An Irish Sister Party..

The unjustified bailout of Irish Banks..
Unlike Greece, the Irish people are not responsible for the critical debt levels of their banking system.
An incestuous relationship between Government officials, Banks and Developers has created a massive property bubble that has now burst. Irish banks are now saddled with billions of dollars of toxic assets (vacant hotels, houses and unfinished housing estates.)
There are more than 2,700 "ghost" estates (vacant or unfinished housing estates) across Ireland. According to the 'National Housing Development Survey'.
Bank Bailouts have added to this debt. Bailouts of anything are always a bad idea! If it is bankrupt, let it fail..
The cost of World War 2 was horrendous, all the 'Allies' were bankrupt. But, because theses nations were 'glad to be alive' and eager to re-build and innovate, they were able to overcome that massive debt within a few years!
The key point is, "No matter how big the bankruptcy is, enthusiastic enterprise will soon beat it."

Big Banks are all chronic gamblers! They have had 13 major 'crashes' since the crash of 1796 when a Land speculation bubble burst. (sound familiar?) They always recover! They don't need to be bailed out and they don't deserve to be! With 13 speculation crashes, they obviously refuse to learn anything!
Ireland should simply let their corrupt banks fail, tell the ECB to keep their unaffordable bailout, and initiate a simple 'Wealth Production cycle'.

The "Wealth Production Cycle"..

Any country can quickly amass incredible wealth if the whole population works productively and the majority of the dollars so earned are re-invested back into that production. This ideal cycle is rarely achieved because the 'majority of the dollars' are not re-invested, they are taken OUT of the cycle and invested in Greed Bubbles, Personal bonuses and Castles in the sands of Dubai. Only a small percentage is retained to fuel the production cycle!

Since the war, Germany has astounded the industrial world with its rapid financial growth - exactly based on the above model.
It is an accepted fact that every dollar invested back into a Production Plant can double itself in about 9 months. At that rate, one dollar will become a hundred dollars in five years! This is not magic, this is just what well equipped, well directed, enthusiastic workers can achieve in a growth industry!

Ireland, you need to dump your current corrupt government and start a VS Sister party.. Dump your banks and that totally unaffordable (80 billion!) European bailout. (Yes, it's called a default - but you have no real choice and the rest of the world is 'on your side' - they will support you thru this! - Contrary to what you have been told - the sky will not fall.)
You must refuses to compensate those US, UK, German, and French banks!
Those banks aren't stupid, they must have realized that the massive Irish property bubble was about to collapse! They foolishly rushed funds into the 'feeding frenzy' believing that Irish taxpayers would not dare to default!
Convert 'Allied Irish' into your own not for profit 'Peoples Bank' - Your taxpayers already own 93% of it and it's share listings have already been canceled.. Follow the model of Australias post-war 'Commonwealth Bank' - It was public-owned, not-for-profit, and it facilitated a rapid rebuilding of the nation.
Do what you did after the war; Capitalize on your agri-exports; get your production plants out of mothballs and re-build your Nation.

News Flash: 21/Jan/11
"The Irish Government has collapsed after 6 ministers resigned today. Prime Minister Brian Cowen has called an March election in which his 'Fianna Fail' party is widely expected to be wiped out."

A theory refresher on 'The Wealth Production cycle'..

The Math is very simple.. In most societies..
A. where the need for goods and services is not less than supply. (In other words, people can produce lots of things that other people need.)
B. Any able bodied person with a small amount of training can feed and clothe their family with just 6 hours work per week.
C. They can house their family with just 1 days work per week.
D. Collectively, they can build & maintain their village and nation with another 3 hrs/week. (like taxes)
Thus, it should only take two days per week to be comfortable and avoid recession.
E. With the re-investment of a third day a week into your plant, you can double your production capacity every year!
And, there are still three days remaining!
Remembering point 'C', you could acquire another three houses with those three days!
The key rule above is 'E.' (the 20% rule) "At least 20% of the dollars produced are re-invested back into that production."

After World War 2, this simple maths enabled the USA, Oz and many other countries to achieve decades of spectacular growth in production and wealth.

What has gone wrong now?

Almost all these nations (except Germany) have deviated from this simple formula.
The above 20% rule (E.) obviously requires that every enterprise HAS some excess to re-invest. That 'excess' has been seriously eroded by several factors..

• The 2008 financial crash was the inevitable result of a Gambling addiction! Instead of investing in our own enterprises, we (banks, corporations, cities, private investors) put all our eggs in big shiny bubbles that promised huge returns. Taking big risks for big returns is Gambling. Much of the money that should be re-invested in our businesses has been lost at the derivatives casino.

• Our nations have gone on an insane borrowing spree that has left us (and the next two generations) with a massive debt burden. The interest payments alone are a serious threat to the above 20% rule.. Maybe only 2% is now being re-invested.

• Bank Bailouts have added to this debt. Bailouts of anything are usually a bad idea! If it is bankrupt, let it fail..
As mentioned above, after World War 2, all the 'Allies' were bankrupt. But, because theses nations were 'glad to be alive' and eager to re-build and innovate, they were able to overcome that massive debt within a decade or so!
The key point is, "No matter how big the bankruptcy is, enthusiastic enterprise will soon beat it."

• Point 'A.' above has been badly compromised - Our "need for goods and services now is less than the supply" because we tried to do the humane thing by employing the impoverished of China. Sadly, we weren't thinking 'humane', we were thinking 20 cents per hour is better than $20 per hour that our own children were asking for! Effectively, we have retrenched millions of our own children!
Millions of us are unemployed because there is very little these folk can produce that the general population has much need for! Asia and other countries have most of our needs covered - or soon will have.

The solution is very simple - If you can't afford to buy from the plow factory, you have to make your own plows. Scrape the rust off your production lines and get started. [see 'Local Manufacture]

• We have been blinded to the strong connection between production and wealth.
Most people today think 'getting something for nothing' is a good thing. (Our forefathers despised that concept.)
A thousand financial experts have told us that 'Trading pieces of paper' is the modern way to "get rich quick".
Rather than re-investing in enterprise, we now believe trading paper Derivatives is the new path to wealth! It doesn't seem to trouble investors that the combined value of all these bits of paper often exceeds the value of what they are a "Derivative" of by a hundred fold! - very similar to a ponzi scheme.