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	<title>Life&#039;s simple, why change it? &#187; finance</title>
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		<title>Don&#8217;t panic! (unless you want to)</title>
		<link>http://www.jbwan.com/2010/12/07/dont-panic-unless-you-want-to/</link>
		<comments>http://www.jbwan.com/2010/12/07/dont-panic-unless-you-want-to/#comments</comments>
		<pubDate>Tue, 07 Dec 2010 22:00:39 +0000</pubDate>
		<dc:creator>jbwan</dc:creator>
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		<description><![CDATA[So, #budget11 has been released from its cage and set free amongst the unsuspecting public. Terror hit the streets of Dublin as news of this cash gobbling monster spread. People flocked to ATMs in an attempt to claw back any money they could from the bricks and motar that retained their savings. Bank of Ireland &#8230;
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			<content:encoded><![CDATA[<p>So, <a href="http://twitter.com/#!/search/%23budget11">#budget11</a> has been released from its cage and set free amongst the unsuspecting public. Terror hit the streets of Dublin as news of this cash gobbling monster spread. People flocked to ATMs in an attempt to claw back any money they could from the bricks and motar that retained their savings. Bank of Ireland customers experienced problems withdrawing cash due to an <a href="http://businessetc.thejournal.ie/bank-of-irelands-online-banking-and-atm-systems-down-2010-12/">&#8220;unforeseen technical issue&#8221;</a>. The reported queues at ATMs would have embarrassed the best stocked Russian supermarkets of the 1940&#8242;s even if they had a &#8220;meet the <a href="http://christopherwink.com/2008/06/29/baktika-the-kind-of-stuff-you-find-in-a-russian-supermarket/">Baltika beer</a> model day&#8221;. Aprés <a href="http://twitter.com/#!/search/%23budget11">#budget11</a> I can&#8217;t but wonder how much of that frantically withdrawn cash was destined for the fuel pumps before midnight with 4¢ on a litre of petrol and 2¢ on a litre of diesel set to come into effect.</p>
<p>Some of the main focal points of the budget include a cap on public service salaries at €250,000 (as I noted yesterday), cuts to social welfare payments, cuts to capital spending, a notable increase in the PRSI contribution for the self-employed, removal of the stamp duty relief (now 1% on all sales under €1 million, and 2% on sales above €1 million), and a widening of the tax bands so that more people are &#8220;contributing&#8221; to the tax take of the state.</p>
<p>Let&#8217;s look at some of the things that weren&#8217;t done. To start the cap of €250K on public service salaries is ridiculous, this figure is way too high as I explained in yesterday&#8217;s opinion. It&#8217;s not that there are enough people earning this to make a significant contribution back to the coffers but rather it plays on the expected average wage and thus increases costs right across the board, untenably so. Ministers and An Taoiseach received a cut. Again a frankly ridiculous token gesture that still sees An Taoiseach earning more than the UK Prime Minister &#8211; take a hit, share the pain and then people will accept your proposals. Give them free cheese while you party hard with the leaders of the big countries and you&#8217;ll lose them forever &#8211; lead by example An Taoiseach. In capital spending we hear that many road projects will be stopped due to cutbacks but still the white elephant that is the Dublin Metro is allowed to proceed as if nothing was wrong. What exactly is the fascination with this project that it has to be kept on the table, even in the most austere times when the potential few who might use it will probably end up emigrating so that it can be built? Means testing social welfare, children&#8217;s allowance and pensions was not entertained. Such a simple idea that should gel well with a cabinet who seemingly believes that those who can afford to pay, must and I ask why not those who can afford to go without, be allowed to go without? Rather than cuts in children&#8217;s allowance, etc for everyone why not means test it for equitable treatment of the truly deserving? Same goes for pensions, I can&#8217;t imagine that ex-Ministers will really be requiring the level of pension payments of which they are in receipt of? Pensions are supposed to be about maintaining a good standard of life after the work is done, not about acquiring even more wealth and expanding savings.</p>
<p>Some basic things that I would have changed anyhow, for what it&#8217;s worth. The reality however is that amid all this talk of cuts and harsh measures, we really are just farting around in a huge cup of tea with no chance of achieving anything other than a comical enactment of a <a href="http://en.wikipedia.org/wiki/Brownian_motion">Brownian Motion</a> demonstration. The wonderful bailout still hangs over our heads like a net of Damoclean rocks awaiting orders to fall. Senior bond holders (to you and me, this means people who took out a risky investment plan but paid enough in so that nobody would tell them they lost money in a downturn) still go untouched at our expense, even against the recommendations of the IMF. Yes, the IMF (the experts in sorting out financial disaster) were overruled by the boys in the EU who controlled the sweet box full of treehouse monies &#8211; thankfully our fate lies in their learned and experienced hands! Yes, the bailout we will not escape. It&#8217;s a mathematical certainty of which, only the most unscrupulous liars would have no trouble in denying.</p>
