People versus finance.

The political landscape we are used to is left versus right, Labour v Tory, Democrat v Republican, Marxist v Capitalist. I believe the real division, today however, is starker, simpler and clearer. It is People versus Finance. And in this division it is not at all clear that any of the established parties are on the side of the people.

They say they are, but their plans always involve the citizens incurring debts so vast and unsustainable, that literally as soon as the proceeds are safely in the bankers hands, they call for cuts, cuts and more cuts, to compensate for the borrowing. Never a hint of less borrowing should any bank need it. Only cuts to compensate afterwards. Often the bankers advise making economies in public spending at the same time as cautioning against any withdrawal of support and spending on the banks. Borrow more for us, spend less on you.

This is the plan we have been forced to follow without any discussion debate or dissent. It’s the Titanic plan – Bankers first, women and children left to drown. IT WAS NEVER THE ONLY VIABLE PLAN. But the longer we follow their plan the less choice we have in the future. Democracy has been pawned.

I argue that there is a massive difference between saving a banking system and saving these particular banks. There is a similar difference between having a viable, working economic system and having this one returned to viability. WHy these banks? Why this system? Why? Because those benefiting from it advise, I would say, dominate our political leadership and system.

What I mean by this difference is illustrated by this example from Ireland. Which is the template for all of us in every nation.
Anglo Irish bank, like our own major banks, has been bailed out already. Anglo has had over €12B already. Not on euro of this will be lent out out to ‘support the economy’ or help ordinary people. In fact it will never be seen in Ireland again. It has gone. Forever. Where? To pay the bank’s debts to large investors.

Then came the news that the bank will certainly need ANOTHER €10B. Bringing the total in a little country and small economy, to €22B. This total will almost certainly increase because it is based on a return to growth and an end to losses on its assets.

All if this debt has been covered by the rape and pillage of the wealth of ordinary Irish people. The financial class say there was no choice. The politicians lift the robes of the financial priests and kiss their arses. But here is the truth – from the banks own accounts as reported in the Irish Times today, April 1st.

“Anglo’s 2009 accounts, published yesterday, showed that the bank had senior debt of €15 billion and subordinated debt of €2.4 billion, which arguably could be used to absorb some of the vast deficit.”

Why are the bond holders not paying any of the loss? Bond holders are after all people who entered into a financial agreement with the bank to buy its debt/bonds in return for a premium. The Times offer this as the answer, “However, the international financial markets regard senior debt as being as safe as deposits and burning these bondholders may harm the borrowing capacity of other Irish banks and the State.”

There you have it. The “international financial markets regard….” But who you might ask are these ‘International financial markets’ Are they gods,. They are of course the financial class of people who include the senior bond holders.

So the financial class regard senior bond holders (themselves) as sacrosanct. In fact they are not. It is a simple matter of priority. Subordinated debt gets used against debts first, then you move up the chain towards senior and super-senior using their money to pay debts until the debts are gone. If there is anyone with money left at the end of ti bully for them. That’s business. Profit by it, go to the wall by it.

But it’s not just an opinion its a threat! “…burning these bondholders may harm the borrowing capacity of other Irish banks and the State.”

So better to impoverish a nation, blight their lives and hopes than to offend the financial class and ‘harm’ borrowing capacity of other insolvent banks..

Fine close them too. Use the money already borrowed to capitalise clean banks. Protect depositors. Would depositors lose? Those with mots of money yes. The average person NO! Will people lose under this present plan of borrow and then tax and cut. Rather obviously, yes. Will pensions suffer under the present plan? Yes, they will. Many will close and implode in the next 5-10 years while we are still paying off the bankers debts!

I am going to stop now before this rant gets completely away from me. I try not to rant but sometimes for reasons of health I think you just have to.

Apologies.