Launched today a new campaigning network of local and global justice organisations, Debt Justice Action. Next week we via our government are paying €1.25 billion in the latest payment of an unsecured Anglo bond. This will be followed by numerous other payments. Repayments not of home loans or debts that the general public ran up but debts run up by banks and those abroad that invested (gambled) in them.
The campaign is calling for the suspension of Anglo/INBS repayments as a first step towards renegotiation and writedown of the debt. The bulk of the re-payments are government issued “promissory notes” – a promise to pay money in future. Debt write downs happen all the time. A pause while we get a write down and stop rolling over and paying debts that are not ‘ours’ would be in line with the policy of both parties in government before the last election. Not that they seem to remember that. It is high time that they were reminded.
You say (presumably using language taken from others):
“debts run up by banks and those abroad that invested (gambled) in them.”
Of course, every time anyone gives money – on whatever basis – to someone else, they are taking a chance, and every euro put to a purpose other than immediate consumption is at risk of being lost entirely. In that sense, investment is always a “gamble”.
If those putting money into a bank in return for, not a share of the profits, but a rate of interest, are to be described as “gamblers”, then we are all gamblers. Those who would “invest for jobs” are perhaps the biggest gamblers of all.
Ireland still needs foreign funds, both in the form of plain borrowing to make up the difference between income and expenditure, and in the form of employment-giving enterprises. Even if we never repaid another bank bond, this would remain true.
If we sneeringly refer to the most risk-averse foreign investors as “gamblers”, we risk sending a message that we despise risk-takers, that we will take their money and care not if they lose it.
Some (not all) of the “bond-burners” imply that money saved on not repaying the bonds would become available to spend on other things, such as restoring public expenditure cuts. Some (not all, but most) of these people are being blatantly dishonest because they know very well that this cannot happen, because the funds to repay the bonds comes from the Troika. If we do not pay the bonds, the funds will not come.
Worse, a crisis may be caused, not just for Ireland but for the Eurozone. If you think that this will be for the best, and have carefully assessed the risks and benefits, fair enough.
But the majority of voters still believe otherwise, I suspect.
Open FM » Today’s Links // Jan 19, 2012 at 09:39
[...] Not Our Debt Launched today a new campaigning network of local and global justice organisations, Debt Justice Action. Next week we via our government are paying €1.25 billion in the latest payment of an unsecured Anglo bond. This will be followed by numerous other payments. Repayments not of home loans or debts that the general public ran up [...] [...]
the socialisation of losses of , too big to fail, private corporations, is a mind construct so dysfunctional and now viral
Fergus – that language is my own construct – I have referred to the bondholders as gamblers on radio before and will do so again. These aren’t venture capitalists (who are not in it for the good of the national interest either but probably have cleaner consciences)
Bonds are bets – they are not investing in anything and I’m not going to pay homage to them over the vulnerable in society. The rate of payment both the interest rate and timescale for paying is running our economy and more importantly our society further into the mire. Oh btw the money to pay the bonds comes from the Irish people – the troika don’t give it to us out of the goodness of their hearts.
If “bonds are bets”, what were the possible winnings for the people to whom the bonds were sold ?
Ordinary shares might be said to be bets, but bonds paying interest at rates lower than some deposit accounts ? Not on this planet.
Depositors are not venture capitalists, either. Nor do they put their cash in the bank as a form of charity.
Are they “gamblers” ?
I didn’t suggest that the Troika were lending us money out of the goodness of their hearts, and it is for a different discussion to debate just how meritorious their motives really are.
What I do say is that Ireland needs about €15 billion in this year alone just to be able to pay day-to-day expenses. The Troika are lending that to us – no-one else will – and part of the deal is that the bondholders are paid.
I don’t like the deal – who does ? – but that is the deal. If we want the good bit, we have to take the bad bit. It’s not a iron law of nature, but it is the situation.