News & Analysis
End of Euro? ... Ireland Prints Own Notes
Emergency lending from the ECB to banks in Ireland fell in December, the first decline since January 2010, but only because the Irish Central Bank stepped up its help to banks. The Irish Independent learnt last night that the Central Bank of Ireland is financing €51bn of an emergency loan programme by printing its own money. ECB lending to banks in Ireland fell from €136.4bn in November to €132bn at the end of December, according to the figures released by the Irish Central Bank yesterday. At the same time, the bank increased its emergency lending by €6.4bn, bringing the total it is owed to €51bn. – UK Independent
Dominant Social Theme: The heck with a single currency. Oh, wait ... let everyone print it.
Free-Market Analysis: Was this the week the euro gave up the ghost and the EU threw in the proverbial towel? Analyzing the Anglosphere's dominant social themes is not an easy avocation and one looks for documentable breakthroughs. We have been fortunate to find several during the timeframe of this young publication but are always looking for more. Irish printing of euros seems to fit our criterion of a demonstrably significant event. (Information that makes you sit up straight and go "Wha?")
The one that stands out the most for us previously (as we have mentioned before) was the Congressional appearance of Federal Reserve Inspector General Elizabeth Coleman. It was perhaps the single worst appearance of any official in the history of such appearances and left no doubt that the Fed had not a clue about how to handle the fallout from its various monetary insanities. See our article on that episode here:
Now comes Ireland. In news reports that have thus far not attracted much attention, the Irish Central Bank has been printing euros out of thin air to prop up its ailing banks. The whole of Europe will pay for this action, as the result will be increased euro-zone price inflation. We can only imagine the reactions of Germans if this continues – though apparently the Irish action is legal from the EU's standpoint so long as the ECB is "informed" in advance and approves. As is often the case, we doubted our reaction to the news, so we went trolling the ‘Net to see if anyone shared our instinctive reaction that this was overwhelmingly bad news for the euro. Here's one comment we found:
Wait... have I just slipped into a parallel universe? Is this some sort of early April's fools joke? Doesn't this defeat the entire point of a single currency and the ECB? Were the rules changed on the quiet without anyone noticing?
Greece.... Greece are going to go f***ing apesh!t. They were forced to go begging to the IMF.... when the Greek people find out the [Irish] central bank is allowed to just print money, they are going to riot and demand tax cuts and benefits rising and massive spending. The Germans... well the Germans are just going to totally lose it. They've been told they should pay higher taxes to help the PIIGS, now they are being told the PIIGS can prints EUROS at will?
It's impossible to overstate the importance of this... this is it... game over. The EU has weeks maybe days left. I this really is true, this is the biggest news story since world war 2 finished, and may even lead to world war 3. (-RufflesTheGuineaPig@housepricecrash.co.uk)
See, dear reader, there really ARE others that share our immediate reaction (even if they are named Ruffles). It continually confirms our perspective that making governance more transparent in the era of the Internet is not perhaps necessary. The Internet is doing the job on its own. More evidence? Here's some additional news from Ireland:
Millions of euro in bonuses have been paid to Bank of Ireland staff since the introduction of the bank guarantee. The Government yesterday confirmed that it has launched an investigation into the payments after bank officials admitted supplying incorrect and misleading information on staff bonuses to the Dail. Senior officials at the Department of Finance will also probe a six-figure bonus paid to an executive at Bank of Ireland's asset management division.
Banks bailed out by the taxpayer have paid bonuses totaling €45m since being guaranteed by the State, including €20m to staff at the failed Anglo Irish Bank. When Finance Minister Brian Lenihan outlined bonus figures in December, the sum recorded for Bank of Ireland was nil. But it has now emerged that bonuses were paid. While the payment amount is not yet known, it will be established as part of the Department of Finance enquiry and will run into millions. (- UK Independent)
These are the issues that the Eurocrats will need to struggle with as they conclude their meetings today on expanding the size of the EU bailout fund. But no matter what the EU does, it is now seen as siding with large banks over the populace. Since Eurocrats spent 50 years building up the entirely risible meme that the EU was good for average folks, we can't imagine how the EU concept is going to recover, public relations-wise. Its leaders have placed themselves in opposition to citizens – and done so in a way that has already resulted in overt violence.
