Aletho News



By Jane Burgermeister | February 28, 2011

– Ireland’s election called a “transformative moment” in nation’s history: a “pencil revolution” at the ballot box

– The Fianna Fail party has been annihilated at the polls: the party locked Ireland into an 85 billion euro loan from the EU/IMF at an interest rate of 6% and relinquished sovereignty

– New government has just days to stop transfer of tax payer money to foreign bondholders following draconian EU/IMF budget passed in December

– 85% of the income tax revenue will be used to service the EU/IMF loan by 2012 in an economic Blitzkrieg

– EU insists Ireland must pay banks setting stage for “collision” with new Irish government

– Spirit of independence of 1916 awakening as country faces crushing taxation without representation by imperial-style EU administration

Irish voters have delivered “electoral Armageddon” to the Fianna Fail government that saddled tax payers with the obligation to pay interest on a mountain of private bank debt.

Interest on the national debt is set to consume a 85% of the country’s income tax revenues by 2012, according to The Telegraph.

Fine Gael won the most seats in the 166-seat Dáil at 76 and looks set to form a government with the Labour party, which won around 37 seats. Sinn Fein trebled its seats to win 15, including Donegal South West.

Fianna Fail was relegated to the wilderness with 20 seats in an annihilation of historical proportions for the first government in the eurozone to lock its people into an EU/IMF loan.

The stunning ousting of the country’s ruling party that has ruled for 61 of the past 80 years has been called the “pencil revolution” and compared with the uprisings in the Middle East but without bloody street battles.

Fine Gael and Labour leaders met today to discuss at top speed how to deal with the interest payments on the EU/IMF loan.

Money will be taken from the Irish tax payers very fast in an economic “Blitzkrieg”. The EU/IMF have plans to repay 60 per cent of holders of non-guaranteed, unsecured senior bonds by the end of 2012, with bondholders getting €5.7bn this year and €7bn in 2012.

Banks have already received €53bn, or 33 per cent of GDP, since 2008. At the same time, GDP contracted by 11 per cent between 2007 and 2010.

The high voter turn-out at the election of 70% and the wipe out of FF at the polls suggests that the population has understood that corruption among the Irish and EU political and financial elite have caused the worst economic collapse in modern Ireland’s history, and want a government that shows the steely spirit of 1916 to rescue the country.

Polls show huge numbers of voters described themselves as “very angry” and “outraged at what is, in effect, the biggest transfer of wealth from the people of Ireland to foreign entities in history under the pretext of having to pay interest on a paper debt.

Vienna Economics Professor Franz Hörmann explained in a report in Der Standard how banks can create money– and also debt — out of thin air using the fractional reserve banking system. He also explained how they can use the fair value accounting rule to amass fraudulent losses on their books that can also be used as a pretext to suck real capital from taxpayers as long as government leaders acquiesce in the fraud.

The FF government and ECB helped fuel a property bubble by easy credit and they subsequently burst the bubble.

The ensuing property losses gave the banks a pretext to declare themselves in liquidity problems and get billions in real capital in the form of tax payer money in return for paper losses.

The EU and IMF are insisting that Irish taxpayers hand over their money to foreign bondholders at a brutal pace, leaving a new government little time to reverse the biggest transfer of wealth from the country to foreign entities in history before key summits in March.

“The cost of servicing Irish bank debt and the EU-IMF bank loans will consume 85 per cent of Ireland’s income tax revenue by 2012, a burden that a majority of voters find intolerable.,” reports Bruno Waterfield.

An average Irish family will have to pay about £3,900 a year in extra taxes , and most to the banks.

This burden comes after the FF leadership saddled the Irish people with private bank debt obligations which amount to about 135 billion in a backroom deal.

In November, 2010, FF locked the country into an 85 billion euro loan from the EU/IMF at an interest rate of about 6%. They also relinquished sovereignty to the EU and IMF and passed an EU/IMF budget in December 1010 to raise taxes by 5 billion and cut spending by 10 billion euros.

This triggered early elections and the wipe out of the FF party at the polls last Thursday in a warning to the EU and IMF and banks that voters have had enough.

Enda Kenny is set to attend at an EU summit on March 11, and on March 24 and 25.

Kenny has said he will try persuade his European counterparts to cut the interest rate on the EU loan. But it is not clear how this will help Ireland significantly given the size of the national debt and the pace at which it is being repaid.

According to EU officials, the Irish voters have no say, however, report the media. There will be taxation without representation in a development that puts the EU on the same footing as the colonial British empire.

The German and French government are pressing for an embryonic EU fiscal union, which is just another method for looting EU taxpayers who are increasingly opposing the extraction of their money by banks via the European Stability Fund.

The Irish people will never acquiesce in the open looting of their economy by the EU, German and French officials on behalf of the banks in what can only be described as an economic “Blitzkrieg” setting the scene for a collision, as the Telegraph reports.

Labour could reject Fine Gael and its polices on privatisation, austerity and income cuts and form a government with Sinn Fein and Independents and make a fresh start.

German economist Hans-Werner Sinn recently said that Greece should readopt the Drachma, recognizing that there is no way out of a eurozone country caught in the EU/IMF bank debt trap other than setting up a new currency and detaching a country’s economy from the blood sucking banks that control the apparatus of the EU government.

It should conduct an inquiry into the banking crisis and bring those responsible to account.

This was an economic crime comparable in the devastation it has wrecked to a war crime.

Ireland should strike out on a new path with full confidence, showing leadership and giving an example to the downtrodden people and tax slaves in the EU empire.

It freed itself from the grip of the British empire – and this is the same whatever mask or name the EU and IMF may give to their robbery of the Irish people.

With its back against the wall, Ireland has nothing to lose as it is. Following the EU and IMF path will result in the rapid and total destruction of the country.

The spirit of courage and independence of 1916 is surely required to make a clean break.

Any new Irish government should surely write off the paper bank debts, restructure the banks to separate the commercial from the investment or property arms and if it brings the eurozone currency built on debt to its knees in doing so, all the better.

Ireland is already entering a so-called debt-death spiral with soaring unemployment, falling tax receipts, growing mortgage defaults and banks requiring ever more bailouts, forcing the government to borrow more until it is finally pushed into a default.

Given the fact that euro is set to disintegrate anyway under inflationary pressures created by the way the ECB’s buying up the souvereign bonds of the growing numbers insolvent eurozone nations, Ireland would be advised to leave the euro altogether and adopt the punt again, something that would bolster its already strong export sector.

February 28, 2011 - Posted by | Economics

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