Monday, 25 April 2011

Our Central Bank proves its worth

The Irish Central Bank (CBI) isn't everyone’s cup of tea. Could be something to do with the fact that they dozed through the build-up to our current economic crisis. Or that our commercial banks had plunged into bankruptcy just months after the CBI assessed them as being in rude financial health. In fact many observers, myself among them, used to ask why we needed a central bank at all seeing as we don't have our own currency any more.

Well, a stunning new report silences the begrudgers in a single stroke and demonstrates conclusively the value of this excellent (if highly expensive) organisation.

For example, in a shocking discovery, the authors tell us that “the rise in unemployment, wage cuts, and increases in interest rates have acute implications for people at a personal level”

Well, who could have guessed?

And then there’s this finding which, honestly, left me stunned: “The severe decline in the performance of the Irish property sector allied to the post-2007 global economic down-turn has had a distinctly harsh impact on the Irish economy”

Crikey! Did you know that? An Irish property bust? Well, it’s news to me.

And, based on these dramatic findings, the report concludes with an ominous forecast which will bring the country’s current celebratory mood to a jarring halt. “This suggests that many Irish households will soon experience difficulties with their mortgage repayments

You know, I hate to say it, but they could be right. Just maybe.

Anyway, with such original research, dramatic findings, and innovative conclusions, I think the CBI has fully demonstrated its value, once and for all.


Ok, sarcasm off. The CBI, like the rating agencies, excels at arriving at a wake and pronouncing the corpse to be dead. They are totally useless for anything else. Armies of economists, at enormous cost, labour to come up with useless rubbish like this while the country flounders. I despair.


Bemused stare said...

And people wonder why I think we might have a better chance if we put twelve year old kids in charge of the whole show.

It must have taken a staggering amount of effort to breed such a gang of hopeless pillocks.

Franz said...

@ Savant

"The CBI, like the rating agencies, excels at arriving at a wake and pronouncing the corpse to be dead."

Well, you forgot to mention that central banks are in the habit of organ harvesting the half rotten, already liquified remains of the patient so that his diseases may spread further.

After all, when the markets fall out of bed and the bonus season short of expectations, it is only fair that all sectors of industry, all citizens great and little, should partake in the pain and do so in exponential measure.

Franz said...

Oh - I forgot to make one prediction which I want to share and have on the record.

Now that inflation is picking up in many, many places of the world, the central banks will soon be flooded with demands for additional money and most of them make a show of initial hesitancy but in the end will gladly oblige.

At first, this seems counter-intuitive to a thinking person. Fighting inflation with more paper money? However, history has shown time and time again that the victims of inflationary fires are the ones most loudly demandaing that more petrol be poured on the flames.

It will go like this: At some point (three months or three years from now) a barrel of oil will set you back $300. The population at large will demand help in dealing with the ensuing price rises in everything. After all - we need more money to pay these prices!

The political class will answer by subsidizing basic foodstuffs and energy at least for those on the dole, maybe the whole population.

As the tax base has gone dry by then, these subsidies will be paid for with newly created fiat confetti, thus furthering the effects of inflation.

It will be tantamount to fighting a Heroin overdose with more Skag, but to most people it will seem a perfectly good idea at the time.

Croesus said...

Franz - I think you're correct about inflation. Don't forget also that it's easy to inflate away your debts. I think this is waht the Fed is doing. Collapsing the value of the dollar is also collapsing the real cost of paying off the Chinese and Japanese.

Anonymous said...

In the case of merging Anglo with whoever to bring us Unabanc "It lives!It lives!"

Clogheen said...

You're right about no need for a CB. Or at least one drastically cut down (20% of previous size). But just like the HSE all the drones had to keep their jobs.

Derek said...

Don't worry Savant, the Irish people have other things to worry about. According to the Indo the trials and tribulations mixed race couples go through

Simon Q said...


Fat, dirty and disgusting North American Pavement Ape walks into a Walgreens pharmacy and nonchalantly pisses on 110 packets of cough drops.

How goddamn more disgusting will these creatures become?

ironman said...

Well Derek, I suppose it's a somewhat reassuring th\at the 'mixed-race couples' are having problems. I don't mind the Chinese-Irish thing really, it's the blacks and ragheads that piss me off. Also reassuring to see that one of the Nigerian sperm donors was deported. But doubtless the European Court will force us to take him back.

ironman said...

Whatever about the jig pissing on the cough drops, what "pissed" me off was the advert before for UPS. Here another jig explains to the dumb white man what logistics are all about. Cue several other blacks in top positions. The only time they get involved in logistics is when they're transporting drugs!

Bemused stare said...

"How goddamn more disgusting will these creatures become?"

You know that you really don't want the answer to that, don't you? If that alarmed you, a visit to will give you sleepless nights. There is no limit to the depravity of these fetid beasts.

Franz said...

@ Ironman

And they aren't really good at bringing drugs from point A to point B either.