One does not see EU members meeting to discuss the plight of the average worker under "austerity." No the preoccupation, beyond Europe, is protecting the banking system. AP reports that Germany's finance minister Wolfgang Schaeuble will allow the bolstering the fund so it can "actually lend out the advertised 750 billion ($1 trillion) – which it currently cannot do due to technical reasons." Others have been hoping to double the size of the fund. There is Portugal to consider and Spain as well. Pay the tab for the one and there will be nothing left for the other.
It is certainly possible that the fund may be expanded, or otherwise made more utile, but will that be the end of it? France and Italy are two additional countries that have been mentioned as candidates for bailout money. In fact there is a hypothesis that French leaders have been leading the way in this matter because France will eventually need to tap the fund as well. Germany's participation in the fund remains under court challenge and polls show the German people have continually soured on the idea of placing German wealth at the disposal of the larger EU to pay for the pensions of PIGS.
Merkel has already lost political power because of her backing for the EU bailout and this is surely a primary consideration in Germany's hesitation over making changes to the bailout fund. Germans are well informed on the matter, no doubt to Eurocrats' collective chagrin. As we have pointed out many times, without the truth-telling of the Internet plans to expand the EU in a time of economic crisis would have gone far more smoothly. But the elite is in a bad place right now. It cannot ban the Internet outright as that would be neither practical nor prudent; yet every day this new communications tool expands, elite fear-based promotions erode further.
What Ireland is doing is a stopgap measure; one also apparently intended to staunch capital flight. But we have to wonder now that Ireland has set the precedent, who will be next? If the bailout fund is not expanded, or if the requirements prove continually onerous, are the Greeks and Portuguese going to begin to print euros as well? What will the Germans and other Northern EU countries think of that? Such actions undercut the EU's entire modern rationale. It smacks of desperation.
It must be said that the Eurocrats are a stubborn lot and having invested 50 years in building the EU, Brussels may yet lurch toward further integration. According to the UK's Guardian, French Prime Minister Francois Fillon recently said that, "in order to consolidate the euro we will need gradually to harmonise our economic, fiscal and social policies." And he added that Europe was at "a historic turning point."
We cannot imagine the larger European public endorsing such a move toward further centralization, however, which means, given Brussel's anti-democratic logic, that, simply, the public will not be given the option to vote. These are indeed shifting sands on which to build a supra-regional, integrated union.
Conclusion: The bell tolls. Ireland's "emergency" printing of euros is perhaps the first strike; we shall see if Europe listens.
Edited on day of posting
Posted by Der Este on 03/11/11 04:43 PM
The Euro needs to be put out of its misery. Fine, let the European Union be, but stop killing European culture by trying to unite all countries into one. Politicians want the Euro, simple people in most countries want their own national currency.
Posted by Gearï¿½id on 02/19/11 09:26 PM
Posted by Brigitte on 01/25/11 02:35 PM
Hello, a fascinating article. I tried to find the news at UK Independent as well, but could not. Would you mind to send the link?
Reply from The Daily Bell
Posted by Blair T. Longley on 01/24/11 12:23 AM
Click to view link
In this process the central bank has printed up about 25% of GDP in euros and deposited them in the banks. This is uncollateralized by bonds and will prove to be very inflationary, if not hyperinflationary. This euro increase has not gone unnoticed, particularly in Germany.
If you remember for years Germans have refused to accept euros printed in other euro zone countries. It is not going to take long for Germany to react. They won't and can't accept Irish euros and that should lead to a crisis in the euro zone as well as in the EU.
We are about to discover that all euros are not equal and that Germany will not be held hostage by a group of euro-elitists. What is to stop Greece, Portugal, Belgium, Spain and Italy from doing the same thing? This has to put downward pressure on the euro. This may be why the euro has been allowed to appreciate recently to offset the coming weakness in the euro caused by Ireland's euro printing.
Posted by Bruce on 01/24/11 12:01 AM
Good article. Keep going!
