It must destroy their post 1986 Spanish invention to make more Spains…

A classic line.
“we are using sustainable concrete……….”

Spains investments (now overcapacity) will rot while they make more grot stuff elsewhere.
Europe is beyond sick.

I once thought the US was the heart of darkness.
But the cold dead heart of globalism lies within Europe.

Seamus Coffey Says:
January 5th, 2013 at 11:01 pm
“Ireland acted completely in its (perceived) self interest. Alastair Darling certainly didn’t think the guarantee was for the benefit of all. Christine Lagarde went “Oh gosh”. Joaquim Almunia (albeit with the benefit of hindsight) has called the guarantee a “mistake”. At the time Darling said:

“It just would have been a lot better if we had known in advance because we would have had proper measures in place when the bank branches opened. The lesson you draw here is you can’t do these things on your own, you’ve got to talk.”

We were then offered an emergency programme with massive economic retrenchment.

I shudder to think what the economic entrenchment would have been like if we had run out of money in the middle in 2011 and were forced to immediately close the budget deficit.

The point is, all things being equal, we will have to default without a deal on our bank recap debt.

No, we probably won’t. And anyway, Greece has defaulted twice in the past year.”

Dork - These guys at best have been WRONG WRONG WRONG from the very start.
And yet they still creep out of their holes to talk talk talk.

We have a “leadership” & “” Intellectual ” establishment in this country that runs away from the concept of Sovereignty at every single opportunity that presents itself……its simply incredible.

“forced to immediately close the budget deficit.”
You do this by crediting new money to peoples accounts and then taxing it , you don’t cut.

If we had a devaluation using either the bank debt nation state model or Greenbacks you print the money , you don’t give people less tokens………
That would defeat the purpose of the devaluation.
The function of the devaluation is to restore a positive money supply which we have not got now for 4 + years as the banks refuse to lend.

When some other country drives a country into surplus they are likely to get that surplus………..the job of other countries is to destroy that country so they get to eat all the remaining pies.

The Irish seem not to understand this simple concept.
Ireland has given someone else the 70,000 BPD~ of oil it is now not consuming.
The French banks for example are now investing in North Africa at Greece Ireland & Iberias expense using that capital elsewhere…..(making profits from higher wage arbitrage)
There is now a massive boom in Algeria , Morocco & Turkey
Its as if the Irish don’t understand the point of zero sum games.
This is where their Austerity surplus is flowing.

Without a oil /capital surplus you cannot bypass local labour………the global banks just love oil because of its fluid nature (unlike coal or Nuclear)

http://www.youtube.com/watch?v=B7ezP4K3oF4

Cormac Lucy writes in Colm McCarthys latest piece on the Irish economy blog now that Dorkish voices have been taken out of the equation.

These guys in my opinion represent the Anglo establishment of the Pale.
Cormac Lucey Says:
January 6th, 2013 at 5:19 pm
Policy discussions and policy makers are focussed (understandably) on the most acute symptoms of this crisis:
* Broken public finances
* Broken banking systems
* Depressed spending
* Rampant unemployment

But this focus should not distract us from the essential root of the crisis, which is an INAPPROPRIATE CURRENCY & INTEREST RATE REGIME. Fitch reckon that, if it returned to the Drachma, Greece would merit a 63.9% devaluation (against the US dollar) based on the fundamentals. That figure, even if it were as low as 40%, illustrates the impossibility of what is being required of Greece.

This calls to mind Keynes when he wrote of Britain made an illjudged return to the Gold Standard in the mid-1920s. He wrote:

He [Churchill] was just asking for trouble. For he was committing himself to force down money-wages and all money-values, without any idea how it was to be done. Why did he do such a silly thing? Partly, perhaps, because he has no instinctive judgment to prevent him from making mistakes; partly because, lacking this instinctive judgment, he was deafened by the clamorous voices of conventional finance; and, most of all, because he was gravely misled by his experts.
- “The Economic Consequences of Mr Churchill”, 1925

Fitch estimate that the appropriate devaluation for Ireland would be 15.6% (against the US dollar) but that this could rise to a 50-67% devaluation (against Germany) if Ireland were to depart the Euro under conditions of crisis (which are the most likely conditions of an Irish EZ exit).

