Mandate To Default On The Unjust Bank Debt That Is Sinking Our Economy

national | eu | opinion/analysis

Wednesday May 02, 2012 02:48

by Darcy - FARMERS FOR NO

The Fiscal Pact is equivalent to economic suicide

BUT WHAT HAPPENS IF WE VOTE NO?

COULD IRELAND’S ACCESS TO A FUTURE BAILOUT FROM THE ESM RESCUE FUND BE PUT AT JEOPARDY BY THAT DECISION?

This is the so-called ‘Blackmail Clause’ contained in Article 136 of the European Stability Mechanism (ESM) Treaty.

Quote of Constantin Gurdgiev, Economist Trinity College Dublin.

“The Fiscal Pact is equivalent to economic suicide”.

Former disgraced Taoiseach Albert Reynolds conned the Irish People into Voting Yes to the Maastricht Treaty in 1992 which was about ditching the Irish Punt and NOT about IR£7 Billion in Structural Funds.

Ireland joined the Euro-zone in 1999 and within one decade the EURO had transformed our then thriving economy into the basketcase it is today.
JOINING THE EURO-ZONE CAUSED THE HOUSING BUBBLE WHICH IN TURN CRASHED THE ECONOMY.

This was caused by the destruction of National Currencies and the removal of exchange rates which enabled European Banks and most especially German Banks to engage in a lending splurge to Irish Banks which in turn re-packaged these loans into House Mortgages and Property Loans. And because we joined the Euro-zone the ECB lowered interest rates which further FUELLED House Prices and saddled young families with UNAFFORDABLE MORTGAGE DEBT.

Quote of Brian Lenihan TD, Minister for Finance during interview with Matt Cooper on Last Word Show on Today FM, June 25 2009 :

“Low euro interest rates and cheap labour from Eastern Europe after 2004 were the main reasons for the overheating of the Irish economy which led to the recession”.

Quote of Professor Edward Walsh :

“Ireland entered the euro in 1999 and lost control of the two vital monetary instruments : setting interest rates and setting currency exchange rates.
Had Ireland remained outside the euro, it’s bankers would not have gained access to the euro zone’s vast and low interest borrowing opportunities.
Without the outlandish credit available within the euro zone, the building bubble, the resultant government tax windfalls and Ahern’s, McCreevy’s and Cowen’s spending splurge would have been impossible.

The country would not now be in receivership … For Ireland there has not been a shared and equitable European solution. The banks, mainly German, which lent rashly, are receiving a 100 per cent bailout. Not from those who borrowed, but from the Irish tax payer. Apart altogether from the unfairness of the imposed solution, it will not work, because it cannot.”

– Professor Edward Walsh, founding President, University of Limerick, Beal na mBlath oration, Michael Collins commemoration as quoted in the – Irish Times, 22/08/2011

Quote of Paul Krugman:

“European leaders seem determined to drive their economy – and their society off a cliff. And the whole world will pay the price.”

- Paul Krugman, Nobel Prize Economist, Irish Times, April 17, 2012

In spite of the fact that more than two thirds of Irish exports are to countries that do NOT use the Euro, because we do NOT have our own currency we are unable to DEVALUE the currency we use, namely the Euro in order to increase our competitiveness.

For Irish Agriculture, up to 60% of our Beef exports are into the UK in spite of the fact that the Euro has gained 20% in it’s exchange rate with Sterling since we joined the Euro making Irish exports into the British market 20% MORE EXPENSIVE!

Despite this fact Irish Beef exports to the UK have increased in price by 45% in the last year! By Leaving the Euro and returning to the Punt, which could be DEVALUED, Irish Beef exports to the UK would go through the roof giving Irish cattle farmers increased profit on their work and investment.

On May 31 the Irish People will have the choice to accept or reject the “Permanent Austerity Treaty”, also known as the “Fiscal Compact Treaty”.

By accepting this Treaty we would handing over ABSOLUTE control of Fiscal Policy or the ability of elected Irish Governments to frame our own Budgets to the NEW ‘Troika’ of the European Commission, European Central Bank and the European Court of Justice.

BUT THIS ‘AUSTERITY’ TREATY IS ONLY FOR THE IRISH PEOPLE AND NOT FOR FOREIGN BANKS AND BONDHOLDERS WHO ARE EXEMPT FROM ANY AUSTERITY DESPITE THE FACT THAT THE EU IMPOSED A MASSIVE 50% HAIRCUT ON THE BONDHOLDERS OF GREEK DEBT!

THE FISCAL COMPACT POLICIES OF AUSTERITY WILL RESULT IN THE CLOSURE OF REGIONAL HOSPITALS, RURAL SCHOOLS AND GARDA STATIONS BUT WILL ENSURE THAT THE CURRENT AND FUTURE GENERATIONS OF IRISH TAX PAYERS WILL PAY EVERY LAST CENT PLUS INTEREST TO THE ECB FOR THAT LOAN OBTAINED BY THE PREVIOUS DISCREDITED FIANNA FAIL / GREEN GOVERNMENT TO REWARD THE FOREIGN BONDHOLDERS OF IRISH BANK DEBT!

