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Leo Varadkar's Junk Economics Debunked

Discussion in 'Fine Gael' started by Tadhg Gaelach, Jun 12, 2017.

  1. Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    We already have a thread on Varadkar's supposedly new politics, which could encompass many areas of government, so I though we should have a thread to focus exclusively on his economics. Now, Leo is a medical doctor. No doubt he knows quite a lot about the human body and how it works. What he doesn't seem to know anything about is how an economy works.

    So, here are three Leo ideas of the economy that are demonstrably WRONG and IN ERROR:

    1/ The Euro is good for Ireland

    In fact it was the cheap credit that the Euro made possible that brought the Irish economy to its knees in 2008, as Irish banks were able to borrow Euro at super low rates and then use them to push up land and property prices in Ireland. This disaster has put 240 billion of public debt around the necks of future generations of Irish people - and the régime continues to borrow from the European Central Bank (ECB) at a rate of over 600 million Euro per month. There is no end in sight for this borrowing spree. And that's not to even mention the 900 billion and more of private debt that Ireland owes.

    Because Ireland is part of the Eurozone, it no longer has its own central banking powers. This fact has made Ireland's recovery from the 2008 crash far slower than Iceland's recovery. The Euro continues to push up property prices in Ireland, even though there is no sound economic reason for prices to be so high - and we are in severe danger of another property crash at any time. All that has to happen is the ECB to tighten the credit tap - which it must do eventually, as Germans are loosing their patience with paying for all of this insanity. Sky high home prices have also had a devastating effect on the fertility rate of the Irish population, which is now in collapse - largely due to young people no longer being able to set up home.

    2/ Privatization is always better than Public Enterprise

    Leo & Co. have been doing their best to privatize sections of Ireland's public transport system, and Leo even went so far as to suggest that letting Bus Éireann go bankrupt might be a good idea. What could be behind such madness? Why only the crazy Neo-Liberal superstition that the state makes a mess of everything, and that the private sector would do everything right - if only the state would keep out of it.

    But, does this idea stand up to any scrutiny at all? Is it not the case that it was private banks, land speculators and developers that caused the Crash of 2008? Is it not the case that it was precisely the state keeping out of it - through massive deregulation of the financial sector - that allowed an unheard of orgy of corruption and criminality to go unchecked? And when the private banks did implode - who did they come running to to save them? Why yes, the state. And it was the state banks - the Fed and the ECB who effectively took the entire debts of the banking sector onto their own balance sheets and then nursed these private banks back to some sort of health. Well, Leo is a doctor - should we say that it is the patient or the doctor who does the best job?

    And let's look on a smaller scale here in Ireland. Look at your bin collection for example. Is there anyone who would suggest that privatization has improved the service we get? Of course not. And while we pay far more today than we paid the county councils for a better service - we don't even have the consolation that our money is creating good jobs for Irishmen to set up home and rear Irish children. The only ones collecting the bins today are desperate immigrants on minimum wage.

    3/ Inflation is caused by Government deficit spending

    This is a core idea of all Neo-Liberals. It is technically known as Monetarism. The European Central Bank is set up on this very idea. While the Fed has the duel mandate of price stability and maximum employment, the ECB has only one mandate, i.e. to maintain price stability, i.e. to curb inflation. This, the Monetarists claim, is done by controlling government deficits and thus making sure the growth of money in the system does not outpace the growth of goods and services. They claim that any time a central bank increases the money supply too fast, there will be uncontrollable inflation.

    Now all of this is a bit technical, and probably Leo has never thought about it, but since he supports the Maastricht Treaty and the mandate of the ECB, he is supporting this Monetarist ideology whether he knows it or not. But the problem is that it is totally in error - totally wrong - and has been shown to be wrong by central bank practice since the 1990s.

