MIke Whitney:"Memo to Ireland: Cowen is a rogue, a Traitor. TELL IMF/EU TO SHOVE IT"

Cassandra Syndrome

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Mike Whitney is freelance economist from America. He has written some very insightful, analytic and predictive articles of the crisis in the ast 4 years.

Today he writes a powerful piece about Ireland.

Memo to Ireland
"Tell the EU and IMF to Shove It!"
Imagine that Yasser Arafat had succeeded in ending Israeli occupation and establishing a Palestinian state in the West Bank and Gaza. Now imagine that 10 or 15 years later, new Palestinian president, Mahmoud Abbas, agreed to hand over control of his country's budget to the IMF so his people's future would be controlled by outsiders. Do you think Palestinians would praise Abbas as a patriot or denounce him as a traitor?

Irish Prime Minister Brian Cowen is Mahmoud Abbas. He's caved in to the demands of foreign capital and transferred control over the nation's budget to the EU and the IMF. Here's an excerpt from a November 24, article in Reuters:
Good start, good analogy. Lets be clear Cowen and his government are traitors that are selling this contry off at added expense of 6.7%, that suggests that there must be a lot of dark secrets the IMF have to sweet under the carpet.

This is a black day for Ireland. The Irish people will now face a decade or more of grinding poverty and depression thanks to their venal leaders. As soon as the ink dries on the IMF loans, the second occupation of Ireland will begin, only this time there won't be armored cars and Paramilitaries in fatigues, but nerdy-looking bureaucrats trained in the art of spreading misery. In fact, the loans haven't even been signed yet, and already IMF officials are urging the government to cut jobless benefits and the minimum wage. They're literally champing at the bit. They just can't wait to get their hands on the budget and start slashing away.

And don't believe the hype about European unity or saving Ireland. My ass. This is about bailing out the banks. The bondholders get a free ride while workers get kicked to the curb. Here's a clip from the Financial Times that spells it out in black and white:
This bailout condemns the people to a life time of serfdom, servicing up to €150 Billion of interest alone in all the government debt and bailout debt. This is not acceptable and mathematically impossible.

See? Another bank bailout. Ireland is being asked to cut to social services, slash wages, renegotiate contracts, and dismantle the welfare state so that undercapitalized banks in France and Germany can get their pound of flesh. But, why? They're the ones who bought the bonds. No one put a gun to their head. They knew they could lose money if Irish banks went south. That's the risk they took. "You pays your money, and you takes your chances." Right? That's how capitalism works.

Not any more, it doesn't. Not while Cowen's in charge, at least. The Irish PM has decided to bail them out; make all the bondholders "whole again." But who made Cowen God? Who gave Cowen the right to hand over his country to the IMF?

No one. Cowen is a rogue agent kowtowing to international capital. After he finishes his work in Ireland, he'll probably join globalist Tony Blair on the French Riviera for a little hobnobbing with the tuxedo crowd.

It's revealing to watch the way Cowen works, as though the interests of foreign bankers mean more to him than those of his own people. For example, the Green Party withdrew from the government last night calling for new elections, but even though the government is in a shambles, the slippery Taoiseach wants to stay in power long enough to push through a new 4-year budget that will leave Irish workers on the brink of destitution. Who is Cowen working for anyway?
Good Question

The prospective belt-tightening measures will include the firing of 28,000 public employees, a boost in property taxes, a 10 percent cut in welfare benefits, and higher taxes on low-wage workers. Cowen believes that taxing low income families is preferable to making billionaire bondholders eat their losses. The whole thing stinks to high-heaven.

Is there a way out for Ireland? Economist Mark Weisbrot thinks so. Here's what he thinks should happen:

"The European authorities and IMF can loan Ireland any funds needed in the next year or two at very low interest rates....Once these borrowing needs are guaranteed, Ireland would not have to worry about spikes in its borrowing costs like the one that provoked the current crisis....The European authorities could scrap their pro-cyclical conditions and, instead, allow for Ireland to undertake a temporary fiscal stimulus to get their economy growing again. That is the most feasible, practical alternative to continued recession.

Instead, the European authorities are trying what the IMF... calls an "internal devaluation". This is a process of shrinking the economy and creating so much unemployment that wages fall dramatically, and the Irish economy becomes more competitive internationally on the basis of lower unit labour costs."

It's all de rigeur for the IMF. It wouldn't be an IMF program unless someone was starving. That's the benchmark for success.
Can it be any clearer?

Ireland doesn't need structural adjustment programs that shrink GDP, dismantle popular social programs and strip wealth from workers when low interest funding and fiscal stimulus can bring the economy back to life. This is politics not economics. The EU and IMF are using the crisis to push through their own agenda. Their real goal is to crush the unions, shred the social safety net, and roll back the gains of the Progressive Era.

The Irish people are left with no choice but to resist. Presently the Cowen government is collapsing. Bravo. Now it's off to the barricades to see if the damage can be undone. Ireland needs to withdraw from the EU and start fresh. It'll be a bumpy road at first, but there's no other way. Economist Dean Baker sums it up like this in an article in The Guardian. Here's what he said:

"Even a relatively small country like Ireland has options. Specifically, they could drop out of the euro and default on their debt....Like Ireland, Argentina had also been a poster child of the neoliberal crew before it ran into difficulties.

But the IMF can turn quickly. Its austerity programme lowered GDP by almost 10% and pushed the unemployment rate well into the double digits. By the end of the 2001, it was politically impossible for the Argentine government to agree to more austerity. As a result, it broke the supposedly unbreakable link between its currency and the dollar and defaulted on its debt.