It seems as though the only people moving serious weight are the Zetas, Zips and assorted professionals with severely lower levels of skin pigmentation.

The only thing blacks are good for is slinging dime bags at the corner.

Think about it: You choose one thing and one thing only to do in your whole life and still manage to remain so inept at it that you are merely able to pick up the crumbs others left behind.

No wonder the darkies have a chip on their shoulder.

Anonymous said...

I don't mind the Chinese-Irish thing really

Their children, if they have them, can never have the same interests as white children.

The "white" in such a relationship isn't.

Granted, it's a little less serious for a man; mixed children of white fathers tend to be less anti-white than the mixed children of white mothers.

Anonymous said...


The product of the probability of the correctness of a forecast and the proportion of people who have heard and believe the forecast is less than or equal to phi.

Anyone catch Ben Bernanke's "Historic" press conference today? It's the first of what are to be regular press conferences.

Anonymous said...

Tell me these people are not taking the piss ...

BRITAIN faces a fresh wave of migrants from next Sunday, when rules on benefits are relaxed.

As many as 100,000 people from eastern Europe are expected to head for the UK after May 1, when they will be able to claim up to £250 a week in handouts.

Sir Andrew Green, chairman of the monitoring body MigrationWatch UK, said last night: “This needs to be watched very carefully. Nobody knows what impact it will have.”

He is particularly concerned about what would happen once similar “transitional controls” on immigrants from Bulgaria and Romania are lifted in two years’ time, with fears that Roma people would race to take advantage.

Immigrants from eight countries – including Poland and Hungary, which joined the European Union in 2004 – will get automatic rights to Jobseeker’s Allowance, housing and council tax benefit. Rules that prohibit eastern bloc migrants from accepting the handouts unless they have worked here continuously for a year must be lifted to comply with EU requirements.

Like anyone not actually living and working in England, I await events with great interest.

Uncle Nasty

pissedoff said...

These new UK regulations, and Bernanke's pathetic interview plus his refusal to raise interest rates. Folks, we're GOING DOWN! Grab what life-saving equipment you can, because the lunatics are running the asylum.

Franz said...

@ Anon 20:11

I watched the prices of silver and gold simultaneously to Benocide's quivering performance. As I am invested in both, I am now positively exuberant.

I was wondering what particular spin the chairsatan might employ to explain the dollar's confetti trajectory. He surprised me by simply claiming that his current policy is in effect a "strong dollar policy" and that's it.

It was like some Soviet aparachik in the late 80s explaining to the starving masses that "well, tractor production is up!"

If Benocide is commited to repeat his performance on a regular basis, I will program my computer to buy gold concurrent with the beginning of the press conference and sell at the end. Should be the day-trade of the decade!

Also, US readers should fill their cars with gas BEFORE the chairsatan opens his mouth, for their purchasing power will have degraded by the time he is finished speaking half an hour later.

Croesus said...

'If Benocide is commited to repeat his performance on a regular basis, I will program my computer to buy gold concurrent with the beginning of the press conference and sell at the end. Should be the day-trade of the decade!


hooker said...

Have you noticed that all of these bastards in top public sector posditions are looking after themselves as well as ever. The rest of us are being hit right left and centre.

Anonymous said...

I think you will like this ...

My TinyURL is acting up so please forgive the unwieldy address.

Essence of the matter?

Iceland Declares Independence from International Banks

By Bill Wilson –

Iceland is free. And it will remain so, so long as her people wish to remain autonomous of the foreign domination of her would-be masters — in this case, international bankers.

On April 9, the fiercely independent people of the island-nation defeated a referendum that would have bailed out the UK and the Netherlands who had covered the deposits of British and Dutch investors who had lost funds in Icesave bank in 2008.

At the time of the bank’s failure, Iceland refused to cover the losses. But the UK and Netherlands nonetheless have demanded that Iceland repay them for the “loan” as a condition for admission into the European Union.

In response, the Icelandic people have told Europe to go pound sand. The final vote was 103,207 to 69,462, or 58.9 percent to 39.7 percent. “Taxpayers should not be responsible for paying the debts of a private institution,” said Sigriur Andersen, a spokeswoman for the Advice group that opposed the bailout.

ooh, I like it.

Uncle Nasty

Anonymous said...

Amazing what you find ...

California Seizing Safe Deposit Boxes to Balance Budget

The State of California turned their unclaimed property program into a $5.1 billion slush fund. Over the years, and through multiple budget crises, California reduced the holding period for unclaimed property from 15 years down to three. Desperate to pay for their political largesse, Californian legislators even pushed to reduce the holding time for rightful owners to claim their property down to only 1 year.

They stopped sending notices to the rightful owners too. In an internal memo obtained by ABC News, the lawyer for California's Bureau of Unclaimed Property objected to efforts to find the owners because "It could well result in additional claims of monies that would otherwise flow into the general fund."