The EU was born to fail. It's an attempt to gather all the debt-slaves in one stall. It is anti-nation state, and anti democratic.... Communism with smeared lip stick and a poka dot dress. Someone has to step out. Too bad about the bonuses... really dumb. Compromised leadership. But still, a necessary move. Go Ireland. (This was predicted by Clif High of Half-Past Human)
Understand this... the whole world is about to undergo a vast change. Everything is corrupted. Swelling madness. Change is good... and painful. Let us prepare with positive thoughts. Done.
Posted by Dan Brooks on 01/23/11 10:08 PM
Governments should print the money they need. The Irish are doing the right thing. If there isn't enough money in an economy for it to work right then you need more money in said economy. The billionaire class sure isn't putting it in there and in fact takes most of it right back out. Most of what is printed shortly ends up in some blokes' private swiss account. It will all end badly as it should.
Remember one thing, they have more to lose if all the world currencies collapse. The common guy should actually be rooting for it. The elites then lose power and new leaders can design a more rational economic system which still rewards success, albeit a bit more modestly; and a safety net is put in place for anyone who puts in a minimum effort or is physically/mentally unable to. This is how we will advance. A happy people is a productive people.
Posted by Nick on 01/23/11 03:44 PM
Useless banks in Europe and the US, yet another violation of our rights. Add it to the list of gov't violations of our right:
They violate the 1st Amendment by placing protesters in cages, banning books like "America Deceived II" and censoring the internet.
They violate the 2nd Amendment by confiscating guns.
They violate the 4th and 5th Amendment by molesting airline passengers.
They violate the entire Constitution by starting undeclared wars for foreign countries.
Impeach Obama and sweep out the Congress, except Ron Paul.
(Last link of Banned Book):
Click to view link
Posted by Jerry Emerson on 01/23/11 02:39 PM
Ireland, Germany, Greece, countries around the world? In my heart I trust you know many of the shareholders in the USA's FED are also shareholders in the Bank of China.
This single fact belies the "conflict" between nations. The bankers' view extends well beyond the EU or USA or any other geographical division; they want it all and by allowing them to continue charging us for an invisible medium of exchange they will surely have it.
The issue seems, in my estimation, not to reside in the printing of currency but HOW that currency comes into existence. As an un-audited operation the FED can pretend to piddling profits when in fact they profit every dollar they produce in the end. My grandchildren understand this by my using newsprint to "produce" currency they must borrow in order to buy candy or toys while denying them scissors and paper to do the same. "Grampa; how are we going to pay what you call interest when we only have enough paper to give back what you gave us to start?"
The idea they must "borrow" more newsprint to pay the interest which creates more interest brings forth; "But grampa, why do you want to cheat us like that? All we want is a candy bar."
Alas, no candy bars for the Irish or any of us others burdened with newsprint cutters lending us the ephemeral medium of exchange we have all decided we have no choice but to accept.
Posted by Susan on 01/23/11 01:50 PM
"The powers of financial capitalism had a far-reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole...
Their secret is that they have annexed from governments, monarchies, and republics the power to create the world's money..." .- Prof. Carroll Quigley renowned, late Georgetown macro-historian (mentioned by former President Clinton in his first nomination acceptance speech), author of Tragedy and Hope. "He [Carroll Quigley] was one of the last great macro-historians who traced the development of civilization...with an awesome capability." ' Dr. Peter F. Krogh, Dean of the School of Foreign Service (Georgetown)
Posted by Susan on 01/23/11 01:46 PM
"Give me control of a nation's money and I care not who makes it's laws" -- Mayer Amschel Bauer Rothschild
Posted by Susan on 01/23/11 01:41 PM
Good on you Ireland !
Posted by Steve Samios on 01/23/11 05:38 AM
What are you doing Ireland? Germany will send the Luftwaffe to sort you out!
Posted by TOM on 01/22/11 11:54 PM
GOLD AND SILVER ARE MONEY, EVERY THING ELSE IS CURRENCY. USE THE CORRECT WORDS, IT WILL CLEAR THE CONFUSION.
Reply from The Daily Bell
You don't need to shout.
Posted by Ron on 01/22/11 10:23 PM
Get your money out of the banks and buy silver no more banks wake up ... You dopes
Posted by Zorn on 01/22/11 07:48 PM
22000 for each man women and child! Hello give me a brake.
