Ciaran’s Peculier [sic] Blog

A view of the world from an Irish hole

Category: Economics

Coming out for air

I’m sorry I haven’t been blogging for a while. In truth, I’m too exhausted to write much; even an e-mail seems to take it out of me. Anyway I’ve got the feeling that nothing I say matters much. The world continues turning, war and distress multiply and I seem to earn nothing but the smirks of Cavan’s corner-boys.

In Somalia the ship MV Fain that was taken hostage by pirates is being released by its captors, no doubt after the payment of a huge ransom. Anyway what were the pirates going to do with the cargo? You can’t really get rid of dozens of tanks on the “black market”. A new president has been elected but whether he can make a reality of the Somali state, ruled by anarchy for nearly two decades, is anyone’s guess.

In Guinea Dadis Camara seems to be pursuing a policy of questioning the way in which the country’s wealth has been siphoned off, usually into the pockets of multinational mining companies who throw some baksheesh to local officials who ferret the sums away in foreign bank accounts.

And in Zimbabwe a national unity government has finally been agreed between the autumnal patriarch Robert Mugabe and Morgan Tsvangirai. The country is fucked, there’s 90 per cent unemployment and a major cholera outbreak. What’s more inflation has rendered the national currency into a joke. The perpetrators of political violence still walk tall and their directors are sitting down at last with their victims. The decision by Mugabe to grant Tsvangirai the job of Prime Minister is a little like an offer of a lift in someone’s broken down car.

There are so many wars and conflicts. We all know of the genocide in Gaza, but other wars go unrecorded, such as that in Sri Lanka, which sees the civilian population often made into unwilling human shields by either the Sri Lankan government or the ever more desperate Tamil Tigers.

In the borderlands of Uganda and the Not-So-Democratic Republic of Congo (NDRSC), the grim antics of the Lord’s Resistance Army, has spread from its original nursery bed in the north of Uganda the northeast of the NSDRC. This leaves in its wake burned villages and massacres of church-goers. The LRA has a “no-frills” approach to recruiting soldiers; no one can accuse them of ageism – the younger the better. Indeed their approach to winning friends and influencing people is basic – after seeing your loved ones raped and chopped into pieces, you’ve got two choices – join us or join them.

And as for events closer to home all I can say is that they’re just like a demented pantomime. But then everyone knows this. I don’t know whether anyone else has noticed how incredibly well-fed the pantomime managers are. Our Minister for Finance, for example, who may well tell everyone else to tighten their belts, but can he without giving himself a hernia? The same is true of our prime minister. None of them are showing any signs of the financial squeeze – far from it. A few weeks’ ago there was an edition of RTE’s rural programme Ear to the Ground, in which it was mentioned that the present financial straits affecting many people had led to greater demand from Irish butchers for cheaper cuts of meat. I was glad to see a restaurant critic who said that many of these cuts have a far better taste than the more expensive joints. But something tells me that none of our senior politicians or civil servants are tucking in to oxtail stew. And as for our minister for health! Look, no more nudge-nudge, wink-win, sexist jokes about fatsoes. But the fact is she is obese. Obesity is a medical condition which can be alleviated, but what’s she doing about it? And then there’s her husband, the man who was for so long implicated in the exorbitantly costly mix of Hi-De-Hi and Absolutely Fabulous which was FAS. They were supposed to be finding jobs and training opportunities for the unemployed, but I feel that if Mr Harney had ever been told that he might meet an unemployed youth, maybe from “the wrong side of the tracks”, his response would have been “Heaven forbid.”

Our rulers try to look statesman-like, but they always come across as at best incompetent idiots, at worse as three-card cheats. There was a particularly heart-wrenching interview with a senior banker today in which he revealed that due to the economic downturn his “disclosed” renumeration package would probably be less than 2 million euro this year. Think of it – less than 50 thousand euro a week, ten thousand a day. How can anyone survive on that? Picture his poor children, his desperate spouse no doubt tearing her false blond hair from its roots as all of them have to wrestle with the indignity of approaching the local Vincent de Paul. And with everybody in a bind there is no possibility of picking up some week-end work mowing grass, while the little chizzlers will look in vain for any paper rounds.

Greed

We have all heard about how the wages of sin are death, and that he who is consumed by greed ends up being literally consumed by it? Very biblical, almost worth of the Martyrs’ Memorial Church in Belfast, but an event in Somalia shows just how true these adages are.

Two months’ ago the pirates operating with apparent impunity off the coast of Somalia hit the big time when they captured the Saudi oil tanker Sirius which was estimated to be carrying one quarter of the Saudi kingdom’s daily oil output. Well it seems a ransom was paid – in the region of $3m last week. Certainly a helicopter was seen hovering over the ship and dropping a bag. After this the ship and its crew were released.

Then greed got the better of the pirates. They decided to make a rough division of the spoils, pocketing something like $150.000 each, and jumped into a speed boat with the intention of disappearing with their loot. Sad to say the sea was, as they say in Cornwall, a bit lumpy, and their speed-boat capsized. Some of the pirates managed to swim to shore, but alas their money was gone. One pirate sadly didn’t make it; his body has been washed ashore but with the money in his pockets. Some of it is okay but the rest has to be separated and dried, something his family say could take weeks.

Where did the wave come from? Was it not a reminder that man may count himself materially rich but he is as nought when compared with the forces of nature or, dare I say it, the wrath of the Divine?

