THE DEVIL HAS
Cormac ut dixit:
Is do decraib in domain
b˙ain mela a mecnaib ibair
iscailp for conaib gerraib
longud i scellaib scibair
does one start ?
On Sunday 25th of October the Sunday Business Post
carried the most important revelation yet about the plans
made by our Minister of Finance, Brian Lenihan, to keep
control of the organisation NAMA in the event of any loss
of the primary vote in the next elections; ie. that, not
only would Fianna Fail keep control but they would also
be able to keep complete secrecy about that control.
The essence of this matter was revealed inadvertently as
far as the Government is concerned who would certainly
wish that we had not received this information - however
someone was looking at the Eurostat Agency papers for
Freedom of Information which released details of a
Special Purpose Vehicle entirely separate from the Nama
structure created in order to privately acquire the loans
and issue government bonds which we all understood as the
primary business of NAMA itself.
The government will indeed guarantee the bonds for toxic
loans but if NAMA fails to recoup expected finances to
pay these IOUs the government (taxpayers), as we all
previously understood, will have to find the money.
However the new off-shoot is not to be connected in any
way to a government and is to be privately controlled.
The assets which this new organisation will control will
then be off the Budget balance sheets - and also
acquiring additional assets from financial institutions
and private loans that will run this SVP, money that
Lenihan hopes will be E50 million. This new group will be
a separate legal entity from NAMA ,and government
partakes of a minority 49% power therein and private
entrepreneurs, be they banks or their investors will have
51% stake and control of this loan portfolio.The purpose
here is to keep NAMA's borrowings off the National Debt;
but if faulted the debt must be paid by the taxpayer...
Will the loans be brought in
from the Banks (presumably from the ECB bonds they
receive for loading the original NAMA structure with
toxic loans) or from subsidiary investment managers?
The new group will apparently need E100 million as a
structural basic, half of which must initially be
provided by the private investors. For other money, it is
believed the Government is going to target pension funds
to invest in this prong of the devil-horns of NAMA, or
foreign asset managers. This group will be facilated with
development connections to the assets behind the toxic
debts in order to make money to pay a dividend, and
possibly a 10% bonus to the investors, plus any money
still owing on loans when the organisation is to be wound
up in 10-20 years time.
Infact we see that this
private SVP (NAMA) institution is the real driving organ
of development for the present Government and that NAMA
such as we have hitherto known it is a theatrical facade
for public consumption.The SVP will have its own board of
directors with autonomy of decision over day to day
activity in development of assets, a majority of
nominees determined by the 51% influence of the private
investors and only a "government" veto "
between these gamblers and ourselves the citizens to
stave off any possible disaster.....
From this information we must conclude that the majority
stakeholders (to be held by bankers and Fianna Fail
cronies) will infact be making decisions on the future of
both landbanks and development construction - for what
else does "day to day activity" mean? These
people are being brought together to make decisions daily
- on what exactly? These people will be the control staff
of the visible NAMA which cannot be lobbied by either the
construction firms concerned with these toxic debts, nor
by any member of the public. Although transparency has
been freely used in terms of explanation, infact secrecy
is the name of this game.
Remember, a SVP with 51% private monopoly over 49%
government authority, a government that may hastily use a
wee veto if something seems to be going "wrong",
is now revealed as the driving force of Brian Lenihan's
"plans". What is the measure of WRONG and
indeed what is the measure of legality about this entire
"solution" for Ireland's financial crisis?
by Jocelyn Braddell.
EVIDENCE OR WITNESS?
Evidence that the US is a failed
state is piling up faster than I can record it.
One conclusive hallmark of a
failed state is that the crooks are inside the government,
using government to protect and to advance their private
Paul Craig Roberts