for those who don't understand the uk to irish loans | economics news at abelard.org
latest changes & additions at abelard.org link to short briefings documents link to document abstracts link to list of useful data tables quotations at abelard.org, with source document where relevant economics and money zone at abelard.org - government swindles and how to transfer money on the net latest news headlines at abelard's news and comment zone socialism, sociology, supporting documents described France zone at abelard.org - another France Energy - beyond fossil fuels visit abelard's gallery about abelard and abelard.org

back to abelard's front page

site map


news and comment
economics

article archives at abelard's news and comment zone topic archives: economics

for previously archived news article pages, visit the news archive page (click on the button above)

New translation, the Magna Carta

'Y

  Follow abelard.org      
   


for those who don’t understand the uk to irish loans

Just as UK banks were heavily enmeshed with Irish loans, so France is heavily exposed to Greek loans.

“French President Nicolas Sarkozy says his country's banks would help Greece by giving it 30 years to repay.

“France's Figaro newspaper said banks are ready to relend - or roll over - 70% of loans they hold.

“The plan is being worked out by the French government and bankers.”

This sort of action makes far more sense than direct ECB intervention, which incidentally is against the EUSSR arrangements/law.

related material
EMU (European Monetary Union) and inflation – a civil liberty issue



Share:



What is this?

the web address for this article is
http://www.abelard.org/news/economics042011.php#uk_2_ireland_loans_270611

balls and lies and still more balls

Recommended scan.

“Demonstrable junk. Osborne has simply adopted the Brown/Darling deficit reduction plan (slow cuts spread over four years), and yanked it up a notch. In total, he’s cutting less than 1 per cent a year more than Brown/Darling’s published plans. But Balls makes this sound far more dramatic saying Labour would have "halved the deficit" over the parliament and Osborne would have "eliminated the structural deficit". This makes it sound as if Osborne is going twice as fast. In fact, the "deficit" and the "structural deficit" are two different things. This is the "false comparator" device beloved of the Brown era. The "deficit" is straightforward: the difference between spending and taxes. The "structural deficit" is an estimate of what the deficit would be if the economy had recovered. The first is fact, the second is opinion. But the OBR has published its estimate of the structural deficit. Seeing as Darling published his five-year plan, we can compare it with what Osborne proposes:

Public sector net borrowing, 1010-11 prices. Source: HM Treasury, Budget March 2010 and OBR Economic & Fuscal Outlook (March 2011)

“So, the honest comparison? Labour’s economic plan was to cut the deficit by 61 per cent over five years, and Osborne now proposes to cut it by 74 per cent. Or Labour would have cut the structural deficit by 66 per cent against Osborne’s 87 per cent. This is the only honest way of quantifying the difference between the two. Balls intends to mislead — hoping no one will make the above calculation. He later tries this fake comparison again: nice and simple, so broadcasters can understand it. “George Osborne is trying to eliminate the deficit rather than halve it”. It’s rubbish. There was no fork in the road. Osborne is heading only slightly faster in the same direction.”



Share:



What is this?

the web address for this article is
http://www.abelard.org/news/economics042011.php#deficit_structural_deficit_170611

on inflation

From a correspondent:
What was the point of tasking the Bank of England with keeping inflation below 2% ? They have manifestly failed, and admit that it is not within their capabilities. So far from being 2%, inflation is now running at 4.5%.

The inflation is a hangover from fascist ‘New’ Labour. Inflation is a lagging indicator. On average, the lag is about 12-18 months, but can be considerably longer.

There is, in fact, a reining in of inflation at present [see Sectoral breakdown of aggregate M4 and M4 lending. The blue line on the first graph is the relevant one.]

It’s a very fine judgement. The patient was rushed to hospital in mid-2008, when Brown the Clown was sacked and replaced by Mervyn King, and with front men appointed via Mandelslime [Mandelson].

A new management team was then appointed by the bank, led by top surgeons, David Cameron and George Osborne.

The patient remains in a coma and on life support. What matters most now is what is known technically as ‘the will-to-live’ of the patient.

Here is the latest M4 graph:

Bank of England chart: M4 over time

related material
the mechanics of inflation: The great government swindle and how it works



Share:



What is this?

the web address for this article is
http://www.abelard.org/news/economics042011.php#on_inflation_170511

on the bank-government symbiosis

“Why did the Brussels-Frankfurt extortion racket force these countries to accept the money along with "recovery" plans that would inevitably fail? Because they needed to please the tax-guzzling banks, which might otherwise refuse to turn up at the next Spanish, Belgian, Italian or even French bond auction.

“Unfortunately for this financial and political cartel, their plan isn't working. Already under this scheme, Greece, Ireland and Portugal are ruined. They will never be able to save and grow fast enough to pay back the debts with which Brussels has saddled them in the name of saving them.”

