,000 income for the past ten years. When the taxman went in they found yachts, swimming pools and mansions.

Again, George didn’t intervene here to say that the situation is worse in Ireland because ordinary and long suffering taxpayers are still waiting for the taxman to act against the rich tax evaders.

But this is done by everybody in Greece. It’s the mentality and this is the big difference with Ireland. In Ireland it’s not like that.

Once again, George didn’t intervene to say that the mentality is exactly the same in Ireland; that Ireland is exactly like Greece.

Instead George went on to advise the doctor that his country will have to end its culture of tax evasion and added, that it’s not a banking crisis his country is suffering from but a fiscal crisis.

Clearly, George is of the same mind as the Minister for European Affairs, Lucinda Creighton. He seems to believe that Ireland is a normal functional state that just happens to be suffering from a temporary banking crisis.

The doctor went on to explain how the already severe austerity measures were being imposed on people who were already paying high taxes.

They’re squeezed even more; I can’t believe how much more they can give. Now you will be taxed for the size of the house you live in on top of the stamp duty.

And that’s just driving them nuts, said George, helpfully, without the slightest hint that he was aware of the raft of similar taxes about to be imposed on ordinary Irish taxpayers.

"The Irish are stupid, corrupt and dead, may we rest in peace."

Labour Minister Pat Rabbitte was on Saturday View today defending the government’s policy on the continuing economic crisis.

We are where we are, we didn’t create the situation that we’ve inherited.

I made plain on the night it happened (Bank guarantee) that we would be in a straight jacket as a new government. We remain in very difficult circumstances.

There has to be a willingness on both sides in negotiations to move and up now that willingness has been there except for one head of state and it has made the task very difficult.

Translation:

We are where we are, it’s not the government’s fault, it’s not my fault, it’s Sarkozy’s fault.

A comment from a listener cut through Rabbitte’s dishonest waffle.

The Greeks are alive and fighting, the Irish are stupid, corrupt and dead, may we rest in peace.

Greece and Ireland are the same

Last night’s Prime Time analysed the differences between the financial crisis in Greece and Ireland.

Greece, we were informed, was in crisis because of a dysfunctional political and public service which is largely corrupt and no longer serving the best interests of Greece.

When Minister of State for European Affairs, Lucinda Creighton, was asked would Ireland, like Greece, require a second bailout she replied:

Certainly not, you cannot compare Ireland with Greece. The crisis in Greece was caused by structural problems, in Ireland the problem was caused by a credit bubble.

Such denial and/or ignorance is deeply disturbing and bodes ill for the future of Ireland and its people.

The cause of the Irish crisis is exactly the same as that of Greece – Political corruption which has infected every sector of Irish society and ultimately destroyed our country.

No recovery is possible until that brutal fact is accepted and acted upon.

Surely now, our worries are over.

I take back all the bad things I said about the Irish political system.

I was wrong to suggest that promises of radical reform in the Senate were just hot air.

Independent Senator Feargal Quinn has identified an area where major savings could be made.

Apparently, each senator is issued with a sealed envelope containing each day’s running order of the House.

It just doesn’t make sense, said the Senator, and it would save a lot of money if stopped.

Leader of the House, Maurice Cummins agreed with Senator Quinn saying that the matter had been raised on several previous occasions.

Neither of the visionary senators indicated when the practice would actually stop but I’m sure, after the establishment of the traditional committee, a decision could be expected, say, within five years.

Such quick action, I’m sure, would have a significant impact on the 250 billion that the nation owes; would go a long way in reforming our corrupt political system and could even lead to a resolution of the EU/global financial crisis.

Surely now, our worries are over.

Broken promises to a politically ignorant electorate

Fionnan Sheahan was writing about broken government promises in yesterday’s Irish Independent.

The average member of the public does prefer to get accurate accounts from their elected leaders and demands a high degree of honesty.

This is a ridiculous statement.

Irish politicians are very, very seldom honest. They operate within a deeply corrupt political system where lying, cheating, stealing and generally betraying the people is the norm.

Honesty within a system that runs on the fuel of corruption can quickly end a political career.

Such corruption flourishes because of the chronically low level of political intelligence among Irish citizens.

A few scraps from a politician’s table, even from criminal politicians like Haughey, is all that is required to ensure election time after time.

The credibility of the previous government was eroded because the public gradually couldn’t believe a word their ministers were saying.

This is also a ridiculous statement.

Irish ministers lie all the time. Political lying is a deeply ingrained part of our corrupt political culture and is fully accepted by a chronically politically ignorant electorate.

Irish citizens have no problem with political dishonesty/lying so long as it does not affect them personally.

They vote, overwhelmingly, on a selfish, personal basis – what’s good for me, not the wider community, not the country.

It was only when the previous government led the entire country over the cliff of destruction, affecting the individual interests of a great number of citizens; that they found themselves thrown out of power.

It’s not about honesty, it’s not about good government; it’s not about the country.

It’s about how well a corrupt political system based entirely on the buying and selling of votes through clientelism can deliver a few crumbs to a politically ignorant peasantry.

Celtic Tiger to follow the Asian Miracle?

The first of a very interesting three-part series, All watched over by machines of loving grace, was broadcast by BBC 2 last Monday (9.00pm).

The programme analyses the idea that humans have been colonised by their machines.

Last week’s show focused on the part played by computers in global finances and, as an example, analysed the rise and fall of the Asian Miracle, a property boom almost identical to that in Ireland. It made for chilling viewing.

When developers defaulted on their loans Western investors panicked and rushed to take their money out of the countries involved.

The IMF eventually intervened with massive loans to stabilise the situation but at a price. The countries involved were forced to turn themselves into models for the Free Market which meant cutting government spending and getting rid of corruption and nepotism in the ruling elites.