<p>How will the man in the street feel tomorrow morning? Probably a little more annoyed than he feels today, probably a few Euro worse off per week, probably not any different in terms of surviving than he was 12 months previous nor any worse off in those basic terms than he will be in 12 months to come. The country does need a heavy FDI injection to get some money circulating again while we endure the illusion that someday it will all be over and we can go back to 4*4&#8242;s in every driveway, bringing the 2.3 children to school and borrowing to acquire a holiday home which would be situated at most, 250 miles from your doorstep but ultimately people just need a reason to drive themselves forward again.</p>
<p>Apathy will attack the heart of the society for some time to come but we need to keep doing something, not for financial gain nor debt removal but for the continuance of the human race and to make life bearable. Very few will end up in 3rd world conditions, it&#8217;s attitude and spirit that keeps our heads above water while our meager finances more than cover the real cost of living. Only when man stares into the abyss and all that. I hold out hope that society will bond again, that neighbourly relations and community projects will thrive again and people will turn away from the &#8220;it&#8217;s my entitlement&#8221; attitude that has stifled so much in recent times. I have begun to see small pockets of this spirit grow in the last few months and I dearly hope it will foster the multitude into a new way of being &#8211; the old way of being. There&#8217;s no need to panic, unless of course you really want to. Maybe the <a href="http://thedailyedge.thejournal.ie/asian-ladybird-threatens-to-bully-irish-ladybirds-into-extinction-2010-12/">threat to the Irish ladybird</a> at the hands of the Asian ladybird is enough to push you over the edge?</p>
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		<title>It&#8217;s cold outside, inside, it will always be cold!</title>
		<link>http://www.jbwan.com/2010/12/06/its-cold-outside-inside-it-will-always-be-cold/</link>
		<comments>http://www.jbwan.com/2010/12/06/its-cold-outside-inside-it-will-always-be-cold/#comments</comments>
		<pubDate>Mon, 06 Dec 2010 16:28:14 +0000</pubDate>
		<dc:creator>jbwan</dc:creator>
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		<description><![CDATA[We stand in the eve of what is predicted to be the worst (most austere) budget in Irish history. Based on information leaked so far, the prediction for an average single income household, earning about €35,000 per annum will see a reduction of roughly €600 per annum in take home pay (for single people on &#8230;
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			<content:encoded><![CDATA[<p>We stand in the eve of what is predicted to be the worst (most austere) budget in Irish history. Based on information leaked so far, the prediction for an average single income household, earning about €35,000 per annum will see a reduction of roughly €600 per annum in take home pay (for single people on the same margin the different is roughly €900 per annum). Those figures are simply based on the leaks so far and don&#8217;t account for anything that is set to come tomorrow. Yes, the budget of doom is set to land, roll, and extinguish all hope on this Emerald Isle.</p>
<p>Much is being uttered regarding a cap on civil service salaries &#8211; most recent indications suggest €250,000 will be the limit applied. I do subscribe to the philosophy that there is no greater pain and suffering at any level is individual, beyond comparison. As such I always stay clear of making a logical argument into a battle of two sides where each defeats the other and the problem lives to fight another day &#8211; the kind of politics that has been played in this country for way too long. Without applying the classical &#8220;but&#8221;, I do still feel that as a corrective measure, this rumoured limit is still grossly excessive. Public service is just that, it is people who seek a career that aims to improve the standard of life for everyone and to partake in the running of the country &#8211; it&#8217;s a vocation of such. Sadly in the last 10 years the public service has been seen as a gravy train by many (sometimes rightly, sometimes wrongly). There are many lower paid public servants that rightly voice their concerns about cuts but there are equally as many, excessively high-paid public servants, with guaranteed pensions of 50% of their final paycheck who scurry for subterfuge when genuinely angry people come knocking. This is where the gravy train view of the public service gains most credence and it needs to stop. It needs to be tackled by sensible caps on top level scales, the kind of salary that will only attract somebody who wants to make a difference and serve their country not chancers looking for big money first and duty second. The guaranteed pension at 50% of final salary for a full service term also needs to be scrapped or alternatively made less exclusive and opened up to the public to choose as a viable pension offering compared to the leading institutions &#8211; either way a flat 50% is not a viable payout.</p>
