Editorials | Opinions
|Ireland: What’s New?|
Guillermo Ramón Adames y Suari - PVNN
November 29, 2010
Well it looks like the European community has reacted in an unusual way. According to the diagnosis of Mr. Michel Barnier, European Commissary of the Inner Market and Services, his unusual suggestion took course.
So what is so unusual about this new approach? In Mr. Barnier’s interview in the International French TV channel, TV5 Monde, he described how they got to that conclusion. www.tv5monde.fr First, he described the problem in such a clear way that it was surprising: The problems are the Banks in Ireland. Then he went into what generated the debt which was already explained in my previous article in PV Writers, November 25, 2010: “Is Europe a Soap Opera or a Disaster Movie?” Cited for ease of reference: “The banks took (almost) everybody else’s money and invested that money in risky operations that, in two words, “went wrong”. So they are in trouble. The money once property of individuals has disappeared. But in the bank’s registries they still “have” all that money in the bank. The bank no longer has the money so they ask the government for help in the mess they have created”.
|There is no way back to recognizing that the government is solving somebody else’s problem with somebody else’s (taxpayers) money in order not to lose power. Don’t complain: you put them there.|
Now if governments do not help banks out, the people, the real owners of that money could make a big problem for the country. The worse scenario would be a civil war and then not only banks but the government in turn would be damaged. Now if you were in the government: Would you lose power over several thousand honest citizens who claim their dues? Certainly not!!! So the government has to give in. IF the government does not help the banks, sooner or later the banks will reborn and will never help that government again. Banks are purveyors of fresh cash and nobody in their right minds would fight the source of money. So who cares if somebody else loses all his goods as long as I do not lose power? THAT is the real situation. So what does the government do: Magically: they turn a “private” debt into a “public” debt. So taxpayers have to pay for somebody else’s debt. Suddenly, government discovers that they have been overspending (well, that’s the excuse) and raises taxes and cuts jobs.
There is no way back to recognizing that the government is solving somebody else’s problem with somebody else’s (taxpayers) money in order not to lose power. Don’t complain: you put them there. So citizens complain for their abuse and nobody does anything. This is the very reason why banks get no regulation. They absolutely control ($) the government and will never let pass a law that constraints them. Banks are happy again and will recover their economic power which will in turn reconfirm governments and everybody is happy with the exception of the taxpayers. Look at banks today. They are back directing the economic world and some months ago they were in the eve of bankruptcy. Many citizens have committed suicide. Some are in deep poverty. But banks are ok. The “Irish” problem is more acute when you have German, French and Italian taxpayers paying for Irish bankers. Very hard to swallow. The 85 thousand million Euros will be for the first time in banking, considered a private loan and the Irish taxpayers and the European Union will (supposedly) get the money back.
This was basically the way in which Mr. Michel Barnier described the crisis and I thought it was so clear that readers should have access to such an explanation.
So: What was the suggestion or Mr. Michel Barnier? What is his solution? What is the solution for the European Union?
The European Commissary of the Inner Market and Services has decided to create a private fund by banks and insurance companies to cover for their potential management’s errors (I suppose administered by the European Bank). It still has to be voted. Also a project of regulation of banking services. You will certainly think I am pessimistic but the fund is not yet created and knowing bankers mentality…. When are we going to “ask for help from the European Union” and get the money back to banks? Because it belongs to banks and insurance companies. It should not be there. But the fund will be raised.
Guillermo Ramón Adames y Suari is a former electoral officer of the United Nations Organization. Contact him at gui.voting(at)gmail.com.
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