    When the Japanese economy went into crisis in the 1990s, the Central Bank of Japan flooded the financial system with trillions of Yen while the state increased its deficit by more than 500%. But there was no inflation. In fact, for most of the last 25 years Japan has suffered negative inflation, i.e. deflation - although it continues to pump money into the system though quantitative easing. The Fed and the ECB have been doing the same thing since 2010 - and yet inflation has been practically zero.

    So we see that the whole economic theory on which the Euro and the European Central Bank is based on is empirically WRONG and IN ERROR. And yet, Leo and his régime continue to blindly follow it with disastrous results.
     
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  2. Toby Carlton-Hogge

    Toby Carlton-Hogge Member Political Irish

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  3. TedHankey

    TedHankey New Member Political Irish

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    Excellent post, agree on all three points.

    I would add though that while policies 1 & 2 are bad for Ireland and it's people as a whole, they are I suspect beneficial to the Ireland that matters to Leo and the interests he represents.
     
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  4. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    Yes, a chara, you understand Leo very well.
     
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  5. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    I should have made it clear in Idea 3/ that the Japanese government and the Bank of Japan managed to avoid the disaster that we see in Greece today by rapidly expanding the government deficit to carry out major public works and keep the population employed. All through the worst of the Japanese financial crisis, Japanese GDP did not drop. And, despite what the likes of Milton Freedman claimed would happen, there was no out of control inflation - or any inflation at all. And, needless to say, while the Yanks imposed disastrous Austerity on Third World countries over the last 40 years, when it came to their own crisis they did not impose Austerity on themselves, but rather pumped money into the system to keep it from collapsing - as the likes of Argentina had collapsed under the tyranny of Milton Freedman's poisonous ideology. Today, the Fine Gael régime uses borrowed money to prop up property prices - not to develop national industry and enterprise. Under EU rules, they couldn't even if they wanted to. Only the private sector is allowed to do that - even when it has neither the inclination nor the ability to do it. This is the madness of Monetarism. Ultimately the idea is that the poor are poor because they are lazy, and they must be punished into working harder. And so Angela Merkel tries to punish Greeks into becoming good Germans - despite the fact that the Germans nearly bankrupted themselves in the late 1990s, and the rest of the EU did not punish them at the time but helped them to get back on their feet - by increasing deficit spending.
     
    Last edited: Jun 12, 2017
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  6. off with their heads

    off with their heads Member Political Irish

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    Ireland's greatest Spiv has made it to taoiseach Irelands Tony Blair (Blair caught committing homosexual act in public toilet in early 80's)
     
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  7. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    During the Dáil debate on Mr Varadkar’s nomination as Taoiseach, Mr Adams also said he feared “Mr Varadkar will drag this Government to the right”.
    He criticised his tenure as minister for health with the trolley crisis and move to privatisation and noted his campaign against social welfare cheats.

    Adams draws laughter from Dáil with story about pilates class with Varadkar


    No doubt Varadkar never conducted a campaign against cheap employers using illegal immigrant labour.
     
  8. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    [​IMG]


    [​IMG]

    Is this the New Seig Heil for the New European Centerism?


    Varadkar's and Macron's "New European Centerism" is a euphemism for Class War

    Both Varadkar and Macron espouse what they call "New European Centerism." However, there is nothing "center" about it. Rather, it is pure vindictive Neo-Liberal Class War against the Working Class.

    A central plank in this Neo-Liberal Class War is support for the Euro, and the denial of central banking powers to nation states. But what happens in a crisis when a nation doesn't have it's own currency and central banking powers? It can no longer do what real states do, i.e. devalue the currency. The USA, for example, devalued its currency against gold from about 800 dollars an ounce at the start of the crisis in September 2008, to 1,800 dollars at the peak of the crisis in 2011. In other words, the USA cut the value of the dollar by 50%, thus effectively cutting all prices in the economy at one stroke and making its exports regain their competitiveness very quickly. Unlike the Eurozone, the USA did not suffer a double dip recession and is much further towards a full recovery than the Eurozone is. Indeed, the Fed is now talking about reversing QE, while the ECB continues to expand it.

