Archive for June, 2012

How Was a Banking Crisis Allowed to Put Sovereign Nations and the EU at Risk?
June 18, 2012

Sometime in 2001/2002, EU Finance Ministers met in Lisbon and decided to deregulate the EU’s banking system, so as to compete with the Greenspan – led deregulation taking place in the U.S.

This, in my opinion was the beginning of the end for the Euro.  This was when the bankers’ lobby started to wrestle control of how Europe was and would be run.  It was the beginning of the profligate interbank lending and cross-collaterallisation of loans, as well as the invention of all types of weird and wonderful derivatives that because of their complexity needed close scrutiny.  The type of scrutiny EU Governments decided at their meeting in Lisbon was no longer needed.

The reaction to the current crisis, therefore has been banker – led / the ECB, rather than sovereign government – led /the EU and EC.

The decision by the Fianna Faíl – led Government to guarantee €440 billion of private bank debt on Sept. 29th 2008 was about the worst decision in human history, but it was a 2-year guarantee and was due to run out on the same date in 2010.  As we now know, under pressure from the ECB, it was decided that the Guarantee would be extended indefinitely. ECB policy at the time and still was that no Eurozone bank would be allowed fail and the cost of recapitalising any Eurozone bank would be the sole responsibility of the sovereign nation in which that bank was licenced.

The reaction of the sovereign bondmarkets in Sept 2010 was to immediately begin a run on Ireland and we were promptly priced out of the sovereign bondmarkets. The excuse by the eejits running the country at the time was that some utterances from Merkel about burden-sharing in 2013 were the cause of the rise in bond rates.  The real reason was,  as just last week Alan Ahearne confirmed, and as I had been saying at the time, the sovereign bondmarkets decided that giving their money to a country, so that country could use it to bailout private banks and bondholders was not a wise investment.

The same thing has just happened in Spain and this time there was no utterances from Merkel about burden-sharing, to use as an excuse.

Now the obvious question. If as the ECB believes saving all of the Eurozone’s banks with Sovereign money is such a good idea and will solve the crisis, why are the sovereign bondmarkets not piling into these sovereigns?

The sovereign bondmarkets obviously do not think that these banks are worth saving, or can be saved at all.

In my humble opinion Europe’s and the Euro’s problem is the ECB.  An institution who’s independence was meant to avoid political interference has had that independence hijacked by big banks and especially the big banks in Germany.  Hence the massive, forced transfer of sovereign wealth to big German banks, funnelled through the private banks of Ireland, Spain, Greece and Italy.

The smaller nations in the Eurozone have to ask themselves this question. Do you want to be a member of a Union, in which the main player in this Union would openly persecute you, in order to save their Banks?

MPB   18.6.2012

Angela Merkel Announces €50 billion bailout of Hypo Bank, October 2008


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A VERY personal reason why Israel’s deputy ambassador to Ireland should be expelled
June 14, 2012

The following news item has been published in the last 24 hours:

Deputy to the ambassador in Ireland: the pro-Palestinian activists are motivated by problems in sexual orientation

By Moav Vardi

Senior diplomat Nurit Tinari-Modai, has come up with a new plan to combat the delegitimization activities against Israel: to fight directly with the Israeli activists who take part in it. [“]You have to hurt their soft underbelly, publish their pictures, with the hopes of local activists understanding that they might actually be working on behalf of the Mossad,” she wrote the Ministry of Foreign Affairs, and claimed that their motivation is not ideological.

An exceptional statement by a senior Israeli diplomat is published for the first time today (Tuesday), on Channel 10 News. The deputy to the ambassador to Ireland, Nurit Tinari-Modai, has argued that pro-Palestinian Israeli activists who defame Israel abroad are acting from psychological motivation, including problems of sexual identity. Ireland is one of the sharpest hot-spots of the pro-Palestinian activism against Israel, and some of the people who take part in that activity are Israeli.