There is a lesson here for those greedy bastards who arrogantly claim to govern us and who are at this moment cooking up new schemes to steal the widows’ mites so that they and their relatives can live like princes.

Kleptocracy

Taoiseach Brian Cowen has given his fulsome support to FAS supremo Roddy Molloy, following the controversy over how the state agency was able to run up bills in excess of 600,000 euro for participation of FAS executives at various events. This follows Mr Molloy’s own arrogant defence of his own practice of flying first class and bringing his wife along fo the ride.
I can’t help thinking here of the many FAS trainees who often have to stand out in heavy showers waiting for lifts to bring them to work. They don’t have the option of going first class do they.
Mr Molloy’s actions should demonstrate the nature of public spending in Ireland. It goes to keep fat cats like him; when governments decide to cut spending it is the people at the bottom who always suffer, not the types of Molloy who will continue to enjoy a pampered existence, while supposedly looking out for those less fortunate.
FAS (or ANCO as it used to be called) is, based on anecdotal evidence, one of the most inefficient and corrupt organisations in the state. It should be wound up or seriously reformed, but that will never happen because there are too many fat cats, or cats in serious danger of obesity, who have a vested interest in keeping the show on the road as it is. For years FAS schemes have been a source of cheap labour for a whole range of institutions, especially at local government level. Trainees are supposedly given skills, but even when they get these there are not always jobs there for them. My own experience of people on FAS schemes is that they are a really enthusiastic group of people, who very often are being cynically exploited.
There used to be a whole lot of very unfair barriers preventing certain categories from joining FAS schemes. For one, married women were often unable to get places, but I know of one instance where the wife of a very well-paid individual who was in charge of a very important institution in what we’ll just call the heritage area, got a place on a FAS scheme working in her husband’s institution.
Cowen’s endorsement of his good friend Molloy should hardly surprise anyone. You could say it was simlar to a code of mutual support amongst a branch of the mafia. An Irish proverb comes to mind: Aithnionn ciarog ciarog eile…

Pyramids along the Nile

I often dream of launching an alternative to the Nobel Prize for Economics. It would be for the person who has had the most long-lasting effect on the economic lives of the world’s citizens. My own nomination might seem surprising. Would it be John Kenneth Galbraith? No. John Maynard Keynes, no; Milton Friedman – wrong again. No, the prize would go (posthumously) to Carlo Ponzi, the Italian American who gave his name to the notorious Ponzi scheme, better known perhaps in western Europe as the pyramid scheme, which still attracts gullible investors and then fleeces them throughout the world.

Put simply a Ponzi scheme offers you huge returns on a very small initial investment. It is usually based on a rather dubious financial base. As the initial sums are small it usually attracts the small investor, especially in the Third World, who often invests all their savings in the hope of emerging from a life of drudgery and penury. The Ponzi scheme inevitably collapses, leaving investors with nothing, but those who have set up the scam in the first place escape in the nick of time, usually with large sackfulls of cash. As these schemes usually occur in countries with dubious regulatory regimes it is often felt that the people behind them are in cahoors with powerful people in government.

Ponzi schemes have affected countries like Albania Yeltsin’s Russia and Tajikistan, though one operated for a while in the dear old Romish Republic, but it was kind of hushed up because those who were stung were too embarrassed to admit they’d fallen for such a scheme.

I’ve written a book about them, with my friend Gerry Griffin. It’s called Fools’ Gold: Cautionary tales in Greed, Speculation and Delusion. It is still available through Amazon.com. It ends with the pithy aphorism: “If a scheme seems too good to be true, it probably is.” You’d think that people would have copped on to these schemes by now. They are so familiar and follow the same pattern. The latest one has hit Colombia. One of the dubious companies behind the scheme is called DRFE. It like numerous other “investment companies” had been promising gargantuan returns on piddling initial investments. It is thought some of them have been laundering narco-money. AAnyway the bubble’s burst leaving thousands of angry investors with sweet FA. They have responded by storming the investment companies’ offices. In the city of Pereira in south-western Colombia some company employees were caught by the police leaving through a back entrance with suspiciously heavy suitcases. They were taken into custody for their own protection after having offered one of the suitcases to the police.

Some of those behind the scams seem positively gleeful about how they were able to get away with it. In the town of Santander de Quilichao about 50 km from Cali people looking for their money back found the following note pinned the the company’s door:

Now for being stupid and believing in witchcraft you will have to work much harder to recoup the money you gave us

while the door of another investment company office had an early Christimas card, wishing investors “a sad Christmas and a shameful New Year.”

The Colombian government has expressed horror at what has happened, but apart from sending in troops and riot police to stem the investibale crowd trouble have done nothing. The vice-president, Francisco Santos has said: “Nothing is free in this world and that is not going to change.” (unless of course you’re a member of the Colombian congress, when pretty much everything is free).

It’s all the fault of the fuckin brits

The organ grinder’s monkey has told us that we are faced with the worst economic crisis in a hundred years. Back in 1908 there were quite high levels of emigration, but none worse that those preceding or following it, so why single out 1908?

Such a statement is supposed to soften us up for the painful medicine weve been prescribed. We have to take it on good faith it will work. If we are disincline to accept it, well there’s fuck all we can do. So if the economic situation still continues to slide what then monkey man (sorry monkeys?) We can anticipate that it will be someone’s fault, no doubt the “fuckin farrners”. But responsibility will never be taken where it belongs; by those who’ve been at the helm of our finances for so many years.

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