    Now it will be objected - Didn't the ECB also devalue the Euro in 2008 and afterwards? Very true. But there is a major difference. The Fed devalued the dollar just enough to effect a recovery in the US economy. But the Eurozone is not one economy. It is many economies. Nobody will claim that Greece and Germany are the same economy. The currency devaluation needed for Germany was very little. Greece needed a major devaluation - likewise Ireland, France, Greece, Portugal and Spain, to more or lesser extents. Since the devaluation of the Euro was not enough for these countries the only way left to reach prices that could restore competitiveness was to enforce Austerity, i.e. to slash social welfare, privatize national assets, impose flat taxes, freeze or reduce wages - and enforce population replacement, i.e. force out higher paid native workers and replace them with cheap immigrant labour.

    And this is why Varadkar and Macron are enforcers of Class War. When a nation devalues its currency, who looses out? Of course, those who have the most currency, i.e. the rich. When Austerity is imposed who looses out? Why, everyone EXCEPT the rich. So, for all the bland Capitalism of the USA, it's actually a less brutal anti-worker régime than the EU is.
     
    Last edited: Jun 15, 2017
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  9. redstar

    redstar Member Political Irish

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    People seem to forget he was part of the last administration, he had a hand in all the decisions made by Enda, and it was recently that he went after the vulnerable again.

    [​IMG]
     
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  10. The Potato Mystic

    The Potato Mystic Legend Battle Royale Political Irish

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    Yes, Varadkar is quite like Macron and that guy in Austria. There does seem to be a new species of "leader" popping up.

    "Progressive icons" that wave the rainbow flag and espouse asset stripping neo-liberalism. Certainly Official Ireland is in ecstasies over him.

    It reminds me of earlier species of pro-Atlanticists neo-liberal rightists. Sarkozy and Merkel, popping up in their respective nations right after the rift with America over the Iraq war.
     
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  11. YoungStudent

    YoungStudent Member Political Irish

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    Maybe it is the likes of you who are behind the times, the only reason Macron and Leo are in power is because of the popularity they share among the voters.

    People like you cant leave the past and complain about the future.
     
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  12. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    And what percentage of the voters have the slightest clue about economics? Thanks to the rubbish educational system that the likes of Fine Gael have put in place, even the likes of Varadkar know nothing about economics. Varadkar is popular in Ireland - but only because the media have brainwashed the people into despising white, heterosexual, Native Irish men. It certainly has nothing to do with Varadkar's ability as a minister - he has never shown any ability whatsoever as a minister. It cannot be argued that health care or transport improved while he was supposed to be charge of those departments. And all Varadkar proposes to do now is to continue to follow whatever orders come from Brussels - and continue to defend the interests of the Globalized comprador class he comes from.
     
  13. The Potato Mystic

    The Potato Mystic Legend Battle Royale Political Irish

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    Or maybe you're just part of the herd saluting with all the rest of 'em. I don't follow the herd. so cool

    Macron was the last guy standing and the Vampire was elected by an FG coterie. He also refuses to put his little crew of Enda-continuation apparatchiks to the test because -- as he says himself -- he might wind up crippled like Theresa May. Hardly a guy who's too confident about his popularity.
     
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  14. Toby Carlton-Hogge

    Toby Carlton-Hogge Member Political Irish

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    For a guy who professes to be not "part of the herd" you demonstrate a fair bit of 'herding instinct' on this site.

    Touch of the lemming about your input, I would have thought.
     
  15. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    The Potato Mystic is one of the most respected contributors to this site. If you stay quiet and learn from him, one day you two, (Toby and Paddy) may contribute something of merit.
     
  16. Toby Carlton-Hogge

    Toby Carlton-Hogge Member Political Irish

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    I'll take your word for that Tee, I'm sure he's a nice lad just like yerself.
     
  17. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    Maith and fear. A little humility will get you a long way.
     