<p>One of my biggest worries is the legacy of the Greens and the carbon tax inclusions in this budget. Carbon tax was pushed so much as an environmentally conscious mechanism to reduce emissions. However, last week, in the criticism of the 4-year plan by other political forces such as the EU, the truth became blindingly obvious (not as if we didn&#8217;t already know). One criticism of the plan by the EU (to save a crippled economy and bring more cash into the public finances) was that they would have liked to see greater carbon taxes. So, there it is folks, the bitter proof &#8211; there is no interest in using carbon tax at all, to dissuade pollution or emissions, it&#8217;s plain and simple, a tax generator to screw the common man in everything he does. Even in a crippled economy. I dread to see what else will appear under this guise in years to come.</p>
<p>News broke this morning regarding the honour bestowed upon Brian Lenihan, as worst finance minister in the EU. To be honest, I never had much time for Brian, always thought that his ideas and interactions with the public were the actions of a desperate man. However, I don&#8217;t think it fair that he has been branded as such in this poll. He inherited a poisoned chalice, a bird&#8217;s nest of public finance mismanagement, and a black hole of financial corruption (at least a black hole in terms of public knowledge, some government officials may well have been aware of what lied upon if not beyond the event horizon).</p>
<p>It&#8217;s still cold outside; about the only thing that hasn&#8217;t entered a state of flux in the last week. I&#8217;m working in a public service building whose temperature was well below the HSA guideline minimum (due to heating failure) but nobody left on such grounds. Not a bad result for a country that is supposed to be a militant, unionised farce who drops shovels at the first breach of conditions. Despite what some people want to believe (let&#8217;s call them secondary problem creators, primary problem failures) this is not &#8220;Carry On at Your Convenience&#8221; &#8211; if you don&#8217;t get the reference then try to watch that movie with its own brand of bawdy, British comedy at some stage that it will probably be aired this festive season. If only people invested the same effort into problem solving as they did into pitting groups against each other; We&#8217;d not be in this predicament now, that&#8217;s for sure &#8211; the eye would never have been off the ball.</p>
<p>So, we sit and wait for the published budget to be aired tomorrow afternoon. We await our financial fate with unprecedented, nervous anticipation. For many years budgets have come and gone. I certainly never paid much heed to the prophecies of doom in previous times. I don&#8217;t think we have ever really had a harsh budget in recent history. However, tomorrow&#8217;s tale has me a little concerned for the future of society. I foresee a long Winter of civil unrest, should certain things come into being. Yes, it will be cold for a long time to come.</p>
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		<title>Out in the cold</title>
		<link>http://www.jbwan.com/2010/11/29/out-in-the-cold/</link>
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		<pubDate>Mon, 29 Nov 2010 17:08:32 +0000</pubDate>
		<dc:creator>jbwan</dc:creator>
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		<description><![CDATA[Yes, many things aired today, out in the cold. Amongst those stories of note we recognise the sad passing of Leslie Nielsen (legendary comedic actor, including Airplane! and the Naked Gun movies) and Ivrin Kershner (legendary director, including The Empire Strikes Back). It seems fitting that in such a day, where the world has lost &#8230;
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			<content:encoded><![CDATA[<p>Yes, many things aired today, out in the cold. Amongst those stories of note we recognise the sad passing of Leslie Nielsen (legendary comedic actor, including Airplane! and the Naked Gun movies) and Ivrin Kershner (legendary director, including The Empire Strikes Back). It seems fitting that in such a day, where the world has lost contributors to escapism, laughter, and good humour, that we are also freshly and harshly reminded of the current economic/political situation in Ireland.</p>
<p>Journalist Fintan O&#8217;Toole has ignited the bitpipe by launching his website and <a title="Fintan O'Toole - petition for radical political reform" href="http://fintanotoole.ie/petition/">online petition</a> for &#8220;radical political reform&#8221; and even moreso by the observation that his Twitter account (<a title="Fintan O'Toole Twitter page" href="http://twitter.com/#!/fotoole">@fotoole</a>) is only following broadcaster Miriam O&#8217;Callaghan (<a title="Miriam O'Callaghan's Twitter page" href="http://twitter.com/#!/miriamocal">@MiriamOCal</a>) and nobody else. The Twitter world went crazy off the back of this news &#8211; really, you&#8217;d think there was nothing better to talk about.</p>
