Es wurden keine neuen Veranstaltungshinweise in der letzten Woche veröffentlicht
Here Comes Bourgeois Socialism – Again 03:18 Apr 28 0 comments
The US-Turkey stand-off in context: the US and the weaponisation of global finance 19:04 Sep 13 0 comments
Fuel Price Hikes Hammer South Africa’s Working Class 17:53 Sep 20 0 comments
The Davos Blind Eye: How the Rich Eat the Poor and the World 18:07 Jan 26 0 comments
Riflessioni sullo stato di crisi del capitalismo 06:41 Dez 24 0 commentsmehr >>
Recent articles by Paul Bowman
Cipro: Grand Theft Euro 0 commentsRecent Articles about Ireland / Britain Economy
This is not an IMF bailout but end to ECB life support
ireland / britain | economy | opinion / analysis Sonntag November 21, 2010 17:47 by Paul Bowman - Workers Solidarity Movement
Ordinary families and households here face the imposition of even more severe cuts to services, jobs and incomes. But we must understand that the driving force behind that brutal logic is coming from the Eurozone, not the Washington-based IMF. [Italiano]
This is not an IMF bailout but end to ECB life support
Why is the director of the IMF complaining that the rate of progress of the IMF negotiations in Dublin is going too slowly? What's wrong with this picture? The answer is nothing, so long as you understand that the IMF are not the driving force in these negotiations.
Despite the newpaper headlines, what is happening is not an IMF bailout. This is a European debt restructuring process in which the IMF are playing a merely supportive role as consultants. This is a Eurozone process and although the political masters of the Eurozone, through their EU Commissioners, have the final say on passing or vetoing the final agreement, the true driving force behind this process is the ECB.
As the negotiations continued between the government and the representatives of the IMF, European Commission and the European Central Bank (ECB), the IMF's managing director Dominique Strauss-Kahn, expressed frustration at the planned slow rate of progress. "The sovereign crisis is not over," he said, "The wheels of cooperation move too slowly. Repairing the financial sector is taking too long, in part because policy makers are not paying enough attention to the pan-European dimension." In fact the EU officials have made it clear that no details of the rescue loan will be announced until after the governments four year plan and the Donegal by-election. Klaus Regling, head of the EU's 440 euro stabilisation fund, has even indicated that it might take as much as two weeks for the negotiating team to reach its conclusions - i.e. after the December 7th budget.
To understand why this is so, we need to understand what, exactly, has happened to the Irish banking system in the last months.
First, the corporate and institutional deposit flight that the Sept 2008 bank guarantee was supposed to prevent has now happened in the last 3 months. That horse simply vaulted the stable door and is long gone.
Second, as the global interbank market is now shut to Irish banks, their only source of funding is the ECB which is funding the black hole that is the Irish banking system at their 1% base lending rate. In the last month this took one quarter of all liquidity being provided by the ECB to the entire Eurozone. Given that we are only 1.3% of the Eurozone population (329 million), and were only 2.4% of its GDP at our height, that's problematic.
Effectively, this means that the government has not only made Irish taxpayers liable for the losses of the Irish banking system, but that the losses are now being exported to the Eurozone as a whole via the ECB. In the immediate aftermath of the crisis of 2008 and even earlier this year with the Greek crisis, the ECB was willing to pay this price to save the Euro. No longer.
The proposed "offer we can't refuse" loan will effectively replace this ECB 1% funding with funding at a rate to be agreed, but likely to be closer to 5%. In other words, the losses of Anglo, AIB, etc. will be firewalled in the sense that the banks and investors from the rest of the Eurozone will be recompensed for lending to the Irish State and banks, by making the spread between the ECB 1% base rate and whatever Ireland is charged. This is no bailout, it's an end to the life support from the ECB that has been keeping the local banking system afloat for free.