Posted by Blair T. Longley on 01/22/11 06:30 PM
Can solutions to fiat fraud be everyone can do fiat fraud? Clearly, we have to go back to reality to try answer that. Everyone can do fraud, like everyone could do robbery. Sovereignty was distributed like the power to kill was. Power to tax is what empowers banksters' fiat money.
Absurdity in our death controls through privatizations abound everywhere one looks, since actual robberies are backed up by real violence, with the long history that created the social habits, which allowed Europe to get into musical chairs with their money systems.
IT WAS CRUCIALLY IMPORTANT WHO MAY MAKE MONEY FROM NOTHING! That power was only an absurd joke, without the sovereign power behind! It continues to become more & more absurd to talk about the money system without also talking about the murder system behind that.
I agree that IT MATTERS whether different groups start to assert Monetary Sovereignty. The European Union has difficulty with that ... they cannot face what their realities were! Banksters dominated Europe through various privatizations of the money supply, which was achieved by applying organized crime methods. Thus, their power to rob in their Sovereigns backed up power to defraud By Banksters! Thus, spirals of the money-as-debt systems!
Money-as-debt was fraud backed up by force. I.e., the payment of taxes made by fiat money. European "sovereignty" was usurped by usurers. Recent European history particularly manifested Rothschild Zionism, as the central organization of the influential banksters dominating Europe. Thus, paradox in any death control democratizations, in the context where the vast majority of people are clueless about how money systems use the people's name, "Sovereignty," to rob themselves blind, via their empowerment of the banksters' huge fraud.
The money system is based on robbery. Mostly, people are blind to that reality. Moreover, the people do not want to mature enough to understand reality. As well, the banksters want to keep the people behaving like children who believe in nice fairy tales. And so, around we go ...
The European Union was advanced by the banksters. Integration is rough, because people are too ignorant! The situation continues ... Best professional liars and immaculate hypocrites working to advance the fascist plutocracy through the strengthening of the so-called European Union. Establishments totally lying about money systems. Reactionary revolutionaries revealing some of it, but collapsing mostly back to their same old bull whenever they propose solutions, since they are not willing to face human ecology's parameters.
It is such a surreal human ecology we operated! Fiat money systems are enforced state religions, and the vast majority live within those cluelessly! The rough ride wakes some up, however, they may go back to sleep, or even be 'put to sleep' permanently by future rides?
Posted by David Robertson on 01/22/11 04:55 PM
Reply from The Daily Bell
Why does it have to be a Mossad operation only. Anything wrong with MI6 or the CIA?
Posted by Lozina on 01/22/11 04:39 PM
The end of the Euro would liberate all "small" countries which are being forced to keep up and compare with the Big once. Euro is viable as a common currency as much as the Esperanto.
Posted by Patric Sullivan on 01/22/11 03:33 PM
The little itty bitty multi colored pieces of paper with odd and sometimes strange symbols printed upon them called money ("abstract receipts of labor") are at best tokens, tickets to ride. So, "Do yourself a favor: a meal ticket does the rest."
What Could explain why in 1906 the central bankers made talk of free energy verboten?
Is the creation of "Excess capital" the reason why they continue to block the development of over unity free energy devices?
Is our supposed 'capital crisis' merely more of the same?
If it is labor that makes the faces, symbols and pretty pictures printed on paper useful as a medium of exchange, will the use of free energy allow us to print even more of them?
Is it too late to begin singing, "Happy days are here again?"
If so, then don't worry: Be happy.
Free energy is a here and now thing.
Add labor and we got everything.
Below is a link to a story about an Italian engineering group that is making it happen.
Cold Fusion getting hot with 10kw heater prepping for market
Italian inventor, Andrea Rossi, claims to have an industrial product ready to manufacture that produces large amounts of energy reliably, safely, and much cheaper than coal or natural gas power. It utilizes the fusion of hydrogen and the common element nickel at relatively low temperatures.
Free energy. Its real and its here and now.
Posted by Frank on 01/21/11 08:06 PM
My wife and I had planned a trip to Ireland this March, We canceled. Why? You figure it out.