The immediate effect was to make the economy worse, but by the second half of 2002, the economy was again growing. This was the start of five and a half years of solid growth, until the world economic crisis eventually took its toll in 2009."

The Irish people didn't struggle through centuries of famine and foreign occupation so they could be debt-peons in the EU's corporate Uberstate. Like Sinn Fein president Gerry Adams said, "We don't need anyone coming in to run the place for us. We can run it ourselves." Right. Tell the EU plutocrats to take their Utopian Bankstate and shove it.
Memo to Ireland | zero hedge

WE CANNOT ACCEPT THE BAILOUT FOR THE IMF. WE SHALL STRUGGLE AND FIGHT IF IT IS GRANTED. WE WILL NOT BE SERFS. WE WILL NOT PAYOFF THE BANKS RECKLESS BEHAVIOUR WITH THE FEUDALISTS. wE AND OUR CHILDREN ARE NOT GOING TO PAY FOR THIS. END OFF.
 


Doodah

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The Government will agree tomorrow.
The priority is to protect bondholders.
Markets will calm on Monday.
In the next few weeks Corporation Tax wiill be increased because the interest repayments will be to great.
Multinationals will "consider their options" and initiate relocation procedures to our (former) EU competitors.
Ireland will effectively be asset-stripped because in the greater scheme of things it doesn't matter.
The Euro has and will achieve competitive devaluation without inflation.
German/EU strategy has been clinical and brilliant.
The blame game will engulf Ireland for the foreseeable future while the young and able emigrate.
The Government could refuse to co-operate at this last minute, but they are fat and wealthy, so it's highly unlikely.
 

Doodah

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:confused:
In what way?
Brilliant for Germany & EU, not Ireland obviously- a competitive euro devaluation without inflation by asset-stripping Ireland via Corporation tax increase and emigration with consequent reloaction of multinationals to Holland, Germany, Austria etc.
Bondholders protected ensuring stability and security within the EU.
The problem is restricted to Ireland which can be kept on life support relatively easily. (From an EU perspective. the Irish economy is insignificant).
And who can the Irish blame for their economic disaster? Themselves of course!
We'll have plenty of time to look back and study.
 
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Cassandra Syndrome

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oggy

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A thread passing judgement on events that have not concluded and written by someone who could not have any inside info on what exactly is happening. You have to love the efforts of the ABFF
 

SKELLY

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A thread passing judgement on events that have not concluded and written by someone who could not have any inside info on what exactly is happening. You have to love the efforts of the ABFF
So the international media and many economic comentators one of whom is a nobel prize winner for economics are ABFF now!!!

HAHAHAHAHAHAHAHAHAHAHAHAHA!!!!
 

Doodah

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A thread passing judgement on events that have not concluded and written by someone who could not have any inside info on what exactly is happening. You have to love the efforts of the ABFF
So it's all under control and everything will be alright!
Great!
 

Wakeupcall

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What do we have to show for all this money that was spent? Over 500Bn? We should have monorails all over the place with 50Gbps internet speeds!

What have we to show for all this money that is out on loan by some people I'd probably now do serious harm to if I spotted them in the street.

IMF / EU should be let hang. I dont support these decisions and it should be up to the people because I and people like me didnt contribute a ffffffff************************************g thing to this mess other than be born and become an adult just as it started to go downhill. Stupid country.
 

september13

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its all fitting into place.cowen and lenihan sell us out tomorrow.the unions call for protest march today, which is to late.seems like an insurance scam to me
 

cul de sac

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The EU must fear the worst if they are slapping this standard off the shelf IMF solution on us because they know we are heading for default. I've long lost any hope that Cowen is acting in our interest or that he'd know an innovative way out of this even if it was tattooed on his eyeballs. We need to think outside the box on this but I'm afraid it's too late. The fools, the fools, the fools have left us their debt, they believe it will be alright but on marching today we remembered what men died for and what we will have lost come tomorrow. Watch it go KAPOW....
 
D

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Seriously, you are waiting for the final outcome in this sorry mess to make a judgement?? How pathetic and sad you (FF) have become.
This would normally be considered to be the rational approach:rolleyes:
 

bazlad

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What do we have to show for all this money that was spent? Over 500Bn? We should have monorails all over the place with 50Gbps internet speeds!

What have we to show for all this money that is out on loan by some people I'd probably now do serious harm to if I spotted them in the street.

IMF / EU should be let hang. I dont support these decisions and it should be up to the people because I and people like me didnt contribute a ffffffff************************************g thing to this mess other than be born and become an adult just as it started to go downhill. Stupid country.
I don't know a single person who supports what Cowen is doing right now.
FF have turned into the Brits : we are ruled by people who don't give a damn about the wish of the Irish People.
We need to boot them out like the Brits.
 
D

Deleted member 17573

I don't know a single person who supports what Cowen is doing right now.FF have turned into the Brits : we are ruled by people who don't give a damn about the wish of the Irish People.
We need to boot them out like the Brits.
Right, tell us what any of these people think we should do.
 

TradCat

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Even at thus late hour I find it hard to believe that sanity will not prevail. Tomorrow the bondholders will be told take their pain because the Irish state is not willing or able to hand the Irish people into slavery. Fianna Fail are going out of business but they have one last chance to be the republican party they claim to aspire to being.

I'm ready for the hard life, resigined to it, but as part of a struggle not as a victim.
 
D

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I don't think i can write down here what most people would suggest.
No - and neither have you the slightest inkling of what Cowen is actually negotiating at the moment. And will you get a bit of sense and stop paying any heed to Caasandra´s libertarian nutters!!
 


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