What Happens When Ireland's Shadow Banking System Implodes?

Tadhg Gaelach

Donator
Premium Account
PI Member
Joined
Jan 14, 2016
Threads
1,239
Messages
31,698
Likes
30,413
#1
The shadow banking system in the 26 counties is now ten times the size of the economy. This is the highest % of GDP in the world, and, incredibly, is almost equal to the total size of the Chinese shadow banking system - though we are told that the Chinese shadow banking system is a threat to the Chinese economy. If 2.3 trillion euro is a threat to China, what is it to 26 counties of Ireland?

Well, hardly any Irish person knows. It seems there are over 2,000 firms operating the shadow banking system here, and the Central Bank has little or no control over them. Most of their business is actually outside of Ireland and they are just here because of our Wild West lack of regulation.

Well, have we not seen all this before? As the dollar rises and sucks the life out of stocks and commodities, and China is faced with a rapid devaluation or loose its market share, and as the euro continues its inevitable decline, much of this 2.3 trillion of debt in the Irish shadow banking system, which is now on the books as assets, may suddenly evaporate. But, leaving who carrying the can?

Will we be told that having the Irish shadow banking system collapse will destroy Ireland's credit rating? Very possibly. Will we be told that we cannot allow that to happen? Very possibly. But, one thing is not possible - we could never take on 2.3 trillion in debt and promise to pay those bond holders. So, our credit rating may well be trashed and our economy decimated - over a shadow banking system that the Irish Central Bank admits it knows almost nothing about and has no control over. Do we even know what exposure the banks we have already bailed out have to this shadow banking system?

Maybe I'm wrong. I'd be glad if someone can explain to me why we have no cause for concern.

http://www.rte.ie/news/business/2016/0224/770421-shadow-banking/
 

Dublin 4

Moderator
Moderator
Premium Account
Joined
Nov 21, 2015
Threads
1,246
Messages
22,471
Likes
16,828
#2
OP
OP
Tadhg Gaelach

Tadhg Gaelach

Donator
Premium Account
PI Member
Joined
Jan 14, 2016
Threads
1,239
Messages
31,698
Likes
30,413
#4
Ireland seizes to amaze me, its almost like in this country we can defy all of history and achieve stuff that has never been achieved before.

Either that or its all bollox and we are spinning figures!

Yes, Ireland and Panama have a remarkable talent for this kind of operation.
 
OP
OP
Tadhg Gaelach

Tadhg Gaelach

Donator
Premium Account
PI Member
Joined
Jan 14, 2016
Threads
1,239
Messages
31,698
Likes
30,413
#7
For all their faults Identity Ireland are IMHO 100 per cent correct about the need for the ROI to build up native owned primary industries.

The 26 county state has more or less given up on productive work and is now fully dependent on renting out its space for shady banking operations and money laundering operations for multinationals. But, I wouldn't mind if we had something like the KGB spying on these operations so that at least we knew what our exposure was. But, as we saw in 2008, the state here is utterly clueless. They were utterly clueless about the traditional banks, and infinitely more clueless about shadow banking. If you look at the video above, some of these operations have already been considered too big to fail and bailed out by the US state. It can only be a matter of time until the same happens here. We are utterly unprepared for that eventuality.
 
Joined
Oct 30, 2015
Threads
4
Messages
5,471
Likes
729
Location
Censored zone of Political Irish
#9
" We are speaking of an environment in which society-wide fraud and the delusions necessary to sustain parasitic activity are routinized. "​
Brilliant description how Ireland works. Just look around you- the whole neighbourhood is at it !
 
Joined
Oct 30, 2015
Threads
15
Messages
1,107
Likes
918
#10
Wonder should I make an enquiry as a concerned citizen filled with duty as to the state of the nation.

Oh actually wait, I will be told to fuck off. And that's that. The financial system is a law onto itself.

 

Dublin 4

Moderator
Moderator
Premium Account
Joined
Nov 21, 2015
Threads
1,246
Messages
22,471
Likes
16,828
#11
" We are speaking of an environment in which society-wide fraud and the delusions necessary to sustain parasitic activity are routinized. "​
Brilliant description how Ireland works. Just look around you- the whole neighbourhood is at it !
Animals paid by Goldman Sachs/EU to troll Irish Websites never ever refer to Germany's Hidden Trillons of Sovereign Debt, Goldman Scandals or Deutsche Bank Derivs...
 
Top Bottom