Most Important News Story Out There

No it is not the Greens bailing from Government, nor is it the latest poll on the upcoming election. The big story is; as of the 15th of January, the Irish Central bank has created 51 billion of debt based, uncollateralised Euros to shore up disappearing deposits. It has been covered by a few papers and mentioned on TV a few times but do the people understand how significant this is? It shows just how far the ECB is willing to go to save the Euro project.

All the reasons the Government gave us for “saving the banks” are exactly the reasons why they should have just stepped aside and let them fail.

“We need a strong banking system”

“They are of systemic importance to the economy”

“What about the deposit holders?”

“It may have led to another Lehman’s”

“It will affect the cost of our government debt”

“The bond markets will drive the cost of Government borrowing higher”

They could have used the exact same speeches but where they said “we had to intervene” they would have said “we can’t intervene; we have to let the market take its course. We have the legal systems in place to deal with any bank failures”.

The crisis provided an opportunity for the Government to liberate the people from this now failed monetary system. The banking system had overplayed its hand and it was on the rack. At any time in the past three years, the Taoiseach, Brian Cowen, could have stood up, with the eyes of the world watching, and crushed this system, by just not supporting it. He had the opportunity to be an instant hero, not just to the people of Ireland but to the majority of world citizen enslaved by debt. History would have placed him with the likes of Abraham Lincoln and Andrew Jackson. However our “cowardly lion” took instruction from the circus master, the Banker, Jean Claude Trichet when ordered, “Don’t let any of your banks fail”.

What was just a monetary crisis is now a social, political, and economic catastrophe. People that opted out of the easy credit, Celtic Tiger, are now enslaved with national debt. Many, who took on personal debt, will not be able to pay it back as our supply of money shrinks.

The heroes presenting themselves for election are on about renegotiating with the IMF. This is just offering a banking solution to a banking problem. A clear line needs to be drawn between our banking system and our government and nation debts. Then cut these banks loose. What about the deposit holders? Well if the banks fail it is a perfect opportunity for the treasury to reimburse deposit holders with debt free Punts. This currency could be pegged “lite” to the euro or any of the other major currencies. Of course to understand how this would work you need to have some understanding of the current system, as well as how our central bank can come up with €51billion when we are broke.

Percentage rise in ECB Money Supply & Irish House Prices Since Nov 2000


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