<p>Bank shares climbed high this morning, the final days of Anglo Irish Bank are finally predicted, bonds shoot through the roof after the fluff regarding our so-called bailout (moreso crippling, inextinguishable loan facility) hits the business world. News that senior bond holders will escape all pain from their gamble angers the public, while the common man sees pension reserves trundled into keeping the fires burning at the state&#8217;s most reckless lenders. Performance artist <a title="Notice of eviction served on Dáil" href="http://thedailyedge.thejournal.ie/in-photos-eviction-notice-served-on-government-2010-11/">Will St Ledger serves notice of eviction on the Dáil</a> and hands out fake bank notes featuring Bertie Ahern&#8217;s face. That&#8217;s more paper than I would personally have wasted on anything that wasn&#8217;t a warrant for his arrest.</p>
<p>The freezing weather conditions continue to hamper the country; treacherous driving conditions all over, icy footpaths, schools, workers and daily practices, all disrupted. A slight thaw around midday quickly subsides into biting cold, as the slush starts to freeze once more. The psyche of the public turns to log fires and Dickensian walks home in the snowy pasture of Ireland&#8217;s once tarmacadam&#8217;ed streets. A news report at lunchtime aired advice from senior citizens to senior citizens: The simple things one can do to keep warm, like maintaining the heat on all day and using the old Super-Ser to boost temperatures. Simple things indeed, to stave off hypothermia in the advent of the next coronary inducing gas bill.</p>
<p>To summarise, I think a trio of verses from that lyrical poet Bek David Campbell (otherwise known as Beck), says it perfectly. I leave you with:</p>
<blockquote><p>tonight the city is full of morgues<br />
and all the toilets are overflowing<br />
there&#8217;s shopping malls coming out of the walls<br />
as we walk out among the manure<br />
&#8211;<br />
give the finger to the rock &#8216;n&#8217; roll singer<br />
as he&#8217;s dancing upon your paycheck<br />
the sales climb high through the garbage-pail sky<br />
like a giant dildo crushing the sun<br />
&#8211;<br />
so get out your lead-pipe pipe dreams<br />
get out your ten-foot flags<br />
the insects are huge and the poison&#8217;s all been used<br />
and the drugs won&#8217;t kill your day job&#8230;honey</p></blockquote>
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		<title>&#8220;Dire-land&#8221; &#8211; FT.com</title>
		<link>http://www.jbwan.com/2009/08/31/dire-land-ft-com/</link>
		<comments>http://www.jbwan.com/2009/08/31/dire-land-ft-com/#comments</comments>
		<pubDate>Mon, 31 Aug 2009 15:08:29 +0000</pubDate>
		<dc:creator>jbwan</dc:creator>
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		<description><![CDATA[A clever and appropriate nomenclature coined by John Murray Brown of FT.com to summarise Ireland at the moment. Our Emerald Isle is looking more like a junk shop, jade dragon &#8211; cheap, useless, outdated, and fragile. On one hand our country is fighting the evil of wreckless developers and their associated debts while on the &#8230;
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			<content:encoded><![CDATA[<p><img class="aligncenter size-medium wp-image-1011" title="Irish Flag" src="http://www.jbwan.com/wp-content/uploads/2009/08/1238702113_irish-flag-300x222.jpg" alt="Irish Flag" width="300" height="222" />A clever and appropriate nomenclature coined by John Murray Brown of FT.com to summarise Ireland at the moment. Our Emerald Isle is looking more like a junk shop, jade dragon &#8211; cheap, useless, outdated, and fragile. On one hand our country is fighting the evil of wreckless developers and their associated debts while on the other the government and courts appear to be doing everything possible to stop these people from going bankrupt and giving them all the chances necessary to welcome them into the ba-nama republic that we have created. It&#8217;s fair to say that some great strokes were pulled over the years by unscrupulous Irish politicians but what we are currently witnessing is the equivalent of the first admiral on the Titanic persuading people to get back out of the lifeboats! Amidst all of this iceberg hugging behaviour is the persistent belief that somehow getting the public to vote YES on the Lisbon Treaty&#8217;s second time referendum will save the country, as if Christ the Financier were due a second coming. Rather than awaiting the return of our money messiah however, we should probably be more focused on crucifying the current radicals that have brought us to the water&#8217;s edge but neglected to admit that they were drowning while supposedly they were walking on the surface. Here&#8217;s a link to the <a href="http://www.ft.com/cms/s/0/b83102fe-9590-11de-90e0-00144feabdc0.html?nclick_check=1">FT.com article</a>.</p>
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