But let's be clear this is not about Ireland alone, but about managing the finances of the Eurozone as a whole. The "structural adjustment" package of loan conditions that will be imposed on Ireland by this process is not for our "benefit" alone, but an attempt to discipline the other "peripherals" like Portugal and Spain. Everybody is more or less resigned to Portugal following Ireland into ECB receivership in short order, but the big target is Spain, the Eurozone's fourth largest economy. Spain's size is seen as potentially posing an existential crisis for the Euro as a whole, if it was to suffer the same loss of access to the money markets that has done for Ireland and is currently strangling Portugal. One hedge fund executive put it pithily as Spain being "too big to bail". It is to avoid this nightmare scenario that the ECB is restructuring its loans to Ireland on a more punitive (and profitable) basis.
In the meantime the ordinary families and households here face the imposition of even more severe cuts to services, jobs and incomes. But we must understand that the driving force behind that brutal logic is coming from the Eurozone, not the Washington-based IMF.
If we wish to resist this inhuman logic, and we must, it's up to us to make that mental shift and raise our awareness that, language and history aside, the US and UK are no longer the main poles of power that we must balance between. Our future will be determined a lot more by our success or failure in participating in the composition of a fight back by workers across the European "periphery" against the austerity logic imposed by the ECB and the "core" EU powers. As a small island nation, the struggle for sovereignty requires a perspective that is not only against the market dictatorship of capitalism, but also internationalist in scope.
Fr 29 Mai, 06:00
Budget 2013 & the dark times to come 22:42 Fr 07 Dez 0 comments
Roughly 1,000 people protested at the Dail (parliament building) in Dublin Wednesday night as yet another austerity budget was debated. As with previous budgets the new flat rate taxes, PRSI & excise hikes will mean workers & those on low income will be hit hard while the richest 1% will hardly notice any difference.
TIME...is on my side! 04:54 Sa 06 Okt 0 comments
That pat on the back to our "glorious leader Enda" in Time Magazine fails to come to terms BIG TIME with the reality on the ground here in Ireland.
1,600 billion - Massive scale of oil giveaway revealed in Shell to Sea report 17:16 Di 11 Sep 0 comments
€1,600 billion. That is the figure for Irish Oil & Gas reserves already licensed revealed this morning in a detailed report from Shell to Sea using the energy corporations own reports and estimates. People in Ireland will see almost no benefits from this incredible wealth because the Irish state gives these reserves to the corporations at the cheapest terms in the world.
Tories announce new plans to cut housing benefit from under 25s 17:03 Mi 27 Jun 0 comments
David Cameron plans to end housing benefit for claimants aged 16-24. The ‘proposal’ forms part of wider recommendations to begin being implemented next year as part of the new Welfare Act. Further plans being rolled out including linking regional play with regional benefits, breaking the link between benefits and inflation, and considering linking benefits to average earnings and cost of living amounting to a further attack on worker’s rights and conditions.
ECB gives banks 6,250 years worth of Household Tax 00:57 Sa 03 Mär 0 comments
Wednesday the European Central Bank (ECB) gave out 530 billion euros in 3-year term loans to the private banks of the Eurozone. Together with the 490 billion they doled out last December, that's over 1 trillion euros. If pigs could fly and politicians never lied and every household in the country was magically able to pay the hated Household Tax, the total receipt would be 160 million euro. At that rate, it would take 6,250 years to amount to 1 trillion. It would also take 20 years to amount to the 3.2 billion euros the state are handing over to the Anglo bondholders on the 31st March coming.
Dublin demonstrates against ACTA & SOPA but it is about more than just downloading 21:26 Mo 13 Feb 0 comments
Dublin last weekend saw about 400 people take part in a demonstration against the intention of Seán Sherlock, the Labour Party Minister for Research and Innovation to bring into law a requirement for Irish internet service providers to block access to sites that allow the downloading of copy righted material. This is a similar law to the SOPA and ACTA laws that Hollywood & music industry lobbyists tried unsuccessfully to force through the US Congress. A second demonstration is to take place this Saturday.