In a cable Tinari-Modai sent to the Ministry of Foreign Affairs in Jerusalem she proposes a new strategy: work directly against those Israeli activists, humiliate and shame them. “It is possible to obtain names of the Israelis… you have to try and hit their soft underbellies, to publish their photographs, maybe that will cause embarrassment from their friends in Israel and their family, hoping that local activists would understand that they may actually be working on behalf of Mossad,” writes the deputy ambassador.

“The activity of those activists against the state is, in my evaluation, not necessarily ideological (!) but grounded in psychological reasons (generally of disappointment with the parents, [or] sexual identity problems) or the need to obtain a residency visa in one of the countries in Europe,” adds Tinari-Modai.

This letter was met with fury by senior figures at the Ministry of Foreign Affairs. “The deputy ambassador has become entirely confused, this result of going against the Israelis will empower the objectors. It would be better to fight against the delegitimization than to propose deranged ideas,” they told Channel 10 News there.

The official response by the Ministry of Foreign Affairs is that “the Ministry of Foreign Affairs unrelentingly fights the delegitimization of Israel everywhere, but does not engage in witch hunts. Such proposals are not aligned with the spirit and customary practice of the Ministry of Foreign Affairs.”

And here is the Hebrew version:″]

Just in case I am one of the Israelis that Mrs. Tinari-Modai has in mind, I would like to clarify the following:

1. I have been a proud member of the Ireland-Palestine Solidarity Campaign for a good number of years. Here is the proof:

2. I have taken great pride in my involvement with the Pro-Palestian cause. Here is one example:

3. Yes, indeed, I come from a rather dysfunctional home. My father was a proud Likud supporter, so much so that Israel’s current fascist Prime-Minister, Benjamin Netanyahu, held one of his first public gatherings in our garden in Ramat Hasharon, shortly after he returned from being Israel’s ambassador to the UN. My mother was an ardent supporter of Apartheid South-Africa and worked as the secretary to South-Africa’s ambassador to Tel-Aviv in the mid-late 70’s. She was so good at her job, she was actually approached on behalf of Israel’s current president, Shimon Peres (of the so-called left-wing Labour party), to become his English speech writer.

4. If my sexual preferences are any concern of Mrs. Tinari-Modai, or her husband, His Excellency Ambassador Modai, as representatives of the State of Israel, please feel free to discuss them with the Ministry of Health of the Republic of Ireland, or your local psychologist. I am now a proud Irish citizen.

5. Here is my photograph, just to save you the trouble of ‘naming and shaming’ me:

Jonathan Sugarman (WhistleblowerIrl) 14.1.2012

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A Petition to the Martians from the Inhabitants of Planet Earth, June 2012
June 3, 2012

Dear Martians,

We have a little problem here on planet Earth. We’ve messed up so badly, only you can help us out.

Only in the last week, we reached a stage where we are placing money with the Germans – interest free! Just in the hope that our Euros are safe somewhere. The already imploding Chinese Empire announced that it is in no position to help Europe, as it did in 2008. The USA is beginning to realise that not everyone can be fooled all the time when it comes to ‘stimulus’ measures. The president is SO desperate, he even came out in support of gay marriages the other day.

Even the august Financial Times, with its motto of ‘Without fear and without favour’ can’t bring itself to go beyond finger-pointing at the Eurozone. There is obviously a fear that the people of Britannia might discover how utterly dysfunctional their own financial & political systems are. And like everywhere else on the planet, we can’t possibly afford to tell people the truth.

Ireland’s imbecilic Minister of Finance said, ’emigration is a life-style choice’. We might all be emigrating to Mars unless you graciously bail us out. That would be the truly socialist thing to do; just ask Labour minister Joan Burton, who would rather deprive her own citizens and pay out the unsecured bond holders of Bavaria & Beverly Hills, before she stands up for anything she actually campaigned for… At least Fine Gael, the prime minister’s party, never pretended to care too much about the down and outs of Irish society.

Please see proof attached.

The Earthlings

SeanD6  3.6.2012

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