Anglo Irish Bank Tapes – Insight into Moral Hazard

The Anglo Irish tapes reveal how the bankers involved intentionally mislead regulators and the Irish government about the extent of the crisis. This was done to ensure the government would provide initial loans and then, having ‘skin in the game’, be forced to continue pouring in additional funds to prop up the bank. Ultimately this situation lead directly to the bankruptcy of Ireland and its entry into serfdom as a vassal of its masters at the EU and IMF. Continue reading

Anglo Irish Bank Tapes – The Transcripts

This past summer, a series of recorded phone conversations between senior executives at Anglo Irish bank were leaked. These tapes date back to the peak of the financial crisis in September 2008. The release of these tapes in ongoing and has, thus far, exposed the outright criminality of the bankers involved. The tapes show the level of fraud and manipulation that was used to swindling the Irish taxpayers into what amounted to an open ended bailout which ultimately ended in the bankruptcy of Ireland.

This post provides the transcript of several of the more interesting leaked conversations, several of which exist only in audio form – until now. Continue reading


The 30 year bull market in bonds is coming to an end. Attempts to keep the financial system from collapsing over the last five years have merely set the stage for a larger collapse. Government debts have exploded. Central banks have desperately lowered interest rates to near-zero and resorted to outright monetization of the debt. Recent events show us that the mere suggestion of possible future tapering is enough to cause an immediate and violent reaction in bond yields.

There’s no way out. The bondpocalypse come’th. Continue reading

Interest Rate Setting: Welcome to the Managed Economy

Were governments to raise all funding through taxes the people would revolt. Inflation provides a mechanism whereby people can be taxed without their knowledge or understanding. This currency debasement is only made possible due to the control of interest rates and the extent to which this is able to distort, obfuscate and manipulate the economy. We have allowed the State to eliminate the free market for the most important price that exists in a capitalist system: The price of money – interest rates. In so doing we consigned ourselves to a permanently sub-optimal economy.

No, we don’t have free market capitalism. Not even close. Welcome to the managed economy. Continue reading

Government Interference in Free Market Capitalism

The free market system always leads to optimal prices. The price discovery mechanism will dynamically adjust to shortages, oversupplies or any other disruptions or changes in the market. There is nothing government needs to do other than trust in the natural profit seeking behaviour of the individual and stay out of the way. Unfortunately, government can’t resist the temptation to fix a system which isn’t broken. Continue reading