The advocates of an internal devaluation solution need to identify how this is to be achieved in Ireland, Greece etc where there are entrenched public sector interests dedicated to preventing any internal devaluation.

In any event, liquidity cannot fix a problem of insolvency. We should have learnt that from Anglo, AIB etc. Even if our creditors are willing to continue funding us, our public finances are insolvent. This is especially so when one considers unaccrued public sector pension liabilities of €116b and unaccrued social security liabilities of €324b. Maybe John McHale might explain where (or indeed whether) these important matters feature in the deliberations of the Fiscal Advisory Council?

Maybe John might consider these words from Reinhart & Rogoff “Debt sustainability exercises must be based on plausible scenarios for economic performance, because the evidence offers little support for the view that countries simply “grow out” of their debts” (”This Time It’s Different”, P 289.)

Indeed maybe John McHale might consider some recent comments from Reinhart. In a recent interview with Barrons magazine Reinhart stated “The orders of magnitude are such that fiscal austerity, together with the ECB easing, won’t be sufficient to deal with the extreme debt overhangs in places like Spain and Ireland. And so, bottom line, we expect to see more credit events, including the writing off of senior bank debt.”

We are not being pulled out of the water by the EU. But nor are we being allowed drown by them. Instead we are being sustained in treading water. That may be good enough for some. It would be certainly be good enough for Frau Merkel, given her electoral timetable. But why on earth should we deem it good enough for us?

None of this is to gainsay the intelligent counter-arguments put by Seamus Coffey and others. There should be no doubt that a EZ exit and debt default would accelerate austerity.
But that isn’t the issue. The issues are (i) whether the accelerated pain of a EZ exit and debt default would be justified by increased longer-term growth prospects and (ii) whether, if only for negotiation purposes, we should not be publicly considering these matters.

Congratulations to Conor Killeen (son of former long-time IDA head Michael Killeen) for breaking with “the clamorous voices of conventional finance” on these questions.”

Dork -
He is partially correct in his Analysis but fails to comprehend (perhaps) the function of austerity.

It is to preserve the present stock of debt and its claims on the now rump economy.
So why engage in redenomination in the first place if the nation can only consume & invest in less stuff after the event ?
“There should be no doubt that a EZ exit and debt default would accelerate austerity”

Simply because they will not issue currency without the bond……interest rates will therefore rise and benefit those with the most claims already. (that was & is the purpose of inflation)

There will be a push for more pointless growth………..rather then sustaining basic life support systems.

Irish people are caught in a trap - between the Anglo cartels methods of extraction and the continental methods.

Its beyond sick.
As there can be no real energy growth given present real world resource constraints - whatever the present establishment they must extract using whatever method suits the guys with claims on the declining capital base.

Meanwhile Colm McCarthy boasts that at least we have the Cork Dublin road not even willing to acknowledge the disaster that is /was his transport beliefs & policies and their subsequent massive input costs…….

“colm mccarthy Says:
January 5th, 2013 at 4:03 pm
Michael Hennigan:

‘It took 49 years to build a motorway from Dublin to Cork!’

Michael this is dreadfully unfair to our dear leaders. It took 37 years - the project was first outlined in the 1974 Road Needs Study, accepted by the then government, and the final section opened in 2011.

Happy New Year”

The only thing we can be thankful of is that our vast army cannot push towards Stalingrad and its oil fields to the south so as to feed our Volks cars.

In my opinion all of the Anglo world needs various Greenback parties to stop this pillage of the commons to sustain these actors rapacious appetites.

Its got nothing to do with tax Conor or everything to do with it in the above world.
They use tax to feed the interest monster………to push resources upwards rather then down to the base.

Its a abomination of the original fiat.
Of talley sticks……
Of money as a stock rather then debt.

The two times I was taken out of that site is when I talk of money as a stock rather then debt or gold which is the debts shadow……

That concept is the most dangerous to the banking establishment and the bottom feeders that need its falling biomass to eat.