“This is not just about economics. People feel betrayed. In Ireland, the incoming parties to the new government promised to hold senior bondholders responsible, but under pressure they succumbed, leaving their voters with a sense of disenfranchisement. The elites in Brussels have said that Finland must honor its commitments to its European partners, but Brussels is silent on whether national politicians should honor their commitments to their own voters.””

Interesting to see selected parts of the fossil media steadily being forced to print the truth.

I see Mount Etna is seething. It’s heating up under the seats of the EUSSR time-serving PIIGies?

related material
EMU (European Monetary Union) and inflation – a civil liberty issue



Share:



What is this?

the web address for this article is
http://www.abelard.org/news/economics042011.php#bank_government_symbiosis_160511

greece moves to bankruptcy - in ireland, anger rises

“...the IMF was forced by the obduracy of Geithner and the spinelessness, or worse, of the Irish to lend their imprimatur, and €30 billion of their capital, to a deal that its negotiators privately admit will end in Irish bankruptcy. Lending to an insolvent state, which has no hope of reducing its debt enough to borrow in markets again, breaches the most fundamental rule of the IMF, and a heated debate continues there over the legality of the Irish deal.”

“Irish insolvency is now less a matter of economics than of arithmetic. If everything goes according to plan, as it always does, Ireland’s government debt will top €190 billion by 2014, with another €45 billion in Nama and €35 billion in bank recapitalisation, for a total of €270 billion, plus whatever losses the Irish Central Bank has made on its emergency lending. Subtracting off the likely value of the banks and Nama assets, Namawinelake (by far the best source on the Irish economy) reckons our final debt will be about €220 billion, and I think it will be closer to €250 billion, but these differences are immaterial: either way we are talking of a Government debt that is more than €120,000 per worker, or 60 per cent larger than GNP.”

A complex, but thoughtful, article - read on.

related material
EMU (European Monetary Union) and inflation – a civil liberty issue



Share:



What is this?

the web address for this article is
http://www.abelard.org/news/economics042011.php#greece_ireland_eu_110511

fortunately uk inflation remains below 5%, and don’t worry about population

“World food prices are 36% above levels of a year ago, driven by problems in the Middle East and North Africa, and remain volatile, the bank said.

“That has pushed 44 million people into poverty since last June.

“A further 10% rise would push 10m more below the extreme poverty line of $1.25 (76p) a day, the bank said.

“And it warned that a 30% cost hike in the price of staples could lead to 34 million more poor.”

“Food price changes Q1 2010 to Q1 2011

Maize +74%
Wheat +69%
Palm oil +55%
Soybeans +36%
Beef +30%
Rice -2%”

related material
the mechanics of inflation: The great government swindle and how it works
land conservation and food production



Share:



What is this?

the web address for this article is
http://www.abelard.org/news/economics042011.php#food_prices_inflation_150411

new report on uk banking 

Executive summary of this report. On a quick scan it looks like empty blather and waffle.

“Achieving greater loss-absorbency requires, first, that banks hold more equity relative to their assets and, second, that creditors, not taxpayers, take losses if necessary. On equity capital, an important step is the 7% baseline ratio of equity to risk-weighted assets in the Basel III agreement. The international community is considering augmenting this for systemically important banks. In the Commission’s view, the available evidence and analysis suggests that all such banks should hold equity of at least 10%, together with genuinely loss-absorbent debt. That would strike a better balance between increasing the cost of lending and reducing the frequency and/or impact of financial crises.

“The Commission’s view is that the 10% equity baseline should become the international standard for systemically important banks, and that it should apply to large UK retail banking operations in any event. Subject to that safeguard for UK retail banking, and recognising that wholesale and investment banking markets are international, the Commission believes that the capital standards applying to the wholesale and investment banking businesses of UK.”

All very pious.

“Ring-fencing a bank’s UK retail banking activities could have several advantages. It would make it easier and less costly to sort out banks if they got into trouble, by allowing different parts of the bank to be treated in different ways. Vital retail operations could be kept running while commercial solutions – reorganisation or wind-down – were found for other operations. It would help shield UK retail activities from risks arising elsewhere within the bank or wider system, while preserving the possibility that they could be saved by the rest of the bank. And in combination with higher capital standards it could curtail taxpayer exposure and thereby sharpen commercial disciplines on risk taking.”

More piety that won’t work.



Share:



What is this?

the web address for this article is
http://www.abelard.org/news/economics042011.php#uk_bank_report_120411


You are here: economics news from April 2011 < News < Home

latest abstracts briefings information   hearing damage memory France zone

email abelard email abelard at abelard.org

© abelard, 2011, 12 april
all rights reserved

variable words
prints as increasing A4 pages (on my printer and set-up)