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Treaty truths

• "We will get a smart economy and people in other countries will purchase our hi-tech products."

This is certainly a noble concept as a project plan to lift Ireland out of this nightmare. However, where do those people get the money to purchase our future hypothetical products?

After all, no business can create money. No governments create money. Ironically no high street banks create money. None of the infamous bond markets create money. Only one entity on our planet can expand the monetary supply. These entities are all of the central banks of the world, like the ECB.

They expand the money supply by issuing loans through many of the institutions listed above, but heinously request interest back on these loans that they never create. Hence there is always less money in circulation than needs to be paid back.

So the elusive growth we so desperately crave in Ireland is only possible when people in other countries get into unpayable debt to purchase our products. Hence across the world it is not really growth. It is actually just more and more indebtedness.

That is the bitter irony of our deeply dysfunctional monetary model. We should mull over the insanity of our leaders and economists telling us that significant growth will kick in circa 2015 to lift us out of our difficulties.

Austerity and growth are actually the same thing in our topsy-turvy world.

Timing is all that separates them. Austerity is the central banks calling in their debts today. Growth is when they issue a lot of money now in excess of existing debt obligations and call in the resultant debts from our children in the future.

Either way we owe debt across society that can never be repaid.

We will only be free when the doors of all these benign looking buildings shut forever. Then the people of the world will prove what real growth is.

Barry Fitzgerald
Lissarda, Cork

• So the G8 brains trust verdict is: "Steady as she goes -- to the rocks."

What would Keynes, Galbraith and even Marx (perhaps) advise?

Surely, all the bonds that were issued by the PIGS countries (because the ECB starved them of cash) should now be swapped for eurobonds, at, say, 1pc interest.

The ECB must then make amends by supplying all member states of the eurozone with all the cash they need -- a long overdue dose of quantitative easing.

The euro will then fall to dollar parity, more or less-where it was originally intended to be.

Michael Kenny
Address with editor

• Recent media reports of Irish backpackers' drunken loutish behaviour in Australia allege they are casting a bad reflection on Ireland.

What about the childish behaviour of the people in charge of the Irish nation, the Government?

In particular the belittling behaviour in public of Kenny, Noonan and Shatter; as well as being arrogant and insulting, this smug behaviour shows a lack of breeding and personal integrity on their behalf.

Their behaviour in the Dail shows a total disregard for the electorate who democratically chose the men and women on the opposition benches

While the drunken Irish backpacker is only seen in the vicinity of an Irish pub, the Taoiseach and the Cabinet are in full view of the world via the media. What may be great craic in a bar in Castlebar, Limerick, or the King's Inns, is definitely not the expected diplomatic behaviour of a Cabinet member, irrespective of where they are in the world.

One can only imagine the amusing (embarrassing) reports being sent in diplomatic bags to Enda's great pals, Obama and Angela, about the house devils and street angels running Ireland on behalf of the troika.

Declan Foley
Berwick, Australia

• A new financial institution, the European Stability Mechanism (ESM), is to be set up under a treaty complementary to the fiscal treaty.

The treaty states that the ESM "shall enjoy immunity from every form of judicial process".


Is it to be infallible? Has the Pope been informed?

Dr John Doherty
Gaoth Dobhair, Co Donegal

• Regarding the forthcoming treaty. There are 27 countries who will be part of this treaty. We are the only country who are holding a referendum. How come if we vote No we will be excluded and get no further money from the EU? Sounds strange to me.

Aine O Duinneacha
Address with editor

Irish Independent