Unfortunately, the IMF programme only worked in the short term. Eventually, currencies collapsed, in some cases, losing up to 80% of their value. Economic ruin led to rioting and looting bringing some states to the brink of anarchy.

The principal aim of the IMF intervention was, apparently, to rescue Western investors, not individual countries. The bill was, ultimately, placed on the shoulders of ordinary and mostly poor taxpayers.

Prices soared as economic output plummeted resulting in millions falling back into the poverty they thought they had escaped forever. The crisis triggered widespread ethnic and religious strife.

The parallels with Ireland are obvious; it’s just that we haven’t yet reached the end of our particular road.

The countries involved were very angry with the way they were treated by the IMF and Western investors and have pledged never again to allow themselves become the victim of such naked greed.

The resources of these countries are many multiples of those available to Ireland so they are likely to succeed in their ambition to determine their own destiny.

Ireland has few resources, is still hamstrung by a deeply corrupt political/administrative system and is desperately vying for crumbs from an increasingly crisis ridden EU economic system.

We are, as Morgan Kelly predicted, more and more dependent on the kindness of strangers.

Seanad Eireann: Dead as a dodo

Irish Times columnist Deaglan de Breadun was very impressed with the contribution of Senator David Norris during the first session of the newly elected Senate, vintage stuff, de Breadun commented.

Some people are easily impressed.

Senator Norris pompously compared the parochial, elitist club that is Seanad Eireann with the Roman Republic and its senate.

As if there was even the remotest link between the greatness of ancient Rome and the activities of a crowd of gombeen bog trotters labouring under the delusion that they live in an accountable democracy.

Senator Norris went on to make the following comment which confirms that he and his fellow senators occupy a fantasy realm completely divorced from reality.

It is our responsibility by reason of our privileged position not to encourage the notion that we are a special class. Politicians are merely ordinary people who have taken on an extra burden of responsibility on behalf of the wider community. We should not see ourselves or behave as if we were an elite.

Apparently, the great hope for the new senate is the vision and determination of its new members. Here’s part of what new Senator and economics lecturer at Trinity Senator Sean Barrett had to say in his maiden speech.

We will have to show that this senate will make a difference. We will have to provide checks, balances, and scrutiny and accountability tests on all of those people who have brought this country to the desperate economic situation in which we find ourselves.

So, this completely useless and powerless institution, which is an integral part of our corrupt political/administrative system, is going to bring those who destroyed our country to justice?

Senator Barrett, with flags flying and guns blazing, is not only going to take on the indolence, arrogance and incompetence of Seanad Eireann but he’s also going to put the frighteners on the entire ruling elite who have so successfully protected the corrupt traitors responsible for impoverishing the people of Ireland.

Best of luck on that one Senator.

There was, however, one glimmer of hope.

After just two-and-a-half hours listening to his fellow senators, newly elected Labour Senator John Whelan commented:

They spent most of their time talking either about themselves or their local parish pump issues. It was a total mess of back-slapping, wind-baggery and hot air.

Senator Walsh, who obviously breathes the same air as ordinary people, said that Seanad Eireann was ‘dead as a dodo’ and should be abolished as swiftly as possible.

I suspect the vast majority of Irish citizens would agree and cannot wait to get their hands on that ballot paper.

Talk, even genuine, patriotic talk, will not change the status quo

I have nothing but admiration for people like Fiach Mac Conghail of We the Citizens and those involved in setting up The Citizens Assembly. They are, unlike the bulk of Irish citizens, including myself, taking action to create a truly democratic country.

Unfortunately, they are too late. The old corrupt Republic of Ireland came to an ignominious end on 29th September 2008 when the Fianna Fail/Green Party government handed over all our assets and our children’s future to bail out the corrupt bankers.

Many people blame the bankers for the disaster that has occurred, this is a mistake. No banker, developer or any other organisation or individual could have acted as they did without the full cooperation of a corrupt political system.

That corrupt political system is still in place, still protecting the corrupt, still betraying the best interests of the Irish people.

Nothing will change until that corrupt system is totally destroyed and replaced by a truly democratic system.

Representatives of We the Citizens and other groups attempting to rescue our failed state featured on The Late Debate (Tuesday).

There was a great deal of debate about debate, a great deal of discussion about how our systems can be reformed.

It is all to no avail, our country is a failed entity. Nothing less than a complete clear-out of all the political, administrative and regulatory systems that have betrayed the people of Ireland will do if we are to create a proper democracy.

Organisations like We the Citizens and The Citizens Assembly will fail because of one glaring flaw, they are all talking shops. Talking shops full of genuine, enthusiastic, patriotic people but talking shops none the less.

They carry out their business within four walls; they will not be conducting angry street marches and therefore will pose no real challenge to the political/administrative status quo.

The corrupt political/administrative system will pat them on the head; praise them for their high ideals and then ignore them.

Just as I was despairing of all the talk about talk a woman in the audience, Sarah, a youth worker with Spunout.ie, cut through all the discussion with the truth (my emphasis).

I’ve been at Reset Ireland, The Ireland/Iceland project, Claiming our Future and We the Citizens where there has been lots of discussion.

But I have come to believe that we will not achieve any significant political change through polite little initiatives that operate within the current status quo. We just won’t do it, it hasn’t happened anywhere else.

In every other country where they have achieved such political change it has been because of a prior rejection of the status quo on the part of the people.

We have had no such rejection in Ireland; change will only come about by rejecting the systems that have failed us

Good woman Sarah, I couldn’t have put it better myself.

The current ruling elite will never give up their power until it is taken from them and all the talking in the world will not change that fact.