  18. The Potato Mystic

    The Potato Mystic Legend Battle Royale Political Irish

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    Y'know people are wrong all the time but it's rare someone posts something that's so exactly inverse to reality as this...so congrats on that.

    I've quarrelled with every regular on this site from time to time. I espouse pro-life socialism which earns me flak from both sides of that particular parapet. Many of the regulars here oppose socialism, some hold derisive views on Christianity. I dunno what insult you can chuck at me, dude, but being a herd animal is an insult that's makin' me laugh anyway.

    Look, I know you need these all-evil "clique" mythology to prop up your "man against duh power" LARPing act you've got doing here..but may I suggest you rummage a little deeper into that Bag of Insults for something a little...I dunno.....less limp-wristed?
     
    Last edited: Jun 17, 2017
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  19. OP
    Tadhg Gaelach

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    [​IMG]


    Mass Evictions as Vulture Funds move in for the Kill

    Go raibh maith agat to Dublin 4 for bringing this article to our attention on his hugely population Bleak Omens thread. Now, it might be argued that Varadkar has only just been made Chief in Leinster House, and that none of this insanity is his doing. But that would be wrong. Varadkar was a minister in the Kenny Régime when International Vulture Funds were welcomed into Ireland and set loose on the Irish people. He never once objected. Never once stood by the Irish people. But, of course he wouldn't, as he is a Globalist, and preferring one's own folk over the international bankster clique is repugnant to his Liberal Globalist ideology. As far as he's concerned, money is money. And if the Native Irish have to be dispossessed so that the international flow of capital and labour is uninhibited - then that is a price well worth paying.

    But, as we see from this article, not only does the Blueshirtlifter Régime have no empathy with the Native Irish, but it also has no regard or respect for the taxpayer. We see that when homes are sold off by banks to vulture funds, the cost of evicting the Irish people living in them will fall on the state. So, once again, the taxpayer ends up bailing out profligate and unruly banks.


    Taxpayers will have to spend millions in the coming years to fund a fivefold increase in the number of repossessions as banks increasingly sell off distressed mortgages to vulture funds, the master of the High Court has said.

    Figures from the Central Bank show the courts granted repossession or sale orders for 278 “principal dwelling houses” – which are effectively family homes – during the first quarter of 2017.

    Edmund Honohan, addressing the Oireachtas finance committee on Tuesday, delivered a stark warning to policymakers grappling with the housing crisis when he forecast the “wholesale eviction” of “many thousands” over the next five years.

    “Evicting one occupier costs money,” he said. “The wholesale eviction of many thousands over the next four or five years is going to cost millions, and it is the taxpayer who will foot the bill.

    “I predict that sometime soon, after the banks have sold on their junk mortgages to the private market, county registrars will be presented with court execution orders, to be executed, not a couple of times a month, but 10 or 12 times a week.

    ‘Public purse’

    “Who is going to pay for this expensive procedure? The public purse. Taxpayers will spend millions on evictions.”

    Repossessions to increase fivefold, warns master of High Court
     
    Last edited: Jun 21, 2017
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  20. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Political Irish Donator Battle Royale

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    Varadkar says he wants to give more money to those who get up in the morning and go to work - and he will get the money by taxing things like cigarettes. Of course, what he's really saying is that we'll take the money from those useless scroungers on the dole, who spend all day smoking cigarettes. This is the typical Blueshirt idea of the poor - they are poor because they are lazy - not because of the failure of Fine Gael and Fianna Fáil to run this country in a rational fashion. Varadkar was born with a silver spoon in his mouth. He has never had to want for anything. The Irish people paid for him to become a doctor - an enormous expense on a poor country. And how did he repay us? Not by saving lives. He could have gone to his father's country and helped the millions of people who really needed him. But no. He spent his time fucking around in a worthless gang like Fine Gael. Well Leo, we didn't need one more corrupt Gombeen in Leinster House.

    Income tax cuts may be funded by other tax hikes, says Varadkar
     
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