MORE POWER FOR UNELECTED TECHNOCRATS

The Fiscal Compact Treaty gives wide-ranging powers to the UNELECTED EU Commission and European Court of Justice (ECJ).
Failure to implement the strict austerity conditions will result in the ECJ imposing fines of 0.1% of GDP or approximately Euro 200 Million per annum on Ireland.

GOODBYE ECONOMIC SOVEREIGNTY We lost our economic sovereignty because of our membership of the Euro-zone and because of the corrupt and incompetant decisions of Fianna Fail in Government.
If the Irish People are so foolish as to vote for the Fiscal Compact then we will be surrendering any chance of regaining economic sovereignty that is so necessary for our recovery.
Under the Fiscal Compact the EU Commission will SUPERVISE the setting up of “independent” institutions which will be responsible at National level for “monitoring the observance of the rules”.

Labour Party Leader and Tanaiste, Eamonn Gilmore TD, promised in last year’s General Election that “IT WOULD BE LABOUR’S WAY OR FRANKFURT’S WAY” and Labour entered Government on the back of that FALSE promise thus ensuring “FRANKFURT’S WAY”.

Now the same Eamonn Gilmore wants the same Irish People, who he lied to, to Vote Yes for the Fiscal Compact / Stability Treaty?

Quote of An Taoiseach, Enda Kenny TD in relation to Promissory Note Debt to ECB of
Euro 42 Billion over 10 years:

Enda Kenny told Bloomberg television that Ireland will not seek any write-down on it’s Bank Debt and will not impose losses on Bondholders.

“We’ll pay our dues in full and on time”, he told ‘In Business with Margaret Brennan in an interview on 08/02/2012.

BUT WHAT HAPPENS IF WE VOTE NO?

COULD IRELAND’S ACCESS TO A FUTURE BAILOUT FROM THE ESM RESCUE FUND BE PUT AT JEOPARDY BY THAT DECISION?

This is the so-called ‘Blackmail Clause’ contained in Article 136 of the European Stability Mechanism (ESM) Treaty.

Firstly the ESM Treaty has not YET being Ratified and there is a Legal challenge being brought against it’s Ratification by Independent TD,Thomas Pringle.

Secondly the ESM Bailout Rescue LOAN Fund does NOT yet exist.

Thirdly the ESM Rescue Fund is a LOAN Fund that does not provide us with FREE money.

Fourthly the ESM Treaty requires Ireland to CONTRIBUTE Euro 11.1 Billion to that ‘Rescue’ Fund which we must BORROW with Euro 1.5 Billion of that BORROWED to be paid UPFRONT!

Fifthly and most importantly the ONLY reason that we ‘need’ a Bailout is because Ireland is locked out of the financial markets for borrowing because Irish Sovereign Bonds carry a high risk of Default as a direct result of the ‘Bank Guarantee’ of the previous Fianna Fail / Green Government that was the means of the Irish Tax payer BAILING OUT FOREIGN BONDHOLDERS who invested in the now bust Anglo-Irish Bank when gambling on the continuation of the ‘Building Bubble’.

If the Irish People Vote No on May 31, this democratic decision must be a MANDATE TO DEFAULT ON THE UNJUST BANK DEBT THAT IS SINKING OUR ECONOMY.
It is the loading of this ‘Bank Debt’ on top of the country’s Sovereign Debt that is PREVENTING Ireland from borrowing on the financial markets at low interest cost.

The Fiscal Compact will also put the CAP Budget Post – 2013, that Irish farm families depend on, at severe risk.

Quote of Professor Alan Matthews :

“Safeguarding the CAP Budget must be increasingly in doubt after last week’s fateful Brussels Summit”

Warning of European Agricultural Policy expert, Alan Matthews, Professor Emeritus of European Agricultural Policy, Trinity College Dublin, on EU Summit that decided on ESM ‘Firewall’ Fund of Euro 750 Billion, December, 2011.

“The growing likelihood of an EU recession next year, possibly inducing further economic turmoil beyond the continent, will lower demand for agricultural output and could lead to another collapse in output prices”.

Professor Matthews said in capreform.eu blog.

“Difficulties in Europe’s banking sector will curtail credit to farmers and to the small and medium-sized enterprises which make up the bulk of the EU’s food industry …the EU’s prized single market in agricultural and food products could come under threat”.

The Fiscal Compact will have a devastating impact on Irish and European Agriculture:

Prices for food and agricultural products will fall due to austerity throughout our export markets in Europe.

Taxes will continue rising because of bailing out foreign Banks.

Direct Payments will be cut.

Farm Family members working in off-farm employment will have their wages and salaries cut even more.

Social Welfare payments to farm families, such as old age pensions will have to be REDUCED and Income supports such as Farm Assist will be likely to be SCRAPPED.

Farmers must VOTE NO TO THE FISCAL COMPACT / STABILITY TREATY so as NOT to go the way of our Fishing and Sugar Beet Industries.

Already EU Hyper-Regulation is strangling to death our Agricultural Sector.

The EU Habitats Directive has BANNED Domestic Turfcutting on SAC Designated Bogs and the current Fine Gael / Labour Government is acting like EU Policemen in their attempts to have that EU Directive implemented.

See www.FarmersForNo.eu