Half a million take to the streets of London against cuts 22:25 Di 29 Mär 0 comments
500,000 people marched last Saturday against the coalition government's austerity measures, with the support of the majority of the population.
Clarion hotel in Cork and Davenport in Dublin: Fighting for solidarity the key 21:43 Do 24 Feb 0 comments
The attack on workers at the Davenport Hotel in Dublin had highlighted the greed and bullying in the hotel business. A similar case to that at the Davenport has come to light here in Cork. But so far fear has ruled the day. The Clarion describes itself as one of “Cork’s premier 4 Star City Centre Hotels”. Although it’s well able to charge for its rooms it cannot find its way to granting its workers a 29 cents per hour pay rise.
1% Walk in Dublin: Video Report 08:49 Sa 16 Okt 0 comments
A political walking tour through the heartland of the Golden Circle in Dublin.
Protests in Ireland as part of European action against crisis 23:40 Do 30 Sep 0 comments
Despite the escalating costs for the working class of the crisis in Ireland resistance has fallen off ever since the pro partnership leadership of the unions succeeded in getting the Croke park deal passed by the membership. The deal makes vague promises not to impose further pay cuts on the public sector in return for large scale restructuring but was conditional on the economic situation not declining further. Yesterday saw the unions return to the streets with a press call that the left, including the anarchist movement, tried to push into a demonstration. That morning in a rather unusual individual action a man parked a slogan covered cement lorry in the gates of the Dail (parliament building) blocking access. These articles from the WSM site report on these events and include the speech delivered by a WSM member at the protest.more >>
How many could we house, educate and care for with 19 billion? The Irish government is currently furiously fighting the European Union to prevent Apple paying us back taxes it owes us. There has been a lot of ‘concern’ about government plans to spend 48 million looking after 4000 people fleeing warfare in Syria and Iraq. The government and the media defend there ‘our own’ is first - the super rich in Ireland and elsewhere!
The "Financial Emergency Measures in the Public Interest Bill 2013", published by the government on Thursday last (23rd May), is a clear attempt to bully public sector workers into voting for the re-hashed terms of the Croke Park II deal emphatically rejected by them just a couple of weeks ago.
650,000 Homes STILL Not Paying Unjust Tax Mai 24 0 comments
In spite of a long and consistent campaign which has been waged against people in relation to the imposition of this unjust and unfair tax on homes, over 650,000 households have not registered with revenue [22.05.2013]. Draconian legislation and the threats of fines has not resulted in people volunteering their information to the revenue.
The Croke Park extension: What it is and how to fight it Feb 27 0 comments
Early yesterday morning, the leadership of the public sector committee of ICTU emerged from talks with the government claiming they had achieved the best possible outcome from the negotiations. The best possible outcome in question involves extra hours at work, cuts in overtime rates and allowances for unsociable hours, delayed increments and revisions to flexitime arrangements and work-sharing patterns.
Sean Quinn - Cowboy turns desperado - A Western in four parts Aug 02 0 comments
We don’t know a lot about the personal life of this son of a small farmer. He was the richest man in Ireland in 2008 with an estimated wealth of €4.7billion and now he is only out of jail because the Judge wants him to help the Irish Resolution Banking Corporation (IRBC) recover some of the €2.8 billion that he owes them. You may never have heard of IRBC but you will know of it’s previous alias: Anglo Irish Bank,winner of the dodgiest bank award in a state where there is stiff competition for that prize. His son is in prison, (plush Training Unit in Mountjoy) serving a sentence for what the Judge called ‘outrageous’ contempt of court as he sought to put money/assets beyond the reach of the bank. His nephew Peter is supposed to be there for the same reason but has gone missing. All we know about Sean – the daddy of the empire is that he’s big into the GAA and he likes to play poker for a few quid with his friends. Along with his love of poker, I would guess that Sean senior fancies the odd western.more >>
Sorry, no press releases matched your search, maybe try again with different settings.