What if passing the bailouts, climate action grants, covid recovery money and indeed all or any State transactions through a public bank could save all Irish homes from repossession?
The Economic Climate Was A Disaster Already
This is the Cock-Up The Department of Finance Executed Last Time
The crash that happened in 2008 actually began 10 years earlier in 1999 when the pillar banks became insolvent but were allowed, by auditors, to continue lending. The 64 billion bailout paid, in response to the crash, did not solve that problem. It is thought that in addition to the debt itself, the loss of houses and businesses, to NAMA and then to vulture funds suggests a larger figure of 500 billion of actual wealth was extracted from Ireland as a result. If the 64 billion had been paid into a public bank, it could have used the fractional reserve mechanism to extend credit at an 8:1 or even a 6:1 ratio, to buy Ireland’s whole mortgage portfolio, out of the private banks’ control. We have another opportunity to take this action now.
What The Mortgage Catastrophe and Foreign Direct Investment have in Common - Bankers
The cost of the pandemic is not determined yet, but already there are 50,000 people facing repossession of their homes having defaulted on their mortgages and that figure is predicted to rise to 75,000. There is also 23% unemployment. In addition to this, Ireland has welcomed foreign direct investment where studies show that every 10 retail jobs created by multi-national supermarket entrants, costs 15 local jobs, with local suppliers and retailers going out of business.
Therefore, we propose the immediate implementation of public banking; both a national public bank, through which to pass ECB loans and transactions, and full retail regional public banks.
Who Controls The Money Supply Controls The Country
The Green Party doesn't acknowledge and nor do any of the other parties in the coalition, sadly, that by controlling the money supply, commercial banks currently control who receives credit. This has led to damaging industries being supported in expanding. A public banking system takes no profits out of the economy. The private system continually takes between 30% & 40% of the profits of the economy.
Legislation Against Inflated Mortgages Bearing No Relation To Value of House
We propose therefore that legislation must first be put in place to bring house prices down to their value in real terms, rather than mortgages remaining artificially high to serve the commercial banks, by giving the illusion of their holding greater securities, from which to leverage credit, recoup interest and profit. A mortgage becomes a security when it is sold to investors. To ask for debt forgiveness, in lieu of banks having operated in this unconstitutional way, as already insolvent businesses, may lead them to reclaim their actual reserves and assets. This will expose how unsafe people’s savings are.
If Anyone Offers To Set Them Up, Get Your Savings Into Public Banks
In the credit unions, for example, there are funds of between €7 and €10bn. They are by law held in the private banking system, returning just 0.9%. Credit Unions’ ability to compete is being increasingly restricted by the Central Bank. Lending is down over 50%. The Credit Unions cannot survive under their current model. We propose that the Credit Unions setup regional banks, take back their funds and lend them for productive purposes in the communities. The urgency is that the Central Bank may stake a claim on members’ savings otherwise.