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Thread: From citizens to bonded labourers but for whose benefit?

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    Default From citizens to bonded labourers but for whose benefit?

    Who are we to spend our lives working for? Can we not even be told?

    We know who is holding the gun to our heads - the government - but they are just the hit-men, we still don't know who is pulling their strings. Our money is being taken from us by force by a government that continues to avoid taking the one simple step that could have protected us. Eyes glaze over when we see the words 'banking resolution law' but that would be our life-jacket. It would provide a rational basis for dealing with bondholders and transform the current state of terror which the government says (in so many words) justifies its actions.


    What is missing here is that in most modern states there is a banking resolution mechanism, a special form of bankruptcy proceedings for banks, which can set the terms of how, and if, and in what way, bondholders are remunerated when the banks are in distress. It is negligence beyond the normal sclerosis of the Irish political system that three years after the Northern Rock collapse, we do not have such a mechanism. The effect of this is to protect the subordinated and senior bondholders.

    One has to ask – why has such a mechanism not been put in place, and to whose benefit is it that it is not? It’s clearly not in the taxpayers’ best interests. But then very little of the Government’s policy on the banking crisis has been. While a resolution scheme may yet emerge from the slough of despond that is the Dáil, it will be too late to prevent the transfer of tens of billions of euro from taxpayers to wealthy private individuals, some of whom are certain to be domestic.

    We must find out why that is being allowed to happen and who benefits.
    Taxpayers will have to pay for bondholder bailout - The Irish Times - Tue, Oct 05, 2010

    From citizens to bonded labourers. In most places bonded labourers know their master. That crumb is denied us.

    Every so often the government dangles the prospect of a resolution law before us before lapsing into silence. This was in March: http://www.politics.ie/economy/12604...gislation.html
    Last edited by He3; 5th October 2010 at 10:02 AM.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    its called "the european union".

    and we're the test tube experiment. if they get away with it here without a violent backlash, they'll use the same model elsewhere. simple as that.

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    Politics.ie Member Mitsui2's Avatar
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    A good article, I thought - but far broader in scope than your post would seem to suggest. The thing that most struck me about the article was its tone: Lucey is looking beyond the catastrophic news and transparent flim-flammery at the "why" of all this - just why is the government doing this mad, u-turn laden jig that Lucey sees as doomed to failure?

    The answer Lucey seems to be leaning towards has a whiff of the good old "economic treason" accusation about it. He raises that "who benefits" question twice in the space of a paragraph. When the dust settles, the answer to that one - if we're ever allowed to learn it - is going to reveal a great deal.

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    .
    "From citizens to bonded labourers but for whose benefit"
    .
    GOLDMAN SACHS
    .
    .

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    Politics.ie Member eoghanacht's Avatar
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    It's for all those little grannies across the world who were duped into investing their pensions into dodgy banks.

    Won't someone think of the poor grannies!!
    Britain operated death squads - ''97% of the Loyalists I interviewed were working directly for the State.'' - Nuala O'Loan. #FreeAhedTamimi

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    Why, the Reich's of course.

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    We have according to Colm McCarthy on newstalk this morning got around €45 billion in the bank between the funds already raised from the bond markets and what remains in the pension reserve fund? Why don't we simply make the necessary cuts to the budget immediately, reset the general economy(in terms of wages, utility charges and professional fees) and live off this cash for 4-5 years to fund any defecits in the budgets. Our exporting companies both multinational and domestic would continue to employ and exporters and these real wealth creators would have much improved competitiveness due to lower costs. I believe we must export our way out of this situation.

    The unsustainability of our situation is frightening we have I believe 1.8-1.9 million people working of these around 300,000 are civil and public servants. So around 1.5 million adults have to keep themselves plus 450,000 unemployed plus around 450,000 pensioners and a further 300,000 on the the government paycheque. Our big problem is the rate of unemployment. The rate of working adults to people whose incomes are paid for mainly by government has changed from almost 2:1 to 5:4
    in 3 years. Until we get a serious upturn in job creation we can't continue to pay the huge sums off shore that we are signing up for currently. If we are not going to make these bondholders "take a bath" then at the very least we need to tell them to come back in a couple of years and we'll see what cash we have available then. If the markets memory is a short as we are led to believe and we have manged to turn things around then raising further funding should not be that difficult.

    The bondholders should be told that no further bank bonds will be paid unless at least half the amount cleared is made available again immediately at a reasonable rate 2-2.5% above german bonds/ecb rate would seem appropriate. We are as a nation paying around €1billion per month in mortgage payments and as far as I can see the vast majority of this cash is going off-shore and not returning. Add to this car-loans, all levels of corporate finance, HP and lease agreements and I wouldn't be surprised if the total was over €2 billion. This would be fine if this money was recycling back into the economy. I would like to see what effect the inclusion of this would have on our balance of payments figures. I think it would force them seriously into the red if included.

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    Quote Originally Posted by Mitsui2 View Post
    A good article, I thought - but far broader in scope than your post would seem to suggest. The thing that most struck me about the article was its tone: Lucey is looking beyond the catastrophic news and transparent flim-flammery at the "why" of all this - just why is the government doing this mad, u-turn laden jig that Lucey sees as doomed to failure?

    The answer Lucey seems to be leaning towards has a whiff of the good old "economic treason" accusation about it. He raises that "who benefits" question twice in the space of a paragraph. When the dust settles, the answer to that one - if we're ever allowed to learn it - is going to reveal a great deal.
    It is a Whodunit on a global scale.

    Lucey's article is also being discussed here

    The Irish Economy » Blog Archive » Brian Lucey on the Bondholder Bailout
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    Quote Originally Posted by deiseguy View Post
    The bondholders should be told that no further bank bonds will be paid unless at least half the amount cleared is made available again immediately at a reasonable rate 2-2.5% above german bonds/ecb rate would seem appropriate.
    I was saying something similar back in June..
    State of Fear – Blue Chip Blog

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    Quote Originally Posted by anakin View Post
    I was saying something similar back in June..
    State of Fear – Blue Chip Blog
    Yes, I see how keeping us in the dark about who they are giving our money to fits in with a policy based on fear-mongering.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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