Yes, you've got it right. While most states keep unclaimed property in a special trust fund, California puts the money into the general fund to spend as fast as they can.

Despite court injunctions and class action lawsuits, California's Bureau of Unclaimed Property continues making up any excuse they can to steal citizen's private property.

Look like they've run out of the silverware to steal and sell. They're now rummaging in your garage to steal your bottles for the deposit.

California now ... rest of the world, tomorrow.

Uncle Nasty

Anonymous said...

Just for Fun ... my belated Easter gift to the group.

Bookmark this site:-

Very, very highly recommended. These guys publish articles that other blogs only see weeks later ... and the MSM never see at all.

Uncle Nasty

Croesus said...

Sorry to disappoint you Uncle Nasty. Much and all as I'd like to see the Icelander's score on this, the vote really gets them nowhere. If the international banks choose to stick it to them they could find themsleves literally starved out. Also, if they try alternative sources they could end up paying more than the rejected deal would have cost them.............

Anonymous said...

Croesus said...

... If the international banks choose to stick it to them they could find themsleves literally starved out. Also, if they try alternative sources they could end up paying more than the rejected deal would have cost them......

Croesus, You are probably absolutely correct in your analysis, but, by the same token, those countries -- the rest of us -- who chose the path of dropping 'em, bending over and greasing up, are not doing all that well, either.

By allowing this behavior to occur once, we have established a precedent for all time -- after all the next bailout is being negotiated as we speak. And the one after that.

And so on, ad nauseum, until the inevitable collapse ... and then, no one's got anything, anyway.

Cheerful bugger, Aren't I?

Uncle Nasty

Anonymous said...

I suggest you check this out.

Check the deals that were cut immediately after WW1 and compare them with what is happening today ...

Yea, verily and forsooth, there is literally nothing new under the sun.

A very short quote:-

The First President of the World.

In June of 1919, the victorious powers were in Paris deliberating over the best way to carve up Europe. With each national delegation came a coterie of financial advisors: Paul Warburg negotiating for the Americans and Max Warburg defending the interests of the Germans. Woodrow Wilson found his hour amongst this milieu of dignitaries.

Whattaya know? Two Red Sea Pedestrians, sharing a name --- on the opposite sides of the table.

Just coincidence -- of course.

Uncle Nasty

PS. I've just had a really depressing thought.

What if, a hundred years from now, our descendants (the two dozen white ones that are left), having a discussion on their implanted cellphones, point to this blog and say:-

"Damn ... those old bastards knew what was going on even then.

Why didn't they do something then ... when you still could?"

Why, indeed?


Asterix said...

Amazing - and chilling - story about the Warburgs. Where do you dig these things up, UN?

Anonymous said...

Asterix said...

Amazing - and chilling - story about the Warburgs. Where do you dig these things up, UN?

It's actually no big deal, Asterix. You acquire a few links to favoured sites, and then look at the links they, in turn, supply to their articles and the "Favourite" sites they link to.

A great example is the "Check Out" column, right here on Savant's Home Page.

Click on any one and ... Bingo. A whole new world.


awakened said...

Can just imagine, the Warburgs engaging in tough and unpredictable nogotiations with one another.


Anonymous said...

Reg and savant ... this does not bode well ..

Beware - Starving Beast lashes out

Irelands public debt now stands at €120,000 per worker, a staggering figure. Instead of growing the economy organically, they rushed into Europe and the Eurozone, binged on "new found wealth" that never existed in the first place and declared themselves "Celtic Tigers".

In a VERY sinister move, the Irish government has decided that rather than simply default and upset the private bondholders (banks, hedge funds) that it owes, it will raid the private pensions and savings of Irish citizens instead.

Reg? Savant? Comments?

Uncle Nasty

SAVANT said...

UN - this is absolutely correct. WE have made a complete balls of it and yes, the 'government' is now set to raid the private savings and pensions of those of us who were prudent. The big gamblers (banks, developers) can simply dump their debts on the rest of us. The only thing is that with figures of this magnitude it won't be possible to pay off.

Anonymous said...

Reg and Savant ... it's the bearer of bad tidings again ...

The article:-

Ireland's future depends on breaking free from bailout

OPINION: Ireland is heading for bankruptcy, which would be catastrophic for a country that trades on its reputation as a safe place to do business, writes MORGAN KELLY

WITH THE Irish Government on track to owe a quarter of a trillion euro by 2014, a prolonged and chaotic national bankruptcy is becoming inevitable. By the time the dust settles, Ireland’s last remaining asset, its reputation as a safe place from which to conduct business, will have been destroyed.

Ireland is facing economic ruin.

Surely there is someone who you can kidnap -- and if necessary, kneecap?

I am being quite serious here. It would be a very small price to pay ... for the greater good.

Not for him, of course. For you.

Uncle Nasty

Croesus said...

@UN - re Prof Kelly's analysis, the solution he proposes in not practical. The damage is done. Every day that goes by another bondholder escapes the net.